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Vedanta cuts $91 mn from govt's gains to make up for tax paid

Vedanta cuts $91 mn from govt's gains to make up for tax paid

Friday, March 24, 2023

In signs of protests against the 9-month-old windfall tax, mining mogul Anil Agarwal's Vedanta Ltd has withheld about USD 91 million from the share of profit due to the government from its oil and gas fields, to make up for the additional tax outgo, according to sources and correspondence on the issue. India first imposed windfall profit tax on July 1, 2022, joining a growing number of nations that tax super normal profits of energy companies. But the levy of Special Additional Excise Duty (SAED) on locally produced crude oil was seen by producers as a violation of the contract which provides fiscal stability. The SAED initially was Rs 23,250 per tonne ($40 per barrel) and in fortnightly revisions brought down to Rs 3,500 per tonne. This is in addition to the 10-20 percent royalty on price of oil and gas realized and an oil cess of 20 %. On top, the government is also entitled to a pre-decided share of profit after expenses are deducted from revenue earned from sale of oil and gas. Read more

Vedanta shares plunge after company puts Tuticorin copper smelter plant on sale

Vedanta shares plunge after company puts Tuticorin copper smelter plant on sale

Monday, June 20, 2022

Shares of the multinational mining company Vedanta tanked nearly 12 percent to their fresh 52-week low to Rs R221.8 today after the firm invited expression of Interest (EoI) for its Tuticorin-based smelter, which has been shut since mid-2018, following a Tamil Nadu government order. The plant has been shut since May 2018 after a police firing killed 13 people during a protest against environmental pollution allegedly caused by the plant. The last day to submit EoI is July 4, and the bids have been invited in conjunction with Axis Capital. Plant units, including oxygen generation facility as well as residential homes, are also part of the sale offer. The plant has faced closures over alleged violations of environmental norms, as per the advertisement."Interested and financially competent parties shall submit an expression of interest along with a company profile and other relevant credentials latest by 1800 hours, 4th July 2022," Vedanta said in a newspaper advertisement on Monday. Read more

Government and regulatory authorities may consider a legislative and regulatory framework for cryptocurrencies

Government and regulatory authorities may consider a legislative and regulatory framework for cryptocurrencies

Wednesday, November 17, 2021

Finally, it looks like the government and regulatory authorities appear to be getting together with stakeholders to consider a legislative and regulatory framework for cryptocurrencies. These virtual assets have been around for over a decade — the pioneer bitcoin started trading in 2010. There are literally thousands of cryptos. Some have given truly extraordinary returns. Investors see these instruments as potential hedges against currency volatility and inflation. Traders who pay in rupees generate over Rs 50 crore in daily cryptocurrency volumes and Indians actually invest a great deal more in forex-denominated trades. There’s a substantial, active Indian crypto-investment community which multiple sources estimate holds over $15 billion worth of crypto assets. Moreover, the related non-fungible token, or NFT, market is booming and there’s been an advertising blitz tempting Indians to invest in cryptos. Read more

Govt finally answered the distress call from the telecom sector with major reforms

Govt finally answered the distress call from the telecom sector with major reforms

Wednesday, September 15, 2021

The Central Government has finally answered the distress call from the telecom sector with a set of reforms that address some of the major grievances of the sector. The contentious definition of the Adjusted Gross Revenue (AGR) has also been revamped with non-telecom revenue excluded from its purview. The telcos have contested the AGR definition and have been burdened with pending AGR dues. FDI reforms have also been announced and will boost investments in this capital-intensive sector. The move will help in bringing robustness to the sector and bring fresh investment to the sector. Read more

To save or not to save Vodafone Idea-Government's dilemma

To save or not to save Vodafone Idea-Government's dilemma

Thursday, August 5, 2021

If the government wants to work on the survival of the Vodafone Idea it will have to make substantial payments, as well as forego revenues in FY’23, because it will have to extend the same incentives to the entire telecom sector. According to estimates, the industry has to spend around Rs 21,000-Rs 25,000 crores for spectrum which it bought on a deferred payment basis. Vodafone Idea has asked for a moratorium for another year (FY23). If granted, the government will have foregone the installment payout for the third year in a row as it has already provided a moratorium for two years, giving telcos Rs 42,000 crore worth of relief. However, the payouts will be adjusted with interest for the remaining years of the staggered payment (16 years) scheme and this remains unchanged. Read more

Cabinet reshuffle: 43 ministers likely to take oath today

Cabinet reshuffle: 43 ministers likely to take oath today

Wednesday, July 7, 2021

Forty-three ministers will take oath today(7th July 2021) in the Union Cabinet expansion which includes the names of Jyotiraditya M Scindia, Pashupati Kumar Paras, Bhupender Yadav, Sarbananda Sonowal, Anurag Singh Thakur. The new set of India's Council of Ministers has been chosen with emphasis on representation, experience, and education. Multiple ministers have also resigned from their positions in the past 24 hours. Ministers who've submitted their resignation so far before the big reshuffle: 1. Union Minister Chemicals and Fertilizers Sadananda Gowda 2. MoS Consumer Affairs Danve Raosaheb Dadarao 3. Labour Minister Santosh Gangwar 4. Education Minister Dr. Ramesh Pokhriyal Nishank 5. Minister of State for Education Sanjay Dhotre Read more

