Page 789 - Business Finance
Centre to divest stake in Kamarajar Port
An Union Cabinet here on Thursday gave the in-principle approval for divesting the Centre's stake in the Kamarajar Port Limited (KPL) to the Chennai Port Trust (ChPT).
US economy grew 2.9% in 2018, but shows signs of slowing
The US economy kicked into high gear last year, in the wake of sweeping tax cuts, but slowed in the final months, suggesting the boom had begun to fade, according to government data released Friday. GDP expanded by 2.9 per cent in 2018, according to the Commerce Department report, up from 2.2 per cent the year and approaching the target set by President Donald Trump. Last year's pace matched growth in 2015, which was the highest since 2005. But in the October-December period, growth tapered down to an annual rate of 2.6 per cent, a sharp drop from 3.4 per cent in the third quarter, and 4.2 per cent in the second. Even the slower fourth-quarter expansion was better than expected, as economists had predicted lackluster consumer spending over the holiday period would take a deeper cut out of growth. The robust data could simultaneously lend support to Trump and to his critics, showing unmistakable economic gains last year, amid brisk job creation, but indicating it may have been a ...
Cabinet approves soft loan to sugar mills to pay farmers' dues
To facilitate payment of dues of sugar cane farmers for the current sugar season, the Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the proposal to provide soft loans to the extent of about Rs 7,900-10,540 crore to the sugar industry.
Downward revision of current fiscal growth does not indicate economic slowdown: Garg
The downward revision of GDP growth in the current fiscal to 7 per cent does not indicate slowing down of economy as it is calculated on the basis of higher growth projections by the CSO for the previous fiscal, Economic Affairs Secretary Subhash Chandra Garg said Thursday. "GDP estimates for 2018-19 released today needs to be viewed in correct perspective. Downward revision to 7 per cent from 7.2 per cent in 1st Adv Est is against revision of GDP of 2017-18 from 6.7 per cent to 7.2 per cent. Average GDP of two years taken together is 7.1 per cent as against earlier estimate of 6.95 per cent," he tweeted. The Central Statistics Office (CSO), which releases the national account data, had last month revised its forecast for GDP growth for 2017-18 to 7.2 per cent from the earlier estimate of 6.7 per cent. It also revised the actual growth rate in 2016-17 to 8.2 per cent from the 7.1 per cent estimated earlier. "GDP growth at 7 per cent does not indicate slowing down when compared to 7.2
Govt gives ex-post facto approval for creation of SPV for Air India's disinvestment
The Union Cabinet on Thursday gave its ex-post facto approval for the creation of the Special Purpose Vehicle (SPV) and associated activities for the disinvestment of Air India and its subsidiaries.An SPV namely Air India Assets Holding Ltd. (AIAHL) has been created for warehousing accumulated working capital loan not backed by any asset along with four Subsidiaries (Air India AirTransport Services Ltd. (AIATSL), Airline Allied Services Ltd. (AASL), Air India Engineering Services Ltd. (AIESL) and Hotel Corporation of India Ltd. (HCI), non-core assets painting and artefacts and other non-operational assets of Air India Ltd. to an SPV.The Ministry of Civil Aviation (MoCA) issued an order for creation of a new SPV. The SPV, Air India Assets Holding Ltd. was incorporated on January 22 last year.The Board of Directors of SPV includes CMD, Air India Ltd. and Joint Secretaries of MoCA, Department of Expenditure, Department of Economic Affairs, DIPAM and Director (Finance) Air India Ltd.As on
Govt okays Vodafone Idea's up to Rs 25,000 cr rights issue
The government Thursday cleared an FDI proposal of telecom giant Vodafone Idea Ltd (VIL) ahead of its proposed up to Rs 25,000 crore rights issue. "The Cabinet has approved the proposal of Vodafone Idea Ltd, which had proposed foreign direct investment (FDI) of more than Rs 5,000 crore which may extend up to Rs 25,000 crore," Finance Minister Arun Jaitley said after announcing the decisions taken by the Cabinet Committee on Economic Affairs (CCEA). The CCEA has also approved to take on record the proposed changes in the indirect foreign investment in the subsidiaries of VIL that will take place on account of non-residents subscribing to the equity shares in the fund raise, an official statement said. Foreign direct investment up to 100 per cent is allowed in India's booming telecom services sector with 49 per cent allowed under the automatic route and beyond that through government route subject to observance of stipulated conditions by the licensee and investors. "However, in ...
