Today Sector News – 05.03.2018
* AUTOMOBILE: Hyundai Motor India's domestic vehicle sales rose 5.1% on year to 44,505 vehicles in February.
* AVIATION: Boeing has increased component sourcing from India in the past two years to over $1 bln cumulatively, said Leanne Caret, president and CEO for the defence, space and security business. Alliance Air, Air India's fully-owned subsidiary is expanding its fleet to operate more flights as it bags additional routes after the second round of bidding under the government's subsidised air travel scheme. Air India is looking at raising 5 bln rupees by selling land and real estate in 2018-19, and is likely to sell some of its prime properties across the country. AirAsia India has charted out expansion plans to connect more tier-II and tier-III cities and set a target to commence flights to overseas destinations by January 2019.
* BANKING: The Reserve Bank of India has released the draft directions for repurchase, or repo, transactions for banks and has sought public comments by Mar 16. The Reserve Bank of India has withdrawn the incentives for installation of cash recycler machines and automated teller machines that dispense only lower denomination notes. The Reserve Bank of India has turned down a request from mobile wallet entities for less stringent Know Your Customer rules.
- Five public sector banks, including CANARA BANK and UNION BANK OF INDIA, are on the brink of being put under the Reserve Bank of India's prompt corrective action plan, ICRA said. The Reserve Bank of India is likely to stick to its target of making digital wallets interoperable by April despite allowing payment companies two additional months to comply with its customer verification requirement. The government has told lenders to companies facing insolvency proceedings that financial bids should be the sole criteria to select the winner in the race to acquire these entities.
* ECONOMY: The Reserve Bank of India scrapped the per borrower limit of 50 mln rupees and 100 mln rupees for loans to micro/small and medium enterprises, respectively, in the services sector for them to be eligible for priority sector lending. The Union Cabinet has approved forming National Financial Reporting Authority to act as an independent regulator for auditors.
- The Union Cabinet has approved the Fugitive Economic Offenders Bill, 2018, that aims to prevent economic offenders from fleeing the country. Indian companies raised $540.46 mln through loans in foreign currency in January, nearly 59% lower than $1.31 bln in December, according to data released by the Reserve Bank of India.
* INFRASTRUCTURE: In a move aimed at promoting inland water transport, India's top 12 major ports will create special purpose vehicles to develop 111 rivers across India, Union Minister Nitin Gadkari said.
* OIL AND GAS: Adani Gas, the gas distribution business of Adani Group, is planning to go for a direct listing of shares instead of an initial public offering.
* POWER: Essar Power has not been up to the mark with regard to making a coal mine operational in Jharkhand, a senior official said, adding the government may cancel the coal block allotted to firm once the court stay on the mine is vacated. The government is nudging bankers to take criminal action against private power producers that have inflated project costs.
* REALTY: Tata Sons has appointed Sanjay Dutt as managing director of Tata Realty and Infrastructure, effective Apr 1.
* STEEL: ArcelorMittal has formed a joint venture with Japan's Nippon Steel and Sumitomo Corp as part of its bid to acquire Essar Steel.
* TELECOMMUNICATION: The telecom regulator expects to finalise recommendation for the country's largest ever spectrum auction within a quarter. The government has started tuning spectrum for 5G services as part of its roadmap to become early adopter of the next generation services.
CLICK HERE
*********************************************************************************
* AVIATION: Boeing has increased component sourcing from India in the past two years to over $1 bln cumulatively, said Leanne Caret, president and CEO for the defence, space and security business. Alliance Air, Air India's fully-owned subsidiary is expanding its fleet to operate more flights as it bags additional routes after the second round of bidding under the government's subsidised air travel scheme. Air India is looking at raising 5 bln rupees by selling land and real estate in 2018-19, and is likely to sell some of its prime properties across the country. AirAsia India has charted out expansion plans to connect more tier-II and tier-III cities and set a target to commence flights to overseas destinations by January 2019.
* BANKING: The Reserve Bank of India has released the draft directions for repurchase, or repo, transactions for banks and has sought public comments by Mar 16. The Reserve Bank of India has withdrawn the incentives for installation of cash recycler machines and automated teller machines that dispense only lower denomination notes. The Reserve Bank of India has turned down a request from mobile wallet entities for less stringent Know Your Customer rules.
- Five public sector banks, including CANARA BANK and UNION BANK OF INDIA, are on the brink of being put under the Reserve Bank of India's prompt corrective action plan, ICRA said. The Reserve Bank of India is likely to stick to its target of making digital wallets interoperable by April despite allowing payment companies two additional months to comply with its customer verification requirement. The government has told lenders to companies facing insolvency proceedings that financial bids should be the sole criteria to select the winner in the race to acquire these entities.
* ECONOMY: The Reserve Bank of India scrapped the per borrower limit of 50 mln rupees and 100 mln rupees for loans to micro/small and medium enterprises, respectively, in the services sector for them to be eligible for priority sector lending. The Union Cabinet has approved forming National Financial Reporting Authority to act as an independent regulator for auditors.
- The Union Cabinet has approved the Fugitive Economic Offenders Bill, 2018, that aims to prevent economic offenders from fleeing the country. Indian companies raised $540.46 mln through loans in foreign currency in January, nearly 59% lower than $1.31 bln in December, according to data released by the Reserve Bank of India.
* INFRASTRUCTURE: In a move aimed at promoting inland water transport, India's top 12 major ports will create special purpose vehicles to develop 111 rivers across India, Union Minister Nitin Gadkari said.
* OIL AND GAS: Adani Gas, the gas distribution business of Adani Group, is planning to go for a direct listing of shares instead of an initial public offering.
* POWER: Essar Power has not been up to the mark with regard to making a coal mine operational in Jharkhand, a senior official said, adding the government may cancel the coal block allotted to firm once the court stay on the mine is vacated. The government is nudging bankers to take criminal action against private power producers that have inflated project costs.
* REALTY: Tata Sons has appointed Sanjay Dutt as managing director of Tata Realty and Infrastructure, effective Apr 1.
* STEEL: ArcelorMittal has formed a joint venture with Japan's Nippon Steel and Sumitomo Corp as part of its bid to acquire Essar Steel.
* TELECOMMUNICATION: The telecom regulator expects to finalise recommendation for the country's largest ever spectrum auction within a quarter. The government has started tuning spectrum for 5G services as part of its roadmap to become early adopter of the next generation services.
