General Awareness

BUSINESS AND ECONOMY - June 2020

Jun 2020

Sep 23, 2020

Shapoorji Pallonji Group Says 'Time to Separate from Tata'

Shapoorji Pallonji (SP) Group, the largest minority shareholder with 18.37 per cent stake in Tata Sons, said that it is "time to separate from Tata" to end a relationship that has spanned over 70 years.
Tata Sons is the holding company of Tata Group.
In a press statement, the SP Group said: "It stated before the Supreme Court that a separation from the Tata Group is necessary due to the potential impact this continuing litigation could have on livelihoods and the economy".
They stated that it was crucial that an early resolution is reached to arrive at a fair and equitable solution reflecting the value of the underlying tangible and intangible assets.
The SP Group and Tatas have been engaged in a bitter legal battle ever since Cyrus Mistry was sacked as Chairman of Tata Sons in October 2016.
Tata Sons has amplified its institutional efforts to suppress and inflict irreparable harm on the SP Group, in the midst of a global crisis triggered by the COVID pandemic.

TRAI Recommends Forming Multi-stakeholder Body to assist DoT in Monitoring Net Neutrality Rules

Sector regulator TRAI suggested that the Telecom Department should establish a multi-stakeholder body to ensure that internet providers adhere to the provisions of net neutrality, as it spelt out the broad contours of the proposed panel.
The role of the multi-stakeholder body would be to provide advice and support to Department of Telecom (DoT) in monitoring and enforcement of net neutrality principles.
Releasing its detailed recommendations on 'Traffic management practices and multi-stakeholder body for net neutrality', the two aspects enshrined in the net neutrality principles, TRAI said that the proposed panel should comprise all telecom service providers and internet providers and other stakeholders such as content providers, researcher, academic and technical community, civil society organisations, consumers, and the government.
The DoT may establish a multi-stakeholder body (MSB) to ensure that Internet Access Providers adhere to the provisions of net neutrality in their license.
The proposed body would be responsible for providing support to DoT in creating and maintaining repository of traffic management practices, investigate complaints regarding violation of net neutrality, submitting reports based on monitoring of internet services, probe of incidents, and review of reports submitted by its members.
It can also help in recommending suitable technical standards and methodologies on matters pertaining to best practices to be adopted for internet traffic management.

India Exploring to Utilise Arab World's FTAs with US & EU for Exports

India has pitched for elevating India-Arab economic partnership commensurate with the strategic partnership between the two sides and exploring opportunities to utilise Arab World's FTA with US and EU for Indian businesses.
"India-Arab relations are founded on strong traditional ties and deepening political understanding. Our economic relations have to be stepped up to a higher level to match the strategic partnership and strong momentum in bilateral understanding at the political level. There is huge potential in the growing Arab economies while many Arab countries have FTAs with EU and USA. Arab countries and Indian businesses can both benefit by participation in economic growth and development," Secretary (CPV&OIA) MEA Sanjay Bhattacharyya told FICCI in an address titled 'India's engagement with Arab World'.

Sep 22, 2020

India Launches First Cargo Ferry to Maldives

The first ever Cargo Ferry Service between India and the Maldives was jointly launched opening a new chapter in connectivity initiatives in the Indian Ocean Region.
The Cargo Ferry Vessel MCP Linz operated by the Shipping Corporation of India (SCI) will connect Tuticorin and Cochin Ports in India with Kulhudhuhfushi and Male Ports in the Maldives.
The vessel is expected to arrive in Kulhudhuhfushi on September 26 and Male on September 28. The MCP Linz is a combination vessel which can carry 380 TEUs and 3000 MT on bulk cargo, and will have a turnaround time of 10-12 days for its voyages, officials said.
This vessel provides direct cargo connectivity between India and the Maldives on a predictable and affordable basis for the first time, and will lower costs and times for traders in both countries.

SBI Life Inks Pact with Yes Bank

SBI Life Insurance signed bancassurance agreement with Yes Bank to offer a comprehensive bouquet of life insurance solutions to the bank's customers across the country.
As part of the partnership, SBI Life's diverse range of individual and group insurance solutions will be offered to the customers of Yes Bank through the bank's branches spread throughout the country.
SBI Life's extensive product portfolio coupled with the bank's digital capabilities and widespread presence will ensure easy accessibility of life insurance to the customers.
The agreement was signed by Rajan Pental, Global Head - Retail Banking, Yes Bank and AVS Sivaramakrishna, Regional Director-Mumbai region, SBI Life Insurance.

Privatise Select PSU Banks, Dilute Role of DFS: Raghuram Rajan

Former RBI governor Raghuram Rajan suggested the government to privatise select public sector banks, set up a bad bank to deal with NPAs and dilute the role of Department of Financial Services.
The reforms are necessary to ensure growth of the banking government without the periodic boom-bust cycles, said a paper titled 'Indian Banks: A Time to Reform?' co-authored by Rajan and former Reserve Bank Deputy Governor Viral Acharya.
In the paper it is said that re-privatisation of select PSBs can then be undertaken as part of a carefully calibrated strategy, bringing in private investors who have both financial expertise as well as technological expertise; corporate houses must be kept from acquiring significant stakes, given their natural conflicts of interest.
Noting that the government obtains enormous power from directing bank lending, it said sometimes this power is exercised to advance public goals such as financial inclusion or infrastructure finance, sometimes it is used to offer patronage to, or exercise control over, industrialists.
According to the paper, private asset management and national asset management 'bad banks' should be encouraged in parallel to the online platform for distressed loan sales.

