General Awareness

BUSINESS AND ECONOMY - October 2018

Oct 2018

Aug 18, 2019

No Proposal To Privatise Ordnance Factory Board

The Defence Ministry clarified that there was no proposal to privatise the Ordnance Factory Board (OFB).
The government is considering plans to turn the OFBs into public sector units fully owned by the Defence Ministry.
That would come as a relief for workers of ordnance factories across the country who have been agitating against the proposal.

I-T Department To Adopt 'Taxpayer Friendly' Approach

According to the sources, the I-T department is set to change its approach and adopt friendly language but not at the cost of forgoing any lapses.
The department will use friendly language in its communications with taxpayers rather than intimidating, amid allegations of intrusive, threatening and arbitrary behaviour by the department.
The voices of concern have grown louder in recent weeks after Cafe Coffee Day founder V.G. Siddhartha committed suicide and, in a purported note, alleged harassment by an income tax official.
With the help of data mining and data analytics, the Central Board of Direct Taxes (CBDT) is now working on ways to ensure the department makes information "such as large-cash deposits or high-value transactions" available to taxpayers well in time for filing of tax returns.

Aug 17, 2019

MMR To Recycle Old Cars In Green Plant

The Mumbai Metropolitan Region (MMR) is about to get a recycling plant for old and abandoned vehicles, which promises huge savings in terms of the environment. As of now, there's only one such plant in the country, which is in Noida.
Currently, an unorganized scrap market exists in Mumbai and surrounding areas for the disposal of vehicles that are denied fitness certificates because of their age.
But scrap dealers don't follow scientific recycling methods or environmental regulations, resulting in emissions.
Hence, there is planning to set up a state-of the art vehicle scrapping facility
MMRDA has begun the process of appointing a consultant to provide a road map for implementing the recycling plant project.
As per the road transport ministry, the number of vehicles in MMR is 30 lakh and is slated to touch 80 lakh by 2034.

NCLAT Orders Liquidation Of Debt-Ridden Amtek Auto

The National Company Law Appellate Tribunal (NCLAT) ordered liquidation of Amtek Auto as it declined lenders' request for extension of insolvency resolution process deadline.
Amtek Auto was among the first list of 12 companies which were referred by the Reserve Bank of India (RBI) in 2017 to respective banks for initiation of insolvency process for defaults.
UK-based Liberty House was selected as the highest bidder by the committee of creditors (CoC) of Amtek Auto. However, it later backed out citing some reasons following which the lenders requested 90 days more time to find a new buyer.
A three-member bench headed by chairperson Justice S.J. Mukhopadhaya directed the Chandigarh bench of the National Company Law Tribunal to pass an order of liquidation as 270 days mandated under IBC (Insolvency and Bankruptcy Code) for finalizing a resolution plan have already lapsed.

Punjab And Sind Bank Cuts Marginal Cost Of Funds Based Lending Rate

Punjab and Sind Bank announces a cut in its Marginal Cost of Funds based lending rate (MCLR) for different tenors with effective from August 16, 2019.
The rates for overnight, one month and three month tenor are 8.20 per cent, 8.30 per cent and 8.40 per cent, respectively and the rates for six month and one year tenor is 8.50 per cent.

HPCL Plans Rapid Vehicle-Battery Swap Project

Bracing for a future with less-polluting fuels, Indian oil refiner Hindustan Petroleum Corp. Ltd is planning a pilot programme for swapping batteries of electric two- and three wheelers at its outlets by December,2019.
The initiative is aimed at helping the company maintain its grip on a segment of the mobility market that's rapidly shifting to cleaner power sources.

BEL's Composite Manufacturing, Testing Facility Inaugurated

Shripad Naik, Minister of State (Independent Charge) for Ayush and Minister of State for Defence, inaugurated the new state-of the-art manufacturing facility for Composite Materials, Environmental Testing and Finishing, established at the Navi Mumbai Unit of Navratna Defence PSU Bharat Electronics Limited (BEL).

