General Awareness

BUSINESS AND ECONOMY - May 2018

May 2018

Mar 12, 2021

RBI to Conduct Simultaneous Purchase and Sale of Government Securities

The Reserve Bank will conduct simultaneous purchase and sale of government securities for Rs. 10,000 crore each under Open Market Operations (OMOs) on March 18, 2020.
The decision was taken after a review of the current liquidity and financial conditions.
The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets.
Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.
On March 18, the RBI will purchase three government securities of different maturity dates aggregating to Rs 10,000 crore and sell two gilts of the same amount using the multiple price auction method.

China Approves $1.5 billion Currency Swap with Sri Lanka

China has approved a 10 billion yuan ($1.54 billion) currency swap with Sri Lanka, giving some respite from concerns about public finances.
The deal will allow the island to weather present difficulties.
Dwindling foreign reserves, a tumbling currency and rising debt levels have dogged Sri Lanka over the last year, leading to increasing fears of a default.

Mar 11, 2021

IDBI Bank out of PCA Framework, Subject to Certain Conditions

According to the Reserve Bank of India, IDBI Bank has been taken out of the Prompt Corrective Action (PCA) framework, subject to certain conditions and continuous monitoring.
The performance of IDBI Bank Limited was reviewed by the Board for Financial Supervision (BFS) in its meeting held in February 2021, and it was decided that the lender will be taken out of PCA framework.
The bank has provided a written commitment that it would comply with the norms of minimum regulatory capital, Net NPA and Leverage ratio on an ongoing basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
IDBI Bank was placed under PCA in May 2017. Under the PCA framework, lenders which slip below certain financial parameters such as capital ratios, asset quality and profitability will be under the close watch of RBI.

REC, PFC Sign Pact to Finance Hydropower Project in Bhutan

- State-owned entities REC Ltd and Power Finance Corporation (PFC) have entered into a pact with Bhutan-based Kholongchhu Hydro Energy Ltd (KHEL) to finance a 600-megawatt hydroelectric project at Trashiyangtse in the neighbouring country.
- KHEL is a 50:50 joint venture between SJVN India and Druk Green Power Corporation (Bhutan) set up for developing the 600-MW Kholongchhu hydroelectric project in the eastern Bhutan.
- The project is proposed to be funded in a debt-equity ratio of 70:30 and as per the MoU, REC would extend a rupee term loan of Rs. 2,029 crore. The balance debt shall be extended by PFC (Rs. 2,029 crore), NPPF, Bhutan (Rs. 200 crore) and Bank of Bhutan (Rs. 200 crore).
- KHEL is the first JV being undertaken between the two governments for implementation of the 4x150 MW Kholongchhu hydroelectric project.

ONGC Acquires Stake in Indian Gas Exchange

State-owned Oil and Natural Gas Corp (ONGC) acquired a 5 per cent stake in Indian Gas Exchange (IGX), joining likes of Adani Total Gas, Torrent Gas and GAIL in nation's first gas exchange.
The Indian Gas Exchange is a subsidiary of the IEX - India's premier nationwide, automated electricity trading platform.
ONGC signed a Share Purchase and Shareholders Agreement (SPSHA) with the Indian Gas Exchange (IGX) and the Indian Energy Exchange (IEX) in the presence of Oil Secretary Tarun Kapoor and ONGC head Shashi Shanker.
IGX is India's first automated national-level gas exchange for trading in natural gas in the country. It started operations on June 15, 2020 as a gas trading platform and has been operating as the gas exchange since December 2020.

Mar 10, 2021

Puravankara Forays into Mumbai with Ultra-luxury Project

Marking its entry into the Mumbai-market, Bengaluru-based realty player Puravankara is investing Rs. 450 crore to launch a residential-cum-commercial luxury project in the city's Chembur suburb. This project will have four towers with a total of 233 residential units with 2-,3- and 4-BHKs and one tower of 79 commercial units.
Puravankara has already launched two luxury projects under its World Home Collection brand in Bengaluru and Chennai.

Ministry of Electronics & Information Technology (MeitY) Releases Scorecard

The Ministry of Electronics & Information Technology (MeitY) has released the list of "Digital Payment Scorecard". In the list, the State Bank of India (SBI) has topped for the third consecutive month.
The digital payment scorecard tracks the performance of the Commercial Banks on several digital parameters. SBI maintained the top remitter bank by recording the highest UPI transaction volume which accounted for nearly Rupees 640 million.
SBI has also emerged as the largest issuer of debit cards. It issued over 290 million debit cards with a 30% market share with respect to card spends and 29% share with respect to transaction volume. The Bank has also made steady progress with respect to increasing payment acceptance infrastructure.

