Jaitley rubbishes critics, says note ban effect not adverse

December 29, 2016

New Delhi, Dec 29: Rubbishing critics, Finance Minister Arun Jaitley today said the effects of demonetisation were not as adverse as was predicted and asserted that there has been a sharp jump in tax collections and economic activity including in winter crop sowing.

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Ahead of expiry of the 50-day deadline for depositing the junked 500 and 1000 rupee notes tomorrow, he said the remonetisation process has substantially advanced, significantly without a single incident of unrest anywhere in the country.

However, talking to PTI the Finance Minister refused to hazard a guess on the GDP growth for the year or the possible impact on tax proposals in the his Budget for 2017-18 on account of increased revenue collections.
Replying to questions on when customers can see easing of curbs on cash withdrawals, Jaitley said: "That is a decision the central bank will take in consultation with everyone."

Asked about fears expressed by critics that the note ban decision will hit the economy and the GDP growth, he said, "I think one is clear, there could have been some adverse impact for a quarter or so. It doesnt appear to be as adverse as it was being predicted.

"But in the long term, you have to plan the economy in the long term, the changes in the system which are coming about will certainly mean more money in the banks, more money with the revenue and probably a much larger and cleaner GDP," he said.
To a query about whether the rising revenue collections would have any impact on taxation in the coming Budget, he said, "I think you will have to wait for that."

Asked whether the government would take a conscious decision to reduce the quantity of money in circulation in the remonetising process, the Finance Minister said: "that is a decision RBI will take and they will be certainly guided by the requirements of the market."

"But obviously one of the intentions as far as government of India is concerned is that the paper currency should shrink and a large part of businesses should be in the alternative digital or cheque mode. Considering the very large increase in digital users that have taken place we seem to be moving in the right direction," he said.

Jaitley said a large part of the Rs 15.4 lakh crore of old high denomination notes in circulation on November 8 have already been replaced and the Reserve Bank of India (RBI) has a very large amount of currency available to support any liquidity need.
"Already a large part of benefits of this historic move are visible. A lot more money has come into the banking system," he said.

While the ability of banks to support economic activity has increased, direct and indirect tax collections have gone up significantly.

Till December 19, net increase in income tax collections has been 14.4 per cent and even after accounting for large refunds, the net rise in collection is 13.6 per cent, he said.

Indirect tax collections soared 26.2 per cent between April 1 and November 30, with revenue from excise jumping 43.5 per cent, that from service tax by 25.7 per cent and customs by 5.6 per cent, he said.

Direct tax collection has jumped to Rs 5.57 lakh crore in April 1 to December 19 period when compared with Rs 4.87 lakh crore collection in the same period a year ago. This makes up for 65 per cent of the Budget estimate.

Advance tax payment till third quarter has gone up by 14 per cent as compared to a growth of 7.3 per cent in the same period of 2015-16 fiscal. TDS has seen a jump of 15 per cent as compared to 11.43 per cent last year while self assessment tax, which last year showed a growth of 6.47 per cent, has soared to 21.14 per cent.

Income tax collection has risen to Rs 2.20 lakh crore till December 19 of the current fiscal as opposed to Rs 1.82 lakh crore in the corresponding period of previous year.
On indirect tax front, revenue has jumped 26.2 per cent till November 30 with central excise showing a surge of 43.5 per cent and customs of 5.6 per cent and service tax of 25.7 per cent.

"On the November 8, the Prime Minister asked for the country to support him notwithstanding several inconveniences being suffered by people during the remonetisation period. We are extremely grateful to the people of India who have in very large measure supported the move," Jaitley said.

The remonetisation process, he said, has substantially advanced. "The RBI has very large amounts of currency available and it will continue to support the market to the extent that the market needs that kind of liquidity."

Stating that a very large part of currency in circulation on November 8 has already been replaced, he said banknotes will "continue to be replaced to the extent that market requires that currency."

"More and more notes of Rs 500 are also being released through the banking and post offices and therefore we can see a lot of currency into recirculation which is enabling the banking system and the ATMs to further augment the supply," he said.
Counting the benefits the demonetisation drive has yielded, Finance Minister said a lot more money has come into the banking system and its impact on taxation and revenue collection is already being seen.

"The ability of the banks (to lend) has now increased," he said.
Stating that the revenue figures itself are more significant, he said, "not withstanding what the critics have predicted in all the categories till November 30, there is a significant increase in indirect taxation. In the central indirect taxes. The increase is 26.2 per cent."

"On the year to year basis, the November of 2016 all the three indirect taxes collection is much high," he said, adding state governments would not see any significant change in numbers.

He said agriculture was one area thought to have been impacted by demonetisation but winter rabi crop sowing is higher by 6.3 per cent than last year.

"Now, the Rabi crop sowing higher than last year, life insurance businesses have increased by 213 per cent, international tourism has increased, air passenger traffic has increased, petroleum consumption has increased, the flow in Mutual Funds has increased by 11 per cent," he said.

