Congo: a journey to the heart of Africa

 

BBC documentary on Congo, the giant country the size of Europe in the middle of Africa. 

The team travels from Kinshasha, on the western coast of the nation bordering the Atlantic Ocean to Lumumbashi, on the eastern coast. The country is huge but racked with numerous problems from corruption, to poverty to lack of development. 

The colonizers looted the country like anything forcing its citizens to become slaves and get beaten or killed. Belgium was the worst offender with King Leopold a brutal king greedy of the riches this country had to offer. 

Then Mobutu Sese Seko, the Zairean leader who ruled the country with an iron fist for more than 4 decades was an autocratic dictator and kept its citizens on impoverished state. He had Patrice Lumumba the only popular leader of Congo, killed. The country is rich in minerals like copper, cobalt, gold, diamonds etc. which is why even the eastern neighbours like Burundi, Rwanda, Uganda have eyes on those natural resources. 

The country has immense potential to tap hydro electric power with raging rapids along the Congo river, but very little development. Then there is fighting on the eastern part of the country in Goma, where the government is not to be seen at all. Local leaders have sprung up destroying the peace and potential of this country. There are about half a million refugees within the country itself.

Interesting documentary this, the presenter goes from Kinshasha to Mbandaka, Gbadolite (which was the home town of Mobutu) Kisangani, Goma, Beni, Kalemie and finally to Lubumbashi. The country is breathtakingly beautiful with its rain forests, rivers, mountains, wild life, gorillas, its rich minerals but poor state of governance. 

clearing membership

 IFSCA has vide its circular dated 15th September, 2021 allowed IFSCA recognized non bank custodians who have set up entity through their branch in IFSC GIFT City to become a clearing member. Earlier they had allowed overseas entities to operate as a clearing member through their branch office. So this i guess is for the Indian non bank custodians to operate as a clearing member through their branch office. Some conditions are stipulated as under:

https://ifsca.gov.in/Viewer/Index/228

Non-Bank Entity recognised as a custodian by IFSCA

2. Any non-bank entity recognised as a custodian of assets/securities by IFSCA through the branch structure, shall be permitted to become a Clearing Member of a Clearing Corporation in GIFT-IFSC. For this purpose, the entity shall comply with the following conditions:
   a) The entity can clear and settle trades only of its custodial clients
   b) The entity should be ring fenced financially, technologically, and operationally from its parent company and its functions, as a clearing member, shall be limited only to clearing and settlement services of its custodial clients.
   c) The entity shall ensure financial segregation by allocating funds to the tune of USD 1,500,000 (USD 1.5 mn) towards its clearing and settlement operations. The entity shall submit a declaration to the Authority in this regard.
   d) The entity shall participate in the Settlement Guarantee Fund contribution (SGF), as decided by the clearing corporation from time to time.
   e) The total exposure which the entity shall take on behalf of its registered clients shall be determined by its Board.
   Additional requirements
3. All the other fees applicable to a clearing member in GIFT-IFSC shall be applicable to such an entity.
4. The entity shall comply with all the necessary rules, bye-laws and guidelines prescribed by the clearing corporation with which it is registered as a clearing member and the Authority from time to time.
5. The entity shall have adequate mechanisms for the purposes of reviewing, monitoring, and evaluating the controls, systems, procedures and safeguards.

PLI for auto & drone industry

 https://pib.gov.in/PressReleasePage.aspx?PRID=1755062

aking steps forward towards the vision of an ‘Aatmanirbhar Bharat’, Government led by Hon’ble Prime Minister, Shri Narendra Modi, has approved the PLI Scheme for Automobile Industry and Drone Industry with a budgetary outlay of ₹ 26,058 crore. The PLI scheme for the auto sector will incentivize high value Advanced Automotive Technology vehicles and products. It will herald a new age in higher technology, more efficient and green automotive manufacturing.

PLI Scheme for Automobile Industry and Drone Industry is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of ₹ 1.97 lakh crore. With the announcement of PLI Schemes for 13 sectors, minimum additional production in India is expected to be around ₹ 37.5 lakh crore over 5 years and minimum expected additional employment over 5 years is nearly 1 crore.

The PLI Scheme for the auto sector envisages to overcome the cost disabilities to the industry for manufacture of Advanced Automotive Technology products in India. The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products. It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry  will lead to fresh investment of over  ₹42,500 crore,  incremental production of over  ₹2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Further this will increase India’s share in global automotive trade.

The PLI Scheme for auto sector is open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors etc.

This PLI Scheme for automotive sector along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (₹10,000 crore) will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

The PLI Scheme for the Drones and Drone components industry addresses the strategic, tactical and operational uses of this revolutionary technology. A product specific PLI scheme for drones with clear revenue targets and focus on domestic value addition is key to building capacity and making these key drivers of India’s growth strategy. The PLI for Drones and Drone components industry, will over a period of three years, lead to investments worth ₹ 5,000 Crore, increase in eligible sales of ₹ 1500 crore and create additional employment of about 10,000 jobs.

reforms in telecom sector

 https://pib.gov.in/PressReleasePage.aspx?PRID=1755086

Nine structural reforms and Five procedural reforms plus relief measures for the Telecom Service Providers are as below:

