Energy Imports Will Rise To 84% In 2047 If Policy Not Changed: Planning Commission

India will have to import 84.4% of its energy demand in 2047 against 36% as of now, if the government and industry maintain a status quo on the policy and technology front across six major energy-consuming sectors in the country, the Planning Commission has warned.

India is the fifth-largest energy consumer in the world today, importing in excess of $100 billion worth of fuel per annum. However, the country's import dependence can be significantly brought down to 21% over the next 33 years if India achieves the highest level of production of coal, oil and gas as well as reduces its dependence on fossil fuel by moving to renewable energy sources, the commission says in its mediumterm projections for energy scenarios in the country.

The commission has pegged India's energy demand in 2047 at 23,679 TWh in the least-effort scenario and this is estimated to come down by nearly 40% to 14,732 TWh if there is greater usage of alternate fuels in the country.

"The energy scenarios projected for 2047 call for urgent action to ensure that we do not end up importing huge quantities of fuel as this would significantly impact India's current account deficit and put a question mark on the country's energy security," a senior Planning Commission official told ET.

According to the official, the projections made by the Planning Commission for India's energy demand and supply under four levels also suggest that going forward India's availability of oil and gas will shift in favour of gas, which is likely to constitute 60% of the total production against 40% now. "This would mean that the policies and efforts of the government as well as industry will have to be directed towards higher usage of CNG-run or electric vehicles if the transport sector continues to grow," the official quoted above said.

Planning Commission deputy chairman Montek Singh Ahluwalia will officially launch the Indian Energy Security Scenarios 2047 Tool on Friday.

Source:- economictimes.indiatimes.com

Coal Imports To Rise Just 3.4% In Fy14

In 2012-13, India’s burgeoning coal imports was among the finance ministry’s key concerns. This financial year, imports were seen rising at a worrisome 40%, owing to a domestic shortage, further increasing the country’s current account deficit (CAD). But 10 months into the current financial year, it appears the fears were grossly exaggerated.

Belying expectations, India’s coal imports rose a mere 16% to 131 million tonnes (mt) between April 2013 and January 2014. For the entire financial year, imports are likely to grow a subdued 3.4% to 150 mt, a stark contrast to the 42% growth registered in 2012-13.

The sharp drop in coal imports is due to rupee’s depreciation, as well as a slump in demand. These two factors offset the impact of depressed global prices.

While the 16% rise in imports in the April-January period led to a total foreign exchange outgo of Rs 56,588 crore, 27% more than Rs 44,539 crore in the year-ago period, this was lower than initial expectations. The calculation of the value of imports is based on an average price of Rs 4,300 a tonne (5,500 kilocalorie Indonesian coal, landed at the Visakhapatnam Port) this financial year, 8.9% more than Rs 3,945 a tonne in 2012-13.

“Last year, the rupee had touched 65/dollar. Since then, the rate has stabilised to about 62, which is still high for imports to pour in. The impact was already visible, as January 2014 imports stood at just 9.16 mt, a 33% fall year-on-year. For 2013, imports were just shy of 158 mt, 11% higher than in the previous year,” said Kalpit Dubey, analyst at commodities research firm OreTeam.

He added the lower growth in imports might not have any significant impact on the CAD, as this continued to be dominated by oil shipments. “India’s CAD is overburdened by crude oil imports; coal accounts for less than two% of the total imports, in terms of dollars.”

Last financial year, coal production in India rose a sluggish 3.3% to 557 mt, owing to delayed environmental clearances for new mines and the failure of captive miners to boost output. The supply gap had to be bridged by a 42% rise in imports at 145 mt.

From 73 mt in 2009, coal imports have almost doubled, leading to foreign exchange outgo of Rs 2,44,000 crore since then. However, due to a fall in imports, analysts expect imports this financial year to be just 3.4% more than 145 mt in 2012-13.

Coal is among the top five items in India’s import bill of about $415 billion a year. A weak rupee raises the bill, leading to higher inflation and a wider current account deficit. This strains the country’s foreign reserves and further strains growth in gross domestic product, which fell to a decade-low of 5% last financial year.

Source:- business-standard.com

Dollar Remains Flat Vs Rupee

The dollar remained flat against the rupee in the interbank market, dealers said on Thursday. It started the day’s trading at Rs 104.70 for buying and closed at Rs 104.70 for buying as compared to the previous trading session and Rs 104.90 for selling.

The euro shed strength against rupee as it started the day’s trading at Rs 143.87 for buying, fell Rs 56 paisas as compared to previous trading session and closed at Rs 143.31 for buying and Rs 143.59 for selling. The pound sterling weakened against the local currency as it initiated the day’s trading at Rs 174.60 for buying, decreased 3 paisas and closed at Rs 174.57 for buying and Rs 174.91 for selling.

