Top 10 biz headlines: LPG crisis, Sitharaman on liquidity issue, and more

From India bracing for an LPG crisis to Sitharaman commenting on liquidity issue, here are the top 10 business headlines on Friday

India braces for LPG supply crisis after terror attack on Saudi Aramco

This festive season, liquefied petroleum gas (LPG) delivery in the country is bearing the brunt of a recent terror attack at the Saudi Aramco facilities. A shortfall in assured supply from the energy major has resulted in a huge booking backlog across states such as Maharashtra, Karnataka, Punjab and Goa, according to industry sources. Read More

No liquidity crisis: FM after 'tonic-like' meeting with private banks

Demand is back in the system, Finance Minister Nirmala Sitharaman said on Thursday, expressing hope that it, along with increased lending, would perk up the economy in the second half of the current financial year. Read More

Govt seeks steep cut in devolution to states from existing 42% of tax pool

The central government, in its memorandum to the Fifteenth Finance Commission (15th FC), has sought a substantial decrease in devolution to states from the existing 42 per cent of the divisible tax pool. Read More

New framework to bail out stressed financial companies likely today

Amid the crisis at Dewan Housing Finance (DHFL), financial sector regulators are planning a framework for resolving stressed financial conglomerates. The new framework, which will be discussed by the regulators at a meeting in Mumbai on Friday, will help adopt a uniform approach on bailing out such companies. Read More

Govt might seek extension of ECB to boost NBFC credit in economy

The government may ask the Reserve Bank of India (RBI) to allow co-origination of loans for deposit-taking non-banking finance companies (NBFCs) as well in a bid to boost credit in economy. Read More

Effective tax rates applicable to Indian firms still among the highest

The recent cut in the corporation tax rates may ease the burden on corporates. But more steps are required for making the country globally competitive from the perspective of corporation tax. Read More

Fairfax Financial Holdings sells 5% stake in ICICI Lombard for Rs 2,562 crore

FAL Corporation, a wholly-owned subsidiary of Canadian investor Prem Watsa’s Fairfax Financial Holdings, has sold 4.99 per cent equity stake in ICICI Lombard general insurance for Rs 2,562 crore in a block deal. Read More

SoftBank may Shelve Plan to Invest in Piramal Group

Masayoshi Son’s Soft-Bank may call off talks aimed at backing the Piramal Group’s financial services arm, Piramal Capital and Housing Finance, over irreconcilable differences, Economic Times reported. The Mumbai-based conglomerate was negotiating a deal that would have spun off the group’s housing finance division into a separate company with SoftBank investing around $1 billion for a significant stake, they added. In its July 15 edition, ET had reported that the deal would likely happen only if Piramal Group moved away from wholesale loans to consumer lending. 

Govt Wants Oil Cos to Pay Rs 34,000 Cr in Dividend

The government wants oil companies to pay Rs 34,000 crore in dividend, profit petroleum and royalty in this financial year, about 15% more than they did last year, in a bid to raise resources for public spending amid economic slowdown and corporate tax cuts, reports Economic Times. The finance ministry recently conveyed to the petroleum and natural gas ministry that state-run oil companies would need to step up dividend payout this year, which will increase overall revenue receipt from the oil sector and help the government meet its revenue target, said people aware of the matter.
 

Essel Group in talks with Adani to sell solar energy assets

The Essel Group, which needs to sell a host of assets to stave off loan defaults, is in talks with the Adani group to sell its remaining solar energy portfolio, Livemint reported. Essel is rushing to complete its unfinished solar power projects of 480 megawatts (MW) to sell them to Adani Green Energy Ltd, the group’s renewable energy arm, the people said, requesting anonymity.