Today Sector News – 12.04.2018
* AVIATION: Barely a fortnight after the government released the expression of interest document for Air India privatisation, uncertainty looms over the sale with most of the major contenders dropping out of the race citing the existing terms and conditions.
-Tata Group, widely seen as a potential suitor for Air India, is unlikely to consider a bid for the state-run carrier as the government's terms are just too onerous.
-Should the terms for the sale of a majority stake in Air India not enthuse prospective buyers, the
government may choose to sweeten the deal by assuming additional liabilities of close to 35 bln rupees.
* BANKING: The Reserve Bank has ruled out any relaxation in bad loan rules, saying the tough norms will discipline borrowers and prevent banks from pushing distressed loans under the carpet. The recent relaxation given to lenders by Reserve Bank of India in provisioning norms and permitting them to spread mark-tomarket losses over four quarter will provide a 270-bln-rupee breather to banks in the fourth quarter of fiscal 2017-18, said a report.
* DEFENCE: Tata Sons, the holding company of the Tata group, is bringing the group's aerospace and defence business under Tata Aerospace & Defence, as the country gradually opens up the sector to private players.
* EXCHANGES: Indian Energy Exchange last month signed a memorandum of understanding with Japan Electric Power Exchange to explore opportunities of cooperation in the electricity market. National Stock Exchange has sought details from Singapore's exchange, SGX, on the proposed launch of derivative products on Indian equities.
* FINANCE: IL&FS is raising a new infrastructure fund, under its private equity business, with a target corpus of almost $1 bln, said a senior executive of the group.
* FUNDS: The Securities and Exchange Board of India has directed Sahara Mutual Fund to wind up all the schemes, except Sahara Tax Gain Fund, by Apr 21, and surrender its certificate of registration by Aug 27.
* INFORMATION TECHNOLOGY: Cognizant Technology Solutions offered single-digit pay hikes to its top executives in 2017, reflecting the market trend.
* INSURANCE: The premium income of non-life insurance companies rose 17.5% on-year to 1.51 trln rupees during 2017-18 (Apr-Mar), according to data released by the Insurance Regulatory and Development Authority of India.
* OIL & GAS: Saudi Aramco will jointly develop and build the proposed 3-trln-rupee mega refinery and petrochemical complex in Ratnagiri with the three state-owned refiners INDIAN OIL CORP, BHARAT PETROLEUM CORP, and HINDUSTAN PETROLEUM CORP. Global crude oil supplies could come under stress despite the shale oil boom led by the US as output from mature fields is declining while demand remains robust, International Energy Agency's Executive Director Fatih Birol said. The world has seen oil and gas prices on a roller coaster for much too long and "we need responsible prices to balance the interests of both producer and consumer", declared Prime Minister Narendra Modi, in his inaugural address at the 16th International Energy Forum.
* POWER: The power ministry's pilot scheme for procurement of 2,500 MW power from plants that do not have purchase agreements is likely to benefit independent producers, given the lack of progress in long-term purchase pacts, ratings agency ICRA said.
* REGULATORY: The Securities and Exchange Board of India has tightened the norms for a stock to trade in the derivatives segment, and said it will make physical settlement mandatory for all stocks in phased manner.
* TELECOMMUNICATION: The Cellular Operators Association of India has written to the Telecom
Regulatory Authority of India, requesting it to rectify what it calls discrepancies in an official app measuring wireless data speeds.
* TOBACCO: The Department of Industrial Policy and Promotion has met tobacco industry stakeholders to discuss issues related to foreign direct investment in the sector.
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-Tata Group, widely seen as a potential suitor for Air India, is unlikely to consider a bid for the state-run carrier as the government's terms are just too onerous.
-Should the terms for the sale of a majority stake in Air India not enthuse prospective buyers, the
government may choose to sweeten the deal by assuming additional liabilities of close to 35 bln rupees.
* BANKING: The Reserve Bank has ruled out any relaxation in bad loan rules, saying the tough norms will discipline borrowers and prevent banks from pushing distressed loans under the carpet. The recent relaxation given to lenders by Reserve Bank of India in provisioning norms and permitting them to spread mark-tomarket losses over four quarter will provide a 270-bln-rupee breather to banks in the fourth quarter of fiscal 2017-18, said a report.
* DEFENCE: Tata Sons, the holding company of the Tata group, is bringing the group's aerospace and defence business under Tata Aerospace & Defence, as the country gradually opens up the sector to private players.
* EXCHANGES: Indian Energy Exchange last month signed a memorandum of understanding with Japan Electric Power Exchange to explore opportunities of cooperation in the electricity market. National Stock Exchange has sought details from Singapore's exchange, SGX, on the proposed launch of derivative products on Indian equities.
* FINANCE: IL&FS is raising a new infrastructure fund, under its private equity business, with a target corpus of almost $1 bln, said a senior executive of the group.
* FUNDS: The Securities and Exchange Board of India has directed Sahara Mutual Fund to wind up all the schemes, except Sahara Tax Gain Fund, by Apr 21, and surrender its certificate of registration by Aug 27.
* INFORMATION TECHNOLOGY: Cognizant Technology Solutions offered single-digit pay hikes to its top executives in 2017, reflecting the market trend.
* INSURANCE: The premium income of non-life insurance companies rose 17.5% on-year to 1.51 trln rupees during 2017-18 (Apr-Mar), according to data released by the Insurance Regulatory and Development Authority of India.
* OIL & GAS: Saudi Aramco will jointly develop and build the proposed 3-trln-rupee mega refinery and petrochemical complex in Ratnagiri with the three state-owned refiners INDIAN OIL CORP, BHARAT PETROLEUM CORP, and HINDUSTAN PETROLEUM CORP. Global crude oil supplies could come under stress despite the shale oil boom led by the US as output from mature fields is declining while demand remains robust, International Energy Agency's Executive Director Fatih Birol said. The world has seen oil and gas prices on a roller coaster for much too long and "we need responsible prices to balance the interests of both producer and consumer", declared Prime Minister Narendra Modi, in his inaugural address at the 16th International Energy Forum.
* POWER: The power ministry's pilot scheme for procurement of 2,500 MW power from plants that do not have purchase agreements is likely to benefit independent producers, given the lack of progress in long-term purchase pacts, ratings agency ICRA said.
* REGULATORY: The Securities and Exchange Board of India has tightened the norms for a stock to trade in the derivatives segment, and said it will make physical settlement mandatory for all stocks in phased manner.
* TELECOMMUNICATION: The Cellular Operators Association of India has written to the Telecom
Regulatory Authority of India, requesting it to rectify what it calls discrepancies in an official app measuring wireless data speeds.
* TOBACCO: The Department of Industrial Policy and Promotion has met tobacco industry stakeholders to discuss issues related to foreign direct investment in the sector.
