No power subsidy from April 1 in Delhi

Prepare to pay your full-unsubsidized-electricity bill from April. Subsidy for consumption up to 400 units, announced by the Sheila Dikshit government and later increased by the Arvind Kejriwal government, will cease in the new financial year as there is no provision for it in the interim budget for 2014-15 approved by Parliament on Friday.

On December 31, 2013, Kejriwal had slashed electricity rates by 50% for consumption up to 400 units. The Congress government had also been subsidizing the first two slabs of 0-200 units and 201-400 units. The Delhi cabinet had approved the subsidy for the January-March quarter and it was to be reviewed as the government had ordered a CAG audit of power companies. 

The state government had also prepared an estimate of Rs 669 crore for power subsidy in the April-September period but, sources said, this did not figure in the 'vote on account' approved by Parliament. "If the subsidy estimate is not in the budget, it cannot be given. This is a call that will have to be taken by the next elected government," said a source. Courtesy: TNN

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Big relief on subsidised LPG cylinders

Now you can buy more than one cylinder per month

Post government decision to raise annual quota of subsidised cooking gas, the Cabinet allowed consumers to buy more than one subsidised cylinder in a month. The government had raised the annual cap on supply of cheaper LPG from nine to 12 cylinders of 14.2-kg each. Therefore it paved way for one cylinder in a month.

These developments lead to a public unrest as they generally require more than one cylinder in a month. The Oil Ministry cleared a proposal for consideration of the Cabinet suggesting that consumers should have the freedom to book a refill after 21 days, within the overall cap of 12 subsidised bottles in a year.

According to sources the Cabinet headed by the Prime Minister agreed with the proposal. The sources also added that raising the cap from nine to 12 cylinders will impose an additional financial burden of about Rs 3,801 crore per annum.

The government had initially capped the supply of subsidised LPG cylinders to six per household annually in September 2012 which was further raised to nine in January 2013. Consumers who exhaust their quota have to buy LPG at the market price of Rs 1,258 per cylinder whereas; subsidised LPG costs Rs 414 per cylinder in Delhi.

In addition to the above mentioned developments, the Cabinet Committee on Political Affairs (CCPA) also decided to scrap the decision of making Aadhaar cards mandatory to get subsidy on domestic LPG cylinders. However, the decision to delink Aadhaar cards from the subsidy has not been implemented due to certain clarifications that are awaited from the Cabinet. Courtesy:PTI

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Urban Indian consumers’ outlook improves in December 2013: Report

A research as suggested an urban Indian consumers registering an improvement in consumer outlook in December, 2013.

According to a ZyFin Research, which focusses on current and future spending plans, employment and inflation, shows outlook of urban Indian consumers has touched 40.2, an uptick of 0.4 points compared to November, 2013, reported media.

ZyFin Research states that a score of above 50 suggests optimism while below 50 is pessimism.

ZyFin Research‘s consumer outlook index is India's monthly barometer of consumer trends. It is based on a monthly assessment of 4000 consumers in 18 cities.

“The Indian economy is on the path of revival and the abating pessimism towards borrowing and spending is a sign that bodes well. However, employment continues to be a cause for concern as several sectors, particularly manufacturing, have been reeling under the throes of the economic slowdown. 

For any major turnaround in spending sentiment, employment outlook needs to improve drastically as compared to what it is today,” Debopam Chaudhuri, VP research, ZyFin Research was quoted by media as saying. Consumers in metros’ like Mumbai, Bengalore and Hyderabad are the most optimistic with regard consumer outlook.

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LIC- Life Insurance Corporation of India Proves ‘The Most’ Consumer Friendly

LIC also outshined in private insurer in business with a slide of only 5.6% as against private insurers which are all in double digits ranging from 17% to 42%. The only exception is HDFC Life Insurance, which has a fall percentage of 5.6%. IRDA monitors fall percentage as the number of policies fell during the year divided by the average of the policies in force at the beginning and end of the year, according to media reports.

Life Insurance Policy (LIC) has outshined other insurance agencies in terms of consumer friendliness parameters. It had fewer slips, higher claim settlement and no penalties from the regulator.

Interestingly, the claim settlement percentage of LIC was better than private life insurance agencies. Its settlement percentage increased to 97.73% in FY13 from 97.42% in the previous year. While the rejections was only 1.12% compared to 1.30% earlier, reported media.

