General Awareness

BUSINESS AND ECONOMY - August 2020

Aug 2020

Sep 08, 2020

Telangana Scraps VROs to Clean Up Revenue System

Telangana has scrapped the Village Revenue Officer (VRO) system with an aim to introduce transparency and make the revenue setup corruption-free.
The Telangana Vidhan Sabha in its opening day of the Monsoon Session indicated that it will table 'Revenue Bill 2020' that will deal with all land records, making the Revenue Department people-friendly.
All the VROs have been asked to submit their records to the office of their respective District Collectors.
The new Bill is expected to be passed without any obstacles as the ruling Telangana Rashtra Samithi (TRS) has a brute majority of 103 MLAs in a House of 119. Once passed, the legislation will replace 139 redundant and irrelevant rules and legislations.
Chief Secretary Somesh Kumar issued an order that stated all the registration work under the Registration and Stamps Department had been suspended till the new system was put in place. This means that there will be no new registration of properties in the state till the 'Revenue Bill 2020' is passed in the Vidhan Sabha.

TCS Rises after Partnering with TPT South Africa

TCS rose 1.45% to Rs. 2322.85 after the IT major partnered with Transnet Port Terminals in South Africa to help the latter develop an integrated online marketplace platform.
TCS partnered with Transnet Port Terminals (TPT) in South Africa, part of Transnet SOC, a state-owned freight transport and handling company, to help the latter develop an integrated online marketplace platform by bringing together cargo owners, shipping lines, clearing andforwarding agents, and road/rail haulers.
TCS will create new platform named Cargo Connect, which will function as an online logistics marketplace where customers can submit logistics related requests and allow service providers to bid online. Customers will be able to select the preferred proposal and award the cargo contract to that bidder.
As per TCS, the platform will make bid selection process completely transparent, delivering greater value to TPT's customers. The platform will also help customers remotely track the cargo at every point of the container journey and send automated alerts with critical information, whenever a cargo event occurs. The Cargo Connect marketplace will reshape the industry and is expected to be ready in 12 months.

RBI Broadly Accepts K. V. Kamath Panel's Recommendations on Loan Restructuring

The Reserve Bank of India (RBI) broadly accepted the recommendations by the K. V. Kamath-led committee on the financial parameters to be considered in the restructuring of loans impacted by the Covid 19 pandemic.
As per the central bank, the committee has recommended financial parameters that include aspects related to leverage, liquidity and debt serviceability.
The committee has recommended financial ratios for 26 sectors, which could be factored by lending institutions while finalising a resolution plan for a borrower.
RBI also issued a circular specifying five specific financial ratios and the sector-specific thresholds for each ratio in respect of 26 sectors to be taken into account while finalising the resolution plans.
These five ratios are: Total outside liabilities/adjusted tangible net worth (TOL/ATNW), total debt/EBITDA, current ratio, debt service coverage ratio (DSCR), average debt service coverage ratio (ADSCR).

Mahindra's Insurance Arm Set to Foray into Online Broking

Mahindra Finance's insurance arm is set to enter the business of online broking giving digital services to the customers of its subsidiary, Mahindra Insurance Brokers, through a soon-to-be launched portal called PayBima.
The move comes at a time when the demand for insurance products pertaining especially to health and life is at a high due to increased urgency among individuals and businesses to get themselves covered against medical and business risks, amid the ongoing coronavirus pandemic.
As per reports, the new portal would play a role in the transformation of Mahindra's insurance broking services to a phygital model, which would leverage its feet-on-the-street agents at more than 400 locations in the country, with the digital aggregation and settlement services.
According to Jaideep Devare, MD at Mahindra Insurance Brokers, insurance is not about selling policies as much as it is about honoring the claims.

Sep 07, 2020

Government Expands Support to Artisans for Boosting Agarbatti Production

The government expanded the support to artisans involved in agarbatti making as part of a programme aimed at making India self-reliant in the production incensed sticks. The MSME Ministry had recently approved the 'Khadi Agarbatti Aatmanirbhar Mission' towards creating employment for the unemployed and migrant workers in different parts of the country, handholding artisans and supporting the local agarbatti industry.
The current consumption of agarbatti in the country is approximately 1,490 MT per day. However, per day production of agarbatti in India is just 760 MT. The deficit is met through imports primarily from China and Vietnam.
The four main pillars of the new programme are continuously supporting the artisans through training, raw material, marketing and financial support; working on all aspects of this product, like innovation in the fragrance & packaging; setting up 10 clusters with proper marketing linkages under SFURTI; and strengthening the machine manufacturing capability to achieve self-sufficiency in the country.