V-shaped economic recovery of 2020 won’t be repeated after this year’s Covid-19 carnage

V-shaped economic recovery of 2020 won’t be repeated after this year’s Covid-19 carnage

Tuesday, June 1, 2021

The V-shaped economic recovery in 2020 won’t be repeated after this year’s Covid-19 carnage according to some analysts. Government statistics released 0n 31st May showed 1.6% growth in GDP from a year earlier in the March quarter, before a deadly second wave of infections. But this expansion, an improvement over the 0.5% rate in the previous three months, is a statistical artifact. A better metric is seasonally adjusted quarter-on-quarter growth, which Capital Economics calculates at 0.7%, a sharp slowdown from 9.5% in the December quarter. During the current surge in cases, there have been only local restrictions on physical activity. That’s making some analysts optimistic about the resumption of growth that will inevitably occur when the coronavirus fully recedes. Yet there are several crucial differences from last year that could make it harder for India to bounce back. Read more

Pharma index hits record high as govt launches phase 3 of Covid vaccination

Pharma index hits record high as govt launches phase 3 of Covid vaccination

Tuesday, April 20, 2021

Shares of pharmaceutical companies are in demand with Nifty Pharma and the S&P BSE Healthcare indices gaining 2 per cent each and hitting their respective all-time highs on Tuesday as a significant resurge in Covid-19 cases across India led to a spike in demand for Covid-related drugs. Shares of Cadila Healthcare up 6.17 per cent, Dr Reddy's Laboratories up 4.58 per cent, Aurobindo Pharma up 3.42 per cent, Lupin up 3.1 per cent and Sun Pharmaceutical Industries up 1.97 per cent were among the top gainers. Sun Pharmaceutical Industries, Cadila Healthcare, Glenmark Pharmaceuticals, Panacea Biotech and RPG Lifesicenes are among those that hit 52-week highs in the intra-day trade today.Dr Reddy's stock is in focus after the company said it is going to roll out the Sputnik V COVID-19 vaccine by May-end or early June. Read more

IDBI Bank gains 11 per cent on divestment proposal

IDBI Bank gains 11 per cent on divestment proposal

Tuesday, April 13, 2021

Shares of IDBI Bank jumped 10.6 per cent to hit an intra-day high of Rs 37.4 on the BSE on Tuesday after a Business Standard report stated that the Cabinet will soon consider the proposal to sell the government’s 45.5 per cent stake in the company, paving the way for strategic divestment in the lender. The cabinet approval will give the Department of Investment and Public Asset Management (DIPAM) the authority to move ahead with the divestment process,. The government had planned to sell its balance stake in IDBI Bank to private, retail, and institutional investors through the stock exchange in the last financial year. However, the pandemic delayed the plan, which the government intends to complete this year."DIPAM cannot move forward with the divestment process until approval from the cabinet is received, given that banks come under work allocation of the DFS. After the cabinet's approval, intermediaries can be appointed," an official told Business Standard.

Sensex has sunk over 2,300 points in five sessions

Sensex has sunk over 2,300 points in five sessions

Thursday, March 18, 2021

Sensex tanked close to 800 points today after initially starting the day in the green. Sensex has now sunk over 2,300 points in five sessions and is inching closer towards its first technical correction since the crash of last March caused by the COVID-19 pandemic. To back its determination to keep monetary policy accommodative, the US Fed also hiked the limit for overnight reverse repo auction exposure to $80 billion from $30 billion earlier to assuage the mayhem in the US Treasury bond market. Yet the market does not seem convinced. The major factors driving the skittishness in the Indian equity market are: Read more

Hindustan Aeronautics Limited gains 13 per cent on Tejas order

Hindustan Aeronautics Limited gains 13 per cent on Tejas order

Thursday, January 14, 2021

Shares of Hindustan Aeronautics Limited gained 13 per cent to Rs.1043.45 today after the government approved Rs 48,000-crore deal to acquire 83 Tejas aircraft from the company. The cabinet approved procurement of 73 Tejas Mk-1A fighter aircraft and 10 Tejas Mk-1 trainer aircraft. Madhavan, chairman and managing director of the HAL, said the production rate of Tejas is being augmented from eight to 16 aircraft per year through the creation of a new infrastructure in Bengaluru."He said according to estimates the Tejas programme will generate direct employment to 5,000 people across the country. The LCA-Tejas is going to be the backbone of the IAF fighter fleet in years to come," Singh said. "The indigenous content of LCA-Tejas is 50 per cent in Mk1A variant which will be enhanced to 60 per cent," he said. It will act as a catalyst for transforming the Indian Aerospace manufacturing ecosystem. All three analysts tracking the company recommend a ‘buy’ rating.