Threshold for Mandatory E-invoicing Lowered

The Central Board of Indirect Taxes and Customs (CBIC) notified that the finance ministry has decreased the threshold for mandatory e-invoicing from rupees 100 crores to rupees 50 crores. This new rule will come into effect from April 1, 2021.
E-invoicing involves the reporting details of the specified Goods and Services Tax documents to the government-notified portal and to obtain a reference number. The IT systems provider for GST called GSTN claims that there exists not a larger difference between the present system and the new one. The registered persons also seek to create the GST invoices on their own accounting or billing or ERP systems. These invoices are reported to the "Invoice Registration Portal (IPR)". When the reporting is done, the IRP returns the e-invoice with unique Invoice Reference Number (IRN) after the e-invoice is signed digitally and a QR Code ID added. This invoice was issued to the receiver along with the QR Code. This GST invoice will be valid only with the valid IRN.

Indian Oil Corp, IDCO sign MoU for Paradip Plastic Park

The state-run Odisha Industrial Infrastructure Development Corporation (IDCO) and Indian Oil Corpration Limited (IOCL) signed a Memorandum of Understanding (MoU) to develop a plastic park in Paradip, Odisha.
As per the MoU, Indian Oil announced a special strategic incentive scheme to attract investments in downstream polymer industries at Paradip Plastic Park.
An incentive of Rs 2000 for each metric tonne of polypropylene granules from Paradip Refinery shall be offered to the manufacturing units located in the Paradip Plastic Park till March 31, 2030.

OECD Interim Economic Outlook

The Organisation for Economic Co-operation and Development (OECD) published its interim Economic Outlook in March 2021. It has projected that the Indian economy will grow at the rate of 12.6% in Financial Year 2022. This will be the highest among G20 countries.
Economic Outlook is the twice-yearly analysis, published by Organisation for Economic Co-operation and Development (OECD). It comprises economic analysis and the forecasts for future economic performance of the member countries of OECD. The main version of the report is published in English however, it is also published in French and German languages. Apart from the economic outlook, OECD also publishes Monthly Economic Indicators to complement the Economic Outlook.
Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation comprising 37 member countries. It was founded in the year 1961 to look after the economic progress and the world trade. It is also an official United Nations observer.

Mar 09, 2021

Five Foreign Courts Confirm $1.4 bn Arbitration Award against India

Courts of five countries including the US and the UK have given recognition to an arbitration award that asked India to return USD 1.4 billion to Cairn Energy plc - a step that now opens the possibility of the British firm seizing Indian assets in those countries if New Delhi does not pay.
Cairn Energy had moved courts in nine countries to enforce its USD 1.4 billion arbitral award against India, which the company won after a dispute with the country's revenue authority over a retroactively applied capital gains tax.
The December 21 award from a three-member tribunal at the Permanent Court of Arbitration in the Netherlands has been recognised and confirmed by courts in the US, the UK, Netherlands, Canada and France.
Cairn has started the process to register the award in Singapore, Japan, the United Arab Emirates and Cayman Islands.
The registration of the award is the first step towards its enforcement in the event of the government not paying the firm.

YES Bank Launches YES Essence

Yes Bank announced the launch of women-centric ''Yes Essence'' services that will offer preferentially-priced loans and healthcare benefits, among other services. It has been launched on the occasion of the International Women's Day. ''Yes Essence'' is a holistic banking proposition for women across customer segments, homemakers, salaried professionals, entrepreneurs and senior citizens, which covers lifestyle, wellness, education, protection and investment.
Yes Bank will celebrate the launch of this proposition with women customers throughout the bank's network of branches across India from March 8-10, 2021.
The bank will offer a bouquet of solutions, including complimentary healthcare benefits, preferential pricing on loans, fee waiver on demat and trading account, wealth management, offers on upskilling through partnerships, attractive lifestyle and shopping offers.

Coal India Approves 32 Mining Projects

National miner, Coal India limited (CIL), has approved 32 new coal mining projects in the ongoing financial year with an estimated cost of Rs. 47,000 crore.
Of the 32, twenty-four are expansion of existing projects and the remaining eight are greenfield. The combined incremental peak capacity of these projects is projected at 193 million tonnes per annum (MTPA). This will be in addition to the already sanctioned capacity of 303.5 MTPA.
The incremental production by FY'24 from the approved 32 expansion and the new greenfield projects would be to the tune of around 81 MTPA.

HDFC Bank Launches 'SmartUp Unnati' for Women Entrepreneurs

On the occasion of International Women's Day HDFC Bank announced the launch of a dedicated programme for mentoring women entrepreneurs by women leaders at the bank.
Under the SmartUp Unnati programme, over the next one year, senior women leaders from HDFC Bank will mentor women entrepreneurs in helping them achieve their goals.
This programme is available only to existing customers and will initially target more than 3,000 women entrepreneurs associated with the bank's SmartUp programme.

