Weekly News Roundup at 10:00 am on 11th February 2024

Let’s begin with the top news that made headlines this week. The Uttar Pradesh government has unveiled plans to transform 17 major cities of the state into solar cities including revered cities of Ayodhya and Varanasi. The development of solar cities will take place first and then the government will work towards building solar villages on the same pattern. The administration has already started its efforts to establish Ayodhya as the inaugural solar city. “Progress in this endeavor is well underway, with significant strides witnessed in the installation of solar infrastructure. Concurrently, preparations are underway to inaugurate a large-scale solar plant in Varanasi, further cementing Uttar Pradesh’s status as a frontrunner in the solar energy sector,” an official statement stated.

Moving forward – The Reserve Bank of India on Thursday kept the repo rate unchanged for the sixth time in a row, banks may further increase their short-term fixed deposit rates to attract more money, as the loan growth has been robust and liquidity remains tight. Experts say there will be a clamour for short-term deposits, with the one-year rates nudging higher and longer-term rates possibly staying flat. Banks are increasingly focusing on mobilising retail deposits to meet their credit growth requirements, with several lenders raising rates even for deposits ranging from 200 to 300 days. Four banks ―Axis Bank, Punjab National Bank, HDFC Bank, and IndusInd Bank – have increased their short-term fixed deposit rates this month.

Up next – The Parliamentary Standing Committee on communications and information technology has expressed concern over a significant increase in television channel pricing by broadcasters and recommended more freedom of choice to consumers for selecting individual TV channels. In its 56th report on the regulation of cable television in India, the committee said that the central concern within the purview of cable TV regulations pertains to prevalent practice of broadcasters implementing substantial discounts in pricing channel bouquets. Besides, pricing of a-la-carte channels, which are outside of the bouquet, continue to see increase in prices by broadcasters, the committee said. The observations have come after the implementation of the new tariff order, which came into effect from February 1, 2023

The government on Wednesday informed that the number of Vande Bharat trains has been boosted to 82, with efforts underway to enhance their speed to 160 kilometres per hour on the New Delhi-Mumbai and New Delhi-Howrah routes. Railway Minister Ashwini Vaishnaw, in a written response to queries from 10 MPs in the Lok Sabha regarding Vande Bharat train services, stated, “As of January 31, 2024, there are 82 Vande Bharat train services operational throughout the Indian Railways, linking states with a Broad Gauge electrified network. He further mentioned, “Additionally, the provision for halting train services and the introduction of new train services, including Vande Bharat, are continual processes on the Indian Railways, contingent upon traffic demand, resource availability, etc.”

Meanwhile, Railway stocks, including Rail Vikas Nigam Ltd, Ircon International Ltd, Indian Railway Finance Corporation Ltd, Titagarh Rail Systems Ltd, and Texmaco Rail & Engineering Ltd, are expected to experience significant gains following the recent Budget 2024 announcements made by Union Finance Minister Nirmala Sitharaman. During her interim budget presentation on February 1, Sitharaman unveiled plans to convert approximately 40,000 rail bogies to Vande Bharat standards, signaling potential benefits for the mentioned railway companies. A substantial capital expenditure of Rs 2.55 lakh crore has been allocated for the Indian Railways in the new financial year. The Finance Minister highlighted the conversion of 40,000 normal rail bogies to Vande Bharat standards as a measure to enhance passenger comfort, convenience, and safety.

Moving on, Sonalika Tractors, which is one of the leading tractor manufacturers in the country has launched its newest range of ‘Tiger’ advanced heavy-duty tractors in the 40 – 75 HP segment. It has unveiled 10 new products, which it says have been ‘designed in Europe’ with 5 new engines options including widest range of 5 different multi-speed transmissions to handle different operations and 3 different advanced & intelligent 5G hydraulics giving a choice of over 140 auto settings. The company says the perfect combination of heavy-duty engines will deliver the most optimum performance for farmers as it also offers zero RPM drop resulting in the best-in-class fuel efficiency.

Lastly, The corporate income tax collections for the upcoming fiscal year FY25 might fall below the projected 13% outlined in the interim Budget, as government’s priority is on expediting the resolution of appeals and issuing refunds, a senior official told FE. “We may not achieve the 13% growth in corporate tax collections in FY25, as our focus is on bigger appeals. We want the bigger appeals to be decided fast, and issue refunds, wherever required,” the official said, asking not to be idenitified. “From this year, appeals have picked up.” According to reports, the count of appeals pending with the income tax department as of March 31, 2023, rose to 516,000 from 496,000 as of March 31, 2022.