1. Chief Economic Adviser Arvind Subramanian Quits Government
India’s Chief Economic Adviser Arvind Subramanian said on Wednesday, 20 June that he was quitting his post to return to academic research in the United States, the third high-profile hire to leave Prime Minister Narendra Modi’s economic administration.
Subramanian’s departure comes at a time when the government is grappling with economic woes stemming from a soaring oil import bill, state banks saddled with a mountain of debt and sluggish private investment.
The Indian-born and Oxford-educated economist said he had to move on for personal reasons even though he enjoyed the challenge of playing a role in the stewardship of Asia’s third largest economy.
(Source: Reuters)
2. Critical Lapses, Blatant Violations Led to Nirav Modi Fraud: PNB Report
A $2 billion fraud at India's Punjab National Bank (PNB) may have been orchestrated by a few rogue employees, but it escaped detection because of widespread risk-control and monitoring lapses in many areas of the bank, the bank's own internal probe has found.
PNB, India's second-biggest state-controlled lender, has previously alleged that a handful of staff at a single Mumbai branch issued fake bank guarantees over several years to help two jewellery groups – controlled by Indian diamond magnate Nirav Modi and his uncle Mehul Choksi – raise billions of dollars in foreign credit and commit India's biggest-ever bank fraud.
(Source: Business Standard)
3. Police Arrest CEO, Director of State-Run Bank of Maharashtra over Loans
The police arrested the chief executive and an executive director of state-run Bank of Maharashtra on Wednesday, 20 June, accusing them of misusing their authority in making loans to a property developer.
Bank of Maharashtra Chief Executive Officer Ravindra Marathe and an executive director, Rajendra Gupta, were among six people arrested, police said.
Among the others arrested were Sushil Muhnot, a former chairman and managing director of the bank, a manager at the bank, a chartered accountant and an employee of DS Kulkarni Developers Ltd (DSKDL), police said.
(Source: Reuters)
4. Air India Stake Sale Plan Shelved: Government
India has shelved a plan to sell a 76 percent stake in state-owned carrier Air India due to lack of interest from bidders, a government official said on Wednesday, 20 June, marking the latest setback in its ambitious efforts to rescue the ailing airline.
Air India is now reviewing its funding needs and weighing ways to remain competitive, Junior Civil Aviation Minister Jayant Sinha told reporters at a briefing, adding the government is still committed to privatising the airline.
The decision to pull the plug on the plan came after India last month failed to attract buyers for the government’s stake in the debt-laden carrier.
(Source: Reuters)
5. Loans to MSMEs Could Create Rs 16,000 Crore NPAs: Report
Risky loans worth Rs 1.2 lakh crore to medium and small enterprises(MSMEs) in the system could potentially create Rs 16,000 crore worth NPAs by March 2019, according to a joint study by credit bureau Cibil and MSME lender Sidbi. Though NPAs are moderating, it is too early to say that they are bottoming out it said.
The Cibil-Sidbi report, noted that as of 31 March 2018, there is a system-wide exposure of Rs 120,000 crores belonging to entities which are ranked by Cibil as risky.
(Source: The Economic Times)
6. Doubling Farm Income by 2022: Modi Government’s Big Budget Boost
Reaching out to farmers, Prime Minister Narendra Modi on Wednesday, 20 June, showcased his government’s “unprecedented” work in the agriculture sector, including doubling of the budget to Rs 2.12 lakh crore.
Modi also reiterated that his government is working to double farm income by 2022. Continuing his outreach programme of direct interaction with beneficiaries of his pet schemes, Modi spoke to farmers from over 600 districts via video-conferencing, highlighting the government interventions right from seeds to market that is aimed at addressing farm distress.
(Source: PTI)
7. Tata Motors Eyes Rs 19 Billion Cost Cuts
Tata Motors is aiming to save Rs 19 billion through cost reduction initiatives during 2018-19, a number comparable to last financial year. It will launch 50 new variants and products in the commercial vehicle (CV) segment, the backbone of the company.
The cost savings of the last year came from both the CV and passenger vehicle (PV) division of the domestic business. Some of the cost saving initiatives include, bringing efficiencies in procurement of raw material and components and alternate cost effective sourcing.
(Source: Business Standard)
8. To Bridge Trade Gap, China Opens Door to Indian Raw Sugar
India will export 1-1.5 million tonne of raw sugar to China after almost a decade and is waiting for a formal notification from Beijing green-lighting the consignment. Though sugar exports attract a 50% duty in China, officials said it was still viable because of the high prices there.
Raw sugar is the second product after non-Basmati rice that China has decided to import, weeks after Prime Minister Narendra Modi's visit, in a move to reduce the $60 billion trade deficit with India.
(Source: The Economic Times)
9. Gayatri Project’s Rs 1,111 Crore Bid for Purvanchal Expressway Gets Cancelled
Gayatri Projects on Wednesday, 20 June, said the UP government has reinvited bids for Purvanchal Expressway and cancelled the company’s Rs 1,111-crore offer made earlier for a package under the scheme. Gayatri Projects was declared the lowest bidder for the 6th package of the project for a quoted price of Rs 1,111.03 crore.
“The UP government has cancelled the earlier bid on the Purvanchal Expressway Project and has reinvited the bids. The Purvanchal Expressway is a 341 km long project and comprises of 8 packages,” the company said in a BSE filing.
(Source: PTI)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)