Today Sector News – 19.03.2018
* AUTOMOBILE: Suzuki Motorcycle India has launched a fuel injection variant of cruiser INTRUDER, priced at 106,896 rupees in Delhi. Hyundai is planning a major product offensive with the launch of nine models, including an electric vehicle, over the next three years.
* AVIATION: Hindustan Aeronautics said it plans to deliver three more light combat aircraft to the Indian Air Force by the end of March, taking the count of planes in the Air Force's first Tejas squadron from six to nine. The government had said there has been "no abnormal increase" in airfares following the grounding of 14 aircraft on engine issues and that only 1-2% of the total capacity has been impacted by the decision.
- Singapore Airlines expects to get more transit passengers from India when its local affiliate, Vistara, starts flying international. The government is likely to relax the eligibility criteria for Air India disinvestment by allowing airlines with negative net worth to bid.
* BANKING: The government has signed a $120-mln loan agreement with Asian Development Bank for double-tracking and electrification of railway tracks on busy routes in Andhra Pradesh, Chhattisgarh, Karnataka, Maharashtra, and Odisha. Lenders are trying to find a way out while some banks are planning to approach the Reserve Bank of India to lift the ban on letter of understanding and reintroduce the instrument or some variant of it in a more structured form. The police have arrested three directors of a private firm as part of ongoing investigations into a bank fraud by Parekh Alluminex against which lenders are now claiming close to 40 bln rupees.
* CEMENT: With the promoters of Binani Cement approaching the National Company Law Appellate Tribunal, the bankruptcy resolution process is turning out to be a trial by fire for lenders looking to recoup funds extended to troubled companies.
* COAL: A shortage in coal supply has pushed Maharashtra's power generating company to import the commodity, even as the central government had instructed it to use domestic coal. The company is set to import 1 mln tn of coal, a tender for which was floated in January.
* ECONOMY: The inaugural two-plus-two meeting of Indian and US defence and foreign ministers will be "most possibly" postponed to "later in the year" due to uncertainty about the participation of Secretary of State Mike Pompeo, who has yet to be confirmed. The proposed high-level meeting on the Protocol on Inland Water Transit and Trade between India and Bangladesh next month is expected to finalise its Standard Operating Procedures.
* FINANCE: Electoral bonds worth 2.2 bln rupees were sold in their maiden issue, which opened for subscription for 10 days beginning Mar 1.
* PHARMACEUTICALS: The government has imposed anti-dumping duty on import of Chinese pharma product, used in treatment of certain infections, to protect domestic producers from below-cost shipments.
* POWER: The power ministry is likely to seek some relaxation in the new norms on non-performing assets for power companies, according to a senior government official. Two leading public sector lenders in the power business and a state-owned power-generating giant are likely to come together and bid for stressed assets that will go through resolution under the Insolvency and Bankruptcy Code.
* RAILWAYS: Indian Renewable Energy Development Agency plans to launch its initial public offering in the first quarter of the next financial year starting April, said Satish K. Bhargava, director-finance at the state-owned company. The company also plans to raise the limit of its medium-term note programme to at least $500 mln from $300 mln at present.
- Going by the coal loading projections for COAL INDIA by the Ministry of Power, the Indian Railways is set to witness an incremental freight of 30-50 mln tn over the next three years on account of the fuel alone. Railway Minister Piyush Goyal has asked a committee, set up to review the flexi-fare scheme, to go back to the drawing board and draft a fresh report after it suggested introducing dynamic pricing, like airlines, in the railways.
* REAL ESTATE: The Supreme Court on Thursday lifted a two-year-old moratorium imposed by the Bombay High Court on new construction in Mumbai.
* REGULATORY: The Supreme Court reserved its verdict in petitions seeking fresh probe into the death of Central Bureau of Investigation Special Judge B.H. Loya. The Securities and Exchange Board of India has withdrawn recognition for the Universal Commodity Exchange, allowing the bourse to officially shut operations with immediate effect.
- Securities and Exchange Board of India is weighing tighter oversight to check leakage of privileged company information in the wake of unpublished financial results finding their way into WhatsApp groups.
* STEEL: Lenders led by STATE BANK OF INDIA are likely to seek another round of bids for Essar Steel after the resolution professional concluded that both offers by ArcelorMittal and Numetal may not be valid under the current Insolvency and Bankruptcy Code.
* TAXATION: The Central Board of Excise and Customs and states have sanctioned more than 100 bln rupees so far as refunds on account of exports. Introduction of e-wallet mechanism will effectively address the woes of exporters who have been complaining of delays in refund of taxes under the GST regime, commerce and industry minister Suresh Prabhu has said.
* TELECOMMUNICATION: Considering the current market conditions, no entity can be termed a "significant market player", as defined by the Telecom Regulatory Authority of India, Competition Commission of India Chairman Devender Kumar Sikri said.
- India's aspiration to take a leading role in 5G and internet of things will ride on its ability to build core networks for new-age technologies and an enabling industry ecosystem, Department of Telecommunications Secretary Aruna Sundararajan said. The process of network port-out is set to become faster and simpler for mobile subscribers, as the Telecom Regulatory Authority of India is planning to initiate a review of the Mobile Number Portability mechanism.
- The Madras High Court has ordered Telecom Regulatory Authority of India not to take any coercive or penal action against Vodafone India, while staying the regulator's demand that the carrier put all its tariff plans on the website, including those offered to retain individual customers. The process of network port-out is set to become faster and simpler for mobile subscribers, as Telecom Regulatory Authority of India is planning to initiate a review of the mobile number portability mechanism.
