- Prices and Inflation
- Money and Supply
- Foreign Currency Assets
- Exchange Rate Movement
- Viability Gap Funding
- DFID Assistance Projects
- Indo-German Senior Finance Officials' Meeting
- Loan Agreement
- Lines of Credit
- World Bank
- World Bank assisted Projects
- Asian Development Bank (ADB) assisted Projects
- Memorandum of Understanding (MoU)
- G-20 Meetings
- External Commercial Borrowing
- Market Borrowing and Cash position
- Supplementary Demands for Grants 2011-12
The 51th Public Private Partnership Appraisal Committee (PPPAC) meeting, chaired by Secretary (Economic Affairs), was held on March 9, 2012. The PPPAC granted approval to seven proposals of Ministry of Road Transport and Highways. The estimated project cost of the approved projects is ` 9153.17 crore. Since its constitution in January 2006, the PPPAC has granted approval to 284 proposals with TPC ` 273123.11 crore. These include National Highways (226 proposals), Ports (23 proposals), Airports (2 proposals), Tourism Infrastructure (1 proposal), Railways (1 proposal), Housing (27 proposals) and Sports Stadia (5 proposals).
In pursuance of the decision of the Cabinet Committee on Infrastructure taken in its meeting held on1.3.2012, on the identification of the harmonised list of infrastructure subsectors a Gazette Notification has been brought out on March 28, 2012, which notifies the harmonised master list of infrastructure sub-sectors. An institutional mechanism to update the harmonised master list of infrastructure has also been constituted through the notification as per the decision of the CCI.
Prices and Inflation
The annual rate of inflation in terms of Wholesale Price Index (WPI) on a point-to-point basis in February, 2012 was 6.95 per cent compared to 9.54 per cent recorded a year ago.
The WPI food inflation (wt. 24.31%) for February, 2012 was 5.94 per cent as compared to 6.77 per cent in February, 2011.
The annual rate of inflation in terms of Consumer Price Index for Industrial Workers (CPI-IW) on a point-to-point basis in February 2012 was 7.57 per cent compared to 8.82 per cent recorded a year ago.
Annual rate of inflation in terms of Consumer Price Indices for Agricultural and Rural labourers was 6.34 per cent and 6.68 per cent respectively in February, 2012 as compared to 8.55 per cent for both in February, 2011.
Money and Supply
The year-on-year growth of Broad Money (M3) as on March 23, 2012 was 13 per cent as compared to 16.1 per cent on the corresponding date of the previous year.
Bank credit extended by Scheduled Commercial Banks (SCBs), as on March 23, 2012 recorded an increase of 17 per cent on year-on-year basis, as compared to an increase of 21.5 per cent on the corresponding date of the previous year.
Non-food credit as on March 23, 2012, registered an increase of 16.9 per cent as compared to the level on March 25, 2011.
The aggregate deposits of SCBs, as on March 23, 2012 recorded an increase of 13.4 per cent on year-on-year basis, compared to 15.9 per cent recorded on the corresponding date of the previous year.
Foreign Currency Assets
India's foreign currency assets at the end of March, 2012, amounted to US $ 260.7 billion. This shows a decrease of US $ 13.9 billion over the level of US $ 274.6 billion at the end of March 2011.
Exchange Rate Movement
During the fiscal year (2011-12), the monthly average exchange rate of rupee was ` 50.32 per US $ in March, 2012, indicating a depreciation of 2.3 per cent over the ` 49.17 per US $ in February, 2012.
Viability Gap Funding
During the financial year 2011-12, a budget provision of ` 300 crore was made for as Viability Gap Funding (VGF) under the Scheme for Financial Support to PPPs in Infrastructure and the entire amount of ` 300 crore has been disbursed.
A budget provision of ` 7 crore was made during financial year 2011-12 a project development support under India Infrastructure Project Development Fund (IIPDF) and the entire amount of ` 7 crore has been disbursed.
