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.