Voda Idea Launches New Unified Brand Vi

Amid its struggle to survive, telecommunication major Vodafone Idea rebranded itself as Vi, after nearly two years of merger of erstwhile Vodafone and Idea Cellular.
The company also unveiled its new website, www.myvi.in.
VI will represent the integrated identity of Vodafone Idea. It has a strong reliable network, is agile and caters to the needs of Indian customers in the digital era.
Promoters of the company via a number of domestic and international firms hold 72.05 per cent of shares of the company. Rest is held by public shareholders, which includes mutual funds, AIFs and insurance companies.

KfW IPEX-Bank Offers Loan of 10 mn Euros to Srei Equipment Finance

With the successful close of an export financing transaction, KfW IPEX-Bank is enabling the export of construction machinery for Srei Equipment Finance Limited (SEFL) to India by providing a framework loan of 10 million euros. The financing is backed by cover from Euler Hermes. Through this commitment, KfW IPEX-Bank is helping to provide construction machinery for use in Indian infrastructure projects. The financed machinery from a German construction machine manufacturer includes asphalt machines, road pavers and rollers.
The borrower, SEFL, was set up in 2008 to pool orders from individual Indian construction companies and make the newly ordered machines available to the respective users.

Sep 06, 2020

Japanese Companies Relocating from China to India and Bangladesh

The Japanese government has that it will provide subsidies to Japanese companies that shift their manufacturing setup from China to India, Bangladesh and ASEAN countries. This comes as the world's supply chain was disrupted after the outbreak of COVID-19 which originated in China. The countries have now started mulling on options to either exit from China or at least reduce their dependence on it with respect to trade or other procurements.
Japan too aims to decentralise its supply chain by reducing its dependence on a particular country for medical and well as electronic components supply. The Japanese government has allocated 23.5 billion yen in the 2020 supplemental budget for the subsidy to encourage companies to disperse their manufacturing sites across the ASEAN region.
Besides the COVID-19 pandemic, China has also been criticised in the international community over its imposition of draconian national security law in Hong Kong, in turn threatening the autonomy of the trade city.
Moreover, the ASEAN countries, Australia, India, Japan and the US have moved against China for its aggression in the South China Sea.

UP Jumps 10 Places to Become Second in Ease of Doing Business Ranking

Uttar Pradesh made a big jump to the second position in the State Business Reform Action Plan (BRAP) 2019 – Ease of Doing Business Ranking (EoDB), up from the 12 th position that the state achieved in the BRAP 2017-18. UP left behind several leading states like Maharashtra, Gujarat, Telangana and Rajasthan in the process.
UP is now only second to Andhra Pradesh in these rankings. "UP is committed to the call of Prime Minister Narendra Modi for AatmaNirbhar Bharat and making all efforts in this regard.
UP said that the achievement had come as UP implemented 186 out of the 187 reforms suggested by the DPIIT and said its 'Nivesh Mitra' single window portal has been one of the main catalysts in taking this drastic jump as 94 per cent of the nearly 2.3 lakh No Objection Certificate (NOC) applications received in the last two years had been disposed of. "UP has already started to rank its 75 districts in 'District wise ease of doing business' ranking started from May 2020. As a leader, started to rank its 75 districts in 'District wise ease of doing business' ranking started from May 2020. As a leader, UP has already started implementing state BRAP 20-21 reforms in which state has already implemented 170 reforms out of the 301 suggested reforms.
Since this year's exercise of BRAP was completely based on 'User Feedback', attaining the second rank across the country indicates that entrepreneurs have been receiving the true benefits of these implemented reforms by government of UP under Chief Minister Yogi Adityanath. These reforms were spread across several areas like labour regulation, online single window, access to information and transparency, land administration, construction permits, commercial disputes and inspection enablers. Over 20 UP departments implemented such reforms.

