Economy This Week (8th to 15th Oct 2022)

Economy is an important part of the UPSC prelims and mains exams; this series titled ‘Economy This Week’ has been initiated to address the need to read and analyse economic articles in various business-related newspapers. The round-up of the Economy/Business section news for 8th to 15th Oct 2022 2022 is given below. Business news is essential for IAS exam preparation.

TABLE OF CONTENTS

1. RBI readying the pilot for the launch of digital rupee (BL 8/10/22)
2. Credit guarantee scheme for start-ups notified with ₹ 10 Cr cap (BL 8/10/22)
3. Modhera to become first solar powered village (BS 12/10/22)
4. RBI allows ARCs to submit resolution plans (LM 12/10/22)
5. Govt plans to launch 600 one stop centers (BS 14/10/22)
6. Zoomcar plans to go public via SPAC route (LM 14/10/22)
7. Centre grants oil PSUs ₹ 22000 Cr to cover LPG losses (TH 13/10/22)
8. Inflation at 7.4% (TH 13/10/22)

1. RBI readying the pilot for the launch of digital rupee (BL 8/10/22)

• RBI will be launching the pilot project for the usage of the Central Bank Digital Currency (CBDC) or the Digital Rupee (e₹) for specific uses 
• The e₹ will provide another option to the currencies available   
• It will be legal tender issued by the central banker in digital form 
• There will be two types of CBDC
  • CBDC-R will be available for the usage of all – private sector, non-financial consumers and businesses 
  • CBDC-W (Wholesale) will be available for financial institutions 
    • Is to be used for settlement of interbank transfers and related wholesale transactions 

2. Credit guarantee scheme for start-ups notified with ₹ 10 Cr cap (BL 8/10/22)

• Centre has notified establishing Credit Guarantee Scheme for Startups (CGSS)
• Under this the loans taken by the startups would be provided with credit guarantee up to a specified limit 
• This will be offered by scheduled commercial banks, non-banking financial companies, SEBI registered AIFs 
• Such a scheme will ensure that the startups will be able to get credit without any collateral

3. Modhera to become first solar powered village (BS 12/10/22)

• 6 MW of installed capacity has been developed. The village with a population of 8500 people require 1 MW and the rest is added to transmission grid 
• The solar panels have been installed in the premises of the sun temple as well which has boosted tourism potential of the temple. Earlier the temple was open till 6 pm, which has now been extended till 10 pm 
• Not all the households are able to reap the benefits. Only a few houses have been able to get new meters installed which are linked to solar set up.
  • As per Modhera gram panchayat less than a third of the rooftop solar beneficiaries have been able to merge meters to allow new billing

4. RBI allows ARCs to submit resolution plans (LM 12/10/22)

• RBI has allowed the ARCs to act as resolution applicants (RAs) under IBC 
• Earlier it was not allowed to act as resolution applicant because of the provisions under SARFAESI Act (Securitisation and Reconstruction of Financial Assets  and Enforcement of Security Interest) 
• However if the ARCs want to act as RAs then they are to have net owned funds (NOF) of at least ₹ 1000 Cr and board approved policy to take up the role of applicant 
• Other guidelines 
  • ARCs shall not retain significant influence in the corporate debtor after 5 years from the date of approval of the resolution plan by adjudicating authority 
  • Should make additional disclosures in their financial statements on assets acquired under IBC 
• RBI has also increase the NOF for the ARCs from ₹ 100 Cr to ₹ 300 Cr and they have to meet the condition by April 2026 

5. Govt plans to launch 600 one stop centers (BS 14/10/22)

• Centre is set to launch 600 Pradhan Mantri Kisan Samriddhi Kendras – will be acting as one stop solution
  • Offer retail fertilizers 
  • Crop advisory 
  • Soil and seed testing facility 
  • Retailing seeds and pesticides 
  • Custom hiring of agricultural equipment and machines 
• The government schemes which impact the farmers will be showcased in these kendras
• These will also create awareness among the farmers about balanced use of fertilisers 
• These are expected to be set up near the mandis so that the farmers can access easily 

6. Zoomcar plans to go public via SPAC route (LM 14/10/22)

• Zoomcar Inc has reached an agreement with a blank-check firm Innovative International Acquisition Corp to go public via SPAC (Special Purpose Acquisition Company) route 
• It is a marketplace for private car owners who make their cars available on rent basis to users on hourly, daily, weekly or monthly basis
• It is operational in more than 50 cities across India, Indonesia, Vietnam and Egypt

7. Centre grants oil PSUs ₹ 22000 Cr to cover LPG losses (TH 13/10/22)

• The international LPG prices have risen by 300% between June 2020 and June 2022 
• Though the prices have increased, these have not been completely transferred to the consumers 
• The domestic prices have been increased by 72% which has led to losses for these oil marketing companies (OMCs) 

8. Inflation at 7.4% (TH 13/10/22)

• Retail inflation has reached 5 month high of 7.4% for the month of September 
  • It was 7% in August 
  • Food inflation has risen to 8.4% (highest in 22 months)
• This is the 9th month in a row that inflation has remained above 6% level 
• Rural inflation has also gone up from 7.15% in August to 7.56% in September 
• The urban inflation also has changed from 6.72% to 7.27% during the same period 
• The Consumer food price index has changed from 7.6% to 8.6% during the same period
• The rise in inflation has been broad based as the prices have risen in case of cereals, vegetables, pulses, milk etc

Economy This Week (8th to 15th Oct 2022):- Download PPT Here

ETW (8th to 15th Oct 2022):- Download PDF Here