US govt, 48 states sue Facebook accusing it of anti-competitive conduct

US govt, 48 states sue Facebook accusing it of anti-competitive conduct

Thursday, December 10, 2020

The US government and 48 states have filed parallel lawsuits against Facebook, accusing the social media giant of anti-competitive conduct by abusing its market power to create a monopoly and crushing smaller competitors. Soon after the Federal Trade Commission (FTC) and 48 state attorney generals sued the company yesterday(9th December 2020), Facebook's shares dropped significantly at the stock exchanges. The bipartisan coalition led by New York attorney general Letitia James alleged that Facebook has engaged in a systematic strategy to eliminate threats to its monopoly. This includes its 2012 acquisition of up-and-coming rival Instagram, its 2014 acquisition of the mobile messaging app WhatsApp and the imposition of anti-competitive conditions on software developers. Read more

IRCTC tanks 13 per cent as govt to sell 20% stake via OFS

IRCTC tanks 13 per cent as govt to sell 20% stake via OFS

Thursday, December 10, 2020

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) slipped 13 per cent to Rs 1,405 on the BSE on Thursday as the government will sell up to 20 per cent stake in Indian Railway Catering and Tourism Corporation through an offer for sale which opens for subscription today for non-retail investors and will open tomorrow for retail investors. The floor price for the offer shall be Rs 1,367 per share, a 16 per cent discount to Wednesday’s closing price of Rs 1,618 on the BSE. The government would divest 15 per cent equity with a 5 per cent greenshoe option. The promoter proposes to sell up to 24 million equity shares of IRCTC, representing up to 15 per cent stake, with an option to additionally sell 8 million shares, representing 5 per cent of the total issued and paid-up equity share capital”, the company said in a regulatory filing. Read more

India-made COVID-19 vaccine could be launched by February?

India-made COVID-19 vaccine could be launched by February?

Thursday, November 5, 2020

An Indian government-backed COVID-19 vaccine could be launched as early as February as last-stage trials begin this month and studies have so far shown it is safe and effective, according to sources. Bharat Biotech, a private company that is developing COVAXIN with the government-run Indian Council of Medical Research (ICMR), had earlier hoped to launch it only in the second quarter of next year. "The vaccine has shown good efficacy," senior ICMR scientist Rajni Kant, who is also a member of its COVID-19 task-force, said at the research body's New Delhi headquarters on 5th November 2020.. "It is expected that by the beginning of next year, February or March, something would be available." A launch in February would make COVAXIN the first India-made vaccine to be rolled out. Read more

Nirmala Sitharaman announces Special Festival Advance and LTC cash voucher to government employees

Nirmala Sitharaman announces Special Festival Advance and LTC cash voucher to government employees

Monday, October 12, 2020

The Finance Minister announced LTC cash voucher scheme ahead of the festive season to boost demand. Additionally, Sitharaman has also announced a one-time Rs 10,000 interest-free festival advance for central government employees through the Special Festival Advance Scheme to increase consumer spending to spur demand in the economy. As part of the announcement, central government employees who get Leave Travel Concession (LTC) for their travels will get an equivalent of the amount even without travelling. They could use the allowance to make purchases of their choice. This will apply to the purchase of goods that attract 12 per cent GST or more and can be spent on buying goods worth three times the fare and equal to the cash encashment. The spending will have to be done by digital mode only. Read more

Govt short of finances as it tries to fix economy

Govt short of finances as it tries to fix economy

Thursday, September 10, 2020

The latest numbers on the government’s fiscal deficit for the April-July 2020 period have exceeded the annual Budget target by 3 percent. In April-June 2020, the fiscal deficit had already risen to about 83 percent of the target for the full year. The figures on government finances are based on monthly reports released by the Controller General of Accounts (CGA). But what gets highlighted and discussed are the cumulative numbers for the latest period for which the data is released. A study of the monthly trajectory of the government’s revenues and expenditure, therefore, may present a slightly different picture, providing different takeaways for policymakers and observers of the Indian economy. Read more

RBI to conduct simultaneous purchase, sale of gilts via OMO on April 27

RBI to conduct simultaneous purchase, sale of gilts via OMO on April 27

Thursday, April 23, 2020

The Reserve Bank of India 0n 23rd April said it has decided to conduct simultaneous purchase and sale of government securities under open market operations (OMO) for Rs 10,000 crore each on April 27 on a review of current and evolving liquidity and market conditions. The government will purchase long-dated securities maturing 2026, 2028, 2029 and 2030, aggregating Rs 10,000 crore, while it will see short-dated securities maturing June 2020, October 2020 and April 2021. There will be no security-wise notified amount. The result of the auctions will be announced on the same day.

Onions now at Rs 22-23 per kg to avoid rotting at port

Onions now at Rs 22-23 per kg to avoid rotting at port

Thursday, January 30, 2020

To avoid rotting at port, Government is now planning to sell imported onions at Rs.22-23 per KG. Currently, Central Government is offering imported onions to State Government at an average landed cost of Rs 58/kg. Government had decided to import 1.2 lakh tonnes of onion through state-run MMTC in November 2019. But since many states did not show interest as the retail prices started cooling down on arrival of fresh crop, tonnes of onions are being wasted.

Tag: government

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