Private insurance agencies recorded a fall in settlement percentage to 88.65% from 89.34% in FY12. In its annual report FY13, Insurance Regulatory and Development Authority states (IRDA), “Private insurers had repudiated more number of claims when compared to LIC. The percentage of repudiations (by private insurers) was 7.85%, almost unchanged from pervious years 7.82% in FY12.”

According to TOI, “The 13-month persistency (policies which are renewed after a year) is the highest for PNB MetLife at 71.22% on a much smaller business. LIC, Max Life Insurance and IDBI Federal Life Insurance have a 13-month persistency of 70%. For other private companies, the ratio ranges from a low of 36% to 69%.

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Hurray! Consumers get myriad choices in 2014

The New Year 2014 will give consumers lot of choice to look for, as new banks, global retailers and new airlines are setting up business in the country following the Reserve Bank of India (RBI) plan to give licenses in early 2014 to set up more banks.

In 2014, India will get its first global retail chain in the multi-brand sector, as the government would approve the proposal of British retailer Tesco which has joined hands with Tata-owned domestic chain Trent, reported media.

The aviation sector will also see two new airlines - Air Asia's domestic venture and Tata-Singapore Airlines – having more capacity and connectivity to many cities. 

Broadband users can also cheer up, as Reliance Jio's 4G project is expected in 2014. This will be in an addition to the 4G services, which is already being offered by Bharti Airtel in several circles.

Mobile technology will also see new entrance, as Xbox1, iPhones with bigger screens and smaller and quicker tablets. Wearable cell phones and smartphones with curved screens are believed to be a game changer in the communication. 

Insurance policy buyers can also expect good options, as with new pension law in place in 2014 would offer policy buyers for retirement solution a better regulation and more choice of products.

Moreover, purchasing gold possibly will also become easier as improved foreign exchange management can offer room for maneuvering on the import and pricing of gold to policymakers.

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RBI concerns over rising risk from bad loans

The Reserve Bank of India has said the risks of banking sector have seen a surge for the last 6 months because of increasing bad loans. RBI has advised restricting banks’ exposure limit for single borrower and single group. It also adds that consistently high retail inflation makes it hard to dip down the rates.

The half-yearly Financial Stability Report (FSR) showed individuals and single group’s controlling stock exchanges amidst the scam in the National Spot Exchange. RBI is concerned over the bad loans in infrastructure, iron and steel, textiles, aviation and mining. On the positive side, RBI said that the delay in US tapering off its fiscal stimulus has helped India. The report said that India is likely to have a current account deficit of below 3% in FY14 and is now prepared for tapering of the fiscal stimulus in the US.

RBI's stress tests show that if bad loans double from September 2013 levels, it would be enough to wipe out over 14.3% of bank capital. The subsequent contagion effect — where losses in one entity cause other lenders to lose money — would cause an additional 26.8% erosion of capital. In all, 40.1% of the banking industry's capital would be lost if NPAs were to increase 100%, RBI said. Similarly, other stress tests show that banks would lose over 50% of their capital if interest rates were to rise by 250 basis points.

But despite the risks that high rates pose to banks and to the economic growth, RBI said that cutting interest rates was difficult because of high inflation. "Even as some moderation is expected in food inflation going forward, persistence of retail inflation remains a concern," RBI said.

The FSR — the first in governor Raghuram Rajan's regime — highlights need for new limits on how much a banks can lend to one company or one business group. RBI has pointed out that the International Monetary Fund and the World Bank had assessed India to be "materially non-compliant" vis-a-vis the Basel norms related to large exposure limits in their report on the financial sector assessment programme (FSAP). The FSAP report said, "The large exposure limit of 40 % — which can exceptionally be brought to 50 % for infrastructure exposures — for a group borrower, is significantly higher than the large exposure limits of 25% which is considered good international practice... this limit has the potential to allow the default of one particular consolidated borrower to cause a serious loss of capital in a banking company." In this context, RBI said "A review of the extant single and group borrower exposure limits would considerably enhance the stability of the banking sector."

