TRACKPAD

Due to weak global demand and huge fluctuations in the global currency Indian exports during December 2015 declined by 14.75% in dollar terms to reach $ 22297.48 million or Rs. 148491.18 crore on a year on year basis.  During December 2014, exports were at the level of $ 26154.46 million or Rs. 164127.08 crore. This is 13th months of straight drop in the exports showing quite a grim situation. On cumulative basis between April-December 2015-16 exports remained at $ 196603.94 million as against $ 239928.91 million earned during same period last year, a drop of 18.06 per cent. In terms of non-petroleum exports, value remained at $ 19931.91 million against US$ 21631.89 million of exports in December 2014, a reduction of 7.86% while government asserted that this decline in the trend of falling exports is in tandem with other major world economies as growth in exports have also fallen for the USA, European Union, China.

On the other hand, bad news arrived from the Indian import front as imports jumped in December 2015 by 3.88% in dollar terms to touch $ 33961.48 million as against $ 35333.27 million in December 2014. That was mainly due to spurt in non-oil imports during December 2015 that jumped by 7.63% to reach $ 27304.74 million. On the cumulative basis, though, imports between April-December 2015 declined by 15.87% in dollar terms to reach $ 295811.69 million as against the level of $ 351613.95 million for the same period last year. On the trade deficit front, during April-December 2015 deficit remained at $ 99207.75 million as against deficit of $ 111685.04 million during April-December 2014 but on monthly basis trade deficit widened in December.

Finance ministry has issued new Indian Accounting Standards for scheduled commercial banks (excluding RRBs), insurers/insurance companies and Non-Banking Financial Companies (NBFC’s). These accounting standards have been drawn in consultations with RBI, PFRDA and IRDA and will be applicable to whole of the financial sector. Importantly this was announced by finance minister in his last year budget and these will be converged with International Financial Reporting Standards (IFRS) and now notification in this concern will be announced soon. Also holding, subsidiary, joint venture or associate companies of scheduled commercial banks would be required to prepare AS based financial statements. While NBFCs will also be required to prepare based financial statements but in a phased manner and in the first phase NBFCs having net worth more than Rs 500 crore or more would be required to prepare AS based financial statements, interestingly Urban Cooperative Banks (UCBs) and Regional Rural Banks (RRBs) shall not be required to apply Ind AS and shall continue to comply with the existing Accounting Standards, for the present.

REC’s subsidiary handover SPVs to Kalpataru Power Transmission

Power major Rural Electrification Corporation’s (REC) subsidiary REC Transmission Projects Company has handed Alipurduar Transmission Limited, a project specific Special Purpose Vehicles (SPV) to successful bidder Kalpataru Power Transmission. Kalpataru quoted lowest levellised tariff of Rs. 1294.24 million per annum for “Transmission System Strengthening in Indian System for transfer of power from new HEPs in Bhutan”. This transmission Project involves establishment of Alipurduar - Siliguri 400 kV D/C line (2nd) with Quad moose conductor, Kishanganj - Darbhanga 400kV D/C line with Quad moose conductor, 400 kV line bays at Darbhanga: 2 nos., 80 MVAR switchable line reactors (400 Ohm NGR) in each circuit at Darbhanga end of Kishanganj - Darbhanga 400kV D/C (quad) line.