Cabinet approves National Mineral Policy 2019
The Cabinet Thursday approved National Mineral Policy 2019 which will "lead to sustainable mining sector development" in future, while addressing the issues of project affected persons, especially those residing in tribal areas, according to an official statement. "The 2019 policy proposes to grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector," said the release after the Cabinet meeting. National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 ("NMP 2008") which was announced in 2008. The aim of National Mineral Policy 2019 is to have a more effective, meaningful and implementable policy that brings in further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices, it added. The new policy includes provisions to encourage private sector to take up exploration, encouragement of ...
Cabinet clears FDI of up to Rs 25,000 cr in Vodafone Idea via rights issue
The Union Cabinet on Thursday approved the proposal for Foreign Direct Investment of more than Rs 5,000 crore and up to Rs 25,000 crore in Vodafone Idea as part of the proposed equity fund raise through rights issue.
Cabinet clears procedure, mechanism to monetise enemy properties, CPSE's non-core assets
The Cabinet Thursday approved laying down procedure and mechanism for monetisation of non-core assets of CPSEs and immovable enemy properties assets. "The Union Cabinet has approved laying down of institutional framework for monetisation of identified non-core assets of the CPSEs under strategic disinvestment and assets relating to immovable enemy property under the custody of Custodian of Enemy Property for India (CEPI)," an official statement said. Enemy property refers to the assets which were left behind by people who migrated to Pakistan or China and are no longer citizens of India. The institutional framework for monetisation of the assets could also be used by other CPSEs, PSUs, government organisations and loss-making or sick CPSEs. "The multi-layer institutional mechanism envisages constituting of alternative mechanism, core group of secretaries on asset monetisation and inter-ministerial group as main decision bodies," the statement, issued after the meeting of the Cabinet, .
Cabinet approves promulgation of Ordinance to amend SEZ Act
Trusts now can approach the government to set up units in special economic zones as the Cabinet Thursday approved the promulgation of an Ordinance for amendment to the SEZ Act, 2005. The present provisions of the Act do not permit 'trusts' to set up units in SEZs. "The amendment will enable a trust to be considered for grant of permission to set up a unit in SEZs," an official statement said. It said the amendment would also provide flexibility to the central government to include 'trusts' in the definition of a 'person', any entity that the central government may notify from time to time. This will facilitate investments in SEZs, it said. "Cabinet approves promulgation of an Ordinance for amendment to the SEZ Act, 2005," the statement said. It said the definition of "person" as defined in the SEZ Act would now to include trust. Currently, the definition of "person" includes an individual, whether resident in India or outside India, a Hindu undivided family, co-operative society, a ...
Jet Airways scrip falls as more planes grounded
Jet Airways on Thursday said that it has grounded more aircraft, taking the total to 19, over its non-repayment of dues to lessors.
Refinery products decelerate January core factory output to 19-month low
Contraction in output of refinery products hugely decelerated the output pace of India's eight major industries in January to a 19 months low of 1.8 per cent, official data showed on Thursday.
Cabinet approves Rs 1,450 cr for share capital of RBI in NHB
The Union Cabinet Thursday approved Rs 1,450 crore for the share capital of Reserve Bank of India in the National Housing Bank. Subsequent to the payment of this amount to RBl, the subscribed capital of NHB shall stand transferred to and vested in the central government. The National Housing Bank (NHB) has been set up to operate as the principal agency to promote housing finance institutions in India. "The Union Cabinet Thursday approved payment of the face value of the subscribed share capital of Rs 1,450 crore in National Housing Bank (NHB) to Reserve Bank of India (RBl) consequent to amendments made to the NHB Act, 1987 in 2018," said an official release. The wholesale financing role of NHB will get strengthened with the transfer of ownership to government, thereby making possible augmented funding support to housing finance companies, it said. "The change in ownership from RBI to Gol will also segregate RBI's role as banking regulator and as owner of NHB," it added. Up till now, ..
Cabinet nod for Rs 1,450 cr to purchase RBI stake in National Housing Bank
The Union Cabinet on Thursday approved an expenditure of Rs 1,450 crore for purchase of the Reserve Bank of India-held shares in the National Housing Bank (NHB), Finance Minister Arun Jaitley announced following a Cabinet meeting here.