Commenting on the NSEL crisis, the report said, "Investigations into the various malpractices at NSEL have revealed the need for comprehensively addressing the problems in commodity spot markets in India." The report also cautions against individuals or groups controlling a stock exchange. "The episode has emphasized the need for ensuring that no single shareholder or a group of shareholders is permitted to dominate the functioning of the exchange or exercise management control," the report said.

Compared to the earlier FSR released in August by former RBI governor D Subbarao, the current version is substantially positive on the external front. In August, Subbarao had said that the key challenge then was to finance the high current account deficit (4.9% in Q1FY14) in a non-disruptive manner and contain its size within sustainable levels. This time, however, RBI has said that there have been substantial improvements on the external front with exports growing much faster than imports. "From July 2013 onwards, exports have grown faster than imports. The CAD is expected to be less than 3% of GDP in FY14. The increased resilience of the Indian financial markets is evidenced by the positive reaction to the announcement of the commencement of tapering from January 2014 by the Fed," the report said.

(Courtesy: TOI)

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What Indian consumers consumed most in 2013

As the New Year 2014 is just around the corner and internet users in India is expected to grow from 164 million to about 240 million in 2014. Amidst, the online space is beginning to capture major consumer shades.

An analysis of social media conversations was done by IBM Analytics to look at several consumption behaviors during the period of 2013.  The analysis was done over the period from September to December, 2013 (when people are on shopping spree). It shows consumer wish-list and buying concerns.

The electronics, automotives and consumer durables categories dominated the wish0list at about 70%. While in products, smart phones, laptops, bikes and SUVs constitute 75%.

However, entertainment and cricket continue to be the topmost preference of consumers. Interestingly, according to Google’s Zeitgeist 2013, Bollywood hits and Indian Premier League (IPL) were on the top in the Google searches. Bollywood film ‘Chennai Express’ topped the search list. Sachin Tendulkar’s retirement coverage also grabbed the massive numbers. 

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Don't eat too much fast food, McDonald's tells own staffers

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8.5 lakhs new jobs expected in 2014: Survey

A survey has suggested India will see over 8.5 lakhs jobs in 2014.

According to a recruitment platform MyHiringClub.com, jobs are expected across various sectors, including FMCG and healthcare, reported media.

The study was done after considering 5,600 firms across 12 industry sectors. Apart from FMCG sector, more jobs are expected in healthcare, IT, retail and hospitality sectors.

“Last calendar year was not good either for job seekers or for employers due to uncertain and fluctuated economical and political conditions. 2014 is coming with positive vibes for job-seekers and expected to create 8.5 lakh new jobs in different sectors,” MyHiringClub.com CEO Rajesh Kumar told media.

“Finding employees who have employability or job readiness skills that help fit into and remain in the work environment is a real problem and threatening to growth. These issues need to be addressed on priority,” he adds.

MyHiringClub.com's survey shows that FMCG is expected to have 1.5 lakh new jobs, followed by healthcare (1.33 lakh), IT and ITeS (1.21 lakh), retail (86,700) and hospitality (83,400). (Courtesy: TOI)

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India set to become the world’s 3rd largest economy in 2028

A new study has shown that India will be world’s 3^rd largest economy in 2028.

A study done by London-based consultancy Cebr, India has lost a place in the World Economic league table in 2013 to Canada and is now the 11th largest economy in the world.

The study states, “But demographics and economic growth will eventually drive the Indian economy up the table and the forecast for 2028 has India becoming the world's 3rd largest economy overtaking Japan.”

It further suggests that in the 2013 league table, India is at the 11th place with a GDP of $1,758 (RPT 1,758) billion, and by 2018 the country is likely to be at the 9th place with a GDP of $2,481 billion, and by 2023 it would be at 4th place, with GDP size of $4,124 billion, and it will claim 3rd spot with GDP of $6,560 billion by 2028.

The 2013 league table shows only two changes in the list of top 20 economies. Firstly, Russia overtook recession-stricken Italy to gain 8th place and Canada overtook India as a result of the collapse of the rupee to retake its position as the second largest economy in the Commonwealth and the 10th largest economy in the world, the report said.

By the year 2018, the emerging economies will be "on the move". Russia would be at the 6th place; India 9th, Mexico 12th, Korea 13th and Turkey 17th, it said.

