1. Narendra Modi Likely to Announce Big-Bang Economic Package on 25 September
Prime Minister Narendra Modi is likely to announce some big-ticket measures on 25 September – also the birth centenary of Sangh Parivar icon Deendayal Upadhyaya – to stimulate the economy, which saw growth plunging to a three-year low of 5.7 percent in the first quarter of 2017-18.
Modi might announce a package for power, housing and social welfare programmes to generate jobs and perk up demand. The package is being pegged at Rs 40,000-50,000 crore.
The government has been working towards achieving 24x7 power for all by 2019.
The PM is set to present before the nation a report card of initiatives taken for the welfare of the poor.
(Source: Business Standard)
2. Markets See Worst Plunge in 10 Months
The stock markets suffered their worst setback in 10 months on concern that the government’s stimulus plan for the economy could disturb the fiscal math, and hurt the rupee and interest rates.
Market players said the sell-off was triggered by pessimism that the government may not be able to balance growth with macro-stability.
Meanwhile, the strengthening of the dollar on the US Federal Reserve’s plan to trim its balance sheet, North Korea’s new hydrogen bomb threat and S&P’s downgrade of China also hurt investor sentiment towards emerging markets (EMs).
On the BSE, the benchmark Sensex ended at 31,922.44, down 447.6 points, or 1.4 percent. The Nifty 50 index on the National Stock Exchange lost 157.5 points, or 1.6 percent, to 9,964.4. Both posted their worst single-day fall since 21 November 2016.
(Source: Business Standard)
3. London to Bid Farewell to Uber After Licence Stripped
London stripped Uber on 22 September of its licence to operate from the end of next week in a huge blow to the taxi service and 3.5 million users in one of the world's wealthiest cities.
The capital's transport authority said the Silicon Valley technology giant was not fit and proper to hold a private vehicle hire licence and it would not be renewed when it expires on 30 September.
Uber, whose 40,000 drivers in London account for a third of private vehicles hired, said it would contest the decision and regulator Transport for London (TfL) will let it operate until the appeals process is exhausted.
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4. TRAI Files Caveats Against Possible Telco Challenge
India’s telecom regulator has filed caveats in 18 high courts asking them not to take any decision without hearing the authority if carriers take the legal route to stall the implementation of a cut in the interconnect usage charge (IUC), three people familiar with the matter said.
The country’s top phone companies said the move by the Telecom Regulatory Authority of India (TRAI) won’t alter their plans to challenge the regulator’s decision to slash IUC to 6 paise a minute starting 1 October from 14 paise now, and scrap it altogether from 1 January 2020.
IUC is paid by a mobile operator originating a call to the network where it terminates. The Trai decision had been announced on 19 September.
(Source: The Economic Times)
5. Clear Exporters’ Pending Claims, GST Panel Tells Government
A panel set up by the GST (goods and services tax) Council, the federal indirect tax body, has urged Union and state tax administrations to clear pending tax refund claims of exporters from the pre-GST period, even as ways of processing newer claims are being figured out, according to an official statement.
“The authorities of state governments as well as the central government have been requested to clear the pending refund claims of central excise and value added tax for the pre-GST period, so that exporters will get immediate relief,” said the statement.
The suggestion from the panel led by revenue secretary Hasmukh Adhia is in response to exporters’ concerns about their capital getting stuck on account of technical glitches in the IT system backing GST.
(Source: Livemint)
6. Govt to Unveil Bank Consolidation Plan Soon: Arun Jaitley
Finance Minister Arun Jaitley said on 22 September that the government is working on a strategy for the consolidation of the banking industry to create bigger and stronger banks.
“The consolidation of banks will have to move parallel to the objective of strengthening the banks,” Jaitley said at an event organised by Bloomberg. “We are in advanced stages of coming out with a strategy for consolidation. The objective of consolidation is to create a bigger and stronger bank. I would prefer a strong bank merging with a strong bank than a weak bank merging with a weak bank.”
(Source: Livemint)
7. Reliance Jio to Deliver 6 Million JioPhones in 15 Days Starting Sunday
The delivery of about 6 million JioPhones will start on 24 September, and be completed within 15 days, as per a channel partner of Reliance Jio Infocomm Ltd.
Deliveries of the low-cost 4G handsets will begin from rural areas and small towns before urban centres, the partner, who did not wish to be named, told PTI.
“The chairman (Mukesh Ambani) had said that the JioPhone will bridge digital divide between rural and urban India. Therefore, delivery of JioPhone will start this Sunday in rural areas and small towns,” the channel partner said.
Queries sent to Reliance Jio did not elicit any response.
(Source: PTI)
8. RBI Eases Foreign Investment Regulations For Corporate Debt
The Reserve Bank of India (RBI) on 22 September changed the rules pertaining to the calculation of the foreign investment limit in so-called masala bonds, potentially opening up space for Indian companies to sell more such securities.
Starting 3 October, masala bonds, or rupee-denominated bonds sold overseas, will not be part of the investment limit for foreign portfolio investors (FPIs) in corporate bonds and will instead be included under external commercial borrowings (ECB), the RBI notification stated.
This decision has been taken in consultation with the government, the central bank added.
(Source: Livemint)
9. SBI Life Insurance’s Rs 8,400 Crore IPO Subscribed 3.58 Times on Final Day
The mega initial share sale by SBI Life Insurance got subscribed 3.57 times on the final day of the bidding process on 22 September.
The Rs 8,400 crore public offer, which is India’s biggest in seven years, received bids for 31,54,78,569 shares against 8,82,00,000 shares offered by the life insurer.
At upper end of the price band, IPO attracted subscription of close to Rs 25,000 crore.
(Source: The Economic Times)
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