Cabinet clears transfer of Air India's Rs 29,464 cr loans, 4 subsidiaries to SPV
As a precursor to sale of Air India, the Cabinet Thursday approved setting up of a special purpose vehicle -- Air India Assets Holding-- to transfer Rs 29,464 crore worth loans of the national carrier and its four subsidiaries. "The Union Cabinet has given ex-post facto approval for the creation of the SPV and associated activities for the disinvestment of Air India and its subsidiaries or JV," an official statement said. The four subsidiaries which have been transferred to the SPV are Air India Air Transport Services (AIATSL), Airline Allied Services (AASL), Air India Engineering Services Ltd (AIESL) and Hotel Corporation of India (HCI). Also non-core assets - painting and artefacts - as well as other non-operational assets of the national carrier too will be transferred to the SPV. These subsidiaries and assets are not part of the Air India strategic disinvestment, which is being planned by the government. The Ministry of Civil Aviation had issued an order for creation of a new SPV,
PNB tops among PSBs in implementing banking reforms: Report
Punjab National Bank (PNB), the victim of India's biggest banking scandal last year, has been ranked first among the public sector banks (PSBs) in implementing banking reforms, according to a report released on Thursday.
Power tariffs slashed in C'garh, domestic consumers to benefit
The Chhattisgarh State Electricity Regulatory Commission (CSERC) Thursday announced reduction in power tariffs, which will benefit 91 per cent of domestic consumers in the state. The new tariffs would come into effect from April 1. The commission has slashed tariffs for all categories for domestic consumers. "The Commission has restructured consumer slabs keeping in view socio-economic profile of domestic consumer class....The reduction is 10 per cent for economically weaker class and six percent for the middle class consumers,"said D S Misra, chairman of the CSERC. He also said that 90 per cent of domestic consumers account for 60 per cent of the total domestic consumption while ten per cent account for 40 per cent of consumption. For the consumption slab of below 100 units per month, the tariff has been reduced from existing Rs 3.76 to Rs 3.40 per unit, he said. Sixty-four per cent of domestic consumers come under this slab. For 101 to 200 units slab the tariff has been
Motherson to acquire Bombardier's UK rolling stock electrical biz for 10.87 mn pounds
Auto components major Motherson Sumi Systems Ltd Thursday said it will acquire Bombardier's UK rolling stock electrical component and systems business in a transaction valued at 10.87 millions pounds (over Rs 100 crore). The company's wholly-owned arm Motherson Rolling Stock Systems GB Ltd (MRSS) has signed a definitive agreement with Bombardier Transportation (Rolling Stock) UK Ltd to acquire the latter's assets in connection with production and installation of electrical components and systems for applications in the rail industry, Motherson Sumi Systems Ltd (MSSL) said in a statement. These assets also includes manufacturing of wiring harnesses, panel and cabinet build and electromechanical assemblies in Derby, UK, it added. "The transaction includes transfer of assets, employees and inventories, on debt free and cash free basis and is valued at GBP 10.87 millions approximately (subject to customary adjustments)," the company said. The revenue of said business were GBP 36 million ..
WB govt offers redressal to e-tail consumers too: minister
The West Bengal Consumers Affairs department Thursday said it has broadbased its services by offering redressal to consumers who have complaints relating to products purchased online. Consumer Affairs Minister Sadhan Pande said the department is keeping a close watch on e-tailers. "Consumers who feel that they were cheated after buying products or services online can approach us. We will address their concerns as we do for others," Pande said at an interactive session with the Bengal National Chamber of Commerce here. The minister said orders delivered by consumer courts there should not be challenged. "Expenses are very low in consumer courts compared to regular courts of law. We have also engaged NGOs for assisting a poor consumer," Pande said.
Parking facility at 10 Aqua Line stations from March 4: NMRC
People will be able to park their vehicles on the premises of the 10 stations of the Noida-Greater Noida metro line from March 4, its operator Noida Metro Rail Corporation (NMRC) said Thursday. The stations at Sector 51, 76, 101, 81, 137, 142, Knowledge Park, Pari Chowk, Alpha 1 and Delta will be available for parking to the public, a senior official said. Four of these stations -- Sector 51, Pari Chowk, Knowledge Park and Sector 142 are also among those that witness the maximum footfall and generate the maximum revenue, according to the NMRC. "People will be given (Quick Response) QR-coded tickets for parking, which will be available for a charge," NMRC Executive Director P D Upadhyay said. Any four-wheeler will be charged Rs 20 for first six hours, Rs 10 for every additional two hours and the maximum charge per day has been capped at Rs 40, he said. The parking rates for two-wheelers have been fixed at half the fare of four-wheelers, he added. A monthly parking pass for ...