LIVE: LS passes Bill to suspend MPLAD funds, 30% salary cut for MPs

Defence Minister Rajnath Singh addressed Parliament today over the ongoing stand-off between Indian and Chinese troops along the LAC in eastern Ladakh. Stay tuned for Latest LIVE news

3:29 AM

Japan’s Parliament Set to Vote Suga in as New Prime Minister

Japanese ruling party leader Yoshihide Suga is set to be formally elected prime minister in a parliamentary vote Wednesday, becoming the country’s first new premier since 2012.
 

Suga’s ruling Liberal Democratic Party is expected to use its majority in the powerful lower house of parliament to elect him to the post in a session that should start from about 1 p.m. Following the vote, Suga names his cabinet and the new ministers are likely to speak to the media before the end of the day.
 

Suga’s appointment, two days after he was selected as LDP leader, brings the curtain down on Prime Minister Shinzo Abe’s record run of almost eight consecutive years in the country’s top job. The 71-year-old Suga, who previously served as Abe’s right-hand man, has pledged to keep in place his former boss’s flexible fiscal stance and ultra-easy monetary policy known as “Abenomics.”
 

While Suga has pledged to pick reformers for his cabinet, Kyodo News and other media reports say he has already decided to retain key players Finance Minister Taro Aso and Foreign Minister Toshimitsu Motegi. LDP Secretary General Toshihiro Nikai, a veteran political broker, will also stay in place under the new administration, the party announced Tuesday.
 

Speculation about an early general election has simmered following a surge in support for the cabinet. Suga has repeatedly said it would be difficult to hold a vote while the coronavirus outbreak is still spreading. The power to dissolve parliament for a general election lies with the prime minister, and none need be held for another year.

Yoshihide Suga

3:27 AM

Opendoor to go public in Social Capital merger in $4.8 bln deal

Opendoor Labs Inc, the home-selling platform backed by SoftBank Group, said on Tuesday it has agreed to go public through a merger with a blank-check company led by venture investor Chamath Palihapitiya in a deal that will value the company at $4.8 billion.
 

Opendoor buys properties from sellers and makes repairs, at a service charge, then lists them for sale. As part of the deal with Social Capital Hedosophia Holdings Corp II, Opendoor will get $1 billion cash, including $600 million from Palihapitiya and other investors such as BlackRock and Healthcare of Ontario Pension Plan.
 

OpenDoor was hit hard by the pandemic this year, and laid off 35% of its workforce in April. As the home resale business started to recover, it looked for capital to fuel expansion and opted to go public through merging with Social Capital over a traditional initial public offering.
 

The San Francisco-based firm wanted to access the public market faster and with more certainty, worried the U.S.
 

presidential election and the second wave of coronavirus could cast shadow on its growth, according to a person familiar with the discussions. In a SPAC deal, the funds raised by the company are committed upfront.
 

The merger is expected to close to by year end. Social Capital II shares jumped almost 35% on Tuesday.
 

3:26 AM

EPF interest rate, 10-year govt bonds spread at 16-year high of 2.5%

As interest rates in India trend lower, the spread between the interest rate on employee provident fund (EPF) and 10-year government bonds has reached a 16-year high of 2.5 per cent or 250 basis points (bps). One basis point is one-hundredth of a per cent. Read more

3:22 AM

Govt presents first batch of supplementary demand for grants: An explainer

The Centre has presented to Parliament its first batch of supplementary demand for financial grants to be made to various depart­ments. The demand is to spend an additional Rs 2.36 trillion in FY21.

 

The Centre presents its annual spending plan two months ahead of the beginning of a new fiscal year. But as the year progresses, the government takes stock of the spending done, the amount that remains to be spent, and considers the new requirements that demand a bigger sum than originally planned. While doing this, it also includes those departments who no longer need the money they had been assigned, or as the case may be, if the Centre is unable to earn the revenue so required. Read more

3:21 AM

Retail prices of tomatoes, onions, potatoes rise due to supply disruptions

Kolkatans had to fork out Rs 100 for a kg of tomatoes on Monday, while they paid 40 per cent less at Rs 60 just a month ago.

