QBiz: Automakers Seek Tax Cut; Single Authority for GST Refunds

Catch the latest business news in today’s QBiz.

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Electric Vehicles in India: With the auto industry facing unsold inventory, the government looks to ease its concerns.

1. A Million Jobs Are at Risk, Automakers Warn Govt

Indian automobile companies on Thursday, 5 September, sought government intervention through a cut in goods and services tax to stem a deepening slump in vehicle sales, warning that any further delay will put a million jobs at risk.

“Till now, 15,000 contractual manufacturing jobs have been lost and another million are at risk if the slowdown is not reversed," news agency IANS cited Rajan Wadhera, president, Society of Indian Automobile Manufacturers (Siam), as saying at the group’s annual convention in New Delhi.

(Source: Livemint)

2. Single Authority Mechanism for Processing GST Refunds to Exporters Soon

The upcoming Goods and Services Tax (GST) Council meeting on 20 September is likely to approve the mechanism to allow a single authority — state or Central — to sanction and process GST refunds for exporters in a faster and simpler manner. Refunds of around Rs 10,000 crore have piled up.

The move is expected to give a fillip to the struggling exports sector, which contracted 0.37 percent to USD 107.41 billion in April-July 2019-20. Outbound shipments are facing headwinds due to weak global demand and liquidity constraints.

(Source: Business Standard)

3. Offshore Bonds Issuances From India Cross USD 16 Billion in 2019

Foreign currency bond issuances out of India have crossed the USD 16-billion mark this year so far with Power Finance Corporation and ReNew Power hitting the dollar bond market on Thursday. PFC and ReNew Power are expected to raise a total of over USD 1 billion through these issuances, sources close to the deals told FE.

Power Finance Corporation (PFC) is understood to have priced its 5-year dollar bonds at 187.50 basis points (bps) over the corresponding US treasury yield while it also priced its 10-year dollar bonds at 240 bps over the corresponding US treasury yield, sources close to the matter said.

(Source: Financial Express)

4. Reliance Jio Launches Wired Broadband Starting at Rs 699

Reliance Jio on Thursday formally launched its wired broadband JioFiber, hoping its bundle of free services and superfast internet speeds will help it replicate the success it notched up as India’s youngest and only profitable mobile services provider.

With a basic monthly plan for Rs 699 and 100 GB (plus 50 GB of promotional data) at 100 Mbps speed, JioFiber also offers free voice calls and video conferencing through a compatible TV and high-speed gaming and content sharing across the home network.

(Source: Livemint)

5. NCLT Approves JSW Steel's Rs 19,700-Crore Bid for Bhushan Power & Steel

The Principal Bench of the National Company Law Tribunal (NCLT) on Thursday approved JSW Steel's Rs 19,700-crore bid for debt-laden Bhushan Power & Steel.

In a 138-page judgment, the NCLT Bench, while approving the resolution plan submitted by JSW Steel, said the committee of creditors (CoC) and the resolution professional (RP) of the corporate debtor shall continue to function as monitoring agency for now.

(Source: Business Standard)

6. Import of 215 Iron, Steel Items Need Compulsory Registration Under SIMS

The government has made it mandatory for traders to register themselves with Steel Import Monitoring System to import 215 iron and steel products, according to a notification issued on Thursday. The Directorate General of Foreign Trade (DGFT), under the commerce ministry, said that “import policy” for these 215 items “has been revised from ‘free’ to ‘free’ subject to compulsory registration under SIMS”.

These items include certain flat-rolled products; some stranded wire, ropes, cables; certain items of springs and leaves for springs of iron and steel; tubes, pipes and hollow profiles; diesel-electric locomotives; and some parts of railways.

(Source: PTI)

7. Amazon India Raises Food Delivery Stakes With Low Restaurant Commissions

Amazon India, which is set to start its food delivery service next month, is promising restaurants its commissions will be a mere fourth of what rivals Swiggy and Zomato charge, a move set to spark a spell of intense competition in the business.

Amazon is signing up restaurants across the country as it seeks to start delivering food from October, first in Bengaluru, and followed by Mumbai and Delhi, according to three people aware of the development.

(Source: Livemint)

8. We Plan to Reorganise Nhai, Review Financing Models: Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari has said he plans to reorganise the National Highways Authority of India (NHAI). A relook at the financing models, including raising Rs 85,000 crore through road asset monetisation over the next five to six years, is also priority, the minister told Business Standard in an e-mail interview.

All completed projects would be put up for monetisation after two years of operation and all the BoT (toll) projects will be considered for monetisation immediately on completion of the existing concessions, the minister said.

(Source: Business Standard)

9. Edelweiss Arm Ties up With SBI for MSME Co-Lending

India’s largest lender, State Bank of India (SBI) has partnered with ECL Finance, a subsidiary of non-banking finance company (NBFC) Edelweiss Financial Services, on Thursday for priority sector lending towards micro,small and medium enterprises (MSMEs) for business loans ranging from 3-50 lakh.

Edelweiss had earlier partnered with public-sector lenders, Central Bank of India and Bank of Baroda to co-lend to MSME customers. The partnerships follow after the Reserve Bank of India (RBI) updated norms in August, allowing co-lending by banks and NBFCs towards the MSME, agriculture and housing sector to be considered as priority sector loans.

(Source: Financial Express)

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