QBiz: Liquidation for Bhushan Steel, 30 New Smart Cities Announced

QBiz: Business news from across the country.

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(Photo: iStock)

1. Bhushan Power Latest Debt-Laden Firm Referred to NCLT as PNB Gets Tough

Bhushan Power & Steel on Friday became the sixth amongst the 12 largest indebted companies named by the Reserve Bank of India (RBI) to face liquidation proceedings, as the lenders led by Punjab National Bank (PNB) decided to refer it to National Company Law Tribunal (NCLT).

The proceedings will be carried out against the company under the Insolvency and Bankruptcy Code (IBC). Its parent company, Bhushan Steel, was referred to the tribunal for liquidation on Thursday by the lenders led by SBI.

The Delhi-based Bhushan Power & Steel, which owes Rs 37,248 crore to a consortium of lenders led by Punjab National Bank, is the sixth out of the 12 large stressed accounts identified by the RBI earlier this month for referral to the NCLT.

(Source: Livemint)

2. Patna, Srinagar and Bengaluru Among 30 New Smart Cities Announced by Govt

Do you live in Bengaluru, Thiruvananthapuram, Patna, Gandhinagar or Srinagar? If you do, take note, these cities, along with 25 others, will be included in the Modi government's ambitious Smart Cities mission.

These 30 cities were selected under the third round of the flagship mission, taking the total number of prospective smart cities in the country to 90. Minister of Urban Development Venkaiah Naidu released the list during the National Workshop on Urban Transformation conducted on Friday.

The proposed investments for these 30 new smart cities stand at Rs 57,393 crore, Naidu tweeted. Naidu also mentioned that only 10 slots remained under the mission, for which, 20 cities would be competing.

(Source: Business Standard)

3. Infosys Says Investigation Into Whistleblower Letter Finds No Wrongdoing

An independent investigation into allegations of financial and management impropriety at Infosys has found no evidence of any wrongdoing, according to regulatory filings made by the company, a day ahead of the crucial shareholder meeting in Bengaluru on Saturday.

In February, Infosys received two anonymous letters that made a slew of allegations – including that certain M&A deals did not go through the executive council and that there was improper revenue recognition – and also questioned the compensation paid to chief executive officer Vishal Sikka.

( Source: Economic Times)

4. Cab Companies Seek Clarity on State Entry, Exit Taxes in GST Regime

Taxi companies including Ola and Uber are waiting for clarification on whether they need to continue paying entry and exit taxes while ferrying passengers across state borders after the goods and services tax regime starts on July 1.

We still do not have clarity if the state entry/exit tax charged to cabs when crossing borders would go away after implementation of GST.
Nilesh Sangoi, CEO of Meru Cabs

(Source: Economic Times)

5. Canara Bank May Be Next in Line to Take Over Two Small Lenders

The government is looking to create a bigger bank in the next round of consolidation by getting state-run Canara Bank (BSE -3.18 %) to take over smaller lenders Vijaya Bank (BSE -1.45 %) and Dena Bank (BSE -2.20 %).

“Discussions are on between banks. There is a possibility that first Vijaya and Dena merge, before being taken over by Canara Bank,” a senior government official told ET.

(Source: Economic Times)

6. TCS Says It Hired Over 12,500 People in United States in Last 5 Years

Amid regulatory pressure on local hiring in the United States Tata Consultancy Services, India's largest IT services company, said it hired more than 12,500 people in the country in the last five years, and expects to remain at par or exceed prior years' levels for 2017.

The company said, a regulatory filing, it has invested nearly $3 billion in the US over the past three years, in terms of employment, new innovation labs, extensive nationwide STEM (Science, technology, engineering and mathematics) education programmes, and academic partnerships and endowments. TCS (BSE -1.47 %) said it that will engage more than two million US students by 2022.

(Source: Economic Times)

7. GST Countdown: Why Automobile Dealers Are Staring at Losses Running Into Crores

Loss of credit on transition stock that is over a year old, increase in the working capital requirement, impact on trade discounts – automobile dealers across India are dealing with these challenges as they gear up for the July 1 rollout of the Goods and Service Tax regime.

On BloombergQuint’s special series, GST Countdown, John Paul, president of the Federation of Automobile Dealers Association, Vinkesh Gulati, partner at United Automobiles, and Saurabh Kedia, director at Kedia Group, shared their issues and posed questions to Ritesh Kanodia, partner at Dhruva Advisors.

(Source: Bloomberg Quint)

8. SEBI Asks Court to Remove It From Respondents in Anti-Tobacco Petition

The market regulator on Friday asked the Bombay High Court to remove it from the list of respondents in a public interest litigation filed against government-owned insurance companies’ investments in makers of tobacco products.

The Securities and Exchange Board of India filed an affidavit in the court arguing that the petition neither seeks any relief from the regulator, nor does it make any allegations against it. The matter will be heard next six weeks from today.

(Source: Bloomberg Quint)

9. Mukesh Ambani's Reliance Drops Gas Price Challenge Against Govt

Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) and its partner BP Plc have withdrawn an arbitration process initiated against the government on natural gas pricing to facilitate further development of the offshore KG-D6 block in the Krishna-Godavari basin and take advantage of the prevailing low cost of oilfield services in global markets.

The move will help the companies boost hydrocarbon production over the next few years and benefit from the higher price allowed for gas from difficult deep sea fields while aiding the government’s strategic goal of lowering import dependence in hydrocarbons.

Withdrawal of arbitration proceedings is a precondition for RIL-BP being allowed to claim a higher price for the gas produced from their allotted fields, according to the gas-pricing policy announced by the government on 10 March 2016.

(Source: Livemint)

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