Panel To File Direct Tax Report

The much-awaited report on the new direct tax code (DTC), which will replace the existing income tax act of 1961, will be submitted to finance minister Nirmala Sitharaman.
The direct tax code will try to simplify tax law provisions, improve certainty and predictability of the law, besides addressing issues to minimize litigation.
Sitharaman had already indicated that once the government's revenue position improves, corporate tax rate will be cut to 25% for all companies.
The Finance Act, 2019, had raised the revenue threshold for companies in the 25% corporate tax bracket from the earlier Rs. 250 crore to Rs. 400 crore. ]
The move is aimed at making India an investor-friendly country.

GI Tags For 4 New Products From 3 States

The government allotted Geographical Indication (GI) tags to four new products from the states of Tamil Nadu, Mizoram and Kerala.
GI is an indication used on products that have a specific geographical origin and possess the qualities or reputation that are due to that origin.
The Department of Promotion of Industry and Internal Trade (DPIIT) recently registered GIs for Palani Panchamirtham in Palani Town, Tamil Nadu, Tawlhlohpuan and Mizo Puanchei from Mizoram and Tirur Betel leaf from Kerala.

Commodities Act Sections That Shrink Farmer Earnings May Go

The chief minister-led high-powered committee set up to introduce agricultural reforms has decided to not scrap the Essentials Commodities Act, 1955, in its entirety.
Instead, clauses will be added to it ensure the Act is invoked only in "extreme conditions" and all sections that affect farmer income will be taken off.
The Act reduces farmer earnings and that there has been a long pending demand to scrap it.
The committee also suggested introducing genetically modified (GM) oilseed varieties to increase production and sought replies from all member states on the issue.
Whether the entire sector should be GM-dominated or cultivation of these crops should be taken up under a controlled environment is yet to be decided though.

Start-ups can issue shares with differential voting rights

Start-ups and technology companies will be able to issue shares with differential voting rights (DVRs) with the government amending the Companies Act provisions to help entrepreneurs retain control even as they raise equity capital from global investors.
The Union government liberalized rules that would allow Indian companies to raise share capital without diluting the voting rights of all existing shareholders.
The ministry of corporate affairs (MCA) has raised the existing cap of 26 per cent of the total post issue paid up equity share capital to 74 per cent of total voting power in respect of shares with DVRs of a company.

Aug 16, 2019

Saudi To Be India's Top Oil Supplier Again After RIL Deal

Saudi Arabian Oil Co. (Aramco) buying a 20% stake in Reliance Industries Ltd's (RIL) oil-to-chemical business will help it regain the position of being the biggest supplier of oil to the world's fastest-growing oil market. Saudi Arabia, which traditionally has been India's top oil source, lost the slot to Iraq during the last two financial years.
This will change with the Aramco-RIL deal, as it will be accompanied with a deal to supply 500,000 barrels per day. Crude supplies of 500,000 b/d represents about 40% of Reliance's crude intake, significantly higher than the stake taken, although Saudi Aramco historically supplied 20% of Reliance's crude oil requirements.
Additional oil supplies following the RIL deal will catapult Saudi Arabia to top spot again.

AI To Auction Over 60 Real Estate Assets

Air India Ltd is auctioning more than 60 real estate assets, including some it could not sell at its last auction in April, 2019, as the debt-laden national carrier makes a renewed attempt to raise funds. The last date for submitting bids is August 30, 2019, according to a tender document issued by the airline.
State-owned MSTC Ltd, which specializes in conducting e-auctions, will handle the online auction for Air India.
The properties on the block include a 14-apartment residential building at Mumbai's Pali Hill, individual apartments at Mahim, Colaba and Bandra, apart from houses, flats and residential flats in Kolkata, Nashik, Bengaluru, Lonavala, Hyderabad, Gwalior, Delhi, Amritsar and Bhuj, among others.
The reserve price of these units range from Rs. 15 lakh to about Rs. 8 crore.

Buffett's Berkshire Boosts Stake In Amazon By 11%

Warren Buffett's Berkshire Hathaway boosted its stake in Amazon by 11% during the second quarter, increasing its bet on the powerful online retailer even as stocks traded near record highs.
Berkshire said it ended June 2019 with 537,300 Amazon shares worth about $1.02 billion, up from 483,300 shares three months earlier.
It made the disclosure in a regulatory filing detailing the $208 billion of US-listed stocks it owned as of June 30, 2019.

