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| { | |
| "stories": [ | |
| { | |
| "id": "e7c16060-829b-490c-80aa-500f445ab80c", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Benchmarks surge to all-time highs; telecom, auto stocks rally on reforms push", | |
| "content": "<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">One-liner:</span></span><span class=\"tbnc-teal-bold\"> </span>The Sensex and Nifty vaulted to fresh lifetime peaks on Wednesday, boosted by telecom and auto stocks which saw brisk buying after the govt announced packages for the sectors.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Rupee, FIIs push:</span></span> A rebounding rupee and persistent foreign capital inflows added to the momentum, traders said.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Indices rise:</span></span> Rising for the second day, the 30-share BSE Sensex surged 476.11 points or 0.82% to close at its new all-time high of 58,723.20. It touched an intra-day record of 58,777.06.</p>\n<ul>\n <li class=\"tbnc-default-ul\">Similarly, the broader NSE Nifty climbed 139.45 points or 0.80% to its fresh closing record of 17,519.45. During the session, it touched an all-time peak of 17,532.70</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">NTPC leads gainers:</span></span><span class=\"tbnc-teal-bold\"> </span>NTPC was the top gainer in the Sensex pack, rallying 7.16%, followed by Bharti Airtel at 4.53%. HCL Tech, Titan, SBI, PowerGrid, TCS and IndusInd Bank also notched up gains.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Laggards:</span></span><span class=\"tbnc-teal-bold\"> </span>On the other hand, Axis Bank, Asian Paints, UltraTech Cement, Nestle India, Sun Pharma and HDFC Bank were among the laggards, shedding up to 0.38%.</p><p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Telecom reforms announced:</span></span><span class=\"tbnc-teal-bold\"> </span>In big bang reforms, the Union Cabinet on Wednesday approved a relief package for the telecom sector that includes a four-year moratorium on payment of statutory dues by telecom companies as well as allowing 100% foreign investment through the automatic route.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">PLI for auto sector:</span></span> The Cabinet also approved a ₹26,058Cr production linked incentive (PLI) scheme for the auto, auto-components and drone industry to enhance India's manufacturing capabilities.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Beneficial impact:</span></span><span class=\"tbnc-teal-bold\"> </span>\"The measures announced for the telecom and auto industry are sweeping with potential for far-reaching beneficial impact. A four-year moratorium on dues of the telecom sector which covers AGR, spectrum dues and interest payment will bring big relief to the cash-strapped sector.” - V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services</p>\n<ul>\n <li class=\"tbnc-default-ul\">“This is positive for banks, too, since banks' exposure too will decline significantly.\" – Vijayakumar</li>\n <li class=\"tbnc-default-ul\">The ₹ 26,058Cr PLI scheme for automobiles, auto components and drones is a major initiative to attract advanced auto technology and supply chains into India, he noted</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Timely policy:</span></span><span class=\"tbnc-teal-bold\"> </span>\"This is a timely policy when global supply chains are looking for markets outside China for shifting supply chains. The PLI scheme's goal of investment of ₹42,500Cr in 5 years is ambitious but achievable. In brief, bold reforms.\" - Vijayakumar</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Sectoral performance:</span></span> All BSE sectoral indices closed in the green, led by telecom (3.45%), utilities (2.29%), power (2.01%), teck (1.81%), and consumer durables (1.62%). In the broader markets, the BSE midcap and smallcap gauges advanced up to 0.86%.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Global markets:</span></span> On the global front, markets were weighed by weak China retail sales data amid a resurgence of Delta variant cases in the country.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">US data:</span></span><span class=\"tbnc-teal-bold\"> </span>However, US inflation data showed a slower-than-expected rise in prices, giving room to the Fed to continue with its accommodative stance.</p>\n<ul>\n <li class=\"tbnc-default-ul\">Elsewhere in Asia, bourses in Shanghai, Tokyo and Hong Kong ended with losses, while Seoul closed higher</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Crude rises:</span></span><span class=\"tbnc-teal-bold\"> </span>Meanwhile, international oil benchmark Brent crude spurted 1.05% to $74.37 per barrel.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Rupee closes higher:</span></span><span class=\"tbnc-teal-bold\"> </span>The rupee closed 18 paise higher at 73.50 against the US dollar on Wednesday, tracking sustained foreign fund inflows.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">FII buy:</span></span> Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth ₹1,649.60Cr on Tuesday, as per provisional exchange data.</p>", | |
