1. Government Braces for Rs 50,000 Crore Disinvestment Shortfall
The government is unlikely to complete the privatisation of Air India Ltd, Bharat Petroleum Corp. Ltd (BPCL) and Container Corp. of India Ltd (Concor) by end-March, leaving a Rs 40,000-50,000 crore hole in its budget.
This is likely to further impair the government’s ability to meet the fiscal deficit target of 3.3 percent of gross domestic product (GDP), in a year where both direct and indirect tax collections have been well below expectations amid an economic downturn that has hit a six-and-half-year low of 4.5 percent in September quarter.
(Source: Mint)
2. Cyrus Mistry Unlikely to Take up a Board Position, May Appoint Nominees
Even as the National Company Law Appellate Tribunal (NCLAT) reinstated Cyrus Mistry as chairman of Tata Sons and three other group companies last week, he is unlikely to take up a board position at any of these companies.
Sources in the know said he might appoint nominee directors who would ensure best practices of corporate governance at Tata group companies.
Sources said Mistry wanted to keep an effective oversight without being the part of operations at the Tata group.
(Source: Business Standard)
3. Non-Filing of GST Returns May Lead to Attachment of Bank A/Cs
Non-filing of GST (Goods & Services Tax) returns may lead to attachment of bank accounts and even cancellation of registrations. This is part of the Standard Operating Procedure (SOP) issued by the Finance Ministry to be followed in case of non-filing of returns.
The GST law makes it mandatory for a registered person to file returns either monthly (normal supplier) or on a quarterly basis (supplier opting for composition scheme). An ISD (Input Service Distributor) will have to file monthly returns showing details of credit distributed during the particular month.
(Source: Hindu BusinessLine)
4. Lodha in Race Against Time to Raise Funds to Meet Debt Obligations
Lodha Group, one of India’s largest property developers, is in a race against time to raise close to $225 million (around Rs 1,600 crore) by selling bonds to meet its debt repayment obligations due next year.
The group, which has renamed itself as Macrotech Developers Ltd, has been reaching out to overseas investors, including several existing ones, to raise funds, two people directly aware of the ongoing discussions said on condition of anonymity. As much as $325 million worth of bonds are maturing by March.
(Source: Mint)
5. Steel Prices to Go up by Rs 1,000 a Tonne in January
Steel prices are set to go up for the third consecutive month in January following revival in domestic demand and firm price trend globally. Just like in many other metals, steel companies in India take price signal from global markets.
Despite the prices going up in last two months, demand has been holding strong in both automobile and infrastructure sectors on restocking by dealers. Following this, steel companies have intimated that Hot-rolled coil prices will be increased to Rs 700-1,000 a tonne in January, said a stockist.
(Source: Hindu BusinessLine)
6. Despite IBC Changes, JSW May Go Slow on Bhushan Power and Steel Buy
India’s second-largest private steelmaker, JSW Steel Ltd, may go slow on buying bankrupt Bhushan Power and Steel Ltd, despite the Cabinet on Tuesday approving an ordinance to ring fence successful bidders from criminal proceedings for offences committed by previous promoters, three people with knowledge of the matter said, requesting anonymity.
The Cabinet’s approval did not give too many details and, as such, JSW steel will wait for further clarifications from the National Company Law Appellate Tribunal (NCLAT) when the matter comes up for hearing on 13 January.
(Source: Mint)
7. Government Constitutes Expert Panel to Resolve Oil, Gas Disputes
With overhang of disputes choking investments in the oil and gas sector, the government has constituted an expert committee for time-bound resolution of exploration and production disputes without having to resort to tardy judicial process.
The ‘Committee of External Eminent Persons/Experts’ for dispute resolution will comprise former oil secretary G C Chaturvedi, Oil India Ltd former head Bikash C Bora and Hindalco Industries Ltd Managing Director Satish Pai, according to an official notification.
The panel will have a tenure of three years and the resolution will be attempted to be arrived at within 3 months.
(Source: The Indian Express)
8. Niti Aayog Member Bats for Two GST Slabs, Says Rates Should Not Be Revised Frequently
Government think-tank Niti Aayog member Ramesh Chand on Wednesday made a case for only two slabs under the goods and service tax regime as against the multiple slabs currently, and said rates should be revised annually if required.
The goods and services tax (GST), which replaced almost all the indirect taxes, came into force from 1 July 2017, and the rates on goods and services have been revised several times since then.
Currently, there are four GST rate slabs — 5 percent, 12, percent, 18 percent and 28 percent. Several items fall in exempt category or nil duty. Besides, cess is also levied on five goods.
(Source: The Indian Express)
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