Structural Reforms

1. Rationalization of Adjusted Gross Revenue:  Non-telecom revenue will be excluded on prospective basis from the definition of AGR.
2. Bank Guarantees (BGs) rationalized: Huge reduction in BG requirements (80%) against License Fee (LF) and other similar Levies. No requirements for multiple BGs in different Licenced Service Areas (LSAs) regions in the country. Instead, One BG will be enough.
3. Interest rates rationalized/ Penalties removed: From 1st October, 2021, Delayed payments of License Fee (LF)/Spectrum Usage Charge (SUC) will attract interest rate of SBI’s MCLR plus 2% instead of MCLR plus 4%; interest compounded annually instead of monthly; penalty and interest on penalty removed.
4. For Auctions held henceforth, no BGs will be required to secure instalment payments. Industry has matured and the past practice of BG is no longer required. 
5. Spectrum Tenure: In future Auctions, tenure of spectrum increased from 20 to 30 years.
6. Surrender of spectrum will be permitted after 10 years for spectrum acquired in the future auctions.
7. No Spectrum Usage Charge (SUC) for spectrum acquired in future spectrum auctions.
8. Spectrum sharing encouraged- additional SUC of 0.5% for spectrum sharing removed.
9. To encourage investment, 100% Foreign Direct Investment (FDI) under automatic route permitted in Telecom Sector. All safeguards will apply.

Procedural Reforms

1. Auction calendar fixed - Spectrum auctions to be normally held in the last quarter of every financial year.
2. Ease of doing business promoted - cumbersome requirement of licenses under 1953 Customs Notification for wireless equipment removed. Replaced with self-declaration.
3. Know Your Customers (KYC) reforms: Self-KYC (App based) permitted. E-KYC rate revised to only One Rupee. Shifting from Prepaid to Post-paid and vice-versa will not require fresh KYC.
4. Paper Customer Acquisition Forms (CAF) will be replaced by digital storage of data. Nearly 300-400 crore paper CAFs lying in various warehouses of TSPs will not be required. Warehouse audit of CAF will not be required.
5. SACFA clearance for telecom towers eased. DOT will accept data on a portal based on self-declaration basis. Portals of other Agencies (such as Civil Aviation) will be linked with DOT Portal.

Addressing Liquidity requirements of Telecom Service Providers

The Cabinet approved the following for all the Telecom Service Providers (TSPs):

1. Moratorium/Deferment of upto four years in annual payments of dues arising out of the AGR judgement, with however,  by protecting the Net Present Value (NPV) of the due amounts being protected.
2. Moratorium/Deferment on due payments of spectrum purchased in past auctions (excluding the auction of 2021) for upto four years with NPV protected at the interest rate stipulated in the respective auctions.
3. Option to the TSPs to pay the interest amount arising due to the said deferment of payment by way of equity.
4. At the option of the Government, to convert the due amount pertaining to the said deferred payment by way of equity at the end of the Moratorium/Deferment period, guidelines for which will be finalized by the Ministry of Finance.

The above will be applicable for all TSPs and will provide relief by easing liquidity and cash flow. This will also help various banks having substantial exposure to the Telecom sector.

9.18 kms

 

9.18 kms in humid weather in Mumbai. Saving grace was that there will little headwinds at times. Have a great day folks.

West Africa

 

The last part of the BBC four part series on Lost Kingdoms of Africa. Art historian travels to West Africa to discover the ancient history of Benin, Mali, Nigeria etc. 

He starts off at Benin where he discovers bronze sculptures dating back to more than 2000 years ago. The craftsmanship and technology to produce such exquisite pieces of art were very much present in those times. 

Next stop for him at Timbuktu in Mali, which was at one point of time a busy trading hub with traders from Arab coming to sell their wares and take home local items. Timbuktu has entered into a state of decline for many centuries now. 

Djenne and Jenne Jena which are nearby and Timbuktu did have some olden bronze & pottery sculpture history some evidence still being retained because Jenne Jena is now a UNESCO World Heritage Site. There are evidence of archeological remains at these places. The sculpture is unique in the sense that lot of animist influences have been found in the form of shapes of snake, leopard, etc. in the sculpures. The locals revere the animism because they feel that the animals protect them. 

Djenne has got some Islamic influences because of the Arab traders who built a Grand Mosque in the city. All the houses in the city are made of mud and each house has a separate and distinct style of architecture depending upon the number of females in the household and the number of children. 

Dogon country in Mali is another place which has a rich cultural history. Interesting series this and not boring at all. Dr. Gus has kept it nice short and crisp and being an expert himself he dwells into more detail at each level of his visit. 

dairy terms on food labels

 FSSAI has issued a press release dated 3rd september, 2021 advising that use of dairy terms on the labels of plant based beverages and food items are not allowed under the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 as encapsulated in its ‘General Standards for Milk and Milk Products’. The Food Business Operators will be given 15 days' time to improve/ modify their labels, failing which enforcement action will be initiated against them.

Gist of the circular is given below:

The Food Regulator, in a recent order, has directed the State Food Safety Departments to investigate and identify specific instances for violation of the use of dairy terminology for non-dairy or plant based products by Food Business Operators (FBOs).

In case of any violation, FBOs may be granted 15 days’ time to suitably improve/modify their product labels and strictly comply with the relevant provisions of FSS (Food Products Standards and Food Additives) Regulation, 2011 before the Food Safety Departments take any enforcement action. This step will ensure an appropriate enforcement action against such defaulting FBOs as per the provisions of Food Safety and Standards (FSS) Act, 2006 and Rules/Regulations made thereunder.

As per the ‘General Standards for Milk and Milk Products’ under the ‘Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011’, use of any dairy term(s) for a product which is not milk/ a milk product or a composite milk product (e.g. plant based products / beverages) is prohibited and any such action is in contravention of the said Regulations. Further, the term ‘curd’ is also not considered a dairy term exclusively for such products, and has been associated with non-dairy products such as ‘soybean curd’ in our regulations which also is in consistency with the relevant Codex standards.