QBiz: PM to Meet Oil Company Heads Amid Rise in Fuel Price & More
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1. Fuel Prices Continue to Rise, PM to Meet Oil Company Heads
Fuel prices continued to rise across the four major metros on Sunday, 14 October, even as Prime Minister Narendra Modi prepares to meet oil company chiefs on Monday to take stock of the global energy scenario.
In the national capital, petrol was priced at Rs 82.72 per litre, up from Rs 82.66 on Saturday, data on the Indian Oil Corporation website showed.
Similarly, petrol prices in Mumbai, Kolkata and Chennai also rose on Sunday — to Rs 88.18 in Mumbai, Rs 84.54 in Kolkata and Rs 85.99 per litre in Chennai.
(Source: The Financial Express)
2. Global Finance Chiefs Urge Trade War Solution
Global finance chiefs used the closing sessions of talks in the tropical resort of Bali to hammer home the message that simmering trade tensions are already denting global growth and need to be resolved.
Bank of Japan Governor Haruhiko Kuroda said it’s essential to have dialogue on trade; Brazil’s central bank President Ilan Goldfajn flagged the tensions as one of the biggest threats to emerging economies; Bank for International Settlements General Manager Agustin Carstens said there’s a risk the global economy goes backwards due to rising protectionism.
(Source: Bloomberg Quint)
3. Tata Steel Plans Capacity Expansion at Bhushan Steel Plant
Tata Steel Limited plans to “eventually” scale up the nameplate capacity at its newly-acquired Tata Steel BSL (BSL), formerly Bhushan Steel Ltd, to 8.3 million tonnes (mtpa) from 5.6 mtpa.
The plan was laid out by Rajeev Singhal, the new managing director of Tata Steel BSL, in an article published in the July-September edition of the Tata Review, an internal magazine of the Tata group.
Tata Steel had on 18 May acquired Bhushan Steel in a ₹35,300 crore deal under the Insolvency and Bankruptcy Code. At the time, Bhushan Steel was operating at 3.5mtpa, far below its installed capacity.
(Source: Livemint)
5. India Urges IMF to Implement Quota Reforms
Stressing on the need to strengthen institutions like International Monetary Fund (IMF) to tackle financial crisis, Economic Affairs Secretary SC Garg called for quota reforms so that share of emerging nations increases in line with their growing economic position.
Garg also pointed out that protectionism, trade tensions and tightening of financial conditions are challenges for the world.
In the context of these challenges, he said the time for building buffer and policy action by the emerging market economies is not there.
“A suitable approach could be the association of the IMF, being at the centre of the GFSN (global financial safety net), at an earlier stage rather than when crisis has already occurred. Hence, the strengthening of this Multilateral Institution is crucial,” he said.
(Source: The Hindu Business Line)
6.Govt to Roll out Benefits for “Honesty & Consistency”
The government is working on an ambitious policy proposal to “facilitate” honest and consistent taxpayers in availing a variety of public services and tax-related works on priority, officials said Sunday, 14 October.
They said that a committee under the Central Board of Direct Taxes, the policy-making body for the Income Tax Department (ITD), is working to chalk out the broad parameters for extending such “courtesies” and benefits to taxpayers who pay their taxes on time and in full.
The proposal will be vetted by the Finance Ministry and sent for final approval to the Prime Ministers Office (PMO) before it is cleared by the Union cabinet.
(Source: The Financial Express)
7. Lagarde Expects More Market Volatility With Trade Trouble
Policy makers should prepare for more market volatility amid further financial tightening and “choppy” waters in the global economy stemming from trade tensions, said Christine Lagarde, managing director of the International Monetary Fund.
The fund’s advice to central bankers and finance chiefs is to continue building monetary and fiscal buffers for the risks ahead, she said in an interview on Sunday, 14 October with Bloomberg Television’s Haslinda Amin, at the conclusion of the IMF and World Bank meetings in Bali, Indonesia.
“Now is not the time to say, OK, fine, let’s just relax and do a bit of fiscal tolerance here and a slowing of reforms,” Lagarde said. On the trade disputes, she said “our message was very clear: de-escalate the tensions, and open and reform the dialogue.”
(Source: Bloomberg Quint)
8. Gujarat Relief for Tata, Adani Power Underlines Sector’s Harsh Reality
Shares of Tata Power Co Ltd and Adani Power Ltd rallied 8-10 per cent on Friday, 12 October after the Gujarat government submitted a report to the Supreme Court, suggesting relief for companies running imported coal-based power plants.
A rise in imported coal prices due to a change in the law in Indonesia had rendered these plants unviable. The companies had sought remedies, but the Supreme Court had denied relief, upholding the contractual obligations.
Now, in a reversal of sorts, Gujarat, which is a large buyer of electricity from these plants, has approached the court seeking a redressal mechanism.
A Business Standard report said that other buyers, such as Punjab and Haryana, are yet to give consent to the report’s recommendations.
(Source: Livemint)
Srinivasa Farms to Invest in Startups, Enter Allied Business
Srinivasa Farms Pvt Ltd, a poultry company, plans to set up a family office under its delisted group firm Srinivasa Hatcheries Ltd. It seeks to invest in startups and pursue a collaborative growth model to enter into allied businesses such as retail, processed foods and agri-businesses, besides ready-to-eat and ready-to-make products.
The company is also aiming to double its revenue in the next three-four years.
After delisting in 2015, Srinivasa Hatcheries transferred its poultry business to Srinivasa Farms and holds assets such as old farms whose value is increasing.
“This company will remain a family company and will invest in start-ups like agri-businesses,” said Suresh Chitturi, vice chairman and managing director of Srinivasa Farms.
(Source: Livemint)
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