Today Sector News – 14.09.2018
* AGRICULTURE: The Cabinet has approved the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan umbrella scheme to ensure minimum support prices to farmers on the procurement of crops harvested in 2018-19 (Jul-Jun). Agriculture minister Radha Mohan Singh has said implementation of National Action Plan on Dairy Development 2022, which seeks to increase milk production and double the income of dairy farmers, will require an investment of 510.77 bln rupees.
* AVIATION: Indian Air Force chief Air Chief Marshal Birender Singh Dhanoa on Wednesday mounted a strong defence of India buying 36 French-made Rafale fighter aircraft saying the jets were critical to plug a key capability deficit and hence a national security priority.
* BANKING: The Central Bureau of Investigation has opened a probe with an intent to file a fresh
chargesheet on the involvement of finance ministry officials in the disbursal of loans from public sector banks to Kingfisher Airlines during the United Progressive Alliance government. Finance Minister Arun Jaitley has denied beleaguered businessman Vijay Mallaya's claims that he had met the former to make an offer for settlement on his debt repayment before he left India two years ago.
* COMMODITIES: The Cabinet has approved a hike in the price of ethanol made from B-heavy molasses to 52.43 rupees per ltr from 47.49 rupees announced in June, Petroleum Minister Dharmendra Pradhan said.
* CORPORATE: In line with its strategy of growing via the inorganic route, JSW Infrastructure is in talks with Kamarajar Port to acquire one of its terminals. The proposed acquisition is part of the infrastructure firm's 88-bln-rupee capital expenditure plan. Infrastructure Leasing and Financial Services will sell its corporate headquarters in Mumbai's Bandra Kurla Complex to raise funds as it seeks to stave off repayment challenges and switches to an assetlight strategy.
- Infrastructure Leasing & Financial Services, which helped fund India's longest tunnel, is in default
on 3 bln rupees of short term borrowings taken through so-called inter-corporate deposits from Small
Industries Development Bank of India.
* ECOMMERCE: Ecommerce platforms such as Amazon, Flipkart, and Myntra will from Oct 1 have to withhold tax from payments made to suppliers.
* ENERGY: The Andhra Pradesh government has clarified that state distribution companies have to take all the electricity wind power developers produce and pay for it irrespective of the capacity utilisation factor of the developer's project, bringing to an end a major controversy in the state's wind energy segment.
* FAST MOVING CONSUMER GOODS: Patanjali has announced its entry into the dairy products
segment, with cow milk, curd, buttermilk and cheese.
* FINANCE: The government has identified the assets of nine central public sector enterprises, which are to be hived off during the strategic divestment of these enterprises.
* INFORMATION TECHNOLOGY: Cognizant Technology Solutions Corp may have an outsider as chief executive officer for the first time, as the company's board is considering at least one executive from a rival to succeed CEO Francisco D'Souza.
* INSURANCE: The government has called on companies to build an information technology framework that can identify and trigger alerts for "suspicious" transactions in its ambitious PM Jan Arogya Yojana health insurance scheme.
* LAW: The government has notified amendments to the Companies Act because of which companies will not require the Centre's approval from Sep 12 for payment of remuneration to managerial personnel in excess of 11% of their net profit.
* OIL AND GAS: The Union Cabinet has approved the policy framework to promote and incentivise use of enhanced and improved recovery techniques for raising oil and gas output from existing fields in a bid to augment domestic production of hydrocarbons.
* PHARMACEUTICALS: The government on Wednesday prohibited the manufacture, sale or distribution of 328 fixed dose combination drugs for human use with immediate effect.
* POWER: The government plans to auction power supply contracts with attached coal supplies, ease norms to allow coal usage for short-term power contracts and put in place a payment mechanism to help power projects recover dues in time from state electricity distribution companies to alleviate the sectoral stress to a large extent.
* RAILWAYS: The Union Cabinet has approved electrification of the remaining 13,675 km of unelectrified broad gauge rail track comprising 108 sections of Indian Railways by 2021-22 at a total cost of 121.34 bln rupees.
* RETAIL: Amazon India is considering a plan to load its Prime subscription service with offline benefits that would encourage frequent use of the programme, even as it looks to attract more customers from small cities and towns. Even as Walmart deposited 74.39 bln rupees as withholding tax for its $16 bln investment in Flipkart, the income tax department has asked it to provide details of the amount deducted from payments to each selling shareholder.
- Flipkart is forging exclusive partnerships with key brands such as Blaupunkt and Xiaomi,
expecting sales of large appliances to more than double during the coming Big Billion Day sale and keep rival Amazon India at bay.
* TELECOMMUNICATION: The telecom department is drawing up proposals aimed at reducing disputes with operators that have led to as much as 800 bln rupees getting stuck in litigation, delaying mergers and acquisitions and deterring overseas investors.