BPCL to Offer Stock Options to Employees Ahead of Privatisation

State-owned Bharat Petroleum Corp Ltd (BPCL) has offered its employees stock options at one-third of the market price as the company looks to reward staff ahead of its privatisation.
The board of BPCL approved the proposed Employee Stock Purchase Scheme (ESPS) to the specified employees through the trust mechanism, subject to the approval of the shareholders.
As per reports, BPCL Trust for Investment in Shares holds around 9.33 per cent stake of the company's paid-up share capital.
Of this, 2 per cent will be offered to employees at one-third the price of BPCL scrip in the preceding six months.
There will be no change in government's shareholding in the company.
The government is selling all of its 52.98 per cent stake in BPCL to a strategic investor.

Sep 05, 2020

Government Bans Creation of New Posts in Central Ministries

The government asked all ministries /departments to review appointments of consultants, curtail functions and ban use of imported paper for printing as part of measures to rationalise non-priority expenditure.
The Finance Ministry issued the instructions on expenditure management with a view to improving the quality of public expenditure, containing non-developmental spending and ensuring availability of adequate resources for critical priority schemes.
With regard to administrative expenditure, the Department of Expenditure, under the Finance Ministry, said that no printing or publishing of books, publications, documents will be done on imported paper, except where printing is done abroad by Indian missions.
It asked all the ministries /departments to carry out a review of the individual consultants appointed by them in consonance with the provisions of General Financial Rules (GFR) and reduce the number of consultants to the minimum requirement.
With regard to new positions, it said there will be a ban on creation of new posts, except with the approval of the expenditure department.

LazyPay Launches LazyUPI Digital Credit Card

LazyPay launched a digital credit card that combines the power of UPI and the Buy-Now-Pay-Later concept. Called LazyUPI, the offering enables users to access real-time credit using UPI across omnichannel networks, including offline merchants and e-commerce platforms. The solution is a strategic response to the market's demand for easy access to credit across online and offline platforms and higher ticket-size pay-later options.
With LazyUPI seamlessly integrated into existing LazyPay apps, customers can set up their accounts using a 2-minute KYC process. Hinged on the same principles of LazyPay, users do not have to go through the tedious process of linking their bank account(s) with UPI to access credit via LazyUPI. Based on the user's credit history and payment behavior, LazyPay will offer a credit limit (upto INR 1 lakh) to users for UPI transactions at stores (online and offline).

Start-ups in Priority Sector Lending

The Reserve Bank of India (RBI) has asked banks to include loan to start-ups and agriculture solar power plants in the revised priority sector lending (PSL) guidelines.
While start-ups will be able to avail loans up to a limit of Rs. 50 crore, solar power plants will be eligible for PSL in case of grid connected agriculture pumps.The PSL also includes compressed biogas (CBG) plants as a fresh category.
The intention behind the PSL revision is to align it with emerging national priorities and bring sharper focus on inclusive development. The RBI also increased the credit limit for farmers producer organisations (FPOs) undertaking farming with assured marketing of their produce at a pre-determined price. The loan limit for renewable energy has also been doubled and there has been a hike in the credit limit for health infrastructure (including those under Ayushman Bharat). The RBI expects revised PSL to lead to better credit penetration to credit deficient areas, increase lending to small and marginal farmers and weaker sections, boost credit to renewable energy and health infrastructure.

Infosys to Acquire Product Design Firm Kaleidoscope Innovation

India's second-largest IT services firm Infosys will acquire US-based product design and development firm Kaleidoscope Innovation for up to USD 42 million (about Rs. 308 crore).
Kaleidoscope Innovation is a full-spectrum product design, development, and insights firm innovating across medical, consumer, and industrial markets. It designs microsurgical instruments, devices used in minimally invasive surgery, drug delivery devices for ophthalmic therapies, and user-centric wearables.
It also offers usability testing in support of regulatory submissions, including the delivery mechanism for aortic stents. In a regulatory filing, Infosys said the cost of acquisition is "up to USD 42 million including earn-out, management incentives, and bonuses".
The acquisition by Infosys Nova Holdings, LLC (a wholly-owned subsidiary of Infosys) is expected to close during the second quarter of FY 2021, subject to customary closing conditions.

