Essential Facts (Prelims) – March 23 , 2019


Disinvestment

Category: Economy

  • The government has overshot its disinvestment target for the second consecutive year.
  • As against a target of ₹80,000 crore for disinvestment for the current year, the divestment receipts have touched ₹85,000 crore.
  • In 2017-18, the government had earned a little more than ₹1 lakh crore from disinvestments against a target of ₹72,500 crore.

EPCG

Category: Economy

  • EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports.
  • The move was aimed at giving relief to exporters as they do not have to pay IGST at the initial point itself.
  • EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports. On the other hand, advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.
  • The move was aimed at giving relief to exporters as they do not have to pay IGST at the initial point itself. In the GST regime, they have to pay the indirect tax and then seek refund, which is a cumbersome process.

Forex Reserves

Category: Economy

  • India’s foreign exchange reserves increased by $3.6 billion to $405.64 billion.
  • Foreign currency assets (FCA), which form a key component of reserves, rose by $3.54 billion to $377.773 billion.
  • FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen.
  • The increase in foreign reserves could partly be attributed to rising investments by foreign investors in the Indian capital markets.

Operational Creditor

Category : Economy

  • The National Company Law Appellate Tribunal (NCLAT) has held that statutory dues, including income tax and value-added tax or goods and services tax, come within the purview of “operational creditors”.
  • Operational debt also included debt arising under any law payable to the central and state governments.
  • Operational debt in normal course meant debt arising during the operations of the company.