Current Affairs 2009 Business & Finance Mini Updates

September 20th, 2009

Last Updated: January 31, 2012

September 22, 2009: ADB projects China's Growth 8.2 percent in 2009
September 19, 2009: Irda setting up database of insured vehicles
September 17, 2009: Japanese loan for Railway freight corridor
September 15, 2009: 64 'multi-function stations' of Indian Railways
September 8, 2009: SEWA Bank & Micro Pension Programme
September 4, 2009: SBI cuts rates for crop, minor irrigation loans

September 22, 2009: ADB projects China's Growth 8.2 percent in 2009
Asian Development Bank (ADB) has forecasted China's economy to expand by 8.2 percent in 2009. If the government maintains the fiscal stimulus and a moderate recovery in the international economy in 2010 would lift China's growth rate to 8.9 percent in 2010.

September 19, 2009: Irda setting up database of insured vehicles
Recently Insurance Regulatory and Development Authority (Irda) released a draft on design and development of Vehicle Insurance Status SMS System (VISSS) seeking comments and suggestions from the insurers.

The purpose is to set up database of all vehicles, which are insured. This system has the objectives of instant and easy availability of insurance status of the vehicle, providing the authorities with additional proof of non-insurance for taking action against uninsured vehicles, discouraging use of forged policy documents, bringing more vehicles into the insurance net and real time availability of motor insurance figures with the regulator.

September 17, 2009: Japanese loan for Railway freight corridor
Recently India's government has approved availing Japanese ODA (overseas development assistance) for implementing the western corridor of the DFC (dedicated freight corridor) project valued Rs.26,124 crore ($5.4 billion) for a dedicated railway freight corridor stretching 1,483 km from Navi Mumbai to Delhi at a very low interest of 0.2 per annum, a long repayment period of 30-40 years and a moratorium of 10 years.

About DFC:
Indian Railways have decided to develop the western and eastern DFCs along its busy trunk routes to augment the transport capacity and meet the growing requirements of moving freight.

The two DFCs are one of the most ambitious projects Indian Railways has ever taken up. Once completed, they would meet the transport requirement of the two busy trunk routes for the next 15 to 20 years.

About Western DFC:
The western DFC will stretch from the Jawaharlal Nehru Port Trust in Navi Mumbai to Dadri in Uttar Pradesh on the capital's outskirts through Maharashtra, Gujarat and Rajasthan.

About Eastern DFC:
The eastern DFC, the modalities for which are being worked out, will extend 1,806 km from Ludhiana in Punjab to Dankuni near Kolkata. It will be extended in future to serve the new deep sea port in the Kolkata area and to largely serve coal and steel traffic.

September 15, 2009: 64 'multi-function stations' of Indian Railways
Recently an expert committee on Railway land Usage which was headed by Dr. Amit Mitra has presented its report. In this report the committee has identified 64 stations in the country which will be developed as Multi Function Stations.

What are Multi Function Stations?
The Multi Function Stations will have internet facilities, medicine shops, food outlets, budget hotels, health care facilities, shopping space and many more facilities. There is already an agreement signed by Indian railways with IRCON for this purpose.

What is IRCON?
IRCON International Limited is a government company incorporated by the Central Government (Ministry of Railways) under the Companies Act, 1956 on 28th April, 1976 originally under the name Indian Railway Construction Company Limited. It is the leading turnkey construction company in the public sector known for its quality, commitment and consistency in terms of Performance. IRCON has widespread operations in several States in India and in other countries(Malaysia, Nepal, Bangladesh,Mozambique, Ethiopia, Afganistan, U.K. Algeria & Sri Lanka Now).

The Company was the first to get the ISO-9001:2000 Certification from TUV Germany for its full range of construction activities. It is the only construction PSU awarded with the Mini-Ratna status by the Government of India.

September 8, 2009: SEWA Bank & Micro Pension Programme
Ahmedabad-based Self Employed Women's Association (SEWA) Bank specializes in Micro Finance.
Some Facts:

The bank aims to provide retirement benefits to 1 lakh unorganised workers in Gujarat.
It has opened 50,000 micro pension accounts in the state through its micro pension drive initiative for the poor and middle-class labourers.
The target group are vegetable vendors, ragpickers, hand-cart pullers, bidi workerrs, construction workers, domestic helps, agriculture workers, garment workers, to name a few.
This programme in partnership with UTI Mutual Funds, helps all women under 55 to save as little as Rs 50 a month in a pension account. At the age of 58, the account holders receive their savings along with interest to finance their retirement.

September 4, 2009: SBI cuts rates for crop, minor irrigation loans
Recently SBI has slashed interest rates for minor irrigation (like wells and pump sets) and crop loans above Rs 3 lakh to support farmers hit by weak monsoon and drought by as high as up to 525 basis points. New rates are as under:

MINOR IRRIGATION:

For Term loans up to Rs 25 lakh repayable in 3 years and above

Existing interest rate = 10.50 per cent per annum to 13.25 per cent per annum (floating
Concessional interest rate = a) 8 per cent per annum (fixed) in the first year. b) 9 per cent per annum (fixed) in the second & third year. c) Normal interest rate (floating - card rate) from 4th year onwards

CROP LOANS:
For Credit limits up to Rs 3 lakh