Disclose assets by April 21, SC tells Mallya
The Supreme Court on Thursday directed beleaguered liquor baron Vijay Mallya to disclose to it all his assets—movable and immovable and tangible and intangible—and other interests in India and abroad by April 21. An apex court Bench comprising Justice Kurien Joseph and Justice Rohinton Fali Nariman asked Mallya to disclose all the assets held by his wife and children and also indicate the date when he could appear before it in person. The order came after a consortium of 23 nationalised banks and financial institutions today rejected in the Supreme Court Mallya’s offer to repay the Rs 9,000 crore loans in a staggered manner.
Funding of exports to Iran from India through the Export Development Fund of Exim Bank
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for increasing the framework agreement between Exim Bank of India and a consortium of Iranian banks lead by Central Bank of Iran for financing the purchase of goods and services from India to Rs.3000 crore from Rs. 900 crore. This will be done by utilising the Export Development Fund (EDF). The proposal provides for domiciling two contracts of export of steel rails by STC and for the Chabahar Port Development project previously approved by the Cabinet under EDF. The proposal will promote the country’s exports with Iran. It will also deepen India’s relationship with Iran as a strategic partner. Background The Exim Bank of India and seven Iranian Banks led by Central Bank of Iran had negotiated a framework agreement in November, 2014 for financing the purchase of goods and services from India by Iranian entities to the tune of Rs.900 crore under EDF. The increase to Rs. 3000 crore will enable the Exim bank to provide Buyer’s credit facility to Iran, secured via sovereign guarantee from Iran, for the export of goods and services. This will provide opportunity to Indian Companies to penetrate and enhance their footprint in Iran along with facilitating the growing trade and investment with Iran. This will also help in employment generation and development of ancillary activities in India.
Minister of State for Petroleum and Natural Gas Sh Dharmendra Pradhan to visit Iran and UAE
Shri Dharmendra Pradhan, Minister of State (I/C) for Petroleum and Natural Gas, will be visiting Iran and UAE on 9-12 April 2016. During his visit to Iran from 9-10 April, Sh. Pradhan will meet Iranian Minister of Petroleum, Senior Adviser to President of Iran on Free Trade Zones and Governor of Central Bank of Iran in Tehran. He would also be addressing the Tehran Chamber of Commerce. He will be visiting Chabahar FTZ to interact with FTZ authorities. The last visit by an Indian Minister of Petroleum and Natural Gas to Iran was in April 2007. India and Iran share historic bilateral relations with substantial economic engagements, covering many sectors. The trade relations have traditionally been buoyed by Indian import of Iranian crude oil. The bilateral trade during the fiscal year 2014-15 was US $ 13.13 billion. India imported US $ 8.95 billion worth of goods, mainly crude oil and exported commodities worth US $ 4.17 billion. The visit of Sh Pradhan envisages engaging with the Iranian political leadership to work with them, particularly in the hydrocarbon, petrochemicals and fertilisers sectors for mutual benefits, including strengthening of India’s energy security. During the visit to UAE from 11-12 April, Sh Pradhan will meet HE Suhail Mohammed Al Mazrouei, Minister of Energy of UAE in Abu Dhabi. He will also meet with CEO of ADNOC and Chairman of AIDA (Abu Dhabi Investment Authority). During his stay in Dubai, Sh Pradhan will meet Emirati Businessmen, inaugurate India Pavilion at the Annual Investment Meet-2016 at the World Trade Centre, visit Jabel Ali Free Zone Authority (JAFZA) and interact with JAFZA authorities. He is also scheduled to meet Indian businessmen and professionals. The visit of Sh Pradhan to UAE is a follow up of the February 2016 visit of Crown Prince of Abu Dhabi HH Sheikh Mohammed Bin Zayed Al Nahyan and Minister of Energy H E Mr Al Mazrouei. In the recent years, the traditionally close and friendly India – UAE bilateral relationship has evolved into a significant partnership in the economic and commercial sphere. India-UAE trade, which was valued at US $ 180 million per annum in the 1970s, is today around US $ 60 billion making UAE, India’s third largest trading partner for the year 2014-15. For UAE, India is the largest trading partner for the year 2014, with an amount of over US$ 28 billion (non-oil trade). On the energy front, UAE contributes significantly to India’s energy security, being the 6th largest supplier. India is the 2nd largest destination for UAE’s oil exports. India imported 16.11 MMT of crude oil from UAE during 2014-15 and 11.52 MMT during April-December 2015. Mr Pradhan will be accompanied by senior officials from his Ministry and also from Departments of Petrochemicals, Fertilizers and Economic Affairs, apart from CMDs/MDs and officials from Central Public Sector Oil and Gas, Fertilizers, Shipping and Metal companies. Representatives of private Indian companies involved in petroleum, petrochemicals and fertilizers sectors will also be travelling along with Sh Pradhan as part of a FICCI delegation.
