1. More Than Half of India's Working-Age Population Out of Labour Force: NSSO
Half of India’s working-age population (15 years and above), for the first time, is not contributing to any economic activity, according to the National Sample Survey Office’s (NSSO’s) latest jobs survey. The labour force participation rate (LFPR) – the share of the population that is either working or available for work – stood at 49.8 percent in 2017-18, falling sharply from 55.9 percent in 2011-12.
More than a decade ago, in 2004-05, 63.7 percent of the population was part of the labour force.
(Source: Business Standard)
2. Difficult for Govt to Maintain 3.4% Fiscal Deficit in FY20: Moody's
The government will find it difficult to meet the fiscal deficit target of 3.4 percent in 2019-20 on account of higher spending and low revenue growth, Moody's Investors Service said.
Observing that Indian government's debt is "stubbornly high" as a percentage of GDP, Moody's Investors Service Managing Director, Sovereign Risk Group, Gene Fang said it could be brought down only if the Centre sticks to the fiscal consolidation path.
Deviating from the path laid down in the Fiscal Responsibility and Budget Management (FRBM) Act, the government has pegged the fiscal deficit for the next financial year at 3.4 percent of GDP, as against the original target of 3.1 percent.
(Source: Business Standard)
3. ONGC Videsh Limited to Stay the Course in Crisis-Hit Venezuela
India’s ONGC Videsh Ltd (OVL), the overseas arm of state-owned Oil & Natural Gas Corp, will stay the course in Venezuela even as it awaits dividends overdue from the San Cristobal oil exploration project there, said a person aware of the Indian government’s strategy.
This comes against the backdrop of the US administration imposing sanctions on state-owned oil company Petróleos de Venezuela SA (PDVSA) as there is growing pressure on President Nicolas Maduro of Venezuela to cede control to National Assembly leader Juan Guaido. The government has been criticised for using PDVSA as a political tool.
The Mint reported on 23 April 2015 about unpaid dividends due from the San Cristobal oil exploration project to OVL crossing more than half-a-billion dollars.
(Source: LiveMint)
4. Essel Group Gets Time From Lenders Till September to Clean its Books
Essel Group said on Sunday that it has sealed a formal agreement with its lenders to keep it afloat, under which it gets time till September to deleverage or pare its debt.
The agreement is with those lenders who have taken pledged shares of the group flagship and listed entities, Zee Entertainment Enterprises and Dish TV India.
On 27 January, the group had confirmed that an understanding with the lenders had been achieved, which was finalised on Sunday.
(Source: LiveMint)
5. RCom to Propose Same Asset Sale Plan to NCLT
Reliance Communications on Sunday said it will propose a similar debt resolution plan to the National Company Law Tribunal that it had been pursuing outside the court.
The Anil Ambani-led company last week announced that it would file for bankruptcy proceedings as it failed to sell its assets for paying back its lenders.
"RCom's management will propose a similar Debt Resolution Plan in the National Company Law Tribunal (NCLT) process, as was earlier being pursued outside the NCLT. Key elements of the Debt Resolution Plan remain unchanged," the company said in a statement.
(Source: PTI)
6. Market Sees RBI Setting Course Toward Rate Cut
The central bank might signal the beginning of a benign interest rate cycle by changing its policy stance to ‘neutral’ at this week’s meeting, although budget incentives seeking to boost consumption may prompt the panel members setting the cost of funds to delay the cuts until the next review.
About a third of the 25 participants in the exclusive ET survey on interest rates believe the Monetary Policy Committee (MPC) of the Reserve Bank of India could slash rates by 25 basis points on 7 February itself, but the rest of the participants are betting that Mint Road experts would hit the ‘pause’ button this time.
“By the second quarter, the MPC will have greater clarity on food inflation, crude oil prices and the state of the global economy to better assess the quantum of rate cuts,” said Anubhuti Sahay, head, South Asia, Economics Research, Standard Chartered Bank.
(Source: The Economic Times)
7. 100 Million Farmers to Get ₹2,000 by March-End: Jr Agri Min
The government will pay 100 million farmers ₹2,000 each by the end of March and will be able to swiftly transfer subsequent instalments under the Pradhan Mantri Kisan Samman Nidhi (PMKISAN) scheme for small landholders, Minister of State for Agriculture Gajendra Shekhawat told ET.
The minister said the first payment may not be as easy as subsequent transfers. “Distribution of the second part would be easier as all the beneficiaries will have their bank accounts linked with Aadhaar to make the process swift,” he said.
Experts and former bureaucrats said the rollout could face challenges, particularly in big states such as Bihar and Uttar Pradesh where land records may not have been fully digitised. Speed would be of the essence with polls due in a few months.
(Source: The Economic Times)
8. Vedanta Plunges Most in 8 Years on Corporate Governance Concerns
Shares of Vedanta Ltd fell as much as 20%, its biggest single day fall since March 2011, to hit a 30-month low on the concerns of corporate governance issue after earning release shows that billionaire Anil Agarwal's family trust paid buying interest in South African miner Anglo American Plc
Many brokerages have downgraded the stock and cut its target price. ICICI Securities downgraded to sell from reduce and lowered its target price to ₹145 from ₹1,475 a share. CLSA rated sell and reduced its target price to ₹170 from ₹250 a share. Goldman Sachs downgraded to neutral from buy and cut its target price to ₹203 from ₹230 a share. IDFC Securities downgraded to neutral from outperform and lowered its target price to ₹213 from ₹244 a share.
The stock fell as much as 19.82%, its maximum fall since 7 March 2011, to hit a low of ₹158.35 a share – a level last seen on 4 August 2016. At 9.52 am, the scrip was trading at ₹163.15 on BSE, down 17.4% from its previous close. India's benchmark Sensex rose 0.38% to 36395.38 points. Its group company, Hindustan Zinc Ltd fell 3.6%.
(Source: LiveMint)
9. 25% of Network Integration Complete Across India: Voda-Idea
Vodafone Idea has completed integration of mobile network in eight telecom circles post merger of the two entities, leading to two-times improvement in 4G services, the telecom operator said on Sunday.
"Vodafone Idea successfully consolidates 25 percent of its nationwide radio network in just five months," the company said in a statement.
"With this integration of network, customers of both Vodafone and Idea brands are able to enjoy a unified network experience on 2G, 3G and 4G, in the service areas of West Bengal, Haryana, HP, Assam, North East, AP and Telangana (excluding Hyderabad), Jammu and Kashmir and Madhya Pradesh and Chhattisgarh," the statement said.
(Source: PTI)