 

Similarly, consumers in Delhi had to shell out Rs 41 to buy a kg of onions on Monday against just Rs 20 on August 14. Moreover, wholesale prices were just Rs 19 a kg in the national capital on Monday.

 

Wholesale prices of potatoes, too, were Rs 25 per kg in Mumbai on Monday but end consumers bought it at Rs 43 a kg. They paid a bit less at Rs 40 a month ago. Read more

9:51 PM

Open to discussing import of scotch whiskey from UK in larger measure: Goyal

Proposing a bilateral free trade agreement, Commerce and Industry Minister Piyush Goyal on Tuesday said India is open to discussing import of scotch whiskey from the UK a in larger measure.
 

Goyal said he has proposed to the UK that both the countries should start engagement for a free trade agreement (FTA) as "it is the need of the hour".
 

India is committed to an FTA with the UK and it will also be good for Commonwealth countries, he added.
 

"I was hoping that that would have ... excited the British team. I had said that I am open to discussing import of scotch whiskey into India also in larger measure.

"...not that I drink scotch whiskey in any way, but my intention was, we hear that lot of spurious liquor that comes in the name of scotch to India, I was hoping that would put an end to spurious liquor, get genuine material for those who can afford and want it," he said while addressing CII's India-UK Economic Partnership Summit.
 

"But in the bargain, create lot of opportunities for our MSMEs, for our farmers, for our dairy, fishermen, handicrafts, textile, gems and jewelery. We have so many industries which have huge potential to work with the UK businesses," the minister added.
 

Goyal said both the sides can increase cooperation in sectors where the UK is a net importer and India has a net competitive and comparative advantage.

9:50 PM

LS members support salary cut but many want local area development fund restored

Lok Sabha on Tuesday passed a bill to reduce for one year the salaries of MPs by 30 per cent to meet the "exigencies arising out of Covid-19 pandemic", even as members of several parties demanded the restoration of the suspended MPLAD Scheme Fund.
 

While supporting the cut in salaries, most Opposition members, who participated in the debate on 'The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2020', urged the government to review its decision to suspend the MPLAD scheme saying it was necessary to carry out development work in their respective constituencies.
 

The Cabinet had approved the temporary suspension of the Members of Parliament Local Area Development Scheme (MPLADS) Fund for 2020-21 and 2021-22 citing the coronavirus crisis. Under the scheme, members of both Houses can recommend development programmes involving spending of Rs 5 crore every year.
 

Several Lok Sabha members on Tuesday said while they were willing for a further cut in their salaries, they would want the MPLAD Fund to be restored.

Lok Sabha has 543 members and Rajya Sabha has a strength of 245.
 

A member of Parliament draws a salary of Rs one lakh per month and a constituency allowance of Rs 70,000 per month, besides other allowances.
 

The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2020 was introduced in the lower house on Monday to replace an ordinance promulgated on April 7.
 

Replying to the debate on the bill, Parliamentary Affairs Minister Pralhad Joshi said that funds are needed to fight the Covid-19 pandemic.
 

When some members said the cut in salary was only a token contribution as the amount saved was very little, Joshi said "charity should begin from home".

9:19 PM

India, US sign statement of intent to strengthen dialogue on defence tech cooperation

India and the United States on Tuesday signed a statement of intent to strengthen the bilateral dialogue on defence technology co-operation.
 

The statement was signed by Raj Kumar, Secretary, Defence Production, Ministry of Defence, and Ellen Lord, US Under Secretary of Defence for Acquisition and Sustainment, during the 10th Defence Technology and Trade Initiative (DTTI) Group Meeting that was held virtually on Tuesday.
 

Kumar and Lord co-chaired the meeting, during which the groups reported to the co-chairs on ongoing activities and collaborative opportunities, including a number of near-term projects targeted for completion on priority.
 

As evidence of their commitment to demonstrating the success of DTTI, the co-chairs signed a statement of intent (SOI) that declared “to strengthen our dialogue on defence technology cooperation by pursuing detailed planning and making measurable progress” on several specific DTTI projects, the Pentagon said in a release.
 

The aim of the DTTI Group is to bring sustained leadership focus to the bilateral defence trade relationship and create opportunities for co-production and co-development of defense equipment. Four joint working groups focused on land, naval, air and aircraft carrier technologies have been established under DTTI to promote mutually-agreed projects within their domains.
 