| "categories": [ | |
| "INDIA BUSINESS", | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Benchmarks surge to all-time highs; telecom, auto stocks rally on reforms push", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-benchmarks-surg-20210915120755.jpg", | |
| "hero-image-caption": "Illustration: Piyush Singh" | |
| }, | |
| { | |
| "id": "2893f485-daef-4145-899e-a9d9ba5c5e05", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Household debt may have declined to 34% in Q1 FY22: SBI report", | |
| "content": "<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">One-liner:</span></span><span class=\"tbnc-teal-bold\"> </span>The household debt as a percentage of gross domestic product (GDP) may have declined to 34% in Q1 of 2021-22, according to an estimate by the SBI’s research report Ecowrap.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Sharp rise:</span></span> The Covid pandemic has resulted in a spike in household debt to the GDP rate. As per the report, it rose sharply to 37.3% in 2020-21 from 32.5% in 2019-20.</p>\n<ul>\n <li class=\"tbnc-default-ul\">“We estimate that household debt as a percentage of GDP has declined to 34% in Q1 FY22 with the commensurate rise in GDP in Q1, though it has increased in absolute terms.” - Research report</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">In numbers:</span></span><span class=\"tbnc-teal-bold\"> </span>In absolute numbers, the household debt has increased to ₹75 lakh crore in Q1 of FY22 from ₹73.59 lakh crore in FY21, it said.</p>\n<ul>\n <li class=\"tbnc-default-ul\">It said the recently released India Debt & Investment Survey (AIDIS) report for 2018 showed an increase in the average amount of debt among rural as well as urban households between 2012 and 2018</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Average debt:</span></span><span class=\"tbnc-teal-bold\"> </span>The average amount of debt increased by 84% and 42%, respectively, for rural and urban households for the six-year period ending 2018, the SBI research report said.</p><p class=\"tbnc-default-block\">· The state-wise trend indicates that the rural households' average debt more than doubled in 18 states for the six-year period ended 2018, while seven states witnessed the same for urban households</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Debt doubles in five states:</span></span><span class=\"tbnc-teal-bold\"> </span>Importantly, five states, including Maharashtra, Rajasthan and Assam, witnessed a simultaneous doubling in average debt across urban and rural households during this period, the report said.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Rural household debt</span></span><span class=\"tbnc-teal-bold\">: </span>As per the AIDIS report 2018, the average amount of debt among rural households stood at ₹59,748 and in urban households, it was ₹1.20 lakh.</p>\n<ul>\n <li class=\"tbnc-default-ul\">“In 2021, the rural household debt is expected to increase to ₹1.16 lakh and urban to ₹2.33 lakh, indicating that Covid impacted the households significantly.” - SBI research report</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Debt-asset ratio up:</span></span> It said the debt-asset ratio, which is an indicator of household indebtedness, has increased to 3.8 in 2018 from 3.2 in 2012 for rural households. For urban households, the ratio has risen from 3.7 to 4.4.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Deterioration in three states:</span></span> Kerala, Madhya Pradesh and Punjab were the three states that witnessed a deterioration of at least 100 bps (basis points) in debt asset ratio over the six-year period ended 2018, the report said.</p>\n<ul>\n <li class=\"tbnc-default-ul\">“The good thing is that in rural India, the share of outstanding cash debt from non-institutional credit agencies has declined significantly to 34% in 2018 from 44% in 2012.” - Report</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Dip in non-institution credit:</span></span><span class=\"tbnc-teal-bold\"> </span>Notably, almost all states have registered a steep decline in non-institutional credit in rural areas, indicating the increase in formalisation of the economy, the report said.</p>\n<ul>\n <li class=\"tbnc-default-ul\">The share of non-institutional credit has declined in the case of Bihar, West Bengal, Rajasthan, Haryana and Gujarat. In Haryana and Rajasthan, which witnessed loan waiver schemes, the share of non-institutional credit declined contrary to popular perception, it said.</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Bottom line:</span></span><span class=\"tbnc-teal-bold\"> </span>“This could be explained by a significant increase in penetration of KCC (Kisan Credit Cards) in these two states. Our estimates show that the number of KCC cards has jumped by 5 times over the 7 year period ended 2020,” the report said.</p>\n<ul>\n <li class=\"tbnc-default-ul\">The report believes that the recent reforms in agriculture could further help in the formalisation of the economy, despite the political cacophony.</li>\n</ul>", | |
