QBiz: No Govt Nod Needed For 49% FPI, Fresh Testing of Maggi 

Read the top business stories of the day.

Updated31 Jul 2015, 02:14 AM IST
4 min read

1. No Govt Nod Needed for 49% FPI in Most Sectors

The government on Thursday allowed up to 49% foreign portfolio investment (FPI) through the automatic route in most sectors, including brownfield pharmaceuticals, single-brand retail, insurance, pension and facsimile editions of foreign newspapers.

This is part of the new foreign investment policy, which allows composite foreign investment caps in all sectors barring private banking and defence.

Read more here.

2. States Seek More Leeway in Using Central Funds

If the recommendations of the subgroup of chief ministers under the NITI Aayog headed by Madhya Pradesh Chief Minister Shivraj Singh Chouhan are accepted, states will have the flexibility to use 25% of the allocations for centrally sponsored schemes (CSS) according to their priorities, compared with 10% at present.

The panel is understood to have submitted its final report to the NITI Aayog on Thursday. Currently, state governments can use 10% of the allocations in a manner they feel is best suited for a particular scheme and have been asking for more freedom to spend the funds – such that they better address local needs. Among the major ones are the National Health Mission, Pradhan Mantri Gram Sadak Yojana and Rashtriya Krishi Vikas Yojana.

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3. CAG Spots Rs 9,034-Crore Financial Lapses by Various PSUs

The CAG has pulled up public sector enterprises, including ONGC and the National Textiles Corporation, for non-compliance of procedures and not safeguarding financial interest, besides other lapses, which led to total financial implications of Rs 9,034 crore.

The CAG, in a report on compliance audit observations in PSUs for 2013-14 tabled in the Rajya Sabha said non-compliance with rules, directives, procedure and terms and conditions of contracts resulted in financial implications amounting to Rs 4,931.56 crore.

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4. Moody’s Cautions Against Curbing RBI Autonomy on Policy Rates

(Photo: iStock)
(Photo: iStock)

Moody’s has cautioned against tampering with the independence of the Reserve Bank of India (RBI) in deciding on interest rates, saying it would hurt India’s economic prospects.

Moody’s Analytics, an economic research unit of Moody’s Corp, also raised a red flag over the Parliament logjam and said it is denting business confidence as key reform bills like land and GST are stuck.

Read more here.

5. GM to Invest Rs 6,400 Cr to Extend Talegaon Plant in Maharashtra

The world’s third-largest automobile maker General Motors on Thursday signed a letter of offer with the Maharashtra government to invest Rs 6,400 crore at its existing Talegaon facility in Pune for further expansion, to export its various models.

The letter of offer was submitted by GM chief executive Mary Barra to state Chief Minister Devendra Fadnavis, who was accompanied by the state industries minister Subhash Desai.

Read more here.

6. Pricing Strategy Works For Us, Says SpiceJet

A day after SpiceJet reported profit for the second straight quarter, its chief operating officer Sanjiv Kapoor said “pricing stimulation” as well as dual fleet strategies are working for the airline.

His comments come against the backdrop of concerns over the airline’s frequent discounted ticket sales and whether such an approach would be financially viable in the long run.

Read more here.

7. Nestle Agrees to High Court’s Proposal of Fresh Testing of Maggi

Nestle India, the manufacturer of Maggi instant noodles, has agreed for an independent lab testing of the product. (Photo: Reuters)
Nestle India, the manufacturer of Maggi instant noodles, has agreed for an independent lab testing of the product. (Photo: Reuters)

Nestle India, the manufacturer of Maggi instant noodles has told the Bombay High Court that it was ready for an independent lab testing of the product provided the tests were carried out in the presence of a reputed scientist.

The division bench of Justices V M Kanade and B P Colabawala, while hearing Nestle’s petition against the June 5 order of Food Safety Standards Authority of India (FSSAI) banning nine variants of Maggi asked whether the company was ready for fresh independent tests.

Read more here.

8. Not Seeking Refinancing Under RBI’s 5/25 Scheme: Hindalco

Aluminium maker Hindalco has said that it is not going for refinancing under a Reserve Bank scheme even as market speculation was rife that it is looking to refinance loans up to Rs 8,000 crore.

The firm, however, did not clarify on reports that it is talking to banks and financial institutions to refinance loans of up to Rs 7,000-8,000 crore.

Read more here.

9. Shapoorji Pallonji Bags FDI Deal in Affordable Housing From StanChart, IFC and ADB

Shapoorji Pallonji Group has attracted one of the largest foreign direct investments in India’s affordable housing segment, with Standard Chartered Private Equity, World Bank member IFC and the Asian Development Bank committing $200 million or about Rs 1,280 crore in a joint venture with the Mumbai-based conglomerate.

Read more here.

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Published: 31 Jul 2015, 12:57 AM IST
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