- The Department of Telecommunications has excluded Huawei and ZTE from its list of companies
asked to partner it for trials to develop fifth generation use cases for India, indicating that India may well follow the US and Australia in limiting involvement of Chinese telecom equipment makers in the rollout of the next generation technology.
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* AVIATION: Indian Air Force chief Air Chief Marshal Birender Singh Dhanoa on Wednesday mounted a strong defence of India buying 36 French-made Rafale fighter aircraft saying the jets were critical to plug a key capability deficit and hence a national security priority.
* BANKING: The Central Bureau of Investigation has opened a probe with an intent to file a fresh
chargesheet on the involvement of finance ministry officials in the disbursal of loans from public sector banks to Kingfisher Airlines during the United Progressive Alliance government. Finance Minister Arun Jaitley has denied beleaguered businessman Vijay Mallaya's claims that he had met the former to make an offer for settlement on his debt repayment before he left India two years ago.
* COMMODITIES: The Cabinet has approved a hike in the price of ethanol made from B-heavy molasses to 52.43 rupees per ltr from 47.49 rupees announced in June, Petroleum Minister Dharmendra Pradhan said.
* CORPORATE: In line with its strategy of growing via the inorganic route, JSW Infrastructure is in talks with Kamarajar Port to acquire one of its terminals. The proposed acquisition is part of the infrastructure firm's 88-bln-rupee capital expenditure plan. Infrastructure Leasing and Financial Services will sell its corporate headquarters in Mumbai's Bandra Kurla Complex to raise funds as it seeks to stave off repayment challenges and switches to an assetlight strategy.
- Infrastructure Leasing & Financial Services, which helped fund India's longest tunnel, is in default
on 3 bln rupees of short term borrowings taken through so-called inter-corporate deposits from Small
Industries Development Bank of India.
* ECOMMERCE: Ecommerce platforms such as Amazon, Flipkart, and Myntra will from Oct 1 have to withhold tax from payments made to suppliers.
* ENERGY: The Andhra Pradesh government has clarified that state distribution companies have to take all the electricity wind power developers produce and pay for it irrespective of the capacity utilisation factor of the developer's project, bringing to an end a major controversy in the state's wind energy segment.
* FAST MOVING CONSUMER GOODS: Patanjali has announced its entry into the dairy products
segment, with cow milk, curd, buttermilk and cheese.
* FINANCE: The government has identified the assets of nine central public sector enterprises, which are to be hived off during the strategic divestment of these enterprises.
* INFORMATION TECHNOLOGY: Cognizant Technology Solutions Corp may have an outsider as chief executive officer for the first time, as the company's board is considering at least one executive from a rival to succeed CEO Francisco D'Souza.
* INSURANCE: The government has called on companies to build an information technology framework that can identify and trigger alerts for "suspicious" transactions in its ambitious PM Jan Arogya Yojana health insurance scheme.
* LAW: The government has notified amendments to the Companies Act because of which companies will not require the Centre's approval from Sep 12 for payment of remuneration to managerial personnel in excess of 11% of their net profit.
* OIL AND GAS: The Union Cabinet has approved the policy framework to promote and incentivise use of enhanced and improved recovery techniques for raising oil and gas output from existing fields in a bid to augment domestic production of hydrocarbons.
* PHARMACEUTICALS: The government on Wednesday prohibited the manufacture, sale or distribution of 328 fixed dose combination drugs for human use with immediate effect.
* POWER: The government plans to auction power supply contracts with attached coal supplies, ease norms to allow coal usage for short-term power contracts and put in place a payment mechanism to help power projects recover dues in time from state electricity distribution companies to alleviate the sectoral stress to a large extent.
* RAILWAYS: The Union Cabinet has approved electrification of the remaining 13,675 km of unelectrified broad gauge rail track comprising 108 sections of Indian Railways by 2021-22 at a total cost of 121.34 bln rupees.
* RETAIL: Amazon India is considering a plan to load its Prime subscription service with offline benefits that would encourage frequent use of the programme, even as it looks to attract more customers from small cities and towns. Even as Walmart deposited 74.39 bln rupees as withholding tax for its $16 bln investment in Flipkart, the income tax department has asked it to provide details of the amount deducted from payments to each selling shareholder.
- Flipkart is forging exclusive partnerships with key brands such as Blaupunkt and Xiaomi,
expecting sales of large appliances to more than double during the coming Big Billion Day sale and keep rival Amazon India at bay.
* TELECOMMUNICATION: The telecom department is drawing up proposals aimed at reducing disputes with operators that have led to as much as 800 bln rupees getting stuck in litigation, delaying mergers and acquisitions and deterring overseas investors.
- The Department of Telecommunications has excluded Huawei and ZTE from its list of companies
asked to partner it for trials to develop fifth generation use cases for India, indicating that India may well follow the US and Australia in limiting involvement of Chinese telecom equipment makers in the rollout of the next generation technology.