By 2023, India and Brazil would be "on the march" and are likely to claim the 4th and 5th place, respectively. By the year 2028, the league table will be reordered. China will move to the number one place, followed by the United States (2nd), India (3rd), Mexico (9th) and Canada (10th).

The report further said China's GDP in dollar terms is likely to overtake the US in 2028 - much later than most previous predictions. Meanwhile, the United Kingdom would overtake Germany to become the largest Western European economy 'around 2030', it added.

(Courtesy: TOI) 

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Choose the best Consumer Loan

If you are planning to shop this Christmas or New Year, purchase from your credit card will be expensive following a RBI policy that no banks to allow zero interest on EMI. However, loan from PSU banks may seem feasible especially after recent reduction in interest rates, but still they are seen as an expensive option.

Here is brief information for consumers with regard to the zero percent interest.

Credit Cards

After the recent regulatory change, credit card EMI schemes carry an interest. This interest is about 12 per cent for three/six months and 15 per cent for nine/12 months. However, if you choose this mode of payment, you can be free of hassles as there is no requirement for a down payment or the need to provide proof of address and identity. But, note that you can’t use just any credit card. It should be a provider whom the retailer has a tie-up with, or else you don’t get to avail the EMI scheme.

Bank Loan

Recently many PSU banks including State Bank of India, Punjab National Bank and IDBI have reduced their interest rates on consumer durable loans by around two per cent. The interest rate is currently 12-12.75 per cent per annum. But, for a bank loan, you have to do a bit of running around. First, you would be required to provide your income proof and bank statement and prove your eligibility for the loan. Second, the banker will also require you to put some margin money for the loan and if need be ask you to bring a guarantor.

NBC Finance

Non-banking finance companies such as Bajaj Finserv, Shriram City Union Finance and Tata Capital, still run zero interest EMI schemes in the name of ‘Easy EMI’. Here, you will be required to provide identity proof, address proof, one cancelled cheque leaf and bank statement of last three months along with your photograph for a loan. You would be required to make a down payment of normally, the first four instalments and also pay a processing fee. These schemes are the cheapest of the credit options before a consumer today.
Courtesy: The Hindu

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GAS खरीदने पर मिलता है 40 लाख का 'फायदा', जानें कैसे मिलेंगे ये पैसे

क्या आप जानते हैं की हम सभी के घर में कुछ ऐसी घरेलु वस्तुएं होती हैं, जिन पर काफी ज्यादा कीमत के इनश्योरेंस कवर्स का लाभ मिलता है। सबसे खास बात तो ये है कि ये वस्तुएं या तो काफी सस्ती या मुफ्त मिलती हैं। हम आपको बताने जा रहे है एक ऐसी ही घरेलु वस्तु के बारे में, जिसकी कीमत तो काफी कम है मगर इसकी वजह से होने वाली दुर्घटनाओं पर 40 लाख रुपए तक के इनश्योरेंस कवर्स मिलने की पेशकश की जाती है। आज के समय में लगभग सभी भारतीय घरों में कुकिंग गैस सिलेंडर का इस्तेमाल होता है। इन एलपीजी गैस सिलेंडर की वजह से होने वाले हादसों में अगर किसी व्यक्ति या उसके प्रापर्टी को नुकसान पहुंचता है, तो उसे या उसके परिजनों को 40 लाख रुपए तक के इनश्योरेंस कवर का मुआवजा मिलने का प्रवधान है।

हिंदुस्तान पेट्रोलियम कॉर्पोरेशन की वेबसाइट के अनुसार - एचपी गैस के सभी रजिस्टर्ड कस्टमर, अपने रजिस्टर्ड स्थान पर एलपीजी गैस से होने वाली किसी भी दुर्घटना के लिए बीमाकृत हैं। इससे संबंधित जानकारी सभी वितरण केंद्रों और ग्राहक सेवा सेल पर उपलब्ध है। भारत में लगभग सभी ऑयल और गैस कंपनियों ने अपने ग्राहकों के लिए बीमा की व्यवस्था कर रखी है। मगर डीलर ग्राहकों को इसकी जानकारी देने से परहेज करते हैं। क्योंकि, डीलर को ही बीमा की पूरी किस्त भरनी होती है और ग्रहकों को एक रुपया भी नहीं देना पड़ता। हर साल ऐसी दुर्घटनाओं के बहुत कम ही केस सामने आते हैं। इस स्कीम के तहत रजिस्टर्ड कस्टमर के साथ-साथ रजिस्टर्ड प्रापर्टी भी इस बीमा योजना के अंदर आती है। इन दोनों में से किसी को भी अगर एलपीजी गैस के कारण क्षति पहुंचती है तो बीमा के जरिए पैसे मिलेंगे। 

