Tag: Prime Minister Narendra Modi

Modi Government’s Privatization Roadmap Sparks Rs 7 Lakh Crore PSU Stock Surge in India

In just ten days, Public Sector Undertaking (PSU) stocks in India have amassed an impressive profit of Rs 7 lakh crore. This exceptional surge is attributed to Prime Minister Narendra Modi’s resolute management approach, drawing admiration from analysts and investors alike.

Read more: Last date for submission of nomination for Nari Shakti Puraskar-2020 extended till February 6

A report in the Economic Times sheds light on the various factors propelling the remarkable performance of PSU stocks. A key contributing factor is the government’s emphasis on privatization and strategic disinvestment of state-owned enterprises. The recent announcement by Finance Minister Nirmala Sitharaman outlining the government’s intentions to privatize multiple PSUs has significantly bolstered investor confidence.

“The Modi government’s transparent privatization roadmap has infused investors with confidence. The market is responding positively to the potential for more efficient and profitable management of these enterprises,” stated an industry expert.

Additionally, the robust financial performance of numerous PSUs has played a pivotal role in enhancing investor trust. Companies such as State Bank of India (SBI), Bharat Petroleum Corporation Limited (BPCL), and Coal India have reported strong quarterly results, further fueling the surge in their stock prices.

“PSUs are exhibiting robust financial health, and their profitability is attracting investors. The market recognizes the potential for substantial returns from these stocks,” commented a market analyst.

Read more: Nifty ended below 17200, Sensex dropped 581 points, PSU Banking stocks soared, Axis bank up 2.88%

Another contributing factor to the rally is the appealing valuation of PSU stocks. Many of these stocks were previously trading at comparatively lower valuations in comparison to their private sector counterparts, making them an attractive prospect for value investors. The recent surge has helped to mitigate this valuation gap to a certain extent.

“The undervaluation of PSU stocks presented an enticing opportunity for investors. With ongoing reforms and strategic initiatives, the potential for growth in these stocks is significant,” explained an investment strategist.

The rally in PSU stocks has also been buoyed by favorable global market trends and increased foreign institutional investment. As global markets remain bullish, Indian stocks, including PSUs, have reaped the benefits.

Despite the substantial gains brought about by the rally, experts caution investors to exercise vigilance. The market can be volatile, underscoring the importance of thorough research and consideration of long-term prospects before making investment decisions.

The recent upsurge in PSU stocks is emblematic of a convergence of government reforms, strong financial performance, attractive valuations, and positive global market trends. As the Modi government continues to drive privatization and strategic initiatives, the performance of PSU stocks will remain a focal point for investors in the foreseeable future.

Read more: Budget 2022: There will be a new announcement on bank privatization, less hope of financial help to banks in the budget

Cabinet approves Model Tenancy Act

According to PIB press release, the Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the Model Tenancy Act for circulation to all States / Union Territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably. It will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth. 

The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country.  It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.  Model Tenancy Act will enable institutionalization of rental housing by gradually shifting it towards the formal market.

Further the Act will facilitate unlocking of vacant houses for rental housing purposes.  It is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.

Memorandum of Cooperation between India and Japan in the field of sustainable urban development gets Cabinet approval

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the signing of Memorandum of Cooperation (MoC) on Sustainable Urban Development between the Ministry of Housing & Urban Affairs, Government of India and the Ministry of Land, Infrastructure, Transport and Tourism, Government of Japan, in supersession of existing MoU of 2007 on Urban Development. 

Press release by PIB states that the objectives of the MoC are to facilitate and strengthen India-Japan technical cooperation in the field of Sustainable urban development including Urban Planning, Smart Cities Development, Affordable Housing (including rental housing), Urban Flood Management, Sewerage and Waste Water Management, Intelligent Transport Management System, Transit-Oriented Development, Multimodal Integration, Disaster Resilient development and other areas as mutually identified by both Sides. The proposed MoC will enable exchange of key learnings and best practices in the above-mentioned areas.

A Joint Working Group (JWG) will be constituted to strategize and implement programmes on cooperation under the framework of the MoC. The Joint Working Group will meet once in a year, alternately in Japan and in India.

The cooperation under this MoC will commence on the date of its signature and continue for a period of 5 years. Thereafter, it may be renewed automatically for further successive periods of 5 years at a time. The major impact of the MoC will promote strong, deep and long-term bilateral cooperation in the field of Sustainable Urban Development between the two countries.

The MoC is expected to create employment opportunities in the areas of sustainable urban development, including Urban Planning, Smart Cities Development, Affordable Housing, (including rental housing), Urban Flood Management, Sewerage and Waste Water Management, Urban Transport (including Intelligent Transport Management System, Transit-Oriented Development and Multimodal Integration) and Disaster Resilient development.

PM CARES For Children- Empowerment of COVID Affected Children launched

Prime Minister Narendra Modi chaired an important meeting to discuss and deliberate on steps which can be taken to support children who have lost their parents due to Covid-19. PM announced a number of benefits to children impacted by the current COVID Pandemic. While announcing these measures the Prime Minister emphasized that children represent the future of the country and the country will do everything possible to support and protect the children so that they develop as strong citizens and have a bright future. The PM said that in such trying times it is our duty, as a society, to care for our children and instill hope for a bright future. All children who have lost both parents or surviving parent or legal guardian/adoptive parents due to Covid 19 will be supported under ‘PM-CARES for Children’ scheme. He also added that the measures being announced have only been possible due to the generous contributions to the PM CARES Fund which will support India’s fight against COVID-19.

  • Fixed Deposit in the name of the child:

PM CARESwill contribute through a specially designed scheme to create a corpus of Rs 10 lakh for each child when he or she reaches 18 years of age. This corpus:

  • Will be used to give a monthly financial support/ stipend from 18 years of age, for the next five years to take care of his or her personal requirements during the period of higher education and
  • On reaching the age of 23 years, he or she will get the corpus amount as one lump-sum for personal and professional use.
  • School Education: For children under 10 years
  • The child will be given admission in the nearest Kendriya Vidyalaya or in a private school as a day scholar.
  • If the child is admitted in a private school, the fees as per the RTE norms will be given from the PM CARES.
  • PM-CARES will also pay for expenditure on uniforms, textbooks and notebooks.
  • School Education: for children between 11-18 years:
  • The child will be given admission in any Central Government residential school such as Sainik School, Navodaya Vidyalaya etc.
  • In case the child is to be continued under the care of Guardian/ grandparents/ extended family, then he or she will be given admission in the nearest Kendriya Vidyalaya or in a private school as a day scholar.
  • If the child is admitted in a private school, the fees as per the RTE norms will be given from the PM CARES.
  • PM CARES will also pay for expenditure on uniforms, textbooks and notebooks.
  • Support for Higher Education:
  • The child will be assisted in obtaining an education loan for Professional courses / Higher Education in India as per the existing Education Loan norms. The interest on this loan will be paid by the PM CARES.
  • As an alternative, scholarships equivalent to the tuition fees / course fees for undergraduate/ vocational courses as per Government norms will be provided to such children under Central or State Government Schemes. For children who are not eligible under the existing scholarship schemes, PM CARES will provide an equivalent scholarship.
  • Health Insurance
  • All children will be enrolled as a beneficiary under Ayushman Bharat Scheme (PM-JAY) with a health insurance cover of Rs. 5 lakhs.
  • The premium amount for these children till the age of 18 years will be paid by PM CARES.