During the meeting, the co-chairs noted that since the last DTTI Group meeting in October 2019, a DTTI Standard Operating Procedure (SOP) for the identification and development of cooperative projects under DTTI has been completed.
 

The SOP will serve as the framework for DTTI and allow both sides to reach and document a mutual understanding on how to define and achieve success.

A publicly releasable extract of key elements of the SOP was also published in July as the DTTI Initial Guidance for Industry, and distributed through Indian and US industry associations, it said.
 

9:05 PM

India received $20 billion in FDI during Covid-19 pandemic: Shringla

India has received over $20 billion in FDI amid the coronavirus pandemic, Foreign Secretary Harsh Vardhan Shringla said on Tuesday, showcasing the country as one of the most attractive destinations for investment globally.

 

In a virtual address at a CII event in the UK, the foreign secretary highlighted various structural reforms undertaken by India in even previously restricted sectors such as space, defence and atomic energy for greater private participation.

 

On ties between India and the UK, he said a comprehensive roadmap is being formulated to further strengthen the strategic partnership between the two countries in the next decade.

8:53 PM

India's rank slips to 54th in terms of rise in housing prices: Report

India's rank slipped 11 places to 54th in terms of appreciation in residential prices, as housing rates declined nearly 2 per cent during June quarter compared with the year-ago period, according to property consultant Knight Frank.

India is at 54th spot amongst the 56 countries and territories tracked in terms of appreciation in residential real estate prices, the consultant said.

 

As per the ''Global House Price Index Q2 2020'', housing prices in India declined 1.9 per cent year-on-year (YoY).

 

"As compared to Q1 2020, India moves down 11 spots in the global index, from 43rd rank to 54th rank in Q2 2020," Knight Frank said.

8:43 PM

Lok Sabha clears bill to amend Essential Commodities Act

Lok Sabha on Tuesday passed the Essential Commodities (Amendment) Bill, 2020 which seeks to deregulate food items, including cereals, pulses and onion, a move aimed at transforming the farm sector and raising farmers' income.

 

Participating in the debate, Shiromani Akali Dal chief Sukhbir Singh Badal, an ally of the ruling BJP, spoke about "misgivings" and "doubts" among farmers on the bill and two other proposed legislations related to the farm sector.

 

The Centre should withhold these legislations and work to address the concerns of farmers, he said.

 

Farmers in many states, including Punjab and Haryana, have been protesting against these bills.

8:33 PM

Economy will contract in current fiscal due to Covid-19: Experts

Experts on Tuesday said that owing to the ongoing coronavirus pandemic, the economy will contract during the current fiscal and positive growth is expected in the next financial year. Speaking at a CII webinar, Rajat Bahl, the chief ratings officer of Brickwork Ratings, said that there will be contraction of the economy this fiscal and bank credit growth will also be muted.

 

"The services sector will see a negative growth, agriculture sector will see a delay in revival while both retail and industry will shrink," Bahl said.

 

Bank investments will see a muted growth along with their profitability and asset quality will deteriorate further, he said.

8:20 PM

LS passes Bill to suspend MPLAD funds for 2 years, 30% salary cut for MPs

The Lok Sabha on Tuesday passed a Bill which has provisions to suspend the MP Local Area Development (MPLAD) funds for two years and for a 30 per cent deduction of salaries of all lawmakers and the money thus saved can go to the Consolidated Fund of India to fight the Covid-19 pandemic.

The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2020 was passed on the second day of the Monsoon Session despite objections by opposition MPs.

8:18 PM

After 18 years, farming activity resumes along IB in J&K's Kathua

Farming activity on the zero line along the International Border (IB) in Jammu and Kashmir's Kathua district resumed after a gap of 18 years with the joint efforts of the Border Security Force (BSF) and the civil administration.

 

Over 8,000 acres of land across the fencing, spread across 22 border villages from Paharpur to Londi in Hiranagar sector, is lying unattended by border residents due to the frequent ceasefire violations by Pakistan. The natural growth of wild grass and bushes helped Pakistan to push infiltrators and dig underground tunnels, posing a major security challenge.

8:13 PM

Railways to start 20 pairs of clone trains from Sept 21