"Of course, there would be areas which would be adversely impacted but what was predicted by the critics has to have rationale with the revenue collection. Assessment can be unreal but revenue is real.

And therefore, many of these indicate that now with the critical part of the remonetisation already behind us and there being significant impact in large number of these areas, it should certainly be much better in weeks and months to come than it was in last six weeks," Jaitley said.

Asked if there a conscious attempt to reduce the currency in circulation while remonetising, he said RBI will take that decision after assessing the requirements of the market.

"But obviously one of the intentions as far as government of India is concerned that the paper currency should shrink and a large part of businesses in the alternative digital or cheque mode. Considering the very large increase in digital users that have taken place, we seem to be moving in the right direction," he said.

He acknowledged that there could have been some adverse impact for a quarter or so.

"It doesn't appear to be as adverse as it was being predicted. But in the long term, you have to plan the economy in the long term, the changes in the system which are coming about will certainly mean more money with the banks, more money with the revenue and probably a much larger and cleaner GDP," he added.

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Thursday, 29 Dec 2016

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May 10,2024

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New Delhi: In a big blow to Brij Bhushan Sharan Singh, a Delhi court has ordered the framing of charges against the former Wrestling Federation of India chief in the sexual harassment allegations levelled by women wrestlers. The court has said there is sufficient evidence on record to do so, and the trial against him can now begin. 

Friday's order by the Rouse Avenue court comes days after the BJP decided not to repeat Mr Singh, who is the party MP from Uttar Pradesh's Kaiserganj, as the candidate from the constituency and decided to field his son Karan Bhushan Singh instead. 

The court has ordered the framing of charges under Indian Penal Code sections Ordered to frame charges against Brij Bhushan under sections 354 (outraging a woman's modesty), 354-A (sexual harassment) and 506 (criminal intimidation). The Delhi Police had filed a chargesheet against under these sections and one additional section - 354D (stalking) - on June 15 last year. 

Charges should also be framed against the former assistant secretary of the Federation, Vinod Tomar, under Section 506, the court said. 

Additional Chief Metropolitan Magistrate Priyanka Rajpoot said the charges will be framed against Mr Singh for sexually harassing five wrestlers and that he stands discharged in the allegations levelled by the sixth.

The six-time MP has been at the centre of a huge political storm since last year, when sexual harassment charges were levelled against him and protesters had hit the streets led by Olympic medallists Sakshee Malikkh and Bajrang Punia, as well as Commonwealth Games and Asian Games medallist Vinesh Phogat.

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May 8,2024

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Nearly 80 Air India Express flights were canceled after the cabin crew members went on a "mass sick leave", official sources said on Wednesday.

As many as 79 international and domestic flights were canceled after about 300 senior cabin crew members reported sick at the last minute and switched off their mobile phones.

The Air India Express management is currently trying to reach out to the crew, who are protesting against the new employment term at the Tata Group-owned airline, sources said.

The cabin crew has also alleged that there was a lack of equality in the treatment of the staff after the merger with Tata Group. They claim that some staff members were offered lower job position despite clearing interviews, sources said.

"A section of our cabin crew has reported sick at the last minute, starting last night, resulting in flight delays and cancellations. While we are engaging with the crew to understand the reasons behind these occurrences, our teams are actively addressing this issue to minimise any inconvenience caused to our guests as a result," an Air India Express spokesperson said.

"We sincerely apologise to our guests for this unexpected disruption and emphasise that this situation does not reflect the standard of service we strive to provide," the spokesperson added.

Guests impacted by cancellations will be offered a full refund or complimentary rescheduling to another date, the airline said.

Several passengers took to their social media accounts and complained about the sudden cancellations of their flights. They said that they had "no information" about the cancellations.

Some "very disappointed" passengers on X said that they had reached the airport when they were informed that their flights were canceled.

"We apologise for any inconvenience. Please be informed that your flight has been canceled due to operational reasons," Air India Express said in response to one of the posts on X.

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May 17,2024

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In scorching heat on a busy Kolkata street last month, commuters sought refuge inside a glass-walled bus shelter where two air conditioners churned around stifling air. Those inside were visibly sweating, dabbing at their foreheads in sauna-like temperatures that were scarcely cooler than out in the open.

Local authorities initially had plans to install as many as 300 of the cooled cabins under efforts to improve protections from a heat season that typically runs from April until the monsoon hits the subcontinent in June. There are currently only a handful in operation, and some have been stripped of their AC units, leaving any users sweltering.

“It doesn’t work,” Firhad Hakim, mayor of the city of 1.5 crore, said on a searing afternoon when temperatures topped 40C. “You feel suffocated.”

Attempts in Kolkata and across India to improve resilience to extreme heat have often been equally ill-conceived, despite a death toll estimated at more than 24,000 since 1992. Inconsistent or incomplete planning, a lack of funding, and the failure to make timely preparations to shield a population of 140 crore are leaving communities vulnerable as periods of extreme temperatures become more frequent, longer in duration and affect a wider sweep of the country.