Petroleum & Natural Gas Minister dedicates 36 new CNG stations in Delhi & NCR
The Minister of State (Independent Charge) for Petroleum & Natural Gas Shri Dharmendra Pradhan today dedicated 36 new CNG stations located in Delhi and NCR to the public. 30 out of these stations have been installed by Indraprastha Gas Limited (IGL) at the retail outlets of Oil Marketing Companies like Indian Oil, BPCL and HPCL. 3 stations by Haryana City gas in Gurgaon, 1 station by GAIL Gas in Sonepat and 2 stations by Adani gas – one each in Faridabad and Khurja (Bulandshahar) have been set up. While 25 out of these 36 CNG stations are located in NCT of Delhi, 11 are located in NCR – Ghaziabad, Greater Noida, Gurgaon, Faridabad, Sonipat and Khurja. Inaugurating the CNG dispensing at the retail outlet of Indian Oil located in Gole Market, New Delhi, Shri Pradhan underlined the commitment of the central government to make CNG available across the country so that clean fuel is accessible at doorsteps for all. He said that CNG corridors across Delhi – Mathura – Agra – Lucknow – Bareilly, Delhi – Chandigarh, Delhi – Jaipur and Delhi – Haridwar would be operational shortly so that the vehicles can run long distances on CNG. He reiterated that CGD industry has been given top priority in natural gas allocation. The Minister applauded the efforts of oil marketing companies and city gas distribution companies for rolling out the current initiative for CGD infrastructure in Delhi and NCR. He also said that these companies are geared up for extending all possible cooperation for converting cars to CNG in Delhi and NCR. Out of the 1026 CNG stations currently in operation in the country, about 34% are located in Delhi and adjoining NCR towns. Delhi/NCR is having 347 CNG stations of about 77 lakh kg per day CNG dispensing capacity. All 4 CGD companies operating in Delhi/NCR have planned to augment the existing CNG dispensing capacity to 88 lakh kg per day by developing additional 104 CNG stations in Delhi/NCR. The actual CNG consumption in Delhi/NCR is around 25 lakh kg/day. With the focussed approach of the central government for augmenting CNG capacity in Delhi/NCR, 36 new CNG stations with the total capacity of about 2.3 lakh kg/day have been commissioned today. The new dispensing capacity will increase the availability of CNG to the people of Delhi and NCR. Also present on the occasion were Ms Meenakshi Lekhi, Member of Parliament, Shri B.C. Tripathi, CMD, GAIL (India) Ltd., Shri B. Ashok, Chairman, Indian Oil, Shri Ashutosh Jindal, Joint Secretary, Ministry of Petroleum & Natural Gas, Ms Sunita Narain, DG, Cenre for Science & Environment and Mr Narendra Kumar, MD, IGL.
IOC sought details about Cuddalore unit, says Nagarjuna Oil
Hyderabad-based Nagarjuna Oil Refinery Ltd has said that Indian Oil Corp (IOC) sought information on the upcoming Cuddalore refinery for making a possible equity investment but the state-owned firm said there was no such proposal under consideration at present. “Various prospective investors including public sector companies such as IOC have sought information on the project,” Nagarjuna Oil said in a stock exchange filing. “These prospective investors have been provided with the information sought from time to time.” IOC, however, in a statement said, reports of it being interested in stake in the Cuddalore refinery is speculative and “there is no such proposal under consideration by Indian Oil at present”. Highly placed sources yesterday said that IOC was talking to Nagarjuna Oil. The move followed talks by Singapore-based Netoil to buy a stake in Nagarjuna Oil Corp (NOCL) broke off in February this year. Nagarjuna Oil Refinery Ltd (NORL) holds 46.78 per cent of the equity share capital of Nagarjuna Oil Corporation (NOCL). Tatas too are a shareholder in the refinery. Nagarjuna Oil Refinery had in September year stated that a confirmatory due diligence of NOCL was being undertaken by Netoil to acquire the project for Rs 3,600 crore. The six million tonnes refinery is the first phase of a Rs 25,000 crore project that will have an ultimate capacity of 12 million tonnes. The project was delayed due to damages caused by a cyclone some years back as well as funding problems due to global economic slowdown later.