DFID Assistance Projects
The following DFID Assistance Projects were signed in March, 2012.
|S.No||Name of Project||State where implemented||Amount of DFID assistance in £ million(र crores)||Date of Signing/Closing|
|i)||Support to Odisha Health and Nutrition Programme||Odisha||Financial Assistance 40 (320)
Technical Assistance 09.50
Total: 49.50 million
|02.03.2012 / 31.03.2015|
|ii)||Odisha Modernising Economy Governance & Admn, (OMEGA)||Odisha||Financial Assistance 08(64)
Technical Assistance 11
Total: 19 million
|05.03.2012 / 31.03.2016|
|iii)||Strengthening Performance Management in Government (SPMG-II)||Madhya Pradesh||Financial Assistance 13 (900)
Technical Assistance 01
Total: 14 million
|05.03.2012 / 31.03.2015|
|iv)||Support to MP Health and Nutrition Programme||Madhya Pradesh||Financial Assistance 60 (480)
Total: 60 million
|12.03.2012 / 31.03.2015|
|Total Grant||142.50 (FA) + (TA)|
Indo-German Senior Finance Officials' Meeting
The 11th Indo-German Senior Finance Officials' meeting was held in Delhi on March 20, 2012. The meeting was co-chaired by Joint Secretary (Bilateral Cooperation) and Mr. Wilfried Steinheuer, Deputy Director General (International Cooperation), German Ministry of Finance. The issues discussed during the meeting were (i) Global Economy (ii) Economic situation in India and Germany/Eurozone (iii) European Financial Stability Facility (EFSF)/European Stability Mechanism (ESM) - Measures to tackle the sovereign debt crisis in the Euro area (iv) Present Status of FDI policy in India (Insurance, Banking) (v) Local Currency Bond Markets - LCBM in India, LCBM in G-20 context and (vi) G-20 Framework for Growth - Future Agenda, Accountability and Peer Review, topics for German-Indian Cooperation.
The agreements for the following projects were signed during the month.
- Environmentally-friendly Urban Development through NCRPB: The Loan Agreement for € 100 million was signed between KfW, German Development Bank and the National Capital Region Planning Board (NCRPB) on February 09, 2012 for the project on "Environmentally-friendly Urban Development" which aims at providing financial support to NCRPB for financing sub-projects on infrastructure development. KfW is also providing a grant assistance of € 1 million to NCRPB to support funding of expert services and costs for related goods and services. The Financing Agreement in this regard was signed between KfW and NCRPB on March 30, 2012. Government of India is providing sovereign guarantee for the financial assistance from KfW to NCRPB.
- >Clean Energy for Rural Development (REC-III): The Government of Germany is providing a financial assistance of € 100.5 million to REC for financing projects in the field of renewable energy primarily in rural areas and energy efficiency. The assistance includes € 100 million as loan and € 0.5 million as grant. The agreements in this regard were signed between KfW, German Development Bank and the Rural Electrification Corporation Limited (REC) on March 30, 2012. Government of India is providing sovereign guarantee for the financial assistance from KfW to REC.
Lines of Credit
Under the Indian Development Economic Assistance Schemes (IDEAS) which aims at promoting India's strategic and economic interests abroad, during the month of March, 2012, Government of India supported extension of Exim Bank of India Lines of Credit (LoCs) totaling US $ 271.505 million to the Governments of Malawi (US $ 76.5 million), Tanzania (US $ 178.125 million) and Gambia (US $ 16.88 million).
Mr. Robert B. Zoellick, President, World Bank Group visited India during March 25-31, 2012. During the visit, Mr. Zoellick met Hon'ble Finance Ministet, Home Minister, the Deputy Chairman of the Planning Commission, Minister of Rural Development, Minister of Urban Development and the Principal Secretary to the Prime Minister. In New Delhi, Mr Zoellick took part in four round table discussions - with Economists, on strengthening India's National Markets, on the Role of India in the region and on Wild Tiger and Biodiversity Conservation. During this visit, Mr. Zoellick travelled to Odisha on March 27, 2012, met the Chief Minister, and undertook a site visit to the World Bank assisted Integrated Coastal Management Project. Thereafter, he went to Chennai to visit the World Bank's Chennai Satellite Accounting Centre.
World Bank assisted Projects
The following World Bank Projects were signed/approved during the month.
- Uttar Pradesh Health Systems Strengthening Project (UPHSSP) was signed with the World Bank for an IDA credit of US $ 152 million on March 21, 2012 at New Delhi.
- World Bank Board has approved IDA credit of US $ 50 million for Additional Financing for Assam Agricultural Competitiveness Project on March 8, 2012.
- World Bank Board has approved IBRD loan of US $ 320 million for Assam State Roads Project on March 13, 2012.
