Daily Sector News Today – 11.12.2017
* AUTOMOBILE: The government has released a draft notification to amend the Central Motor Vehicles Rules to allow registration of vehicles compliant with Bharat Stage-IV fuel emission norms till June 2020.
* AVIATION: A union of more than 300 employees at Pawan Hans is preparing a proposal to buy the government's 51% stake, which the government plans to divest. Air India is looking at raising short-term loans of 15 bln rupees to meet the urgent working capital requirements. This is the third time since September that the company is seeking bridge loan.
- Air India is seeking loan worth over 11 bln rupees for modification of two Boeing aircraft scheduled to be acquired next month for ferrying very important person. India is likely to change rules to allow foreign airlines to bid for Air India as long as they have a local joint venture with an Indian partner as the government seeks to increase the number of suitors for the debt-laden national carrier.
* BANKING: The Asian Development Bank will extend a loan of $346 mln to construct and upgrade roads in Karnataka. The Reserve Bank of India's growth forecast for 2017-18 (Apr-Mar) of 6.7% is "too optimistic", said Ashima Goyal, member of the Prime Minister's Economic Advisory Council. Bankers are looking to speed up the resolution of 28 accounts, including VIDEOCON INDUSTRIES, JAIPRAKASH ASSOCIATES and UTTAM GALVA STEEL as the Dec 13 deadline looms.
* ECONOMY: India's tax to GDP ratio cannot improve till tax exemptions are reduced and compliance costs cannot go down until these exemptions are eliminated, according to the Chairman of the Prime Minister's Economic Advisory Council Bibek Debroy.
* FAST MOVING CONSUMER GOODS: Food Safety and Standards Authority of India has issued an order that effectively scraps almost all cases filed against food business operators for alleged violations of food safety standards and regulations in the past.
* FINANCE: The board of JM Financial Products will consider raising 250 mln rupees through non-convertible debenture issue on Wednesday on private placement basis.
* INFRASTRUCTURE: Union Shipping and Ports Minister Nitin Gadkari said 24 companies have offered to invest over 600 bln rupees in a special economic zone adjoining the country's largest container port JNPT.
* MINING: The mines ministry is looking at setting up special purpose vehicles that will acquire necessary project clearances, including environmental, for the mineral blocks before bidding, a move that may add pace to the auction process.
* OIL AND GAS: After increasing prices of subsidised liquefied petroleum gas cylinders by 76.5 rupees in 19 instalments in the past 17 months, oil companies skipped the monthly price hike ahead of Gujarat elections. Union Roads Minister Nitin Gadkari said the government will soon announce a policy which calls for 15% blending of methanol in petrol to make it cheaper and also reduce pollution.
* RETAIL: The government has changed labelling norms to exempt single-brand retailers including, Ikea, Fabindia, Decathlon, H&M and several chains of Future Group, from marking maximum retail price on their products.
* STEEL: Steel Minister Birender Singh said the government is mulling ways to make sure iron ore prices are "not disturbed" for three-six months to help small- and medium-sized steel units in the country. AXIS Bank and BANK OF BARODA disposed a part of their foreign currency loans to Essar Steel, selling debt at 30-50% discounts with a foreign hedge fund acquiring it.
* TAXATION: The recommendations of an advisory group on changes needed in the goods and services tax have been referred to the Law Review Committee of the new indirect tax regime. GST Council member Sushil Modi said the empowered committee on the tax needs a fresh mandate to review states' revenue position and taxing powers over resources outside the new tax.
* TELECOMMUNICATION: The Telecom Commission is likely to discuss the relief package recommended by an interministerial group for the sector in its meeting scheduled for Dec 21.
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* AVIATION: A union of more than 300 employees at Pawan Hans is preparing a proposal to buy the government's 51% stake, which the government plans to divest. Air India is looking at raising short-term loans of 15 bln rupees to meet the urgent working capital requirements. This is the third time since September that the company is seeking bridge loan.
- Air India is seeking loan worth over 11 bln rupees for modification of two Boeing aircraft scheduled to be acquired next month for ferrying very important person. India is likely to change rules to allow foreign airlines to bid for Air India as long as they have a local joint venture with an Indian partner as the government seeks to increase the number of suitors for the debt-laden national carrier.
* BANKING: The Asian Development Bank will extend a loan of $346 mln to construct and upgrade roads in Karnataka. The Reserve Bank of India's growth forecast for 2017-18 (Apr-Mar) of 6.7% is "too optimistic", said Ashima Goyal, member of the Prime Minister's Economic Advisory Council. Bankers are looking to speed up the resolution of 28 accounts, including VIDEOCON INDUSTRIES, JAIPRAKASH ASSOCIATES and UTTAM GALVA STEEL as the Dec 13 deadline looms.
* ECONOMY: India's tax to GDP ratio cannot improve till tax exemptions are reduced and compliance costs cannot go down until these exemptions are eliminated, according to the Chairman of the Prime Minister's Economic Advisory Council Bibek Debroy.
* FAST MOVING CONSUMER GOODS: Food Safety and Standards Authority of India has issued an order that effectively scraps almost all cases filed against food business operators for alleged violations of food safety standards and regulations in the past.
* FINANCE: The board of JM Financial Products will consider raising 250 mln rupees through non-convertible debenture issue on Wednesday on private placement basis.
* INFRASTRUCTURE: Union Shipping and Ports Minister Nitin Gadkari said 24 companies have offered to invest over 600 bln rupees in a special economic zone adjoining the country's largest container port JNPT.
* MINING: The mines ministry is looking at setting up special purpose vehicles that will acquire necessary project clearances, including environmental, for the mineral blocks before bidding, a move that may add pace to the auction process.
* OIL AND GAS: After increasing prices of subsidised liquefied petroleum gas cylinders by 76.5 rupees in 19 instalments in the past 17 months, oil companies skipped the monthly price hike ahead of Gujarat elections. Union Roads Minister Nitin Gadkari said the government will soon announce a policy which calls for 15% blending of methanol in petrol to make it cheaper and also reduce pollution.
* RETAIL: The government has changed labelling norms to exempt single-brand retailers including, Ikea, Fabindia, Decathlon, H&M and several chains of Future Group, from marking maximum retail price on their products.
* STEEL: Steel Minister Birender Singh said the government is mulling ways to make sure iron ore prices are "not disturbed" for three-six months to help small- and medium-sized steel units in the country. AXIS Bank and BANK OF BARODA disposed a part of their foreign currency loans to Essar Steel, selling debt at 30-50% discounts with a foreign hedge fund acquiring it.
* TAXATION: The recommendations of an advisory group on changes needed in the goods and services tax have been referred to the Law Review Committee of the new indirect tax regime. GST Council member Sushil Modi said the empowered committee on the tax needs a fresh mandate to review states' revenue position and taxing powers over resources outside the new tax.
* TELECOMMUNICATION: The Telecom Commission is likely to discuss the relief package recommended by an interministerial group for the sector in its meeting scheduled for Dec 21.