| "categories": [ | |
| "INDIA BUSINESS", | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Household debt may have declined to 34% in Q1 FY22: SBI report", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-household-debt--20210915123735.jpg", | |
| "hero-image-caption": "Source: Inhouse illustration" | |
| }, | |
| { | |
| "id": "4ebf1e88-7baf-42ee-9c8b-45602faacf5c", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Air India Sale: Financial bids received for disinvestment; Tatas among bidders", | |
| "content": "<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">One-Liner: </span>The government on Wednesday announced that it has received multiple financial bids for the sale of national carrier Air India. A representative of Tata Sons said that the company has put in a bid for the airline.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Next Step:</span> DIPAM Secretary Tuhin Kanta Pandey said, \"Financial bids for Air India disinvestment received by Transaction Adviser. The process now moves to conclude stage,\"</p>\n<ul>\n <li class=\"tbnc-default-ul\"> Wednesday (September 15) was the last day for putting in financial bids.</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Background: </span>The government is seeking to sell 100 per cent of its stake in the state-owned national airline, including Air India's 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Sale Process: </span>The stake sale process, which begun in January 2020, faced delays due to the COVID-19 pandemic. In April 2021, the government asked potential bidders to put in financial bids.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Tata Interest: </span>Tata Group was among the multiple entities that had put in an initial expression of interest (EoI) in December 2020 for buying the Maharaja.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Debts: </span>The Government, after failing to garner interest in the sale had sweetened the EoL clause relating to the transfer of Air India's debt to the new investor, giving bidders flexibility to decide on the quantum of humongous debt they want to absorb.</p>\n<ul>\n <li class=\"tbnc-default-ul\"> As per the Air India EoI, the airline has a total debt of Rs 60,074 crore and the buyer would be required to absorb Rs 23,286.5 crore. The rest would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose vehicle</li>\n <li class=\"tbnc-default-ul\"> Besides, the bidder would get 100 per cent of the low-cost arm Air India Express and 50 per cent of AISATS, which provides cargo and ground handling services at major Indian airports</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">History: </span>The airline, which was formed by the Tatas as a mail carrier in 1932, will give the successful bidder control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.</p>", | |
| "categories": [ | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Air India Sale: Financial bids received for disinvestment; Tatas among bidders", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-air-india-sale--20210915151616.jpg", | |
| "hero-image-caption": "Source: Inhouse illustration" | |
| }, | |
| { | |
| "id": "f0dac9fd-8719-4387-8d5b-9663aa66d877", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Tatas, SpiceJet CMD put in financial bids for Air India", | |
| "content": "<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">One-liner:</span></span><span class=\"tbnc-teal-bold\"> </span>Tata Sons, the holding company of India's largest conglomerate, and SpiceJet chief Ajay Singh are among those who submitted financial bids on Wednesday to acquire loss-making state airline Air India.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Bids tweeted:</span></span> Tuhin Kanta Pandey, secretary of the dept that is running the privatisation process, tweeted of financial \"bids\" being received but did not say how many companies were in the fray.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Tatas confirm bid:</span></span><span class=\"tbnc-teal-bold\"> </span>A Tata Sons spokesperson confirmed that the group has put in a bid for the national carrier.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Personal capacity:</span></span> SpiceJet CMD Ajay Singh has submitted a financial bid in his personal capacity, sources said.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Multiple bids received:</span></span><span class=\"tbnc-teal-bold\"> </span>Another source said multiple financial bids have been received for the airline.</p>\n<ul>\n <li class=\"tbnc-default-ul\">Specific details about the bids could not be immediately ascertained</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Evaluation process:</span></span><span class=\"tbnc-teal-bold\"> </span>The financial bids will be evaluated against an undisclosed reserve price and the bid offering the highest price above that benchmark would be accepted.