GE: Industrial Giant To Stop Building Coal-fired Power Plants

In a dramatic reversal, one of the world's biggest makers of coal-fired power plants is to exit the market and focus on greener alternatives.
US industrial giant General Electric said that it would shut or sell sites as it prioritised its renewable energy and power generation businesses.
It comes ahead of a US Presidential election in which the candidates hold starkly different views on coal.
GE has said in the past that it would focus less on fossil fuels, reflecting the growing acceptance of cleaner energy sources in US power grids.
But just five years ago, it struck its biggest ever deal - paying almost £10bn for a business that produced coal-fuelled turbines.
In a statement, the firm suggested the decision had been motivated by economics.

Shell Launches Major Cost-cutting Drive

Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets.
Shell's new cost-cutting review, known internally as Project Reshape and expected to be completed this year, will affect its three main divisions and any savings will come on top of a $4 billion target set in the wake of the COVID-19 crisis.
Reducing costs is vital for Shell's plans to move into the power sector and renewables where margins are relatively low.
Competition is also likely to intensify with utilities and rival oil firms including BP and Total all battling for market share as economies around the world go green.
Last year, Shell's overall operating costs came to $38 billion and capital spending totalled $24 billion.
Shell is exploring ways to reduce spending on oil and gas production, its largest division known as upstream, by 30% to 40% through cuts in operating costs and capital spending on new projects.

Sep 21, 2020

PSBs Report Frauds Worth over Rs. 19,964 cr in April-June

As per reports, public sector banks (PSBs) reported frauds worth over Rs. 19,964 crore in total 2,867 cases during the April-June quarter of the ongoing fiscal year.
The country's largest lender, State Bank of India (SBI), saw the highest number of fraud cases; however, Bank of India was the worst hit in terms of value.
Bank of India took the biggest hit in terms of valuation at Rs. 5,124.87 crore in 47 cases, followed by Canara Bank Rs. 3,885.26 crore in 33 cases, Bank of Baroda Rs. 2,842.94 crore in 60 cases, Indian Bank Rs. 1,469.79 crore in 45 cases, Indian Overseas Bank Rs. 1,207.65 crore in 37 cases and Bank of Maharashtra Rs. 1,140.37 crore in nine cases.
As compared to these, the second-largest public sector lender Punjab National Bank (PNB) reported much less amount of fraud at Rs. 270.65 crore, even as the number of cases stood at 240.
Among others, UCO Bank had Rs. 831.35 crore as fraud reporting in 130 cases, Central Bank of India Rs. 655.84 crore in 149 cases, Punjab and Sind Bank Rs. 163.3 crore in 18 cases and Union Bank of India reported the lowest amount of fraud at Rs. 46.52 crore in 49 cases.
Of the 12 PSBs, SBI reported the maximum 2,050 fraud cases involving Rs. 2,325.88 crore during April-June 2020.

CCI Approves Alstom's Acquisition of Bombardier Transportation

Fair trade regulator CCI has approved acquisition of sole control over Bombardier Transportation, the global rail solutions division of Bombardier, by Alstom S.A. In addition, the regulator has also given approval to Caisse de dépôt et placement du Québec (CDPQ) and Bombardier Inc for picking 18 per cent and 3 per cent stake in Alstom, respectively, a press release said. Alstom is a French corporation globally active in the rail transport industry. In India, it manufactures and supplies signalling solutions, rail electrification, rolling stock, track works, maintenance services and also provides associated construction and engineering services through its subsidiaries. Bombardier Inc is a Canadian firm, globally active in the business aircraft and the rail transport industries while CDPQ is a global long-term institutional investor, it added. Separately, the Competition Commission of India (CCI) also gave nod to acquisition of sole control over DuPont de Nemours Inc''s Nutrition and Bio-sciences business by International Flavors and Fragrances (IFF). According to a combination notice filed with the regulator, the proposed combination relates to the acquisition of sole control by IFF, over the Nutrition and Biosciences business of DuPont, by means of acquiring sole control over SpinCo, a company newly formed by DuPont and to which DuPont will transfer the Nutrition and Biosciences business. The proposed transaction involves the combination of two largely complementary businesses in the food and beverage, home and personal care, and health and wellness markets, it added.The regulator said that the Commission approves acquisition of sole control by International Flavors & Fragrances over Nutrition & Bio-sciences business of DuPont.

Sep 20, 2020

India Provides Soft Loan of $250 Mn to the Maldives

India provided a soft loan of $250 million to the government of the Maldives as budgetary support to mitigate the economic impact of the Covid-19 pandemic, the latest in a string of support measures for the Indian Ocean archipelago.
The aid was welcomed by the Maldives' foreign minister Abdulla Shahid, who said it would help bridge the revenue gap and meet his government's immediate needs.
The Covid-19 pandemic has had a massive impact on the tourism industry, the mainstay of the Maldives' economy.

Sep 19, 2020

Canara Bank Introduces i-Lead 2.0 to Boost Customer Services

To provide its services to customers irrespective of where they reside, public sector lender Canara Bank has launched lead management system (LMS) - i-Lead 2.0 (Inspiring Leads System version 2.0).
This new initiative is being introduced with the motive of building and sustaining business relationships with bothnew customers to bank and existing customers to bank. Going beyond the principle of gaining profit and having competitive advantage, Canara Bank has opened a way for its services to reach all corners of the country.

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