Panasonic to Buy Blue Yonder in Biggest Deal Since 2011

Panasonic Corp said that it will buy U.S. software firm Blue Yonder for 700 billion yen ($6.45 billion), which is the Japanese electronics firm's biggest acquisition since 2011.
While Panasonic last year bought a 20% stake in Blue Yonder for 86 billion yen, it is now in the final stages of acquiring the rest from shareholders including Blackstone Group Inc.
The move comes as the Japanese company aims to expand hardware that combines software, sensors and other devices to help companies improve operational efficiency.

Mar 08, 2021

Aston Martin's Electric Sports Models to be Made in the UK

Luxury car giant Aston Martin has pledged to manufacture all of its electric cars in the UK from 2025.
Owner Lawrence Stroll said that all of its battery sports cars will be made at its plant in Gaydon, Warwickshire.
Its electric SUV models will be made at St Athan in Glamorgan.
The company is due to start making hybrid versions of its cars over the next four years, followed by battery-only models.

Govt. Proposes to Hike in LIC's Authorised Capital

The government has proposed to significantly increase the authorised capital of Life Insurance Corporation of India (LIC) to Rs. 25,000 crore to facilitate its listing slated for the next fiscal.
Currently, the paid-up capital of the life insurance company with over 29 crore policies is Rs. 100 crore. Starting with an initial capital of Rs. 5 crore in 1956, LIC has an asset base of Rs. 31,96,214.81 crore.
The authorised share capital of LIC shall be Rs. 25,000 crore divided into 2,500 crore shares of Rs. 10 each, as per the amendments proposed in the Life Insurance Corporation Act, 1956.
The amendments proposed as part of Finance Bill 2021 will lead to the setting up of a board with independent directors in line with listing obligations.

Tata, Mahindra and Ashok Leyland Eye BEML Stake

At least six companies, including Tata Motors Ltd , Mahindra and Mahindra Ltd and Ashok Leyland Ltd, are looking to buy a 26% stake in state-run defence equipment maker BEML Ltd.
Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd may also submit expressions of interest for the government's stake in BEML.
Companies such as Tata Motors, Mahindra and Ashok Leyland are looking to seek control of BEML as part of their strategy to grow their defence manufacturing businesses and cut dependence on the core commercial vehicle business, which is cyclical in nature.

Fairfax to List Anchorage, its Vehicle for Airport and other Infra Funding

Indian born Canadian billionaire Prem Watsa-owned Fairfax India is planning to list Anchorage Infrastructure, its flagship investment vehicle for airports and other infrastructure investments in India. Meanwhile, Fairfax controlled Bangalore International Airport (BIAL) to invest around $2.2 billion to create infrastructure to handle around 90 million passengers by 2034.
As per Prem Watsa, chairman, Fairfax since its inception in June 2019, Anchorage has actively participated in bidding for Indian airports' and railway stations' privatisation processes.
He added, in March 2021, Fairfax India expects to close the transaction whereby it will transfer 43.6 per cent out of the 54% that it owns in BIAL to Anchorage and will sell 11.5 per cent of Anchorage for cash consideration of $130 million.
The transaction values 100 per cent of BIAL at $2.6 billion and will result in OMERS indirectly owning approximately five per cent of BIAL.

GE Nears Deal to Combine Aircraft-leasing Unit with AerCap

As per reports, General Electric Co is nearing a $30 billion-plus deal to combine its aircraft-leasing business with Ireland's AerCap Holdings NV.
The unit, known as GE Capital Aviation Services, or GECAS, is one of the world's biggest jet-leasing companies and leases passenger aircraft made by companies including Boeing Co and Airbus SE . It owns services or has on order about 1,650 aircraft, according to its website.

ArcelorMittal to Invest over Rs. 50,000 crore in Gujarat

The world's leading steel and mining company ArcelorMittal will invest more than Rs. 50,000 crore in Gujarat, Chief Minister Vijay Rupani said, a day after its executive chairman Lakshmi Mittal called on him.
As per Vijay Rupani, all industrialists from India and abroad, including Lakshmi Mittal, are coming to Gujarat for making investment as they count Gujarat as the best (investment) destination.
During his trip to Gujarat, Mittal met Prime Minister Narendra Modi, who attended the Combined Commanders' Conference in Kevadia in the state.

Windy Lakeside Investment Picks Stake in Adani Ports

The Board of Directors of Gautam Adani-led Adani Ports and SEZ Limited has approved the issuance, offer and allotment of up to 10,000,000 equity shares of face value of Rs. 2 each to global private equity form Windy Lakeside Investment Ltd, not belonging to the promoter or promoter group of the company,
The shares will be issued on a preferential basis in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and other applicable laws, at a price of Rs 800 per equity share (at a premium of Rs. 798 per equity share) aggregating to Rs. 800 crore.
The stake pick is subject to the approval of regulatory/ statutory authorities and the shareholders of the company.

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