Thirty-eight Coal Blocks to go under the Hammer

The Coal Ministry revised the list of mines to be auctioned for commercial mining and now 38 blocks would go under the hammer instead of 41 mines announced earlier.
The revision in the list includes addition of three blocks Dolesara, Jarekela and Jharpalam-Tangarghat (in Chhattisgarh) and withdrawal of five blocks — Morga South, Fatehpur, Madanpur (North), Morga-II and Sayang (in Chhattisgarh).
No reason was provided by the ministry for the revision of the list.

Sep 04, 2020

Accounts not Declared NPA till August 31, 2020 Shall Not be Declared NPA Till Further Orders: SC ...

In a respite to stressed borrowers, the Supreme Court directed that accounts not declared non-performing assets (NPAs) as of August 31 should not be classified as such until further orders.
A three-judge Bench headed by Justice Ashok Bhushan was hearing a batch of petitions challenging the levy of interest on loans during the moratorium period.
The apex court's directive came while noting the submissions of senior lawyer Harish Salve, who appeared for a banks' association and said that no account shall become NPA at least for a period of two months.

2020 Fortune 40 Under 40 List

Reliance Jio Board Directors Isha Ambani and Akash Ambani, Serum Institute of India CEO Adar Poonawalla and Byju Raveendran, co-founder of India's leading education technology company Byju's, are among the emerging leaders from across the world named by Fortune in its annual list of influential people under the age of 40.
The 2020 Fortune 40 Under 40 list highlights 40 influential people each in five categories of finance, technology, healthcare, government and politics, and media and entertainment from around the world.

Murali Ramakrishnan New MD and CEO of South Indian Bank

Murali Ramakrishnan will take over as the new Managing Director and CEO of Kerala-based South India Bank. He retired from ICICI Bank as Senior General Manager at Strategic Project Group in May 2020 and joined the Bank as an advisor in July 2020.
The bank got the Reserve Bank of India's approval for the appointment for a period of three years with effect from October 1, 2020.
During his tenure at ICICI Bank, in the last assignment, he was heading a business transformation project of SME business. Murali Ramakrishnan was Chief Executive Hong Kong and Regional Head-North Asia, Sri Lanka, Middle East, and Africa. (March 2012 to August 2016) (Senior General Manager grade). As Head of the region, he was responsible for the entire operations of the Bank in the locations, managing a large balance sheet of around US$ 20 bn, contributing to more than 60% of profits of the International Business Group of ICICI Bank.
He also worked for GE Capital TFS Ltd, SRF Finance Ltd, Spartek Emerging Fund, Can Bank Venture Capitalfund and Spic Ltd.

CII launches Future Business Group Initiative to Provide Support to New Businesses

Future Business Group, an initiative by the Confederation of Indian Industry (CII) to provide support to new businesses launched during the past few years, was launched. Together with the Department for Promotion of Industry and Internal Trade (DPIIT), CII will create a 'national strategy for future businesses' as part of the initiative.
It will also provide policy inputs, identify new growth segments and establish international partnerships with a focus on growing such businesses. CII has also suggested that the government invite other nations to participate.
Commerce and Industry Minister Piyush Goyal, who was present at the launch, called upon the senior business leaders to become mentors, not only to their own family or businesses but also to the new age & young entrepreneurs. Goyal said new-age entrepreneurs are going to change the fortune of India. Goyal said that we need to build a platform with like-minded countries and trusted partners to promote new-age businesses in India. India can engage with other countries and build up a platform with trusted partners to promote new-age businesses.

SoftBank Group Eyes Partners to Bid for TikTok's Assets in India

As per reports, SoftBank Group is exploring assembling a group of bidders for TikTok's India assets and has been actively looking for local partners.
Over the past month, the Japanese conglomerate, which owns a stake in TikTok's Chinese parent ByteDance, has held talks with the heads of Reliance Jio Infocomm and Bharti Airtel. While discussions have fizzled since, SoftBank is still exploring options.
Representatives for SoftBank, ByteDance, Reliance and Bharti Airtel declined to comment.
TikTok is considering selling its operations in several countries after local governments shut out the app, citing fears that sensitive user data was passing into the hands of China. India has taken a particularly tough stance, banning 59 of China's largest internet services in July, including TikTok. India was one of TikTok's largest markets, with more than 200 million users.

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