QBiz: Reliance Jio 4G Launch; GST to Go for Presidential Assent
The Quint brings to you the top business news from dailies across India.
1. Reliance Jio Launch
Mukesh Ambani’s game-changing Jio will force the country’s top operators to rethink their tariffs. Ambani’s offer is going to spike the demand for RJio connections. Jio users can optimise their data rates to cost as low as Rs 50/GB, but here’s what the tariff will cost you:
Starting from the base plan of Rs 149 valid for 28 days , a consumer will get:
- 1) 300 MB 4G data
- 2) Free unlimited local/STD voice calls,
- 3) Free Jio app subscription worth Rs 1,250
- 4) Free 100 local/STD SMS.
So, if consumers tend to buy this plan, they will end up paying Rs 508 for 1 GB 4G data. That’s a bit steep, isn’t it?
2. Reliance Jio Launch Erodes Bharti Airtel, Idea Market Value
Bharti Airtel Ltd, Idea Cellular Ltd and Reliance Communications Ltd lost a combined Rs 13,165.55 crore in market value on Thursday after Reliance Industries Ltd (RIL) Chairman Mukesh Ambani announced aggressively low prices for RIL’s Jio mobile phone services.
Bharti Airtel lost Rs 8,454.49 crore in market value on Thursday, Idea Cellular lost Rs 3,528.79 crore and Reliance Communications lost Rs 1,182.27 crore as Ambani made the announcement at RIL’s 42nd Annual General Meeting.
Ambani said Reliance Jio Infocomm Ltd (R-Jio) will sell its 4G Internet data for as low as Rs 50 per gigabyte (GB), prompting analysts to predict a price war.
3. Banking Sector Likely To Be Hit By Trade Union Strike On Friday: Labour Minister
Despite a recent hike in wages of unskilled labourers and a slew of other labour reforms by the government, the trade unions have called for a nationwide strike on 2 September.
The strike is likely to impact the banking and insurance sector more than others, Bandaru Dattatreya, Union Labour and Employment Minister said in a press conference.
We had a discussion with them, we want harmonious atmosphere in the country and we have taken more pro-worker initiatives. Then it is up to the trade unions to think about their proposed decision to continue or take back. This is up to their wisdom.Bandaru Dattatreya, Union Minister of Labour and Employment
4. As Indian Economy Soars, Business Class Flight Bookings See a Sharp Rise
More wealthy Indians are buying business class seats on international flights, primarily as corporates expand their business interests globally and spend on premium air travel for their senior management.
A year-on-year comparison done for every month since January by some travel firms for ET revealed bookings in the segment jumped by up to 75 percent.
The growth in popularity in the front end of the cabin is testimony to India’s economic growth – the fastest among major economies – and increased corporate activity that has directly led to a spurt in corporate travel.
5. RBI Allows Banks to Sell Stressed Assets to NBFCs, Other Lenders
Banks can now sell their stressed assets to other lenders, non-banking financial companies and financial institutions in addition to distressed-asset buyers, a move the banking regulator said will speed up the resolution of bank bad loans.
The Reserve Bank of India (RBI), in guidelines issued on Thursday, asked local banks to frame clear policies for stressed-asset sales so that they quickly clean up their balance sheets that collectively hold Rs 6.3 trillion in non-performing assets (NPAs).
RBI also asked the top management of banks to review and identify assets for sale at the beginning of the year.
6. 50% States Ratify GST Bill, GST Council Next On The Agenda: Arjun Ram Meghwal
The Modi government moved closer to implementing the ‘one nation, one tax’ Goods and Services Tax (GST) on Thursday with the Odisha assembly ratifying the GST Constitutional Amendment. This makes it the 16th state in the union to ratify the GST Constitutional Amendment.
Minister of State for Finance, Arjun Ram Meghwal said in an interview with BloombergQuint that the next step is the formation of the GST Council. He said, “Now the GST Council will be enabled after consultations with the state Finance Ministers.”
Elaborating on the priorities for the GST Council, Meghwal said, “The council will decide on the standard rate of GST in the country. Area-based exemptions will also be decided by the council.”
7. China’s Dalian Wanda Group Eyes Controlling Stake in PVR Cinemas
A blockbuster buyout is in the works in India’s premier movie theatre company.
Almost nine months after exploring an alliance, Asia’s largest film group and theatre operator, Wanda Cinema, owned by China’s richest man Wang Jianlin has revived talks with Ajay Bijli, the promoter of PVR Ltd, to buy a controlling stake in India’s largest multiplex operator, said at least four sources aware.
Dalian Wanda Group has started diligence on PVR’s books as a prelude to make a formal offer to acquire the company.
Bijli’s, who control 25.26 percent of their flagship, may cash out entirely or may retain a small stake as a junior partner.
8. Piramal Fund to Invest Rs 2,320 Crore in Lodha’s World Towers Mumbai
Piramal Fund Management Pvt. Ltd will invest Rs 2,320 crore in Lodha Developers Pvt. Ltd’s signature World Towers project in central Mumbai, in what is probably the single largest debt financing deal in Indian real estate.
A part of this money will be used to repay debt and the remaining will be used to complete construction of the project.
Some of the money will be used to offer an exit to HDFC Property Fund, which acquired a 10 percent equity stake and invested Rs 500 crore in the project’s World One residential tower in 2010.
The partnership between Lodha and Piramal marks the coming together of the country’s largest developer in terms of sales and one of the most aggressive investors in the real estate sector.
9. SEBI Introduces New Rules to Mitigate Commodity Market Risks
To strengthen and upgrade the risk management process in commodity derivative exchanges, SEBI on Thursday introduced some new risk-mitigating concepts in the commodity market.
These measures include higher margins in less-traded commodities contracts and higher margins for traders having large positions who are also potential risks to the market.
It also introduced some new tools which are aimed at neutralising the impact of brokers’ positions who may default in case of adverse market conditions.
These new rules have been imposed by SEBI after the commodities market faced problem with castor seed contracts early this year when huge positions were built that led to default by some brokers, industry sources said.
Source: Times of India
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.