Pre-Budget Consultation Highlights: Reforms for NBFCs

During a pre-Budget consultation, the Finance Industry Development Council (FIDC) emphasized the need for reforms to alleviate operational challenges and improve liquidity for Non-Banking Financial Companies (NBFCs).

Key Reform Proposals

• Reduction in SARFAESI Act Threshold:
  • Proposal to lower the loan amount threshold for enforcing security interest under the SARFAESI Act from Rs 20 lakh to Rs 1 lakh.
  • The current high threshold leads to resolution delays of up to five years, increasing non-performing assets (NPAs) and legal costs.
• Regulatory Norm Relaxation:
  • Facilitate easier fund-raising from banks to ease financial pressures on NBFCs.
• Creation of Dedicated Funds:
  • Proposed for supporting sectors like MSMEs, electric vehicles, infrastructure, and green energy.
  • Aim to boost NBFCs' lending capacity to emerging industries.
• TDS Exemption:
  • Request for exemption from the 10% Tax Deduction at Source (TDS) on interest payments.
  • The current TDS system creates cash flow constraints and operational complexities for NBFCs.
• Co-lending Arrangements:
  • Need for harmonization of TDS provisions between banks and NBFCs to simplify operations.
• Refinance Options:
  • Development financial institutions like SIDBI should provide refinance options to NBFCs for on-lending to MSMEs and priority sectors.

Attendees

The meeting included Union Finance Minister Nirmala Sitharaman and officials from major financial institutions, showcasing the significance of the discussion.

Summary of Key Recommendations

• Establishment of a dedicated fund for MSMEs, EVs, infrastructure, and green energy.
• Reduction of SARFAESI Act threshold to Rs 1 lakh to expedite case resolutions.
• Treating NBFCs at par with banks in terms of regulations and exemptions.
• Exemption of 10% TDS on interest income for NBFCs.

Highlights of 2024 Space and Astronomical Events

The year 2024 was packed with significant astronomical and spaceflight milestones:

• A solar eclipse was visible across North America.
• Two robotic landers successfully reached the lunar surface.
• The most powerful rocket booster was captured using mechanical arms called "chopsticks."
• A mission to Jupiter's icy moon Europa commenced.
• Private astronauts conducted a notable spacewalk.

Anticipations for 2025 in Space Exploration

Jeff Bezos' Entry into the Space Arena

Jeff Bezos, through his company Blue Origin, is set to challenge Elon Musk's dominance in space exploration:

• Blue Origin's New Glenn rocket, designed to be fully reusable, is expected to launch in 2025.
• The rocket aims to reduce launch costs and may carry national security satellites, NASA spacecraft, and Amazon's Project Kuiper satellites.
• Project Kuiper will compete with SpaceX's Starlink by providing internet services from space.

Rubin Observatory's First Light

The Rubin Observatory, named in honor of Vera Rubin, will play a crucial role in astronomical research:

• Equipped with the world's largest digital camera, it will create a time-lapse motion picture of the Southern sky.
• The observatory will aid in understanding dark matter and dark energy, key components of the universe.

U.S. Lunar Exploration and Policy Changes

U.S. space policy, influenced by presidential changes, focuses on lunar missions:

• Under Trump's new administration, existing space plans could be altered, with potential shifts towards Mars exploration.
• Robotic missions to the moon are planned, with companies like Firefly Aerospace and Ispace launching landers in early 2025.
• Intuitive Machines' second lunar lander, Athena, will attempt to find ice samples on the moon.

India's Space Ambitions

India is making strides in space with a focus on human spaceflight:

• Indian astronaut Shubhanshu Shukla is set for a mission to the International Space Station in collaboration with Axiom Space.
• India's Gaganyaan program is preparing for an uncrewed test launch, potentially leading to a crewed mission by 2026.

New Milestones and Spacecraft

Several new rockets and spacecraft are poised to take flight in 2025:

• SpaceX's Starship, the most powerful rocket, may achieve further milestones, including a "chopsticks" catch after an orbital flight.
• Rocket Lab is developing Neutron, a reusable rocket.
• Sierra Space's Dream Chaser space plane aims to deliver cargo to the ISS for the first time.