Open market: The dollar dropped against the rupee, dealers said. It started the day’s trading at Rs 105.65 for buying, slumped 5 paisas and closed at Rs 105.60 for buying and Rs 105.85 for selling. The euro shed 75 paisas against the rupee as it started the day’s trading at Rs 144.50 for buying and closed at the rupee 144.25 for buying as compared to the previous trading session and Rs 144.50 for selling. The pound shed 50 paisas against the rupee as it started the day’s trading at Rs 176 for buying, declined 50 paisas and closed at Rs 175.50 for buying and Rs 175.75 for selling.

Source:-dailytimes.com.pk

Notification No. 91/2008 clarifying expression 'may be taxed' in context of DTAA shall have retro ef

IT/ILT: In pursuance of power conferred by sub-section (3) of section 90 with effect from 1-4-2004, Notification No. 91/2008 dated 28-8-2008 issued by Central Government clarifying phrase 'may be taxed' in context of DTAAs, is clarificatory in nature and, thus, it will have retrospective effect from assessment year 2004-05

Adda fees for bus parking is statutory fees, not liable to ST under business support services

Service Tax : Adda fees collected for bus parking is collected as a statutory fees and is not liable to service tax under Business Support Services; furthermore, land used for parking stands specifically excluded from 'renting of immovable property' services

SC raps HC for setting aside auction and depriving purchaser of legitimate purchased property at pub

Banking Laws: Where auction purchaser was a bona fide purchaser who had purchased property in furtherance of a duly publicized public auction, interference by High Court was uncalled for

RBI seeks to revive distressed assets; releases guidelines on refinancing of project loans and sale

BANKING : Framework for Revitalising Distressed Assets in The Economy - Refinancing of Project Loans, Sale of NPA and Other Regulatory Measures

RBI issues guidelines on formation of ‘joint lenders forum’ and adoption of corrective action plan

BANKING : Framework for Revitalising Distressed Assets in The Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)

HC slams AO for referring matter to Valuation Officer even when high market rate of land was taken b

IT : To make reference under section 55A, Assessing Officer has to form an opinion that value claimed by assessee is less than fair market value

Delay in filing appeal due to lack of knowledge of impugned order is condonable, rules HC

CST & VAT : Where there was some serious confusion with regard to date of hearing fixed before Assessing Authority, which resulted in non-appearance of assessee and order passed by Assessing Authority was not immediately known to assessee, consequent delay in filing appeal further aggravated by assessee's illness is condonable

New auditor was not guilty of misconduct if ex-auditor couldn't prove outstanding undisputed audit f

CA Act : Where complainant CA failed to produce statutory required documents signed by both auditee and auditor indicating undisputed audit fee, it could not be alleged of professional misconduct on acceptance of assignment by other CA

Legal procedure to take over fractional shares can't be challenged if consolidation of shares made a

CL : Where consolidation of shares done by company was in accordance with Companies Act and Articles of Association, procedure adopted to take over fractional share of appellant-shareholder was legally sustainable

Appeal filed before issue of instruction delegating min tax effect for admitting an appeal shall be

IT: Appeal filed before issuance of circular dated 9-2-2011 having tax effect less than Rs. 10 lakh was allowed with a direction that order would not be treated as precedent in other matters

Basis of cost for PLI under TNM method is ‘total operating cost’ and not its fraction such as ‘direc

IT/ILT : PLI for TNMM computed w.r.t. 'costs incurred' should use total operating costs and not just direct costs

Cutting of carpet rolls and stitching its linings at edges to make mats would not amount to manufact

Excise & Customs : Cutting of carpet rolls into smaller sizes and subjecting them process of stitching linings at edges to make 'mats' does not amount to manufacture

Even stock revaluation loss was a 'speculative loss' if assessee was not carrying any business activ

IT : Revenue is fully entitled to rely on reports of its investigation wing which entailed serious doubt with regard to genuineness of share application money; however, assessee is to be given opportunity to confront those materials

Agricultural land confiscated as it was bought with foreign remittance received in contravention of

FEMA : Where appellant company had purchased agricultural land by utilizing foreign remittances obtained under Automatic Route, company had contravened section 6(3)(b) of FEMA

Revisionary powers of CIT are wide enough to rectify bonafide errors subject to compliance with othe

IT : Power under section 264 is wide enough to include rectification of a 'bona fide' error committed by an assessee, while claiming exemptions under section 54B

Commission agent's services are ineligible for input credit

Cenvat Credit : Services of commission agents (whether foreign agents or domestic agents) are ineligible for input service credit

Appearing in I-T proceedings won’t stop assessee from demanding a reasoned order transferring its ca

IT : Order of transfer of assessee's case should be well reasoned, passed after hearing assessee and same should be communicated to assessee