The All-India CPI-IW for April, 2019 increased by 3 points and pegged at 312 (three hundred and twelve). On 1-month percentage change, it increased by (+) 0.97 per cent between March, 2019 and April, 2019 when compared with the increase of (+) 0.35 per cent between the corresponding months of previous year.

The maximum upward pressure in current index came from Food group contributing (+) 2.26 percentage points to the total change. At item level, Arhar Dal, Fish Fresh, Goat Meat, Poultry (Chicken), Fresh Milk, Chillies Green, Garlic, Ginger, Onion, Apple, Banana, Lemon, Brinjal, Cabbage, Carrot, Cauliflower, French Bean, Green Coriander Leaves, Lady's Finger, Methi, Palak, Peas, Potato, Radish, Tomato, Torai, Electricity Charges, Ornament Glass, etc. are responsible for the increase in index. However, this increase was checked by Eggs (Hen), Tamarind, Bitter Gourd, Parval, Cucumber, Kharbooza, Mango (Ripe), Flowers/ Flower Garlands, etc., putting downward pressure on the index.

The year-on-year inflation based on CPI-IW stood at 8.33 per cent for April, 2019 as compared to 7.67 per cent for the previous month and 3.97 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at (+) 4.92 per cent against (+) 3.96 per cent of the previous month and (+) 1.33 per cent during the corresponding month of the previous year.

At centre level Rourkela, Howrah and Siliguri reported the maximum increase of 7 points each followed by Mysore, Munger-Jamalpur and Varanasi (6 points each). Among others, 5 points increase was observed in 8 centres, 4 points in 8 centres, 3 points in 15 centres, 2 points in 23 centres and 1 point in 10 centres. Rest of the 8 centres' indices remained stationary.

The indices of 35 centres are above All-India Index and 43 centres' indices are below national average.

RBI publishes vision document on Payment and Settlement Systems in India The Reserve Bank of India has published the “Payment and Settlement Systems in India: Vision 2019-2021” document. The Payment Systems Vision 2021 aims at empowering every Indian with access to a bouquet of e-payment options that are safe, secure, convenient, quick and affordable.[15]

The vision document aims to: (i) enhance the experience of customers, (ii) empower digital payment system operators and service providers, (iii) enable the digital payment eco-system and infrastructure, and (iv) put in place a forward-looking regulation.

To achieve the above, the vision document envisages the four goal-posts of competition, cost, convenience and confidence and identifies specific initiatives for each goal-post. For instance, the vision document aims to conduct customer awareness surveys to improve convenience for the customers.

The document also identifies 12 specific outcomes such as: (i) achieving 35% increase in use of digital payment for purchase of goods and services by 2021 and (ii) decrease in technical declines across payment systems by 10%.

The vision document also aims to reduce the cash in circulation as a percentage of GDP through enhanced availability of point of sales infrastructure in the country.

The RBI had constituted a High-Level Committee on Deepening of Digital Payments in January 2019.[16] The Committee has submitted its report in May 2019. [17] The RBI will examine the recommendations of the Committee and include the action points from the report in the Vision document, wherever necessary.

Working group submits its report on Foreign Portfolio Investors regulations A Working Group has submitted its recommendations on the Foreign Portfolio Investor (FPI) regulations. The working group was constituted by SEBI to review the Foreign Portfolio Investors (FPI) Regulations, 2014.[18] The Working Group aimed to: (i) consolidate existing circulars and operating guidelines into the FPI regulations, (ii) simplify and rationalise the existing guidelines, and (iii) liberalise in order to improve ease of doing business for FPIs.

Key recommendations of the Group include: Investment Restrictions: Currently, FPIs are allowed to collectively invest up to 24% in a listed Indian company. Indian companies are allowed to increase this limit up to the sectoral cap/ statutory ceiling in their sector as per the Foreign Exchange Management Act, with the approval of Board of Directors.

The working group recommended setting the default investment limit to the sectoral cap and allowing companies to reduce this limit by way of a Board Resolution.

KYC and simplification of documentation: The working group recommended simplifying the certification and verification process for ‘Know your Customer’ (KYC). For example, currently FPIs are required to submit self-certified supporting documentation for KYC. It also recommended making self-certification of supporting documents optional.

FPI registration process: The working group recommended a fast-track registration process for a set of investors such as pension funds. Public comments on the report are invited till June 14, 2019.

Term of the task force set up to draft new direct tax law extended by two months Suyash Tiwari ([email protected]) The Ministry of Finance has extended the term of the task force set up to draft a new direct tax law by a period of two months.[19] The task force was constituted in November 2017 to review the Income Tax Act, 1961 and draft a new direct tax law keeping in view: (i) direct tax system prevalent in various countries, (ii) international best practices, (iii) economic needs of India, and (iv) any other connected matters.

The task force was required to submit its report by May 31, 2019. This has now been extended to July 31, 2019.