इस बीमा का लाभ उठाने के लिए अपने डीलर के पास रिपोर्ट दर्ज करवानी पड़ती है। इसके बाद बीमा कंपनी 30 दिनों के अंदर अपनी सर्वे रिपोर्ट तैयार करती है और तब जाकर ग्राहक को पैसे मिलते हैं।

इन बातों का रखें ध्यान -

आपके कुकिंग गैस सिलेंडर के साथ लगने वाले उपकरण (गैस पाइप, रेगुलेटर, चूल्हा, इत्यादि) ISI मार्क वाले नहीं हैं तो बीमा खारिज किया जा सकता है। अपने डीलर से सालाना जांच के लिए कहें। क्योंकि, अगर आपके गैस उपकरणों की जांच लंबे समय से नहीं हुई थी, तो उस स्थिति में भी बीमा का लाभ नहीं मिलेगा। एनपीसीआई वेबसाइट के अनुसार - बीमाकर्ता को 30 दिनों के अंदर ही बीमा क्लेम की सारी बुनियादी जरूरतों को पूरा करना पड़ता है। क्रेडिट और डेबिट कार्ड के जरिए फ्रॉड से बचने के लिए यह ग्राहकों की जिम्मेदारी है कि वो अपनी पूरी जानकारी सही-सही जमा करें।सौजन्य:दैनिक भास्कर 

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Be careful in buying a rice cooker: Consumer Voice report

The electronic rice cookers as a domestic appliance gained currency in India in the last few years as cooking gas prices shot up and people began looking for efficient alternatives. Rice cookers are now increasingly being used by people in regions where rice is a staple and cooked for almost all meals. Dozens of rice cookers, made by either local manufacturers or established brands, are selling quite well across India. Usually, a family appreciates such type of rice cooker which saves time, cooking gas and water, and also saving them the hassle of checking every five minutes if the

rice was cooked – auto-shut took care of that. In a bid to give consumers the best rice cooker, CONSUMER VOICE conducted a test of rice cookers and the results were. In overall score, Prestige came on top followed by Inalsa. Prestige took lesser time in cooking and was followed by brands Usha and Morphy Richards. While in terms of quality of cooking, Maharaja Whiteline came on top followed by Inalsa. Interestingly, all the brands passed in various safety tests. Reconnect was found to be best value for money for being sold at

almost half the price than others, but performed no less. In performance test, Prestige took lesser time among all, followed by Usha and Morphy Richards. In terms of quality, the expert panel found rice cooked by Maharja Whiteline to be the best. The longest time was taken by Bajaj due to lower input power (350 watts). It consumed only 322 watts due to lower power ratings. The power consumed by all the cookers, exceptr Bajaj, was between 605 watts and 730 watts. While all the brands passed the safety test. 

(For more details, login to www.consumer-voice.org and get a copy of Consumer Voice)

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Haryana Urban Development Authority (HUDA) fined for Rs 5 lakhs for not providing drinking water

The National Consumers Disputes Redressal Commission (NCDRC) has sent a strong message to civic authorities that often get into litigation for denying basic amenities to consumers by opposing their genuine complaints. Pulling up the Haryana Urban Development Authority (HUDA) to failing to provide clean drinking water to residents to MGA Hisar, the apex court has imposed a fine of five lakh rupees on the authority.

“Public authorities spent more money on contesting cases than the amount they might have to pay to the claimant. In addition thereto, precious time, effort and other resources go down the drain in vain,” said the NDRC bench presided over by VB Gupta.

The residents of MGA Hisar had complained to the district consumer forum that even though plots in the residential area had been opened to purchase by HUDA, there was no supply of clean drinking water and no provision for waste management. The authority argued that they were supplying water in the morning and evening through tube wells, and there was no need to provide cannal water.

“The officials of the petitioner authority in the present case are bent upon not providing water that is for human consumption to the allot tees of the respondent,” the bench said.

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