Today Sector News – 23.03.2018
* AUTOMOBILE: Taking stock of the air pollution levels in the city, the Delhi government presented a 'Green Budget' for 2018-19 (Apr-Mar) and said it plans to introduce 1,000 electric buses in the upcoming financial year.
* AVIATION: The government may split different businesses of Air India and sell them in phases. The government has stipulated 50 bln rupees as the minimum net worth for those looking to bid for Air India, in order to screen out frivolous and dubious contenders. Air India has found buyers for only one-fourth of the 45 properties and land parcels it put for auction across major cities and towns in February, and will now put them under the hammer again to try and raise the targeted 5 bln rupees over 2018-19.
* BANKING: The government has asked non banking financial companies to register with the country's financial intelligence unit and report details of clients as per the requirements under the Prevention of Money Laundering Act. Banks are staring at an additional provisioning in the current quarter after the SC ordered status quo in the case of the RELIANCE COMMUNICATION's assets sale to Reliance Jio Infocomm.
* CEMENT: The Braj Binani group has asked the Kolkata bench of National Company Law Tribunal to suspend the ongoing resolution process of group firm Binani Cement, even as one of the stakeholders said the sanctity of the bankruptcy resolution process is now at stake.
* GOVERNMENT: The Rajya Sabha has passed the Payment of Gratuity (Amendment) Bill, paving way for the government to enhance the limit of tax-free gratuity to 2 mln rupees from existing 1 mln rupees under the Payment of Gratuity Act.
* INFORMATION TECHNOLOGY: US-based Accenture Plc has scaled up its revenue growth guidance for financial year 2017-18 (Sep-Aug) to 7-9% from its previous forecast of 6-8%.
* INFRASTRUCTURE: Maharashtra Chief Minister Devendra Fadnavis approved the Mumbai Metropolitan Region Development Authority's budget of 121.6 bln rupees for 2018-19 (Apr-Mar).
* JEWELLERY: The Reserve Bank of India ban on Letter of Undertaking as a trade finance instrument, will not have much impact on the gems and jewellery industry in West Bengal, but a hike in bank's credit margin may hurt the business.
* OIL AND GAS: Oil marketing companies--BHARAT PETROLEUM CORP, HINDUSTAN PETROLEUM CORP and INDIAN OIL CORP have received bids for supply of 210 mln ltr of ethanol, against the 1.17 bln ltr sought in the second tender for 2017-18 (Dec-Nov). India's total refinery throughput rose 5.4% on year to 20.09 mln tn in February despite an onyear fall in capacity utilisation levels, as an addition in refining capacity over the past one year helped the industry process more crude oil on a cumulative basis. A clutch of 12 banks led by STATE BANK OF INDIA has decided to liquidate Varun Resources-once India's biggest liquefied petroleum gas ship owner-to recover dues worth some 20 bln rupees, after rejecting a resolution plan submitted by a third party.
* REALTY: Raine & Horne is looking to foray into the Indian real estate industry attracted by the vast potential and the recent regulations brought out to control the largely unregulated industry.
* REGULATORY: The Union Cabinet has approved allocation of 21.61 bln rupees to the Integrated Scheme for Development of Silk Industry till 2019-20 (Apr-Mar). The Securities and Exchanges Board of India is considering restrictions on trading of shares of companies referred to the National Companies Law Tribunal for insolvency and bankruptcy proceedings.
* STEEL: The government today extended anti-dumping duty on flat base steel wheels from China by a year to Mar 25, 2019. More than 40% of operational creditor claims rejected by the resolution professional of Essar Steel belong to companies related to Essar Steel, according to a document listing claims as on Feb 28. ArcelorMittal has confirmed plans of participating in the rebidding for Essar Steel, confident that it would be an eligible contender regardless of the verdict on its initial offer. A day after rejecting bids from Numetal Mauritius and ArcelorMittal, lenders to Essar Steel reiterated they were not planning to invite new bidders for the debt-laden company.
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* AVIATION: The government may split different businesses of Air India and sell them in phases. The government has stipulated 50 bln rupees as the minimum net worth for those looking to bid for Air India, in order to screen out frivolous and dubious contenders. Air India has found buyers for only one-fourth of the 45 properties and land parcels it put for auction across major cities and towns in February, and will now put them under the hammer again to try and raise the targeted 5 bln rupees over 2018-19.
* BANKING: The government has asked non banking financial companies to register with the country's financial intelligence unit and report details of clients as per the requirements under the Prevention of Money Laundering Act. Banks are staring at an additional provisioning in the current quarter after the SC ordered status quo in the case of the RELIANCE COMMUNICATION's assets sale to Reliance Jio Infocomm.
* CEMENT: The Braj Binani group has asked the Kolkata bench of National Company Law Tribunal to suspend the ongoing resolution process of group firm Binani Cement, even as one of the stakeholders said the sanctity of the bankruptcy resolution process is now at stake.
* GOVERNMENT: The Rajya Sabha has passed the Payment of Gratuity (Amendment) Bill, paving way for the government to enhance the limit of tax-free gratuity to 2 mln rupees from existing 1 mln rupees under the Payment of Gratuity Act.
* INFORMATION TECHNOLOGY: US-based Accenture Plc has scaled up its revenue growth guidance for financial year 2017-18 (Sep-Aug) to 7-9% from its previous forecast of 6-8%.
* INFRASTRUCTURE: Maharashtra Chief Minister Devendra Fadnavis approved the Mumbai Metropolitan Region Development Authority's budget of 121.6 bln rupees for 2018-19 (Apr-Mar).
* JEWELLERY: The Reserve Bank of India ban on Letter of Undertaking as a trade finance instrument, will not have much impact on the gems and jewellery industry in West Bengal, but a hike in bank's credit margin may hurt the business.
* OIL AND GAS: Oil marketing companies--BHARAT PETROLEUM CORP, HINDUSTAN PETROLEUM CORP and INDIAN OIL CORP have received bids for supply of 210 mln ltr of ethanol, against the 1.17 bln ltr sought in the second tender for 2017-18 (Dec-Nov). India's total refinery throughput rose 5.4% on year to 20.09 mln tn in February despite an onyear fall in capacity utilisation levels, as an addition in refining capacity over the past one year helped the industry process more crude oil on a cumulative basis. A clutch of 12 banks led by STATE BANK OF INDIA has decided to liquidate Varun Resources-once India's biggest liquefied petroleum gas ship owner-to recover dues worth some 20 bln rupees, after rejecting a resolution plan submitted by a third party.
* REALTY: Raine & Horne is looking to foray into the Indian real estate industry attracted by the vast potential and the recent regulations brought out to control the largely unregulated industry.
* REGULATORY: The Union Cabinet has approved allocation of 21.61 bln rupees to the Integrated Scheme for Development of Silk Industry till 2019-20 (Apr-Mar). The Securities and Exchanges Board of India is considering restrictions on trading of shares of companies referred to the National Companies Law Tribunal for insolvency and bankruptcy proceedings.
* STEEL: The government today extended anti-dumping duty on flat base steel wheels from China by a year to Mar 25, 2019. More than 40% of operational creditor claims rejected by the resolution professional of Essar Steel belong to companies related to Essar Steel, according to a document listing claims as on Feb 28. ArcelorMittal has confirmed plans of participating in the rebidding for Essar Steel, confident that it would be an eligible contender regardless of the verdict on its initial offer. A day after rejecting bids from Numetal Mauritius and ArcelorMittal, lenders to Essar Steel reiterated they were not planning to invite new bidders for the debt-laden company.