GST clearance: Arun Jaitley questions extent to which Rajya Sabha can block policy
Weeks before Parliament convenes for the second leg of the budget session, during which the government will make another bid to get legislation related to the goods and services tax (GST) passed, finance ministry Arun Jaitley questioned the extent to which the Rajya Sabha can stand in the way of policy change. The constitutional amendment bill to facilitate GST has been passed in the Lok Sabha but is stuck in the Rajya Sabha, where the ruling coalition is outnumbered. “To what extent our Upper House is going to be used to block economic decision making… In Australia, the debate is on, the UK has gone through this debate a while ago and Italy is having the same debate, because ultimately the weight of a directly elected House will always have to be maintained,” Jaitley said at the Growth Net Summit in the capital on Thursday, adding that he would again seek to reach out to Congress for support on the bill. The second leg of budget session is scheduled to begin on April 25. Being a constitutional amendment bill, the legislation needs to be passed by a two-thirds majority. Congress has raised three key conditions, including a low GST rate of 18% that’s specified in the constitutional amendment bill, which is not acceptable to the government. “It is now coming down really to one issue. The only opponent to GST is the Congress party. Curiously, the party which had sponsored the law in the first instance has some belated wisdom that you must have a constitutional cap. Now that seems a little difficult,” Jaitley said, adding that the government is also keen on a reasonable GST rate. “I have no problem with the rate,” he said but questioned where the rate should be prescribed. Putting a cap on GST rate in the constitutional bill will make changes hard as that will in turn require a constitutional amendment. Instead, this should be left to the GST Council. Jaitley was critical of the demand for a rollback of excise duty on jewellery imposed in the February 29 budget. Keeping luxury items out of the proposed taxation system would mean these being subsidised by essential goods. “I am then reminded of President (Bill) Clinton’s comment on the economy you can’t create a situation where GST moves up into the 20s by keeping luxury items (out) and then say now maintain it at 18%,” he said. There’s “greater need for a mature level of thought and discussions as far as these issues are concerned,” he said. He said this was not a problem specific to India. “As I travel around the world I see a lot of democracies having it.” Jaitley said the government has undertaken a series of incremental reforms that together pack a wallop. “This government is yet to commit its first mistake as far as economic policies are concerned. All steps which are taking place are in one direction and slowly and surely you are moving in that direction carrying the democratic opinion along with it,” he said. Jaitley said there was greater support for reforms now. “One of the great successes has been that today India doesn’t face any political opposition to reforms,” he said. “That’s because India is becoming more aspirational, people are feeling the benefit of the reform process and carrying that section of opinion along with you, I think, is a big challenge in which we have succeeded.”
MSRDC plans office in Mahape to draw smart cities’ blueprint
The Maharashtra State Road Development Corporation (MSRDC) will launch its town planning office in Mahape on April 16, to further its ambitious smart city project next to the Mumbai-Pune Expressway. R Mopalwar, vice-chairman and managing director of MSRDC, talked on the issue at Belapur on Tuesday evening. Mopalwar was speaking as the chief dignitary at a symposium organized by Youth Wing of Builders Association of Navi Mumbai (BANM) to discuss smart cities project of MSRDC, on the similar lines of Cidco’s Naina (Navi Mumbai Airport Influence Notified Area). Haresh Chheda of BANM told TOI, “City developers welcome the entry of MSRDC into this new and emerging scenario of making smart cities in Raigad, just like Cidco has been doing over the years. Mopalwar delivered a very factual and informative talk on how the smart cities along the Expressway will chart new territories in realty development.” As the 89-km long Expressway will be the nerve centre of these planned smart cities by MSRDC, its phase-1 will include 67 villages in Khalapur taluka and 17 in Panvel, but will exclude those under the announced Naina project of Cidco. An MSRDC official said that things are going to move fast in the weeks ahead, once their Navi Mumbai (town planning) office is set up where they can discuss and plan their blue prints for the smart cities. An expert consultant is also likely to be appointed by MSRDC in this endeavor. “This is indeed a golden opportunity for developers to participate in this mega future development of cities. We are also glad that MSRDC is forthcoming with their vision and are ready to listen about the actual ground realities and hurdles likely to crop up for such a big project. From the common man’s point of view, housing is also likely to become affordable,” added Chheda.