Ministry introduces scheme for self-certification of defence products The Ministry of Defence introduced a scheme to allow for self-certification of defence products manufactured by Defence Public Sector Undertakings and private vendors.[20] Self-certification implies that the responsibility of certifying the quality of the product will be that of the vendor.

At present, defence products are subject to quality assurance carried out by the Directorate General of Quality Assurance (which is under the Department of Defence Production). According to the Ministry, the objective of the scheme is to encourage vendors to assume direct responsibility to sustain and improve the quality of products.

Vendors that are seeking self-certification status are required to apply to either the Directorate General of Quality Assurance or an authority in the Service Headquarters. Self-certification status will be granted by the Directorate General of Quality Assurance, based on an assessment of the quality management system put in place by the vendor, and other parameters. This status will be awarded for a period of three years. Self-certification status may be revoked in case any deficiencies in quality and reliability of the product are observed by the user. Further, it may be revoked by the Directorate General of Quality Assurance if the quality of the product is not satisfactory at any time.

Changes to scholarship scheme under the National Defence Fund approved The Prime Minister approved certain changes to the Prime Minister’s Scholarship Scheme under the National Defence Fund.[21] The National Defence Fund was set up to utilise the donations received for the promotion of national defence. The Prime Minister’s Scholarship Scheme is a scheme being implemented under the National Defence Fund. It seeks to encourage technical and post-graduate education for widows and children of deceased/ex-service personnel of the Armed Forces, Paramilitary Forces, and Railway Protection Force.

The rates of scholarship have been increased from Rs 2,000 per month to Rs 2,500 per month for boys, and from Rs 2,250 per month to Rs 3,000 per month for girls. Further, the ambit of the scheme has been extended to include the children of state police officials who were killed during naxal or terror attacks. For the children of state police officials, 500 scholarships will be awarded per year. The Ministry of Home Affairs will be the nodal ministry for such cases.

Ministry notifies guidelines for sale of biodiesel for blending with diesel The Ministry of Petroleum and Natural Gas has notified guidelines for sale of biodiesel for blending with diesel for transportation.[22]

Biodiesel is produced from non-edible vegetable oils, acid oil, used cooking oil or animal fat and serves as an alternative fuel. Blending ethanol with petrol helps reduce vehicle exhaust emissions and reduces the import burden for petroleum. The National Policy on Biofuels, 2018 has set a target of achieving 5% blending of biodiesel in diesel by 2030 to promote the use of alternative and environmental friendly fuels.[23]

The guidelines notified by the Ministry include: Permission for retail sale of biodiesel will be granted exclusively for sale of biodiesel only (B-100) and not for any mixture of whatever percentage. Biodiesel permitted for sale should be indigenously produced and not imported. Separate boards in multiple languages should be prominently displayed at the biodiesel retail outlet displaying the percentage of Biodiesel allowed to be blended with diesel. Board should also display clear warning that usage of biodiesel with percentage exceeding the prescribed percentage can cause damage to the engine.

A registration system for biodiesel manufactures, suppliers and sellers will be devised at the state level. State Government authorities shall have the power to carry out regular inspections of the retail outlets selling biodiesel.

High Level Committee recommends strategy to reduce import dependency The High-Level Committee constituted by the government to examine issues relating to the Petroleum and Natural Gas sector submitted its report to the Ministry.[24] The Committee examined the preparation of action plan to create synergy among research and development centres of oil and gas public sector undertakings (PSUs), tax issues, and ways to benefit from GST by the oil and gas PSUs.

The Committee in their report recommended short term, medium term and long term strategies to reduce the import dependency of the nation. The report submitted by the Committee has not yet been released in public domain.

Merger of CSO and NSSO into National Statistics Office approved The Ministry of Statistics and Programme Implementation approved merging of the Central Statistics Office (CSO) and National Sample Survey Office (NSSO) into a single statistics wing, which will be known as the National Statistical Office (NSO).[25]

The NSO would be headed by the Secretary, Ministry of Statistics and Programme Implementation. A committee will be constituted to recommend the operational steps required for the merger. Note that a proposal to create the NSO by merging the NSSO and CSO had been made earlier in July 2005.[26]

Currently, the CSO, an attached office of the Ministry, coordinates statistical activities in the country and evolves statistical standards.[27] The NSSO, a subordinate office (field agency) under the Ministry, conducts large scale sample surveys across diverse fields on an all India basis, and publishes the results.[28]

Connecting old solar off-grid plants to the grid approved The Ministry of New and Renewable Energy approved connecting the old solar off-grid power plants to the grid.[29] The connections will be made in areas where reliable grid supply is now available with provision for net-metering. Net metering is a billing mechanism that credits solar energy system (or plant) owners for the electricity they add to the grid.

The connections will be subject to applicable regulatory provisions. Further, the cost of such connections will be borne by the respective state government or beneficiary departments.