Papad, Honey, Cosmetics Push Khadi Commission Sales Up 25%

At a time when businesses are complaining of demand slowing down, Khadi and Village Industries Commission (KVIC) has reported an over 25% jump in sales to a little under Rs 75,000 crore during 2018-19.
And, it is the humble papad, honey and cosmetics that have contributed to a major chunk of the state-owned entity's revenues, with the much-hyped khadi products contributing just around 4.3% of the overall sales during 2018.
KVIC's sales growth is the fastest in four years and comes after a "moderate" 13% rise in 2017-18. The entity managed to stay in the black with a small profit of Rs 15 crore.
KVIC's sales are almost twice that of HUL's, the country's largest consumer goods company which reported gross sales of a little under Rs 38,000 crore during 2018, although its net profit was 400 times higher at over Rs 6,000 crore.

Aug 15, 2019

Yes Bank launches ₹2,000 crore QIP

Private sector lender Yes Bank Ltd has launched a qualified institutional placement (QIP) offering to capital from institutional investors.
A QIP is a capital-raising tool through which listed companies can sell equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer.
Yes Bank is looking to raise around Rs. 2,000 crore through the institutional share sale.
The lender has set a floor price of Rs. 87.9 apiece for the share sale.

Assam Golden Butterfly tea variety auctioned at GTAC

A rare variety of tea from Upper Assam's Dikom Tea Estate set a new record as it was auctioned for Rs 75,000 per kg at the Guwahati Tea Auction Centre (GTAC).
The tea, 'Golden Butterfly', was purchased by city- based Assam Tea Traders.
The GTAC is emerging as a centre for showcasing high-priced Assam speciality tea.
The centre is providing an opportunity to sellers who want to sell their tea at remunerative prices.
An exotic tea is judged by its aroma, taste and colour and this tea is characterised by extremely mellow and sweet caramel flavour.

Banks Not To Charge For Failed Transactions, Balance Enquiry: RBI

The Reserve Bank asked banks not to count failed transactions at ATMs due to technical reasons as part of "free ATM transactions" permitted every month.
Besides, use of ATMs for balance enquiry and fund transfers too should be not part of the free transactions facility given to a customer.
Banks provide certain number of free transactions at ATMs to their customers and beyond that impose charges.
The RBI's clarification in this regard comes after it has come to notice of the central bank that transactions that have failed due to technical reasons, non-availability of currency in ATMs are also included in the number of free ATM transactions.

Coffee Day To Sell Bengaluru Tech Park To Blackstone

Coffee Day Enterprises Ltd said it planned to sell a tech park it owned in the southern Indian city of Bengaluru to Blackstone for up to Rs. 3,000 crore ($421 million), in an effort to cut debt.
The announcement comes weeks after the company's founder was found dead in a river in southern India, sparking speculation that he was under intense financial strain and prompting the company to look for options to deleverage its assets.
Coffee Day said it entered a non-binding letter of intent with US-based private equity firm Blackstone for the sale.
It also approved the sale of AlphaGrep Securities, a trading firm it owns for Rs. 28 crore.

Aug 14, 2019

With $1-b Revenue, Australia 3rd Largest Market for Infosys

Infosys' Australia revenue has crossed $1 billion, making it the third-largest export market for the company.
The Bengaluru-based firm gets 85% of its revenue from the US and European markets.
They have also built strategic partnerships in Japan and Singapore.

Jio's First Day First Show Plan Spooks Multiplex Stocks

Reliance Industries Ltd (RIL) chairman Mukesh Ambani's audacious plan to home-deliver movies on the day of their release could transform movie-watching and reshape India's Rs. 10,000 crore multiplex industry, provided Jio manages to deftly navigate a landscape of producers, exhibitors and top actors, key stakeholders in the entertainment industry.
Shares of multiplex operators plunged after Ambani said premium users of JioFiber, a feature-rich wired broadband service, will get to watch the latest movies on the first day itself.
On BSE, shares of PVR Ltd and Inox Leisure Ltd, India's largest and second-largest multiplex operators with 800 and 600 screens, respectively, fell more than 4% each.
JioFiber will start offering the First Day First Show service from mid 2020.

