Rajnath chairs IGoM meeting, emphasises constant vigil to ease West Asia war impact, Pg10

Key Highlights:

• Defence Minister Rajnath Singh chaired the second meeting of the Informal Group of Ministers (IGoM) to assess the impact of the West Asia conflict.
• The IGoM reviewed issues including LPG supplies, Aviation Turbine Fuel (ATF) price hikes, and customs duty exemptions on 40 critical petrochemical products until June.
• The government decided to cap the monthly increase in ATF prices for domestic operations at 25%, effective April 1, 2026.
• The Ministry of Finance is addressing global trade disruptions by providing relief to industries, especially manufacturing, and bolstering investor confidence.

Detailed Insights:

• The IGoM emphasized continuous monitoring and a calibrated response to minimize the conflict's impact on citizens.
• Empowered Groups of Secretaries briefed the IGoM on measures to tackle the situation arising from the conflict.
• Relief measures include a full customs duty exemption on 40 critical petrochemical products until June to reduce cost pressures on downstream sectors.
• A one-time relief measure allows SEZ units to sell manufactured goods in the Domestic Tariff Area (DTA) at concessional customs duty rates until March next year.
• General Anti-Avoidance Rule (GAAR) will not be invoked for investments made before April 1, 2017, providing clarity for investors.
• There have been no reports of LPG shortages, with domestic cylinder delivery continuing as per normal schedule, despite temporary supply concerns due to hoarding.

Key Concepts Involved:

• Informal Group of Ministers (IGoM): A group of ministers formed to address specific issues requiring coordinated action across multiple ministries.
• Aviation Turbine Fuel (ATF): A type of jet fuel used to power aircraft with gas turbine engines.
• Domestic Tariff Area (DTA): The area of a country that is subject to normal customs duties and trade regulations, as opposed to special economic zones.