Kolkata, with its hot, humid climate and proximity to the Bay of Bengal, is particularly vulnerable to temperature and rainfall extremes, and ranked by the Intergovernmental Panel on Climate Change as among the global locations that are most at risk.

An increase in average global temperatures of 2C could mean the city would experience the equivalent of its record 2015 heat waves every year, according to the IPCC. High humidity can compound the impacts, as it limits the human body’s ability to regulate its temperature.

Even so, the city — one of India's largest urban centres — still lacks a formal strategy to handle heat waves.

Several regions across India will see as many as 11 heat wave days this month compared to 3 in a typical year, while maximum temperatures in recent weeks have already touched 47.2C in the nation’s east, according to the Indian Meteorological Department. Those extremes come amid the Lok Sabha election during which high temperatures are being cited as among the factors for lower voter turnout.

At SSKM Hospital, one of Kolkata’s busiest, a waiting area teemed last month with people sheltering under colorful umbrellas and thronging a coin-operated water dispenser to refill empty bottles. A weary line snaked back from a government-run kiosk selling a subsidized lunch of rice, lentils, boiled potato and eggs served on foil plates.

“High temperatures can cause heat stroke, skin rashes, cramps and dehydration,” said Niladri Sarkar, professor of medicine at the hospital. “Some of these can turn fatal if not attended to on time, especially for people that have pre-existing conditions.” Extreme heat has an outsized impact on poorer residents, who are often malnourished, lack access to clean drinking water and have jobs that require outdoor work, he said.

Elsewhere in the city, tea sellers sweltered by simmering coal-fired ovens, construction workers toiled under a blistering midday sun, and voters attending rallies for the ongoing national elections draped handkerchiefs across their faces in an effort to stay cool. The state government in April advised some schools to shutter for an early summer vacation to avoid the heat.

Since 2013, states, districts and cities are estimated to have drafted more than 100 heat action plans, intended to improve their ability to mitigate the effects of extreme temperatures. The Centre set out guidelines eight years ago to accelerate adoption of the policies, and a January meeting of the National Disaster Management Authority pledged to do more to strengthen preparedness.

The absence of such planning in Kolkata has also meant a failure to intervene in trends that have made the city more susceptible.

Almost a third of the city’s green cover was lost during the decade through 2021, according to an Indian government survey. Other cities including Mumbai and Bengaluru have experienced similar issues. That’s combined with a decline in local water bodies and a construction boom to deliver an urban heat island effect, according to Saira Shah Halim, a parliamentary candidate in the Kolkata Dakshin electoral district in the city’s south. “What we’re seeing today is a result of this destruction,” she said.

Hakim, the city’s mayor, disputes the idea that Kolkata’s preparations have lagged, arguing recent extreme weather has confounded local authorities. “Such a kind of heat wave is new to us, we’re not used to it,” he said. “We’re locked with elections right now. Once the elections are over, we’ll sit with experts to work on a heat action plan.”

Local authorities are currently ensuring adequate water supplies, and have put paramedics on stand-by to handle heat-induced illnesses, Hakim said.

Focusing on crisis management, rather than on better preparedness, is at the root of the country’s failings, according to Nairwita Bandyopadhyay, a Kolkata-based climatologist and geographer. “Sadly the approach is to wait and watch until the hazard turns into a disaster,” she said.

Even cities and states that already have heat action plans have struggled to make progress in implementing recommendations, the New Delhi-based think tank Centre for Policy Research said in a report last year reviewing 37 of the documents.

Most policies don’t adequately reflect local conditions, they often lack detail on how action should be funded and typically don’t set out a source of legal authority, according to the report.

As many as 9 people have already died as a result of heat extremes this year, according to the meteorological department, though the figure is likely to significantly underestimate the actual total. That follows about 110 fatalities during severe heat waves during April and June last year, the World Meteorological Organization said last month.

Even so, the handling of extreme heat has failed to become a “political lightning rod that can stir governments into action,” said Aditya Valiathan Pillai, among authors of the CPR study and now a fellow at New Delhi-based Sustainable Futures Collaborative.

Modi's government has often moved to contain criticism of its policies, and there is also the question of unreliable data. “When deaths occur, one is not sure whether it was directly caused by heat, or whether heat exacerbated an existing condition,” Pillai said.

In 2022, health ministry data showed 33 people died as a result of heat waves, while the National Crime Records Bureau – another agency that tracks mortality statistics – reported 730 fatalities from heat stroke.

Those discrepancies raise questions about a claim by the Centre that its policies helped cut heat-related deaths from 2,040 in 2015 to 4 in 2020, after national bureaucrats took on more responsibility for disaster risk management.

Local officials in Kolkata are now examining potential solutions and considering the addition of more trees, vertical gardens on building walls and the use of porous concrete, all of which can help combat urban heat.

India’s election is also an opportunity to raise issues around poor preparations, according to Halim, a candidate for the Communist Party of India (Marxist), whose supporters carry bright red flags at campaign events scheduled for the early morning and after sundown to escape extreme temperatures.

“I’m mentioning it,” she said. “It’s become a very, very challenging campaign. The heat is just insufferable.”

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