</p><ul>\n <li class=\"tbnc-default-ul\">The bid will be initially examined by the transaction advisor before the recommendation is sent to the Cabinet for approval</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Tatas return to AI:</span></span> If Tatas emerge successfully, this will mark the return of Air India to the Tata fold after 67 years.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">AI founded by Tatas:</span></span><span class=\"tbnc-teal-bold\"> </span>The Tata Group founded Air India as Tata Airlines in Oct 1932. The govt nationalised the airline in 1953.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Vistara airline:</span></span> Tatas operate a premier full-service carrier, Vistara, in partnership with Singapore Airlines. It was not immediately known if the group put in the bid on its own or through budget carrier AirAsia India.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Singapore Airlines’ stand:</span></span><span class=\"tbnc-teal-bold\"> </span>Singapore Airlines was said to be not keen on participating in the privatisation programme as it would only add to Vistara's and its own financial troubles.</p>\n<ul>\n <li class=\"tbnc-default-ul\">\"Financial bids for Air India disinvestment received by Transaction Adviser. The process now moves to conclude stage.\" - Tuhin Kanta Pandey, Secretary, Dept of Investment and Public Asset Management tweeted</li>\n <li class=\"tbnc-default-ul\">He neither identified the bidders nor said how many bids have been received</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Looking back:</span></span> In the past, when more than one bid was received, as was the case when the initial expressions of interest (EoIs) came in for Air India, he had tweeted of \"multiple bids\" coming in.</p>\n<ul>\n <li class=\"tbnc-default-ul\">The phrase 'multiple bids' was also used when three firms, including the Vedanta group, put in EoI for Bharat Petroleum Corp Ltd (BPCL)</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">100% stake on the block:</span></span><span class=\"tbnc-teal-bold\"> </span>The govt is seeking to sell 100% of its stake in the state-owned national airline, including Air India's 100% shareholding in AI Express Ltd and 50% in Air India SATS Airport Services Private Ltd.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Delayed by pandemic:</span></span><span class=\"tbnc-teal-bold\"> </span>The stake sale process, which began in Jan 2020, faced delays due to the Covid pandemic. In April 2021, the govt asked potential bidders to put in financial bids.</p>\n<ul>\n <li class=\"tbnc-default-ul\">Sept 15 was the last day for putting in financial bids</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">EoI in 2020:</span></span><span class=\"tbnc-teal-bold\"> </span>Tata Group was among the multiple entities that had put in an initial expression of interest in Dec 2020 for buying the Maharaja.</p>\n<ul>\n <li class=\"tbnc-default-ul\">With previous attempts since 2017 failing to get any significant interest and after receiving feedback from potential investors, the govt had in Oct last year sweetened the EoI clause relating to the transfer of Air India's debt to the new investor, giving bidders flexibility to decide on the quantum of humongous debt they want to absorb.</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">AI financial standing:</span></span> As per the Air India EoI floated by DIPAM in Jan 2020, of the airline's total debt of ₹60,074Cr as of March 31, 2019, the buyer would be required to absorb ₹23,286.5Cr. The rest would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose vehicle.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Losses:</span></span><span class=\"tbnc-teal-bold\"> </span>Air India has been in losses ever since its merger with domestic operator Indian Airlines in 2007</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">On offer:</span></span><span class=\"tbnc-teal-bold\"> </span>The airline will give the successful bidder control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.</p>\n<ul>\n <li class=\"tbnc-default-ul\">Besides, the bidder would get 100% of the low-cost arm Air India Express and 50% of AISATS, which provides cargo and ground handling services at major Indian airports</li>\n</ul>", | |
| "categories": [ | |
| "INDIA BUSINESS", | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Tatas, SpiceJet CMD put in financial bids for Air India", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-tatas-spicejet--20210915151659.jpg", | |
| "hero-image-caption": "Illustration: Shamanth SM" | |
| }, | |
| { | |
| "id": "3810ea51-3f6b-44ef-a8d6-4f3f9440ed75", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Cairn, Air India seeking stay on NY court proceedings, move towards an equitable outcome", | |
