Govt in talks with World Bank for funding of smart cities, AMRUT plan

The World Bank is in talks with the government to provide some initial funding for the latter's smart cities programme and the Amrut initiative for urban revitalisation.

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"The World Bank is in discussions with the government to provide some funding in the initial stages for the smart cities and Amrut (Atal Mission for Rejuvenation and Urban Transformation) programmes," the bank's country director Onno Ruhl told reporters here on Thursday.

He was speaking at the launch of a World Bank report on urbanisation, titled "Leveraging Urbanisation in South Asia: Managing Spatial Transformation for Prosperity and Livability", released by Sri Mulyani Indrawati, visiting World Bank managing director and chief operations officer.

"India's urbanisation drive will be the biggest of its kind in the next 30 years. The government's implementing of the 14th Finance Commission recommendations will help in devolving finances to states for the programme," Ruhl said.

The report says, South Asia's urban population grew by 130 million between 2000-11, and is poised to rise by almost 250 million by 2030.

"Cities in South Asia are not fulfilling their potential for transforming their economies, putting enormous demands on their infrastructure, as in Mumbai which I just visited," Indrawati said.

"The World Bank can help by citing examples of cities dealing successfully with various issues, to provide clarity and accountability," she added.

The report says policymakers must address three "fundamental urban governance deficits" by way of empowering urban governments, providing them adequate resources and strengthening mechanisms to hold them accountable.

Source - TOI 

Rooftops of govt buildings to lead solar power drive

Delhi/NCR - The Delhi government's draft solar policy, to be placed for cabinet approval soon, mandates all Delhi government buildings to install solar rooftop systems within three years of the policy's notification. The draft has also proposed that all new commercial buildings with plot size greater than 500 sq m and 50% shadow-free rooftop area and all new residential buildings with plot size greater than 300 sq m and 50% shadow-free area install solar rooftop systems. 

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While the policy sets a target of 2 GW solar power generation by 2025, the implementation of the proposed provisions will rest with municipal corporations that are responsible for building bylaws.

The government is likely to introduce the RESCO model under which the consumers who provide the rooftop space don't pay for the installation upfront, they buy the power generated by the company instead. The draft policy is based on net-metering, with the government promoting development of grid connected solar rooftop systems to meet its own electricity needs and injecting the surplus into the grid.

The policy, accessed by TOI, states the market conditions have "never been more favorable" for solar rooftop systems. While solar tariffs have fallen by 6% to 8% per year since 1998, conventional energy prices in Delhi have risen by 6.9% per year on average since 2007.

It even has a provision for "consolidated net metering" where two net metered connections can be treated as single connection for energy accounting purposes. Such a system can be helpful in case of government buildings.

Source - TOI 

Govt proposes tax benefits for credit and debit card payments

The central government on Monday came out with a raft of proposals to encourage electronic transactions, including income tax benefits for payments made through debit or credit cards, a move aimed at cracking down on black money.

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Transaction charges on card payments at petrol pumps, gas agencies and railway tickets could be done away with. The government may also make it mandatory for all transactions above Rs1 lakh to only be conducted electronically.

These measures, listed in the “draft proposals for facilitating electronic transactions” that the government put up for public comments, is part of a broader strategy to discourage the use of cash and clamp down on India’s bustling parallel economy that operates outside the legitimate financial system.

Comments can be sent in till June 29.

"Tax benefits in terms of income tax rebates to be considered to consumers for paying a certain proportion of their expenditure through electronic means,” said the draft.

The e-transactions will include those made through debit/credit cards, mobile wallets, apps, net banking, electronic clearing service, National Electronic Fund Transfer and immediate payment service (IMPS).

The draft did not specify the tax sops the government could offer. The government is also looking at encouraging shopkeepers and traders to accept electronic payments rather than cash.

“Appropriate tax rebate can be extended to a merchant if at least say 50% value of the transaction is through electronic means. Alternatively, 1-2% reduction in value added tax could be considered on all electronic transactions by merchants,” the draft said.

Utility service providers such as electricity companies and telecom operators could offer a discount if subscribers paid their bills electronically, similar to state-owned BSNL that provides an incentive of 1% of the billed amount on electronic payments.

The government is also considering a levy of a nominal cash-handling charge on transactions greater than a specified level, implying that cash payment beyond a certain threshold may attract a transaction fee.

Also, currently, banks have to report the aggregate of all the payments made by a credit cardholder as one transaction, if such an amount is Rs 2 lakh in a year. The ceiling could be raised to Rs 5 lakh or more.

The government also proposed appropriate changes in the regulatory structure, if required, to promote mobile-based payment systems.

Source - Hindustan times