(29th March 2015 – The Hindu) Price Stabilization Scheme, RBI to trim Bank loan to corporate, Metro Rail

Price Stabilization Fund 

• Union Agriculture Ministry – approved – PSF as announced in budget July 2014.
• Corpus = 500 cr {(Centre : State :: 50:50 ) /For NE states (Cente : state :: 75: 25)}.
• To support market interventions for managing prics of perishable agri – horticultural commodities.
• Commodities will be procured directly from farmers or farmer’s organisations right at the farm gate or mandi level and be made available at reasonable prices to consumers.

Art. Ref. : Price stabilisation fund : Centre’s nod for Rs. 500 crore corpus – http://www.thehindu.com/news/national/price-stabilisation-fund-centres-nod-for-rs-500-crore-corpus/article7044189.ece

RBI to trim bank loans to corporate 

• TO \/ NPA(Non Performing Assets), RBI proposed to lower the ceiling on how much a bank can lend to a single corporate group (Current (upto 55%) —–>  1st Jan 2019 (25%))
• RBI proposes to encourage large borrowers to raise a certain portion of their financing needs through the market mechanism.

Art. Ref : RBI to trim bank exposure – http://www.thehindu.com/business/Economy/rbi-to-trim-bank-exposure/article7044164.ece

METRO RAIL 

• Urban planners have concluded that 64 cities in india have potential for some form of efficient rail transport today.
• (22/64) – Readily qualify for full fledged metro rail system.
• (42/64) – Less expensive alternate public transport system e.g. bus rapid transit system, light railways.

How to make metro projects viable ?

• Centre should set up financial corporation only for such projects with seed money of 10000 cr/ 20000 cr with responsibility to raise money on behalf of GOI.
• Introduce disincentives to the use of personal vehicles.

e.g. In Singapore & London

1. Laws to keep personal vehicles low in no.
2. Congestion surcharge
3. Artificially high fuel rate
4. Revenue (from 1 & 2) collected to invest in improvement at public transport system.

• Land acquisition for tracks : – new laws can make it fast
• Intelligent Transportation system relying on Information Technology is absent & city managers have no accountability.

GOVT.

• Reduce duties & taxes on projects , machinery
• For various metro projects across the country, standardized technology & manufacturing –> 20% cut in cost.
• Offer common smart card for metros , bus , feeder, boat e.g. done in Kochi, Kerala.

Art. Ref : Ticket to the future – http://www.thehindu.com/sunday-anchor/ticket-to-the-future/article7043667.ece

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