| "content": "<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">One-liner:</span></span> Cairn Energy and Air India have jointly asked a New York federal court to stay further proceedings in the British firm's US lawsuit targeting the airline for enforcement of a $1.2bn arbitral award.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Relevance:</span></span> The non-compliance, in this case, is taking a toll on India’s credibility, and a swift resolution is needed.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Policy impacts: </span></span>The move follows the govt enacting a law to scrap retrospective taxation in the country, which in effect will result in the withdrawal of the ₹10,247cr tax demand on Cairn.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Arbitral award: </span></span>The British company had won an international arbitration award against the levy of such taxes and sought to take over Air India assets when the government refused to honour the award and pay it $1.2bn in addition to interest and a penalty.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Recent developments:</span></span> Last month, the govt enacted the Taxation Laws (Amendment) Act, 2021, which scraps all such retrospective tax demands and has agreed to refund ₹7,900cr it had seized from Cairn to enforce such demand.</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Acceptance: </span></span>Cairn has indicated that the refund, without interest and penalty, was acceptable to it, which opened an avenue to settle the seven-year-old dispute.</p><p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Time sought:</span></span><span class=\"tbnc-teal-bold\"> </span>Cairn and Air India jointly requested the US District Judge Paul Gardephe on Sept 13 to stay proceedings would giving them additional time to evaluate the legislation.</p>\n<ul>\n <li class=\"tbnc-default-ul\">They requested the court stay further proceedings through Oct 31, 2021, and reschedule the initial pretrial conference and the deadline for the parties to submit their Joint Pretrial Letter and Proposed Case Management Plan, for new dates in Nov 2021</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">An exchange:</span></span> In return for the ₹7,900cr, Cairn would cease lawsuits threatening court-ordered seizures of Indian govt property abroad.</p>\n<ul>\n <li class=\"tbnc-default-ul\"> One of those suits was filed in May against state-owned Air India Ltd, which Cairn contested was the alter ego of the Indian govt</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Restitution:</span></span><span class=\"tbnc-teal-bold\"> </span>Seeking to repair India's damaged reputation as an investment destination, the government last month enacted new legislation to drop ₹1.1lac cr in outstanding claims against multinationals such as Vodafone, Sanofi, and SABMiller, now owned by AB InBev, and Cairn.</p>\n<ul>\n <li class=\"tbnc-default-ul\"> About ₹8,100cr collected from companies under the scrapped tax provision are to be refunded if the firms agreed to drop outstanding litigation, including the ₹7,900cr is due only to Cairn</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Background:</span></span> An international arbitration tribunal in Dec overturned a levy of ₹10,247cr in taxes on a 2006 reorganisation of Cairn's India business prior to its listing. </p>\n<ul>\n <li class=\"tbnc-default-ul\">The govt initially refused to honour the award, forcing Cairn to identify $70bn of Indian assets from the US to Singapore to enforce the ruling, including taking flag carrier Air India Ltd to a US court in May</li>\n <li class=\"tbnc-default-ul\">A French court in July paved the way for Cairn to seize real estate belonging to the Indian govt in Paris</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\"><span class=\"tbnc-inline-bold\">Charges will be dropped:</span></span><span class=\"tbnc-teal-bold\"> </span>“All these litigations will be dropped once ₹7,900cr is paid.”- Simon Thomson, Cairn CEO</p>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-inline-italic\">Source: PTI</span></p>", | |
| "categories": [ | |
| "INDIA BUSINESS", | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Cairn, Air India seeking stay on NY court proceedings, move towards an equitable outcome", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-cairn-air-india-20210915152904.jpg", | |
| "hero-image-caption": "Source: Inhouse illustration " | |
| }, | |
| { | |
| "id": "56625ee8-3629-4091-aeb8-068ba054a035", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Movers and shaker", | |
