QBiz: Jet’s Overseas Rights to Be Given to Other Carriers & More
Catch all the top business news stories of the day here.
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1. Jet Airways’ Overseas Rights to Be Allotted to Other Carriers
Jet Airways is now close to losing its international flying rights as the ministry of civil aviation is set to allot its overseas routes to other carriers.
According to a senior government official, all major scheduled airlines, except AirAsia India, have requested the ministry to allot the international routes among them so that the capacity lying idle since 17 April can be utilised.
AirAsia, a joint venture between Tata Sons and Malaysia-based AirAsia Berhad, is yet to receive a nod to fly overseas, therefore, it is not part of this airline grouping.
(Source: Financial Express)
2. NSSO’s Latest Report a Setback in Effort to Improve State GDP Data
The disappointing results of the National Sample Survey Office (NSSO) 74th round field survey of services firms have impaired India’s chances of improving the accuracy of state-level estimates of gross domestic product, or GSDP, according to economists and statisticians.
The data issues in GSDP estimation matter because the changes in the methodology have led to wide discrepancies across states. This has impacted the borrowing limits for states, as well as the likely share of federal funds that they could receive.
The advisory council of the 15th Finance Commission is set to discuss these issues on Thursday, two people with direct knowledge of the matter said on condition of anonymity.
(Source: Livemint)
3. Softbank Leads $220 MN Funding Round in Grofers
Grofers has raised $220 million from SoftBank Vision Fund and other investors, marking the biggest fundraising in India’s online grocery delivery industry and ratcheting up pressure on larger rival BigBasket.
The latest funding comes after the startup executed a quick turnaround plan that saw it raising money at a beaten-down valuation in February 2018.
South Korean investment firm KTB Ventures and existing investors Tiger Global and Sequoia Capital also invested in the latest round, Grofers said on Wednesday.
(Source: Hindustan Times)
4. Trade Deficit Widens to 5-Month High as Gold Imports Surge 50%
India’s trade deficit in April expanded to a five-month high of $15.3 billion as gold imports surged more than 50% while merchandise exports lost the growth momentum of March amid rising trade tensions between China and the US.
Data released by the commerce ministry showed growth in exports slowed to a four-month low of 0.64% in April after a double-digit growth in March, while imports grew 4.5%.
In 2018-19, India’s exports grew 9.1% to $331 billion while imports grew 9% to $507.4 billion, causing a trade deficit of $176.4 billion.
(Source: Livemint)
5. Jet Airways, Adani Ports Among 250 Companies Fined by NSE; Here’s Why
The National Stock Exchange (NSE) on Wednesday penalised more than 250 companies for non-compliance with several listing regulations for the quarter ended 31 March 2019. The fines were imposed on the companies after monitoring compliance of the SEBI listing regulations of all its listed entities, according to NSE data. The fines have been slapped in the range of Rs 1,000 to Rs 4.5 lakh.
A little over Rs 8.84 crore has been imposed in total penalty on the non-compliant companies, according to NSE data. Adani Ports, Jet Airways, Indraprastha Gas, Bharat Petroleum, InterGlobe Aviation, Jindal Steel, Indian Oil, Hindustan Petroleum, and others are among the 31 companies that have been fined Rs 4.5 lakh by the NSE.
(Source: Financial Express)
6. Tata Global Beverages Buys All Food Biz from Tata Chem
Tata Global Beverages Ltd is acquiring all the branded food businesses from Tata Chemicals Ltd in an all-stock transaction that is aimed at creating a consumer business company with revenues of ₹9,099 crore.
As part of the deal, shareholders of Tata Chemicals will get 1.14 new shares of Tata Global for every share held, the company said in an exchange filing on Wednesday.
The transaction values the consumer business of Tata Chemicals at around ₹5,800 crore. Post the acquisition, Tata Chemicals will own a 31.5% stake in Tata Global Beverages.
(Source: Hindustan Times)
7. Higher GST Will Apply to Dues on Finished Real Estate Projects: CBIC
If you’ve got an occupancy certificate (OC) for your house before 1 April this year, the payment of pending dues would draw 12 per cent goods and services tax (GST) rate and the builder will be able to avail of input tax credit.
The Central Board of Indirect Taxes and Customs (CBIC) has come out with another set of frequently asked questions (FAQs) to clear the air on GST on real estate.
Earlier, the GST Council had decided that with effect from 1 April, builders of all under-construction houses would have two options – either pay 12 per cent GST with input tax credit or 5 per cent GST without input tax credit. While there is no GST on completed residential projects, an OC needs to be given. All new projects will have to pay 5 per cent GST without input tax credit from 1 April.
(Source: Business Standard)
8. Mexican Fast-Food Major Taco Bell Plans to Open 600 Outlets in India
Taco Bell, the global Mexican fast-food major, is planning to open 600 outlets in India over the next 10 years. If implemented successfully, this can make India the second-largest market for Taco Bell, after the US, said Liz Williams, president, Taco Bell International.
“India is one of the most important markets outside the US and its diverse nature offers an opportunity to Taco Bell, as we are adept at embracing change. After the new plan is implemented successfully, India will emerge as the second-largest market for Taco Bell,” said Williams. Currently, South American countries are its leading markets outside the US.
Taco Bell operates through over 500 restaurants in 30 countries outside the US. In the US, it has around 7,000 restaurants.
(Source: Business Standard)
9. Qatar Airways Seeks Govt Nod to Operate Additional Flights to India
Qatar Airways hopes to operate additional flights to India after the civil aviation ministry decided to temporarily withdraw traffic rights held by Jet Airways.Jet, which suspended operations on 17 April, used to operate double daily flights from Mumbai and Delhi to Doha.
The grounding of the airline has led to reduction in capacity and higher fares on international routes. The civil aviation ministry has withdrawn rights held by Jet on routes like Dubai, Doha, Singapore, Hong Kong and London on request from domestic airlines. Qatar Airways said it had made a formal submission to the central government to allow additional flights which will ease travel woes of Indian immigrants during peak summer months.
(Source: Business Standard)
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