Asian Development Bank (ADB) assisted Projects
The following ADB Projects were signed during the month.
- Urban Infrastructure Investment Program-Project-1 for US $ 81 million has been signed on March 9, 2012.
- Second India Infrastructure Project Financing Facility-Project 3 for US $ 240 million has been signed on March 21, 2012.
- National Power Grid Improvement Project for US $ 500 million has been signed on March 30, 2012.
- National Power Grid Development Investment Program - Project 3 for US $ 76 million has been signed on March 30, 2012.
Memorandum of Understanding (MoU)
MoU between Ministry of Finance and SPMCIL for the year 2012-13 was signed on March 23, 2012.
G-20 Framework Working Group Meeting was held on 12-13 March, 2012 in Paris, France. Dr. Alok Sheel, Joint Secretary (MR) and Shri C. Vanlalramsanga, Deputy Secretary (MR-II) from DEA attended the meeting.
G-20 Sherpa's Meeting was held on 15-16 March, 2012 in Mexico City, Mexico. Dr. Alok Sheel, Joint Secretary (MR) and Dr. Usha Titus, Director (MR) from DEA attended the meeting.
External Commercial Borrowing
The following proposals pertaining to ECB liberalization and QFIs were announced in the Budget Speech of 2012-13.
- Allowing Qualified Foreign Investors (QFIs) to access Indian Corporate Bond market.
- Permitting External Commercial Borrowings (ECB) to part finance Rupee debt of existing power projects.
- Allowing ECB for capital expenditure on the maintenance and operations of toll systems for roads and highways so long as they are a part of the original project.
- Permitting ECB for working capital requirements of the airline industry for a period of one year, subject to a total ceiling of US Dollar 1 billion.
- Allowing ECBs for low cost affordable housing projects.
- Reduction in the rate of withholding tax on interest payments on external commercial borrowings from 20 per cent to 5 per cent for three years for the following sectors power, airlines, roads and bridges, ports and shipyards, affordable housing, fertilizer and dams.
Market Borrowing and Cash position
As per the Market Borrowing Programme for the second half of 2011-12 finalized in the meeting of Monitoring Group on Cash and Debt Management in September 2011, the total gross borrowing was fixed at ` 2,20,000 crore for the market borrowing through dated securities for the second half (i.e. October 2011-March 2012). However, this was revised in the 53rd meeting of Monitoring Group on Cash and Debt Management in December 2011 and total gross borrowing was fixed at ` 2,60,000 crore for the market borrowing through dated securities for the second half of 2011-12. Government of India raised the market loans/securities aggregating ` 12,000/- crore during March 2012 under its Market Borrowing Programme.
In the year 2011-12, gross market borrowings of nominal value of ` 5,10,000 crore were raised through dated securities on weighted average yield of 8.52% and maturity of 12.66 years
Supplementary Demands for Grants 2011-12
The Third Batch of Supplementary Demands for Grants 2011-12 (March, 2012) was laid in Parliament in the month of March, 2012. This supplementary demands for grants included a cash outgo of ` 42,605.78 crore, technical supplementary of ` 3,87,621.79 crore and token provision for enabling re-appropriation of savings including items of new service/new instruments of service of ` 1.07 crore. The connected Appropriation Bill 2012 was taken up for discussion and voting and passed by Parliament and assented to by the President of India on March 29, 2012 and the Act has been published in the Gazette of India (Extra-Ordinary) Part-II, Section I dated March 29, 2012 as Act No.18 of 2012.
The regularization of Demands for Excess Grants relating to 2009-10 was laid in Parliament in the month of March, 2012 for ` 12652.24 crore which was incurred in seven Demands. The connected Appropriation Bill 2012 was passed by Parliament and assented to by the President of India on March 29, 2012 and the Act has been published in the Gazette of India (Extra-Ordinary) Part-II, Section I dated March 29, 2012 as Act No.19 of 2012.
The Union Budget 2012-13 has been presented by the Hon'ble Finance Minister in the Lok Sabha on March 16, 2012. "Vote On Account" for 2012-13 for two months from April, 2012 to May, 2012 has been passed by the Parliament. The connected Appropriation (Vote On Account) Bill, 2012 has also been passed by the Parliament. The same has been assented to by the President of India on March 29, 2012 and the Act has been published in the Gazette of India Extraordinary, Part II, Section I, dated March 29, 2012 as Act No. 17 of 2012.