1. US May Review GSP Policy After New Govt Takes Over
The US may wait until a new government takes charge in New Delhi before it takes a call on withdrawing duty-free benefits to Indian exporters, or consider further negotiation on the issue.
The Donald Trump administration had decided to withdraw the generalised system of preferences (GSP) benefits worth $5.6 billion to Indian exporters in March. However, it did not implement the decision through a Presidential proclamation after the 60-day deadline ended on 2 May.
(Source: LiveMint)
2. Naresh Goyal Offers ₹250 Crore for Jet Airways’ Immediate Needs
Naresh Goyal, founder of Jet Airways (India) Ltd, has offered to infuse ₹250 crore of his own funds into the grounded airline in a new twist, in protracted attempts to revive the Mumbai-based carrier.
In a letter addressed to Jet Airways’ employees on Monday, Goyal said he had made the funds available to the banks that now control the airline.
Goyal, who stepped down from the board and chairmanship of Jet Airways in April, said he would invest the funds from Jetair Pvt Ltd, a company that he controls. Mint has reviewed a copy of the letter.
(Source: LiveMint)
3. Piramal Signs MoU With Canada's Biggest Public Pension Fund to Co-Sponsor $600 Million InvIT
Piramal Enterprises Ltd on Tuesday signed a memorandum of understanding (MoU) with Canada's biggest public pension fund, Canada Pension Plan Investment Board (CPPIB), to co-sponsor a $600 million (Rs 4,163 crore) renewable energy-focused Infrastructure Investment Trust (InvIT).
Ajay Piramal, Chairman of Piramal Group, in a public statement said: "We are pleased to partner with CPPIB on the launch of the first ever InvIT in India, focused on renewables." The InvIT would acquire up to 1.5-2GW of stable and cash generating renewables assets, the statement added.
(Source: Business Today)
4. Airtel, Hughes to Combine VSAT Ops in India
Bharti Airtel and Hughes Communications India will be combining their VSAT operations creating a leader in satellite communication with 63.59% market share. As per the agreement, Hughes will have majority ownership in the combined entity while Airtel will also have a significant shareholding. As per data from Trai, at the end of December, Hughes Communications had 103,168 VSAT subscribers with 35.89% market share followed by Airtel with 79,604 subscribers and 27.70% share.
In terms of revenues from VSAT services, Bharti Airtel earned Rs 25.85 crore as adjusted gross revenue for October-December quarter whereas the same for Hughes Communications stood at Rs 31.52 crore. As per an official statement, the combined entity will benefit from enhanced scale, improved operational efficiencies and wider market reach. The combined entity will be well positioned to leverage the demand for secure connectivity in a rapidly growing digital economy.
(Source: Financial Express)
5. Escorts Q4 Profit up 7.8%, Misses Analyst Estimates
Tractor maker Escorts on Tuesday reported a 7.8% year-on-year (y-o-y) increase in net profit at Rs 121.35 crore for the January-March quarter, lower than Bloomberg consensus estimates of Rs 135.5 crore. The lower-than-expected profit was a result of subdued volume growth and weak operating performance. Analysts said volume growth of tractors was affected due to seasonality, lower rabi crop sowing and weakening cycle.
(Source: Financial Express)
6. SpiceJet Offers Business Class Seats at 30-40% Less Than Competitors
Passengers can now book business class seats on SpiceJet flights as the low-cost carrier, apart from launching this category, is offering fares at 30-40% less expensive than competitors. Experts believe that average business class fares are likely to moderate in the coming days since Jet Airways, the largest provider of business class seats, shut operations last month.
(Source: Financial Express)
7. New GDP Series Faces Fresh Questions After NSSO Discovers Holes
A key database introduced in India’s new gross domestic product (GDP) series has now been found to be full of holes, raising fresh questions over the controversial and contested GDP numbers in Asia’s third-largest economy.
A study conducted by the National Sample Survey Office (NSSO) in the 12 months ended June 2017 and released last week has found that as much as 36% of companies that are part of MCA-21 database of companies and are used in India’s GDP calculations could not be traced or were wrongly classified.
(Source: LiveMint)
8. IndiaTech Lobbies for Promoter Holding Below 20% in HGTCs Post IPO
Industry lobby group IndiaTech, which represents technology start-up firms like Ola, makemytrip and Hike, has suggested an exemption for promoters of high growth technology companies (HGTCs) from maintaining a minimum stock holding requirement of 20% post the initial public offer (IPO).
Responding to a consultation paper floated by capital markets regulator Sebi on issuance of shares with differential voting rights (DVRs), the lobby group said: “We recommend that, in case of HGTCs, Sebi should consider exempting the promoters (founders) from complying with the minimum promoter’s contribution requirement.” In the consultation paper, Sebi has not proposed any exemption for HGTCs on the requirement that promoters must hold at least 20% of the post-issue capital.
(Source: Financial Express)
9. ONGC, Others Eye Blocks in Unexplored Basins After Changed Rules Under Revised OALP
With changed rules under the revised Open Acreage Licensing Policy (OALP) allowing contractors bidding for blocks in category 2 and 3 basins to not share any revenue unless windfall gains are made, explorers including state-run ONGC are looking to carve out blocks in these basins starting from the fourth round.
(Source: Financial Express)
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