Budget 2017 - FIPB gone; Bill to curb illicit deposit to be tabled; Rs 10K crore for bank recapitalisation sanctioned
Published: Feb 01, 2017
By TIOLCORP News Service
NEW DELHI, FEB 01, 2017: IN the Budget Speech the Union Finance Minister, Mr Arun Jaitley, has announced the abolition of the FIPB which has been in place for decades for filtering FDI proposals. With emphasis being shifted on automatic approval mode the Government felt that there was no need to continue with such a bottleneck. Incidentially, FIPB has also been a powerful body to create lobbying business in the economy.
The FM also announced the constitution of an expert panel to study and promote creation of an operational and legal framework to integrate spot market and derivatives market in the agricultural sector, for commodities trading. e- NAM to be an integral part of the framework.
Turning his focus on illicit deposit the FM also announced that the Govt will table a Bill to curtain the menance of illicit deposit schemes. A bill relating to resolution of financial firms will be introduced in the current Budget Session of Parliament. This will contribute to stability and resilience of our financial system.
The Minister also said that a mechanism to streamline institutional arrangements for resolution of disputes in infrastructure related construction contracts, PPP and public utility contracts will be introduced as an amendment to the Arbitration and Conciliation Act 1996.
In his Speech Mr Jaitley also said that the Govt will put in place a revised mechanism and procedure to ensure time bound listing of identified CPSEs on stock exchanges. The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock exchanges.
Some of his other key announcements are:
++ to create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies
++ A new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18
++ In line with the ‘Indradhanush’ roadmap, Rs 10,000 crores for recapitalisation of Banks provided in 2017-18
++ Lending target under Pradhan Mantri Mudra Yojana to be set at Rs.2.44 lakh crores. Priority will be given to Dalits, Tribals, Backward Classes and Women.
