1. Modi Government Plans a Slew of Rail Links in Northeast to Connect With Neighbours
Within days of the launch of South Asia Satellite that underscores the PM’s motto of ‘sabka saath, sabka vikaas’, the railways is launching faster trains to connect Itanagar to other Indian cities, besides starting several big and small rail links in the landlocked and hilly Northeast.
These rail links will be connected across the border in Bangladesh as part of the sub-regional cooperation – at a time when Pakistan continues to be intransigent on concluding SAARC Motor Vehicles and Railways Agreement.
Recently, the Centre has commissioned one of the longest rail connectivity projects in the Northeast that covers 420.90 km between Assam, Arunachal Pradesh and Manipur.
(Source: The Economic Times)
2. ED, CBI go After Country’s Second-largest Wilful Defaulter, Winsome Group's Jatin Mehta
After almost a year, Indian authorities have turned their glare on Jatin Mehta, a man who has proved to be far more elusive and low profile than Vijay Mallya. The Enforcement Directorate is learnt to have asked Dubai to expedite its response to India’s letters rogatory (LR) relating to Mehta’s Winsome Group — the country’s second-largest wilful defaulter after Mallya’s Kingfisher Airlines.
Winsome Diamonds and Jewellery, a listed company, and group firm, Forever, owe Rs 6,800 crore to 15 banks in India.
India had sent LR to the United Arab Emirates around the middle of last year. A few months ago, the UAE, which is yet to respond to the request, had shared some information with India’s Financial Intelligence Unit (FIU), which handles inputs on suspect financial transactions. Agencies such as ED and CBI need help from the UAE to verify Winsome’s explanation for its inability to repay Indian banks.
(Source: The Economic Times)
3. India, Russia To Ink Deal On 5th-Generation Fighter Jet Design
After years of delay, India and Russia are likely to soon ink a “milestone” pact to finalise the detailed design for the fifth-generation fighter aircraft (FGFA) and move ahead with the multi-billion dollar co-development project.
Government sources said almost all the ground work has been completed to finalise the deal for design of the jet as well as some other critical issues.
“The contract for the detailed design would be signed soon and that will be a major milestone. It should be signed in the second half of the year,” a top official involved in the negotiations with Russia on the project said.
(Source: BloombergQuint)
4. Tata Motors Expects 15% Growth in Commercial Vehicles Exports
On the back of an over 11 percent growth last year, largest commercial vehicles maker Tata Motors expects to ship at least 15 percent more trucks and buses this financial year as it hopes to export at least half of the banned BS-III inventory.
The company also expects domestic sale of commercial vehicles, led by LCVs and buses, to grow 10-15 percent in fiscal 2018 aided by a favourable GST rate and the likely normal monsoons.
We expect our exports to grow 15 percent this year over last year when we grew over 11 percent and for the first time crossed the 60,000-mark. This will be partly because we expect to ship at least 8,000 of the banned 15,000 BS-III trucks and buses in the Saarc markets, primarily Nepal, Sri Lanka and Bangladesh where we already have good presence, and also in the West Asian and African markets,Ravi Pisharody, Executive Director for Commercial Vehicles, Tata Motors, to PTI.
(Source: Financial Express)
5. Hudco IPO Opens Today: Valuations Seen as a Plus, Bad Loans Still a Concern
Ahead of the opening of the initial public offering (IPO) of Housing and Urban Development Corp Ltd (Hudco) on Monday, analysts were mostly upbeat about the company’s valuations, even as concerns on bad loans remain. The government aims to sell a 10.19 percent stake in Hudco to raise up to Rs1,200 crore, with a price band of Rs 56-60 per equity share. The issue will open on 8 May and close on 11 May.
Hudco is engaged in wholesale funding, providing loans for housing and urban infrastructure projects. A major chunk of loans is offered to states and their agencies.
In a 5 May note, Reliance Securities Ltd said at Rs 60 a share, the upper end of the IPO price band, Hudco will have a price-to-book (PB) multiple of 1.3 times on December 2016 book value, and price to earnings (PE) multiple of 18.2 times on annualised nine-month FY17 profit.
(Source: Livemint)
6. Emaar India To Invest Rs 2,000 Crore In Two Years To Complete Projects
Realt estate major Emaar India will invest Rs 2,000 crore over the next two years to complete all its ongoing 50 projects across the country, a top company official said.
Dubai-based Emaar Properties entered the Indian real estate market in 2005 in partnership with India's MGF Development and invested Rs 8,500 crore through the joint venture firm Emaar MGF Land.
In April 2016, Emaar Properties announced its decision to end the 11-year-old joint venture through demerger. Since then, its Indian venture Emaar India is focusing on execution of ongoing projects.
(Source: BloombergQuint)
7. SoftBank May Finalise Snapdeal Sale to Flipkart Next Week, in Realignment of India Strategy
After ploughing about $2 billion into minority stakes in Indian e-commerce businesses over the past few years, Japan’s SoftBank Group Corp is upping the stakes, looking to play consolidator and take a more active role at a trio of leading start-ups.
According to persons with direct knowledge of the matter, the solar-to-tech conglomerate is seeking to secure a piece of India’s industry leaders in everything from payment systems to online shopping and groceries, in a series of deals that would shake up the $65 billion sector.
Among the most high-profile plans is SoftBank’s push to engineer Snapdeal sale to Flipkart, the leader of one of the world’s most competitive online retail markets. The deal could be finalised as soon as next week, one of the persons said.
(Source: Livemint)
8. Sinclair Broadcast Said Close to Buying Tribune for About $45 a Share
Sinclair Broadcast Group Inc is close to buying Tribune Media Co, sources said. According to people familiar with the talks who asked not to be named because the discussions aren’t public, the deal was made possible after the Federal Communications Commission voted last month to ease a limit on TV-station ownership in the US Sinclair would pay about $45 a share for the Chicago-based broadcasting company.
Tribune’s closing price on Friday was $40.29, giving it a market value of $3.5 billion. While an agreement may be announced as early as Monday, the deal could still fall apart.
The acquisition of Tribune would give Sinclair TV stations in big media markets like New York, Chicago and Miami, strengthening its hand in negotiations with pay-TV distributors and major broadcast networks. The larger scale also would help the combined company face down online competitors vying for a piece of the local advertising pie.
(Source: Financial Express)
9. Rising Global Steel Prices Make Anti-Dumping Duty Redundant
The protection against imports given to domestic steel companies has become redundant with international prices rising above the base price prescribed in the anti-dumping duty.
The development has exposed steel companies, reeling under high debt, to competition from international producers, at a time when demand is set to grow on the back of the government’s plans to spend Rs 3 lakh crore in infrastructure this fiscal.
The Directorate General of Foreign Trade recommended a base price of $489 a tonne on HR coil imports from China; the prevailing provisional anti-dumping duty price is fixed at $478 a tonne.
If the imported steel price is above the base price that triggers an anti-dumping duty, Indian buyers have to pay only the import duty of 12.5 percent.
(Source: The Hindu BusinessLine)
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