| "content": "<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Stellar Value Chain hires 5,000 employees</span></p>\n<ul>\n <li class=\"tbnc-default-ul\">Tech-enabled consumer supply chain platform Stellar Value Chain Solutions on Wednesday said it has hired 5,000 employees in various roles to meet the increased demand during the festive season. The increased workforce will help in catering to the growing demand in e-commerce and other segments, Stellar Value Chain said in a release</li>\n <li class=\"tbnc-default-ul\">The company has also launched a 12-million sq ft Grade-A warehouse infrastructure, which is fully compliant with Built-to-Suit (BTS) norms. The warehouse is equipped with a cloud-based Warehouse Management System to manage the increased volume of cargo efficiently in the festive season, the release said</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">DealShare to invest $100mn for scaling ops</span></p>\n<ul>\n <li class=\"tbnc-default-ul\">DealShare on Wednesday said it plans to invest $100mn (about ₹736.3Cr) to scale its operations and hire about 5,000 people across various functions over the next six months, as the social commerce firm looks to rapidly scale its operations. The company, which had recently raised $144mn from Tiger Global, WestBridge Capital, Alpha Wave Incubation and others, also announced its formal launch in Delhi-NCR</li>\n <li class=\"tbnc-default-ul\">\"We plan to invest $100mn over the next six months - majorly in rapidly scaling operational capabilities, social virality and gamification led demand generation, AI-driven product and technology capabilities, strengthening sourcing network and aggressive hiring across various functions to scale rapidly,\" DealShare founder and CEO Vineet Rao said</li>\n</ul>", | |
| "categories": [ | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Movers and shaker", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-movers-and-shak-20210915164636.jpg", | |
| "hero-image-caption": "Source: Inhouse illustration" | |
| }, | |
| { | |
| "id": "b5ee1d1c-6ce3-42fa-bd2e-236c87d1bcc7", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Fundraising", | |
| "content": "<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Anar raises $6.2mn funding</span></p>\n<ul>\n <li class=\"tbnc-default-ul\">Anar, a B2B business networking platform, on Wednesday said it has raised $6.2mn (about ₹45.6Cr) in a funding round co-led by Elevation Capital and Accel India. This seed round also saw participation from First Cheque and Utsav Somani (iSeed and Partner, AngelList India), Ranjeet Pratap Singh (Pratilipi co-founder and CEO), Farid Ahsan (ShareChat co-founder), Vidit Aatrey and Sanjeev Barnwal (Meesho co-founders) and Shashvat Nakrani (BharatPe co-founder), a statement said</li>\n <li class=\"tbnc-default-ul\">The company will use the funds raised to strengthen the product and the technology capabilities, it added. Launched in Feb 2020, by Nishank Jain and Sanjay Bhat, the Anar business app caters primarily to SMBs across the value chain - from manufacturers to retailers and resellers - helping them connect and interact with one another</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">Vahan raises $8mn in funding</span></p>\n<ul>\n <li class=\"tbnc-default-ul\">Blue-collar jobs platform Vahan on Wednesday said it has raised $8mn (around ₹59Cr) in a funding round led by existing investor Khosla Ventures. The Series A round also saw participation from Airtel, Paytm CEO Vijay Shekhar Sharma, Verizon Media Group CEO Guru Gowrappan (Group CEO, Verizon Media, former Harvard Management Company CFO Kevin Shannon, the startup said</li>\n <li class=\"tbnc-default-ul\">\"These funds will allow Vahan to further scale its recruitment business and build new product offerings for its fast-growing customer base which comprises leading gig-economy companies and blue-collar workers,\" Vahan said in the statement. The freshly infused funds will be utilised to grow the team</li>\n</ul>\n<p class=\"tbnc-default-block\"><span class=\"tbnc-teal-bold\">MPL raises fresh funds at $2.3bn valuation</span></p>\n<ul>\n <li class=\"tbnc-default-ul\">Esports platform Mobile Premier League (MPL) on Wednesday said it has raised fresh funds in a funding round led by Legatum Capital at a pre-money valuation of $2.3bn. While MPL did not disclose the quantum of funds raised, sources said the company has raised about $150mn (about ₹1,104.5Cr) in the series E round</li>\n <li class=\"tbnc-default-ul\">The latest fundraising was led by Legatum Capital. Existing investors including Sequoia, SIG, RTP Global, Go-Ventures, Moore Strategic Ventures, Play Ventures, Base Partners, Telstra Ventures, and Founders Circle Capital also participated in the round, MPL said in a statement</li>\n</ul>", | |
| "categories": [ | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Fundraising", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-fundraising-20210915164746.jpg", | |
| "hero-image-caption": "Source: Inhouse illustration" | |
| }, | |
| { | |
| "id": "4ca79f19-342f-4925-a3e6-c06c5b56643f", | |
| "pub-date": "2021-09-16T00:00:00", | |
| "headline": "Quoted: Benchmarks surge to all-time highs; telecom, auto stocks rally on reforms push", | |
| "content": "<p class=\"tbnc-default-block\"> </p>", | |
| "categories": [ | |
| "INDIA BUSINESS" | |
| ], | |
| "tags": [], | |
| "summary": null, | |
| "slug": "Quoted: Benchmarks surge to all-time highs; telecom, auto stocks rally on reforms push", | |
| "seo": [], | |
| "authors": [], | |
| "hero-image-url": "https://boringnews.co/title-images/2021-09-16-quoted-benchmar-20210915165441.jpg", | |
| "hero-image-caption": "" | |
| } | |
| ] | |
| } |
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