1. Current Account Deficit Widens to 4-Year High as Gold Imports Revive
India’s current account deficit (CAD) soared to a four-year high of $14.3 billion, or 2.4% of gross domestic product (GDP), in the June quarter as gold imports picked up ahead of implementation of the goods and services tax (GST) starting 1 July.
In the March quarter of 2016-17, CAD was 0.6% of GDP at $3.4 billion, according to Reserve Bank of India data.
Separately, data released by the commerce ministry showed that higher oil prices boosted both merchandise exports as well as imports, which grew in double digits, at 10.3% and 21.02% respectively, in August.
Source: Livemint
2. Govt Considering Its Own Cryptocurrency
The Central government is considering a proposal to introduce its cryptocurrency similar to Bitcoin.
Sources close to the development said that the proposal was discussed by a committee of government officials, and the panel found the idea of setting up and running blockchain for financial services useful.
Whenever the decision is taken, the cryptocurrency will fall in the domain of the Reserve Bank of India (RBI) and some Acts such as the Currency Act might have to be amended. Hence, this will be a time-consuming process.
Source: Business Standard
3. VSNL's 773 Acres to Land in Hemisphere, Government Mulls 26% Stake Sale in Tata Communications
The government and Tata CommunicationsBSE 0.31 % are close to settling a 15-year old real estate dispute through a deal that will see around 773 acres of land worth Rs 10,000-15,000 crore hived off into a separate company and sold.
The government may also, over time, sell its 26% stake in Tata Communications, earlier known as Videsh Sanchar Nigam Ltd (VSNL), after the deal. The move is set to give the Internet and fibreproviding arm of the Tata Group more flexibility in its operations, especially by being able to raise equity — which it hasn’t been able to due to the government holding — and improve its debt-equity ratio.
Two senior telecom department officials said that talks are in their final stages. Once completed, the scheme of arrangement will be filed with the National Company Law Tribunal (NCLT) and then sent for approval to cabinet.
Source: Economic Times
4. Worried Finance Ministry Seeks Details of 40 Accounts Tagged for Insolvency
The finance ministry has urgently sought details of around 40 accounts that have been identified by the Reserve Bank of India for insolvency proceedings from state-run lenders. The ministry wants to ascertain the impact on provisioning and capital needs of already struggling state-run banks.
The lenders will need to file bankruptcy cases in respect of these accounts if they are unable to find any other way to revive the creditors by end December. According to industry estimates, these may add up to loans worth Rs 1 lakh crore.
Source: Economic Times
5. Tata Sons' Plan to Go Private Seen as a Blow to Mistry
Tata Sons Ltd’s proposal to convert itself into a private limited company from a public limited one will effectively restrict the Mistry family’s ability to sell its stake in the Tata group holding company to external entities.
It also has the potential to escalate a feud between the 149-year-old group and its largest minority shareholder which was triggered by the October 2016 ouster of Cyrus Mistry as Tata Sons chairman.
In a letter to the board of Tata Sons, Cyrus Investments Pvt. Ltd, an investment firm of the Mistry family, has objected to the proposal, calling it “yet another weapon” to oppress minority shareholders.
Source: Livemint
6. Government Lifts Ban on Export of Certain Varieties of Pulses
The government on Friday said it has lifted ban on export of tur, urad and moong dal to help farmers get “remunerative prices”.
However, exports of these varieties of pulses can be undertaken after taking permission from agri export promotion body Agricultural and Processed Food Products Export Development Authority (APEDA).
At present, only organic pulses and kabuli chana are allowed to be shipped in a limited quantity. In a late evening notification, the Directorate General of Foreign Trade (DGFT) said it has “removed prohibition on export of tur, urad and moong dal till further orders. The ban on these varieties has been lifted with immediate effect”.
Source: Bloomberg Quint
7. GST Transitional Claims of Over Rs 1 Crore to Be Scrutinised
As much as Rs 65,000 crore out of the nearly Rs 95,000 crore tax collections in July — the first month of GST — have been claimed as transitional credit by taxpayers, prompting the apex indirect taxes body the Central Board of Excise and Customs to order a scrutiny of all cases above Rs 1 crore.
The Goods and Services Tax (GST) regime, which kicked in from July 1, allows tax credit on stock purchased during the previous tax regime. This facility is available only up to six months from the date of GST rollout.
Source: Economic Times
8. Govt to Tap Markets to Fund Smart City, Affordable Homes
The government is planning to mobilise cash from the markets to fund the smart city and housing for all projects. The money generated would be directly poured into the central government’s mega-urban schemes, Housing and Urban Affairs Minister Hardeep Singh Puri said.
The government has cleared around Rs 48,000 crore for the smart city initiative and Rs 50,000 crore for the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). It has also allocated Rs 14,650 crore for the Swachh Bharat Mission (Urban) by 2019-2020. In all, it plans to spend around Rs 3 lakh crore on various urban projects.
Source: Business Standard
9. Locks to Space: Godrej to Join Isro's Private Rocket Mission
Godrej & Boyce confirmed on Friday it would join an industry consortium being formed by the Indian Space Research Organisation (Isro) to build workhorse rocket Polar Satellite Launch Vehicles (PSLVs) to send local and global satellites into space.
The space agency has set 2020 as the deadline for the first privately built rocket to be launched into space.
“It is at a nascent stage right now. The discussions are going on how to form a consortium and who will do what,” said Jamshyd N Godrej, chairman, Godrej & Boyce, on Friday.
Source: Business Standard
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