QBiz: Govt to Drop FRDI Bill; EU Slaps $5 Billion Fine on Google
Here are the top business stories of the day.
1. Govt Decides to Withdraw Contentious FRDI Bill
The National Democratic Alliance (NDA) government has decided to withdraw the contentious Financial Resolution and Deposit Insurance Bill 2017, or FRDI Bill, and is awaiting the cabinet’s nod to move Parliament for this as the government looks to avoid controversial legislation ahead of the 2019 general election.
A decision has been taken internally to withdraw the bill, but the Cabinet needs to clear the proposal, said a finance ministry official on condition of anonymity.
A cabinet meeting on Wednesday, 18 July, chaired by Prime Minister Narendra Modi did not take up the proposal.
(Source: Livemint)
2. Amazon.Com's Stock Market Value Hits $900 Billion, Threatens Apple
Amazon.com's stock market value reached $900 billion on Wednesday for the first time, marking a major milestone in its 21-year trajectory as a publicly listed company and threatening to dislodge Apple as Wall Street's most valuable jewel.
After Jeff Bezos founded the online book-selling company in his garage in 1994, Amazon survived the dot-com crisis and then expanded across the retail industry, altering how consumers buy products and setting off a Darwinian struggle among brick-and-mortar stores.
After announcing on Wednesday, 18 July that it sold more than $100 million products during its annual Prime Day sale, the Seattle, Washington company's stock briefly touched $1,858.88, giving Amazon a stock market value of $902 billion. It later reversed, trading down 0.16 percent for the session.
(Source: Business Standard)
3. DoT Looking Into Voda-Idea's Plea on Dues Re-Computation: Telecom Secy
Vodafone and Idea Cellular have cited "some difference of opinion" on the way dues have been computed by the Telecom Department, which is "looking into" the issue, Telecom Secretary Aruna Sundararajan said on Wednesday, 18 July.
"They (the companies) have come back to us saying there is some difference of opinion in the calculation of dues. So DoT is looking into it and we have not taken a view yet," Sundararajan said on the sidelines of a broadband event organised by CUTS International.
The Department's calculation pertains to bank guarantees and cash payment sought from Idea Cellular and Vodafone India. The two companies have made a request for re-calculation.
(Source: Business Standard)
4. Railways Commissioned 30% Fewer Tracks in FY18, the Lowest in First 4 Years of Modi Govt
Indian Railways commissioned 30 percent fewer tracks in the last financial year, the lowest in the first four years of Prime Minister Narendra Modi’s administration.
The state-run railway company commissioned 1,861km of tracks during 2017-18, a decline from 2,855 km in the previous year, according to railways data submitted in the Lok Sabha on Wednesday. The railways commissioned 2,828 km of tracks in 2015-16.
Last year’s performance widely trailed the railways’ target of commissioning 3,500 km of tracks.
(Source: Livemint)
5. EU Slaps Record $5 Billion Fine on Google Over Android Antitrust Case
Google was fined 4.3 billion euros ($5 billion) by the European Union and ordered to change the way it puts search and web browser apps on Android mobile devices, setting a global record for antitrust penalties.
The penalty – the same amount the Netherlands contributes to the EU budget every year – is far higher than any other dished out by the US, Chinese or other antitrust authorities. More significantly, Google was given 90 days to stop what the EU said were "illegal practices" on contracts with handset manufacturers that push Google services in front of users.
(Source: Business Standard)
6. Multiplexes Directed Not to Sell Eatables Above MRP
Multiplexes and cinema theatres here have been directed by the Legal Metrology Department not to sell packaged goods at more than maximum retail price and warned of penal action in case of violations.
As per Legal Metrology Department Packaged Commodities selling goods at more than MRP was illegal, an official release said today. On receiving several complaints from people, the Controller for Legal Metrology Department Akun Sabharwal held a meeting with owners and representatives of multiplexes and cinema theatres yesterday and ordered them to sell eatables and water as per the MRP.
(Source: Financial Express)
7. Merger of Associate Banks With SBI to Enhance Profitability, Says Minister
The government on Wednesday, 18 July said the merger of five associate banks with the SBI would help in enhancing profitability and loan giving capability of the country’s largest lender. While replying to debate on a bill related to the merger process, Minister of State for Finance Shiv Pratap Shukla told the Rajya Sabha that not a single employee has been retrenched after the merger. The Rajya Sabha passed the bill to repeal the SBI (Subsidiary Banks) Act 1959, State Bank of Hyderabad Act 1956 and to further amend the State Bank of India Act 1955. The Lok Sabha had passed the bill in August last year.
Five associates and Bharatiya Mahila Bank were merged with the SBI on 1 April, 2017. The five associates were State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT).
(Source: Financial Express)
8. Govt Hikes Sugarcane Price by Rs 20/Quintal to Rs 275
The government, on Wednesday, 18 July, hiked fair and remunerative price for sugarcane by Rs 20/ quintal to Rs 275 per quintal for the forthcoming season beginning October.
A decision in this regard was taken during the meeting of the Cabinet Committee on Economic Affairs (CCEA).
Farmers will receive 77 percent over and above the average cost of production which is estimated to be Rs 155 per quintal, said Minister for Law and Justice Ravi Shankar Prasad, who briefed the media after the CCEA meeting.
However, both major stakeholders – the sugar industry and farmers – seem to be unhappy with the quantum of hike. While the sugar industry argued the hike was too much, farmers claimed it was too meagre.
(Source: Business Line)
9. PepsiCo Cuts Sodium Content in Lay’s, Shrinks Pack Sizes of 2 Salty Snacks
PepsiCo India has cut the sodium content in its Lay’s snacks by 13-15 percent, a company official said, in line with its global goal to make its products healthier.
Simultaneously, the India arm of the Purchase, New York-based company is shrinking the pack sizes of Lay’s – a Rs 2,000 crore-plus brand — and Kurkure products without reducing the quantity offered in them.
This follows mounting concerns over plastic pollution that’s prompted states, including Maharashtra, to either ban such packaging or ask companies to pay some or the entire cost of managing these materials.
(Source: The Economic Times)
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