1. India Likely to Miss Fiscal Deficit Target in 2018-19: Moody’s
The Narendra Modi government is likely to miss its fiscal deficit target in its final year in office due to higher than budgeted oil prices and rising interest rate scenario, Moody’s Investor Service said on Wednesday, 29 August. The government has set the target of reducing fiscal deficit to 3.3% of GDP in 2018-19 from 3.5% of GDP in the previous fiscal year.
“Higher-than-budgeted oil prices will add to short-term fiscal pressures, which points to a higher risk that the government’s deficit objective will not be met,” Moody’s said in the report.
(Source: Livemint)
2. Two Years After Demonetisation, Over 99% Banned Notes Back; RBI Finishes Verification
Nearly two years after demonetisation, RBI has completed the tasks of processing and verifying banned currency notes.
On 8 November, the number of Rs 500 and Rs 1,000 notes in circulation was 15.4 lakh crore and the total value of specified bank notes (SBNs) returned to the banks now stands at 15.3 lakh crore, (which amount to 99% of total demonetised notes), RBI annual report for 2017-18 showed.
It was in November 2016, the government had announced the demonetisation of all Rs 500 and Rs 1000 banknotes of the Mahatma Gandhi Series.
(Source: The Financial Express)
3. Cabinet Approves Additional Funding of Rs 635 Crore for IPPB
The Union Cabinet has approved additional funding of Rs 635 crore for India Post Payments Bank (IPPB), which is set to be launched on 1 September to provide financial services to those living in rural areas.
“The additional sum of Rs 635 crore in the revised cost estimates is on account of Rs 400 crore for technology costs and Rs 235 crore for human resource costs,” the government said in a statement on Wednesday, 29 August.
(Source: Economic Times)
4. After Bad Loans, RBI Flags Rise in Bank Frauds Too
It’s not just bad debts that are troubling banks. The Reserve Bank of India has expressed concern over the quantum jump in overall frauds in the banking sector, to Rs 41,000 crore in 2017-18 from Rs 23,000 crore in the previous year.
The number of fraud cases reported by banks, which averaged 4,500 a year in the past 10 years, increased to 5,835 in 2017-18, according the RBI annual report.
Flagging its concern on the issue, the RBI said there is a need for improvement in the audit function and its governance.
(Source: The Hindu Business Line)
5. Global Stocks Hover as Investors Still on Tenterhooks over Trade Deal
Global stocks faltered on Wednesday, 29 August, as optimism over a US-Mexico trade deal faded with investors anxious about Canada’s acquiescence and eyeing a deadline for the next round of China-US tariffs next week.
Canada’s chief negotiator continued talks to preserve a three-nation North American Free Trade Agreement following Monday’s deal, but uncertainty over how long it could take for a final agreement to pass Congress kept moves muted.
MSCI’s world equity index, which tracks shares in 47 countries, edged down 0.02% from the 5 1/2- month highs it hit after Mexico and the US struck their deal.
(Source: Livemint)
6. Domestic Pharma Players Eye Bharat Serums Acquisition
Domestic pharmaceutical companies Cipla, Zydus Cadilla, Dr Reddy’s Laboratories and private equity fund Baring Asia are among those evaluating the acquisition of Mumbai-based vaccine maker Bharat Serums and Vaccines Ltd. (BSV), according to two people familiar with the development.
The promoter Daftary family and existing investors Kotak Private Equity and Orbimed Asia are looking to sell their stake in the company at a $1 billion (Rs 7,059 crore) valuation and have mandated investment bank Jefferies to manage the sale process, which is expected to start in the coming weeks.
(Source: Economic Times)
7. Anil Ambani-Run Reliance Infra Approves Deal with Adani Transmission for Rs 18,800 Crore
In a major development, Anil Ambani-run Reliance Infrastructure said that its board has approved the transfer of integrated Mumbai power business to Adani Transmission, in a deal valued at Rs 18,800 crore.
RInfra has obtained all relevant approvals from fair trade regulator Competition Commission of India (CCI), shareholders of the company, Maharashtra Electricity Regulatory Commission, and others for sale of Mumbai power business to Adani Transmission for Rs 18,800 crore, said the firm.
In a press conference, Anil Ambani said that RInfra is undergoing a transformation to being asset light, high growth and high dividend company.
(Source: Financial Express)
8. Indian Oil Earmarks ₹22,000 Crore Capex for FY19
Indian Oil Corporation (IOC) on Wednesday, 29 August said it has lined up Rs 22,000-crore capex plan for the current fiscal year and will commission the Ennore-Manali LNG pipeline on schedule by the end of the year.
Sanjiv Singh, the chairman of the nation’s largest oil marketing company, said the board has approved a capex plan of RS 22,000 crore for FY19, of which around Rs 6,000 crore will be towards upgrading refineries to meet BS-VI emission norms.
Addressing reporters after the AGM, Singh also said the company is confident of commissioning the over Rs 4,000-crore, the 1,170-km-long pipeline linking its Ennore LNP terminal near Chennai to Manali in Himachal in 2018.
(Source: Livemint)
9. ISRO, Antrix to Involve Private Sector in SSLV Biz
The Indian Space Research Organisation (ISRO) and Antrix (commercial and marketing arm of ISRO) are to involve private sector majorly in ₹ 1500–2000-crore annual Small Satellite Launch Vehicle (SSLV) business.
“SSLV’s launches will commence sometime mid-2019. We want to involve private sector from the beginning and will be offering them development and launches,” said K Sivan, Chairman ISRO.
Addressing a press conference to announce the 6th edition of Bangalore Space Expo, 2018, organised by Antrix and CII, Sivan said: “We have already worked with a few corporates like Godrej, L&T and HAC. We don’t see any hurdle involving the private sector.”
(Source: The Hindu Business Line)
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