USO Fund to be made an autonomous body
The government will create an autonomous body out of a fund worth Rs 25,000 crore that purports to build communication facilities in rural India.

It has been almost 8 years since the USOF got a statutory status however the performance of the fund when it comes to financing roll out has been abysmally poor. India has the distinction of the second largest USOF however only 34% of the 4 billion USD so far collected has been disbursed. One of the reasons may be the lack of independent functioning of the USF administrator which lies under the purview of the DoT. Our view is that while an autonomous body may improve the performance of the fund as far as the design of projects and disbursement goes but the fund has lost its relevance in view of the changing technology and market innovations.

Source: Department of Telecommunication (DoT)

Govt to mull keeping bank M&As out of CCI’s purview
Amid RBI demand that bank mergers be kept out of competition watchdog CCI’s purview, Centre has said it would take the view into consideration.

The decision of the government on this will determine the evolution of the institutions and regulation and competition in India. If it leaves out the bank mergers out of the purview of the CCI then there will be other sectoral regulators, who will lobby for a similar treatment. This does not augur well for the strengthening of the competition authority.

3G auction model for highway projects mooted
The government could replicate the hugely successful 3G airwave auction model in highway projects as it looks to drive down costs and increase transparency amid a raging debate over the new rules for awarding road contracts.

Road Concession agreements have reached a stalemate, with industry and the planning commission having very different concession agreements agreeable to them. While the private sector wants iron clad guarantees with BoT Annuity projects, the Planning Commission is arguing for a huge risk transfer to the private sector which is not agreeable to them.

Centre to establish FSDC for economic supervision: Pranab
Pranab Mukherjee has said the government would soon establish a Financial Stability and Development Council (FSDC) to forge regulatory coordination where needed and address challenges relating financial development and inclusion.

Govt moves to regulate judges
The Union cabinet has approved a Bill to regulate the conduct of Supreme Court and high court judges along with placing restrictions on their affiliations in public life.

India offers 34 oil & gas blocks for exploration under NELP
India has offered 34 oil and gas blocks for exploration in the 9th round of New Exploration Licensing Policy (NELP).

Ordinance coming to relax merger procedures
The Government is planning to come up with an ordinance to do away with the process of sanction by the Competition Commission of India (CCI) for small-ticket mergers and acquisitions.

New aviation sector regulator in 2 years
India will have a more autonomous aviation regulator, the Civil Aviation Authority (CAA), in two years, said Nasim Zaidi, who heads the current regulator, the Directorate General of Civil Aviation (DGCA).

Govt not considering freeing diesel prices
The government said it would not free diesel prices from its control in hurry as the move would lead to sharp rise in price of fuel most used in the transport sector.

Cabinet approves amendments to Seeds Bill
The Bill seeks to repeal and replace existing Seeds Act, 1966, for it does not deal with the quality control of GM seeds, as they are generally not notified.

Whopping $41 bn pvt money to pave India roads
India's highways development project, the largest public private partnership programme in the world, is likely to attract a whopping investment of USD 41 billion, including FDI, from private sector.

Foreign investment in multi-brand retail gets PMO push
One of the big-ticket reforms held off for long is set to materialise with the Prime Minister’s Office (PMO) giving an in-principle nod for allowing FDI in multi-brand retail.

India offers 34 oil & gas blocks for exploration under NELP
India has offered 34 oil and gas blocks for exploration in the 9th round of New Exploration Licensing Policy (NELP).

Construction sector faces talent crunch
The construction industry is in the grip of a talent crunch. With growing scale and increased number of projects, the requisite skill-sets are in short supply.

In two-tier checks, govt plans state regulator for minor minerals
The government proposes to form a state mining regulatory authority to cover minor minerals that are used in the small scale sector, as part of its efforts to curb illegal mining.