[‘Daily News Updates’ will provide you with a simplified understanding of the important economic/financial events across the country]
Model Tenancy Act Cleared by the Union Cabinet
The Union Cabinet has approved the Model Tenancy Act in a bid to boost the rental housing market in the country. [A Model Act is not enforceable; it is now up to the states to amend their existing tenancy laws in line with the Model Act]. As per the 2011 Census, about one crore properties were lying vacant, a number which must have increased in the past ten years. In such a situation, creating a vibrant rental housing market is essential to fulfil the goal of ‘Housing for All’ till 2022.
An important feature of the Model Act is that the rent and duration of tenancy can be fixed mutually by the landlord and the tenant, and there is no upper limit prescribed. Also, the security deposit can be for a maximum of two months in the case of residential premises. A rent authority, rent court, and rent tribunal have been prescribed to resolve disputes in a time-bound manner, while the jurisdiction of the civil courts has been expressly barred. The Act seeks to prevent disputes by specifying the roles of both the tenant and the landlord while, at the same time, providing enough liberty to them in specifying the terms of their agreement.
The current state Acts have become archaic over time because of several restrictions imposed upon the landlord and their visible pro-tenant bias. Hence, many house-owners prefer to keep their property vacant rather than letting it out to prospective tenants as they fear that the tenants will not vacate the property. The current Model Act is expected to correct this bias.
PLI Scheme for Lithium-Ion Cells, Tata, Adani, and RIL among the Frontrunners
[What is the PLI Scheme? Production Linked Initiative (PLI) scheme is an incentive scheme for large-scale manufacturing in India aimed at developing a vibrant manufacturing ecosystem in the country. Last year, it was announced for the electronics and the pharmaceuticals industry].
For the manufacturing of lithium-ion cells, the Government has announced an incentive of Rs. 18,100 crores and expects to attract investments worth Rs. 45,000 crores. Lithium is expected to become the most important commodity in a few decades (replacing crude oil) as the world moves towards electric vehicles (which use Lithium-ion batteries). Through the PLI Scheme, the Government aims to turn India into a major hub for manufacturing electric vehicles and related parts as global demand will surge manifold.
“Reliance Industries Ltd (RIL), Adani Group, Tata Chemicals, Larsen and Toubro Ltd (L&T), and a joint venture (JV) led by Japan’s Suzuki Motor Corp. are among companies who have shown interest in building lithium-ion cell manufacturing plants in India.”
Interestingly, the Government has also signed a Memorandum of Understanding with Argentina for cooperation in the field of mineral resources, including ‘extraction, mining, and beneficiation of lithium.’ This is significant given that China has already secured lithium mine concessions in Argentina, Bolivia, and Chile.
Economyria is now on Telegram. For a simplified analysis of topics related to economy/ business/ finance, subscribe to Economyria on Telegram