QBiz: Jaypee to Sell Yamuna Expressway; GST Refund for Exporters

The Quint’s roundup of the top business news of the day.

The Yamuna Expressway project by Jaypee Associates. Image used for representational purposes.

(Photo Courtesy: iStock)

1. JP Associates Seeks To Sell Yamuna Expressway To Compensate Homebuyers

Jaiprakash Associates Ltd today submitted before the Supreme Court a proposal to hive off its Yamuna Expressway project to raise Rs 2,500 crore that it has to deposit to cover its liability towards homebuyers of Jaypee Infratech Ltd.

The apex court has asked the company to also submit this proposal to the Attorney General of India and the Insolvency Resolution Professional.

On 11 September, the apex court had directed Jaiprakash Associates, the parent company of Jaypee Infratech, to deposit Rs 2,000 crore in the court by 27 October to safeguard the interest of homebuyers, adding that any property to be sold by them would have to be approved by the court.

Source: BloombergQuint

2. GST Refund Claims for Exporters for August, September to Start This Week

Exporters can soon start claiming refunds for goods and services tax (GST) paid in August and September as GST Network (GSTN) will this week launch an online application for processing of refund, its chief executive officer Prakash Kumar said Monday.

GSTN, the company handling IT infrastructure for the indirect tax regime, has from 10 October started issuing refunds to exporters for integrated GST (IGST) they paid for the month of July, after matching GSTR-3B and GSTR-1.

Source: PTI

3. Maharashtra Gov Asks Banks To Use Own Funds For Loan Waiver

The Maharashtra government, which is implementing an ambitious Rs 34,000 crore farm loan waiver scheme, has asked banks to use their own funds to settle farmers’ loans, and promised them a reimbursement later.

Since the state government has not specified a timeline for reimbursement, the state cooperation department has received queries from banks, seeking clarity on the issue, a senior government official said on 23 October.

The cooperation department, in a letter on 13 October, asked the banks to use their own capital for settling the loans of eligible farmers and close their loan accounts.

Source: BloombergQuint

4. BQ Exclusive: Five Metal Giants Express Interest In Essar Steel

Debt-laden Essar Steel Ltd. has attracted initial interest from five large metal firms as part of its resolution under the Insolvency and Bankruptcy Code.

ArcelorMittal, Sumitomo Corporation, Vedanta Resource Plc, Tata Steel Ltd. and Steel Authority of India Ltd. have submitted expressions of interest for a resolution plan, three people close to the development told BloombergQuint requesting anonymity. The Ruias, who are the promoters of Essar Steel, have also shown interest, the people said.

Interest from large strategic investors for Essar Steel will be a relief for lenders who have been trying to resolve the case for nearly two years now. The steelmaker, which owes banks nearly Rs 45,000 crore, was among the first dozen large stressed companies identified for insolvency action by the Reserve Bank of India.

Source: BloombergQuint

5. Bharat-22 ETF Likely to Be Launched in November

An inter-ministerial panel headed by Finance Minister Arun Jaitley has finalised the launch date and quantum of issuance of the Bharat 22 Exchange Traded Fund.

The ETF, which comprises of 22 scrips of public sector units, banks and those entities in which the government holds a minority stake, is likely to be launched next month after the launch of IPO of New India Assurance, government officials said on the condition of anonymity.

The Department of Investment and Public Asset Management today received the ministerial panel’s nod for tranche size and launch date, they said without sharing further details.

Source: PTI

6. Drug MNCs Lobby Against Price Cuts of Stents & Knee Implants

Multinational drug makers are pulling out all the stops in reaching out to the highest Indian government officials to express discontent over the drug pricing regulator’s decision to cut prices of cardiac stents and knee implants. This time, the negotiations will be held directly by the international lobby group of drugmakers instead of their domestic offshoots.

ET has learnt that representatives of global medical device makers and pharma companies have met with various Indian government officials to express their views.

Source: The Economic Times

7. Indiabulls Housing Reports 26% Jump In Net Profit, Beating Estimates

Mortgage lender Indiabulls Housing Finance Ltd’s net profit rose for the fourteenth consecutive quarter, beating analyst estimates. The home loan provider’s bottomline rose 25.8 percent to Rs 861 crore as compared to the same quarter last year, according to its stock exchange notification. The consensus of analyst estimates tracked by Bloomberg stood at Rs 814 crore.

Net interest income increased 27.1 percent at Rs 1,390 crore on a year-on-year basis. Revenue stood at Rs 3,067 crore, 22.2 percent higher than the corresponding period last year.

Source: BloombergQuint

8. Government Keen to Woo $100 Billion FDI in Tourism

The government wants to attract $100 billion foreign direct investment in tourism sector and generate up to 100 million jobs over the next five years. Tourism minister K Alphons said on Monday after the Tourism CEO Conclave:

Tourism industry has a multiplier effect on the economy… We have held discussions with CEOs of leading tourism companies to address all issues facing the sector.

The conclave is a part of the ‘Paryatan Parv’ initiative from 5-25 October. The tourism ministry will also take up the demand of hotel industry for rationalisation of the GST rate to 4-5 percent for five star hotels.

Source: The Economic Times

9. Ex-Flipkart Executive Nitin Seth Joins Data Analytics Firm Incedo As CEO

Former Flipkart chief operating officer Nitin Seth joined San Francisco-based technology services firm, Incedo, as its chief executive officer.

Seth who had served as managing director and country head at Fidelity international and director of Mckinsey’s global knowledge centre in the past, will work on “building Incedo’s clients, deepening innovation in emerging technologies, and will lead the firm into its next phase of growth”, the company said in a statement. His appointment is effective immediately.

Source: BloombergQuint