Today's Sector View – 31.12.2018
* AVIATION: Alliance Air, a wholly-owned subsidiary of Air India, said it will introduce flights between Pantnagar and Dehradun under the regional connectivity scheme, UDAN, from Jan 4. Air India Chairman and Managing Director Pradeep Singh Kharola has told employees the debt-ridden airline must generate revenue in every possible manner if it has to stay afloat in a competitive market. The government plans to rope in professionals for top positions at Air India through a global search process, as part of efforts to revive the national carrier, Civil Aviation Minister Suresh Prabhu said.
* BANKING: The Reserve Bank of India has extended the relaxed liquidity norms for banks till March end to ensure that lending to non-banking finance companies is adequate. The Reserve Bank of India has called for strengthening of the infrastructure of insolvency resolution, including the proposed increase in the number of benches of the National Company Law Tribunal, to reduce the overall time currently being taken for resolution under the Insolvency and Bankruptcy Code. Private banks have overtaken public sector banks in terms of incremental credit since 2015-16 (Apr-Mar), data from an RBI report showed. Public sector banks have sanctioned loans to the tune of 140.88 bln rupees in 54 days through the online portal for micro, small, and medium enterprises.
* COMMODITIES: The Cabinet Committee on Economic Affairs approved increasing the minimum support price of ball and milling copra produced in 2019 by over 2,000 rupees per 100 kg each to ensure better returns to farmers.
* FINANCE: IL&FS Financial Services has defaulted on a 629.2-mln-rupee payment towards a term loan, including interest, and a 206-mln-rupee interest payment on non-convertible debentures, due on Dec 28. Has defaulted on interest payment on non-convertible debentures due Dec 29.
The company has invited bids to sell six of its properties, including a 14-storey commercial tower in central Mumbai. The Reserve Bank of India plans to usher in new asset liability management norms for non-banking finance companies.
* INFRASTRUCTURE: National Highway Authority of India's overall cost for land acquisition for 2018-19 (Apr-Mar) is expected to be 300 bln rupees, with the government agency seen acquiring 10,000-ha land for various projects in the current financial year, Kotak Institutional Equities Research said in a note.
* OIL AND GAS: Petrol price on Sunday was cut by 22 paise per ltr to its lowest level in 2018 while diesel rates were reduced by 23 paise to a nine-month low.
* STEEL: The Gujarat Tax Office has filed a petition against resolution professional of Essar Steel India at the Ahmedabad bench of National Company Law Tribunal. India is in talks with the US over exemptions on steel tariffs, steel secretary said.
* TAXATION: Karnataka Appellate Authority for Advance Rulings has upheld the levy of goods and services tax on services rendered by one office branch to other centres.
* TELECOMMUNICATION: Telecom Regulatory Authority of India recommended that spectrum charges for Bharat Sanchar Nigam's satellite phone services be fixed at 1% of the revenue accrued from such services, replacing the current model of formula-based levy.
* BANKING: The Reserve Bank of India has extended the relaxed liquidity norms for banks till March end to ensure that lending to non-banking finance companies is adequate. The Reserve Bank of India has called for strengthening of the infrastructure of insolvency resolution, including the proposed increase in the number of benches of the National Company Law Tribunal, to reduce the overall time currently being taken for resolution under the Insolvency and Bankruptcy Code. Private banks have overtaken public sector banks in terms of incremental credit since 2015-16 (Apr-Mar), data from an RBI report showed. Public sector banks have sanctioned loans to the tune of 140.88 bln rupees in 54 days through the online portal for micro, small, and medium enterprises.
* COMMODITIES: The Cabinet Committee on Economic Affairs approved increasing the minimum support price of ball and milling copra produced in 2019 by over 2,000 rupees per 100 kg each to ensure better returns to farmers.
* FINANCE: IL&FS Financial Services has defaulted on a 629.2-mln-rupee payment towards a term loan, including interest, and a 206-mln-rupee interest payment on non-convertible debentures, due on Dec 28. Has defaulted on interest payment on non-convertible debentures due Dec 29.
The company has invited bids to sell six of its properties, including a 14-storey commercial tower in central Mumbai. The Reserve Bank of India plans to usher in new asset liability management norms for non-banking finance companies.
* INFRASTRUCTURE: National Highway Authority of India's overall cost for land acquisition for 2018-19 (Apr-Mar) is expected to be 300 bln rupees, with the government agency seen acquiring 10,000-ha land for various projects in the current financial year, Kotak Institutional Equities Research said in a note.
* OIL AND GAS: Petrol price on Sunday was cut by 22 paise per ltr to its lowest level in 2018 while diesel rates were reduced by 23 paise to a nine-month low.
* STEEL: The Gujarat Tax Office has filed a petition against resolution professional of Essar Steel India at the Ahmedabad bench of National Company Law Tribunal. India is in talks with the US over exemptions on steel tariffs, steel secretary said.
* TAXATION: Karnataka Appellate Authority for Advance Rulings has upheld the levy of goods and services tax on services rendered by one office branch to other centres.
* TELECOMMUNICATION: Telecom Regulatory Authority of India recommended that spectrum charges for Bharat Sanchar Nigam's satellite phone services be fixed at 1% of the revenue accrued from such services, replacing the current model of formula-based levy.
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