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* AVIATION: Hindustan Aeronautics said it plans to deliver three more light combat aircraft to the Indian Air Force by the end of March, taking the count of planes in the Air Force's first Tejas squadron from six to nine. The government had said there has been "no abnormal increase" in airfares following the grounding of 14 aircraft on engine issues and that only 1-2% of the total capacity has been impacted by the decision.
- Singapore Airlines expects to get more transit passengers from India when its local affiliate, Vistara, starts flying international. The government is likely to relax the eligibility criteria for Air India disinvestment by allowing airlines with negative net worth to bid.
* BANKING: The government has signed a $120-mln loan agreement with Asian Development Bank for double-tracking and electrification of railway tracks on busy routes in Andhra Pradesh, Chhattisgarh, Karnataka, Maharashtra, and Odisha. Lenders are trying to find a way out while some banks are planning to approach the Reserve Bank of India to lift the ban on letter of understanding and reintroduce the instrument or some variant of it in a more structured form. The police have arrested three directors of a private firm as part of ongoing investigations into a bank fraud by Parekh Alluminex against which lenders are now claiming close to 40 bln rupees.
* CEMENT: With the promoters of Binani Cement approaching the National Company Law Appellate Tribunal, the bankruptcy resolution process is turning out to be a trial by fire for lenders looking to recoup funds extended to troubled companies.
* COAL: A shortage in coal supply has pushed Maharashtra's power generating company to import the commodity, even as the central government had instructed it to use domestic coal. The company is set to import 1 mln tn of coal, a tender for which was floated in January.
* ECONOMY: The inaugural two-plus-two meeting of Indian and US defence and foreign ministers will be "most possibly" postponed to "later in the year" due to uncertainty about the participation of Secretary of State Mike Pompeo, who has yet to be confirmed. The proposed high-level meeting on the Protocol on Inland Water Transit and Trade between India and Bangladesh next month is expected to finalise its Standard Operating Procedures.
* FINANCE: Electoral bonds worth 2.2 bln rupees were sold in their maiden issue, which opened for subscription for 10 days beginning Mar 1.
* PHARMACEUTICALS: The government has imposed anti-dumping duty on import of Chinese pharma product, used in treatment of certain infections, to protect domestic producers from below-cost shipments.
* POWER: The power ministry is likely to seek some relaxation in the new norms on non-performing assets for power companies, according to a senior government official. Two leading public sector lenders in the power business and a state-owned power-generating giant are likely to come together and bid for stressed assets that will go through resolution under the Insolvency and Bankruptcy Code.
* RAILWAYS: Indian Renewable Energy Development Agency plans to launch its initial public offering in the first quarter of the next financial year starting April, said Satish K. Bhargava, director-finance at the state-owned company. The company also plans to raise the limit of its medium-term note programme to at least $500 mln from $300 mln at present.
- Going by the coal loading projections for COAL INDIA by the Ministry of Power, the Indian Railways is set to witness an incremental freight of 30-50 mln tn over the next three years on account of the fuel alone. Railway Minister Piyush Goyal has asked a committee, set up to review the flexi-fare scheme, to go back to the drawing board and draft a fresh report after it suggested introducing dynamic pricing, like airlines, in the railways.
* REAL ESTATE: The Supreme Court on Thursday lifted a two-year-old moratorium imposed by the Bombay High Court on new construction in Mumbai.
* REGULATORY: The Supreme Court reserved its verdict in petitions seeking fresh probe into the death of Central Bureau of Investigation Special Judge B.H. Loya. The Securities and Exchange Board of India has withdrawn recognition for the Universal Commodity Exchange, allowing the bourse to officially shut operations with immediate effect.
- Securities and Exchange Board of India is weighing tighter oversight to check leakage of privileged company information in the wake of unpublished financial results finding their way into WhatsApp groups.
* STEEL: Lenders led by STATE BANK OF INDIA are likely to seek another round of bids for Essar Steel after the resolution professional concluded that both offers by ArcelorMittal and Numetal may not be valid under the current Insolvency and Bankruptcy Code.
* TAXATION: The Central Board of Excise and Customs and states have sanctioned more than 100 bln rupees so far as refunds on account of exports. Introduction of e-wallet mechanism will effectively address the woes of exporters who have been complaining of delays in refund of taxes under the GST regime, commerce and industry minister Suresh Prabhu has said.
* TELECOMMUNICATION: Considering the current market conditions, no entity can be termed a "significant market player", as defined by the Telecom Regulatory Authority of India, Competition Commission of India Chairman Devender Kumar Sikri said.
- India's aspiration to take a leading role in 5G and internet of things will ride on its ability to build core networks for new-age technologies and an enabling industry ecosystem, Department of Telecommunications Secretary Aruna Sundararajan said. The process of network port-out is set to become faster and simpler for mobile subscribers, as the Telecom Regulatory Authority of India is planning to initiate a review of the Mobile Number Portability mechanism.
- The Madras High Court has ordered Telecom Regulatory Authority of India not to take any coercive or penal action against Vodafone India, while staying the regulator's demand that the carrier put all its tariff plans on the website, including those offered to retain individual customers. The process of network port-out is set to become faster and simpler for mobile subscribers, as Telecom Regulatory Authority of India is planning to initiate a review of the mobile number portability mechanism.