DDA Nod For Launching Online Scheme For Commercial Properties On First-Come-First-Serve Basis

The Delhi Development Authority approved a proposal for launching an online running scheme for 225 commercial built-up properties on a first-come-first-serve basis.
The decision was taken during an authority meeting of the urban body at the Raj Niwas, chaired by Lt Governor Anil Baijal, also the chairman of DDA.
In its meeting, the authority also approved disposal of residential plots for group housing societies through "e-auction mode".
Individuals, partnership firms, private and public limited, or consortium, which have sufficient funds to purchase the land and develop the project, can be part of it.
The developer will require to develop group housing in terms of Master Plan of Delhi 2021, with 15 per cent of floor area ratio (FAR) for community service personnel, and lower category housing, and this economically weaker section (EWS) component will be over and above the permissible FAR.

Amazon Nears Deal To Acquire Up To 10% Stake In India's Future Retail

Amazon.com Inc. is in late-stage talks to acquire as much as 10% of India's Future Retail Ltd.
The US company moves to bolster its brick-and-mortar presence in one of the world's fastest-growing retail markets.India's No. 2 retailer by turnover.
Future is seeking a valuation of about Rs. 2,000 crore ($281 million) from Amazon for the stake.
The sale is likely to be routed through a holding company and will give Amazon the option to buy more shares from Kishore Biyani, Future Retail's founder and chairman.
The deal with the Mumbai-based company, which operates its flagship "Big Bazaar" grocery store chain, will give Amazon more exposure to the business after it bought Whole Foods Market Inc. for $13.7 billion in 2017 and secured a foothold in the US food retailing segment.

HPCL Finally Recognises ONGC As Its Promoter

Hindustan Petroleum Corporation (HPCL) finally recognised its majority owner ONGC as its promoter in public filings, following a harsh directive from the market regulator.
The state-owned company had ignored directives from the government as well as the Securities and Exchange Board of India (SEBI), forcing the latter to take "appropriate action."
This forced the HPCL management to act quickly.
Sebi had also ordered HPCL's company secretary to place the letter containing its directives before the board of directors and disseminate the letter to stock exchanges.
HPCL needed more regulatory clarity for recognising ONGC as promoter, without ever giving details on what was really unclear to the management.

KKR Set To Buy Eurokids Chain

Global private equity major KKR & Co. is set to acquire about 92% of the preschool and school chains that comprise EuroKids, Kangaroo Kids and Billabong High for about Rs. 1,500-2,000 crore in what will be one of the largest foreign investments in India's educational sect

Housing Finance Firms To Be Treated As NBFCs

The Reserve Bank of India (RBI) said that housing finance companies (HFCs) will be treated as non-banking financial companies, adding that it will release a revised norms for these entities.
HFCs will henceforth be treated as one of the categories of NBFCs for regulatory purposes. RBI will carry out a review of the extant regulatory framework applicable to the HFCs and come out with revised regulations in due course.
HFCs shall continue to comply with National Housing Bank's (NHB's) directions till RBI issues a revised framework.
NHB will continue to carry out supervision of HFCs and they will continue to submit various returns to NHB. The grievance redressal mechanism with regard to HFCs will also continue to be with the NHB.

Government Won't Go Ahead With New CSR Rules

The government will not operationalise the new corporate social responsibility (CSR) provisions in the recently amended Companies Act that make violations punishable by jail, following intense lobbying by a panicked India Inc.
The government will not issue followup rules required to implement the provisions that had drawn sharp criticism.

MS Dhoni Invests In Used-Car Company Cars24

Cars24, one of India's fastest growing tech enabled used-car companies, has announced a strategic partnership with cricketer Mahendra Singh Dhoni, in a move to strengthen the brand as it continues to expand across markets.
As part of this partnership, MS Dhoni will own equity in Gurugram-based Cars24 and will act as its brand ambassador. His investment is part of the series D round of funding.

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