QBiz: Govt Likely to Target $11 Billion from Asset Sales & More

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(Photo: iStock/ Altered by The Quint)

1. India Likely to Target About $11 Billion from Asset Sales in FY20

The government is likely to seek to raise about Rs 800 billion ($11.21 billion) through the sale of state-owned assets in the next fiscal year, beginning 1 April, two government sources with direct knowledge of budget discussions told Reuters on Tuesday, 22 January.

Finance Minister Arun Jaitley, who is currently in the United States for a medical check-up, is expected to announce the target while presenting an interim budget on 1 February, said one of the sources.

The target, which is the same as for the current financial year, includes proceeds from the expected privatisation of loss-making national carrier Air India, and the sale of an insurer to be created by the merger of three state-owned firms, the sources said.

(Source: Reuters)

2. Google To Provide Details of Political Ads in India

In a bid to ensure transparency in election advertising, search giant Google on Tuesday, 22 January, announced that it will introduce an India-specific political advertising transparency report and searchable political ads library ahead of the 2019 Lok Sabha elections due by May.

The report and library will provide comprehensive information on who is purchasing election ads on Google platforms and how much money is being spent. The report and ads library, which will go live in March 2019, will enable voters to get the election-related information they need.

Google has also updated election ads policy for India, which will require advertisers that are running election ads in India to provide a ‘pre-certificate’ issued by the Election Commission of India (ECI) or anyone authorised by the ECI, for each ad they wish to run.

(Source: Livemint)

3. PM Modi Promises to Bring Together NRI Mentors, Start-Ups on Same Platform

Prime Minister Narendra Modi on Tuesday, 22 January, said the overseas Indian community can play a role in shaping start-ups in the country and announced that NRI mentors will be brought on the same platform as Indian start-ups.

“The government is trying to bring India’s start-ups and NRI mentors on the same platform. Defence manufacturing can also be an important sector for you,” Modi said addressing the 5,000 NRIs from over 85 countries at the 15th Pravasi Bhartiya Divas convention in Varanasi.

Eligible start-ups in India get a number of sops such as exemption from various taxes, assistance for filing patents, and self-certification on compliance with several labour and environment regulations.

(Source: The Hindu Business Line)

4. Now, IL&FS Heat Singes Mutual Fund Industry

Contrary to claims by the mutual fund industry that its investments in the debt-ridden IL&FS are safe, action by rating agency ICRA on Tuesday, 22 January, indicated negative implication for the sector.

The rating agency has downgraded one scheme of Aditya Birla Mutual Fund and put five other schemes of HDFC Mutual Fund and UTI Mutual Fund under rating watch due to their exposure to the special purpose vehicles (SPVs) of the troubled IL&FS.

“The rating action takes into account the deterioration in the credit quality of the underlying investments of these schemes driven by their exposure to the SPV of IL&FS Ltd,” ICRA said in a statement.

(Source: The Hindu Business Line)

5. Non-Filers Will Have 21 Days to File I-T Returns, Submit Response: CBDT

Individuals who have carried out high-value transactions but have not filed their income tax returns for the assessment year 2018-19 would get 21 days time to submit their responses, the CBDT said on Tuesday, 22 January.

The 21-day time period would be from the date of receiving e-mail or SMS from the I-T Department regarding non-filing of tax returns.

In cases where no return is filed or no response is received for Assessment Year (AY) 2018-19 within the stipulated time, the department would consider initiating proceedings under the Income Tax Act 1961.

(Source: PTI)

6. Fairfax Edges past L&T Infotech, Tech Mahindra in Race for Mindtree Stake

With the founders of Mindtree reluctant to cash in their holdings, Prem Watsa-owned Fairfax is learnt to be leading the race to acquire VG Siddhartha’s stake in the Bengaluru-headquartered IT services firm, sources in the know said on Tuesday, 22 January.

Currently, Siddhartha holds close to a 21 percent stake through various entities, while the founders of Mindtree — Subroto Bagchi, NS Parthasarathy, Krishnakumar Natarajan and Rostow Ravanan — hold around 13 percent in the company.

(Source: Business Standard)

7. Move to Allow Niti Aayog to Steer Drug-Price Control Raises Hackles

In what seems like diluting the National Pharmaceutical Pricing Authority’s (NPPA) powers, the government has now authorised think-tank NITI Aayog to recommend drugs that could be put under price control.

A Standing Committee on Affordable Medicines and Health Products (SCAMHP), another body, has been constituted with VK Paul, Member (Health), NITI Aayog, as the Chairman, to act like a recommending body to NPPA regarding prices of drugs and health products.

The move has attracted ire from all quarters. “No one had the power to fiddle with the list of essential drugs that were to be under price control. Now everyone can potentially fiddle with the list,” said a senior government official.

“All drugs will now undergo the scrutiny of the committee housed in NITI Aayog, of which NPPA is not a member.”

(Source: The Hindu Business Line)

8. Staring at Revenue Shortfall, I-T Dept Sends Tax Notices to Mutual Funds

The income-tax (I-T) department is nudging companies, especially mutual fund houses, to pay the dividend distribution tax (DDT). This comes as the I-T department is staring at a shortfall in revenue collection.

According to sources, the tax department has issued notices to at least a dozen asset management companies (AMCs) that have reportedly announced dividends, but are yet to pay the tax. “Notices are being sent to many domestic companies (both private and public sector firms), along with fund houses that are yet to deposit the DDT to the exchequer,” said a tax official in the know of things.

(Source: Business Standard)

9. Air India Plans to Enter Leisure Travel Space with Packaged Holidays

Debt-ridden national carrier Air India is planning to enter the holiday packages business to enhance its share in the fast-growing leisure travel segment. The airline has floated global bids for selecting a service provider for this purpose.

As per the document, Air India will offer a one-stop shop for holiday packages, which would cover flights, hotels, transport and sightseeing options.

The selected bidder will provide the technology, content and operation of Air India holiday packages, including developing, hosting and managing the website of its new business vertical.

(Source: PTI)