Today Sector News – 02.05.2018
* AUTOMOBILE: Hyundai Motor has reported a 6% on-year rise in its total sales for April at 59,744 units.
* AVIATION: Amid reports of no sincere interest being received for Air India, the government today extended the deadline to submit initial bids for its 76% stake in the national carrier to May 31 from May 14 earlier.
* CORPORATE: Philips India is at the receiving end of shareholder activism for attempting to extinguish about 2.23 mln shares--all held by minority shareholders--and pay them 560 rupees per share. Essar Ports is planning to refinance $600 mln of bank borrowings to lower its cost of funds to 8.0-8.5% from 11% at present.
* ECONOMY: Finance Minister Arun Jaitley has said the rise in goods and services tax collections in April was a confirmation of the improvement in economic activity in the country.
* FINANCE: The Reserve Bank of India has clarified that foreign portfolio investors can invest in treasury bills issued by the central government. The clarification comes four days after the central bank lifted the three-year residual maturity clause for FPI investment in government securities.
* INSURANCE: The Appointments Committee of the Cabinet has appointed Subhash Chandra Khuntia as chairperson of the Insurance Regulatory Development Authority of India for a period of three years. Max Life Insurance and Exide Life Insurance have been shortlisted to buy a significant stake in IDBI Federal Life Insurance in a deal that is likely to value the company at more than 60 bln rupees.
* OIL & GAS: A fortnight before Karnataka goes to polls, public sector oil firms have stopped revising petrol and diesel prices even though benchmark international rates have gone up by almost $2 per barrel.
* POWER: The government's target to connect all households with electricity and its plan to make it mandatory for distribution companies to supply electricity 24X7 will lead to additional demand of 28,000 MW, Power Minister R. K. Singh said. Luminous Group, Microtek, GREAVES COTTON are in a race to buy Su-Kam Power Systems.
* STEEL: Essar Steel's committee of creditors will hold meetings with the first-round bidders Numetal and ArcelorMittal separately to discuss eligibility issues of their resolution plans before they submit their bids. Lenders to Bhushan Power and Steel have decided against seeking a second round of bids for the bankrupt steel company over concerns that this could lead to offers below the 185 bln rupees offered by Liberty House and the process getting mired in litigation.
* TAXATION: The government has opted to ignore Oil Minister Dharmendra Pradhan's repeated plea to bring petrol and diesel within the ambit of goods and services tax and decided to put the plan on the backburner.
* TELECOMMUNICATION: The Telecom Commission has approved various recommendations made by the regulator, including a proposal to allow voice calls and internet services on flights and ships using Indian satellites and gateways, Telecom Secretary Arun Sundararajan said. Aircel Chief Executive Officer Kaizad Heerjee has resigned from his position.
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* AVIATION: Amid reports of no sincere interest being received for Air India, the government today extended the deadline to submit initial bids for its 76% stake in the national carrier to May 31 from May 14 earlier.
* CORPORATE: Philips India is at the receiving end of shareholder activism for attempting to extinguish about 2.23 mln shares--all held by minority shareholders--and pay them 560 rupees per share. Essar Ports is planning to refinance $600 mln of bank borrowings to lower its cost of funds to 8.0-8.5% from 11% at present.
* ECONOMY: Finance Minister Arun Jaitley has said the rise in goods and services tax collections in April was a confirmation of the improvement in economic activity in the country.
* FINANCE: The Reserve Bank of India has clarified that foreign portfolio investors can invest in treasury bills issued by the central government. The clarification comes four days after the central bank lifted the three-year residual maturity clause for FPI investment in government securities.
* INSURANCE: The Appointments Committee of the Cabinet has appointed Subhash Chandra Khuntia as chairperson of the Insurance Regulatory Development Authority of India for a period of three years. Max Life Insurance and Exide Life Insurance have been shortlisted to buy a significant stake in IDBI Federal Life Insurance in a deal that is likely to value the company at more than 60 bln rupees.
* OIL & GAS: A fortnight before Karnataka goes to polls, public sector oil firms have stopped revising petrol and diesel prices even though benchmark international rates have gone up by almost $2 per barrel.
* POWER: The government's target to connect all households with electricity and its plan to make it mandatory for distribution companies to supply electricity 24X7 will lead to additional demand of 28,000 MW, Power Minister R. K. Singh said. Luminous Group, Microtek, GREAVES COTTON are in a race to buy Su-Kam Power Systems.
* STEEL: Essar Steel's committee of creditors will hold meetings with the first-round bidders Numetal and ArcelorMittal separately to discuss eligibility issues of their resolution plans before they submit their bids. Lenders to Bhushan Power and Steel have decided against seeking a second round of bids for the bankrupt steel company over concerns that this could lead to offers below the 185 bln rupees offered by Liberty House and the process getting mired in litigation.
* TAXATION: The government has opted to ignore Oil Minister Dharmendra Pradhan's repeated plea to bring petrol and diesel within the ambit of goods and services tax and decided to put the plan on the backburner.
* TELECOMMUNICATION: The Telecom Commission has approved various recommendations made by the regulator, including a proposal to allow voice calls and internet services on flights and ships using Indian satellites and gateways, Telecom Secretary Arun Sundararajan said. Aircel Chief Executive Officer Kaizad Heerjee has resigned from his position.