Cairn faces Rs 102.47 billion fine on top of Rs 290 billion tax demand
British oil explorer Cairn Energy Plc faces up to Rs 102.47 billion penalty over and above the Rs 290 billion in tax and interest demand slapped on it by the I-T Department using a retrospective legislation. In a circular to shareholders, the company said it had on February 4 received “a final assessment order from the Indian Income Tax Department in amount of Rs 102.47 billion plus interest back dated to 2007 totalling Rs 188 billion. “The aggregate amount of Rs 290 billion excludes any applicable penalties which may also be applied to the final assessment (potentially up to 100 per cent of the final assessment order, excluding interest).” The I-T Department had on January 22, 2014 issued a draft assessment order of Rs 102.47 billion on alleged capital gains Cairn made in a 2006 reorganisation of its India business. The final assessment order was issued on February 4, 2016. The notice was, however, issued before Finance Minister Arun Jaitley in his Budget for 2016-17 made a one-time offer to waive interest and penalty if the companies paid the principal amount to settle the retrospective tax disputes. “Cairn strongly contests the final assessment proceedings in India and is pursuing its rights under Indian law to appeal the assessment, both in respect of the basis of taxation and the quantum assessed and to protect from enforcement against the assets of CUHL,” the company said in the circular. CUHL is a Cairn subsidiary. Enforcement of any tax liability deemed due by the Indian Income Tax Department “will be limited to the assets of CUHL which have a current value of approximately USD 477 million, and comprise principally Cairn’s residual 10 per cent shareholding in Cairn India, which has already been provisionally attached by the Indian Income Tax Department,” it said. IT Department alleges that Cairn Energy made a capital gain of Rs 245.035 billion in 2006 when it transferred shares of Indian assets that were held in a subsidiary set up in the tax haven of Jersey, to newly incorporated Cairn India.
Passengers body calls for removal of 5/20 rule
The Air Passengers Association of India (APAI) has asked the ministry to remove the controversial 5/20 rule and attacked the Federation of Indian Airlines, which is lobbying against the removal of the rule. In a letter addressed to Civil Aviation Secretary Rajiv Nayan Choubey, the association said: “It must be completely scrapped and the Directorate General of Civil Aviation (DGCA) must be empowered to consider giving licences to all those airlines that have financial muscle.” Business Standard has seen a copy of the letter. The controversial 5/20 rule makes it mandatory for an airline to have five years of domestic operations and 20 aircraft to become eligible for flying abroad. With a civil aviation policy on the cards, airlines are divided over the proposed removal of the rule. IndiGo, Jet Airways, SpiceJet and GoAir have opposed doing away with the rule. But new airlines such as Vistara and AirAsia want the rule is removed. The letter also said the FIA, which represents the older airlines, acts as a cartel and takes joint decisions that harm the interests of passengers. “It is pertinent to note that FIA is nothing but an organisation established for self-serving causes and does not care to address any other issue, including those of the passengers and their grievances,” the letter said. ” It is also pertinent to note that all airlines registered with DGCA are not allowed to become members of this body which goes on to show that this is nothing but an entity to lobby when required for self-serving their own cause.”
Good-bye Russia. India’s aerospace industry chooses Ukraine
Ukraine is doing more than USD 100 million in annual defense business with India, and aims to increase it to USD 500 million in the next three years A sensational event for both Ukraine and the world happened in India but it was unfortunately by-passed in the headlines of the Ukrainian press. Despite this fact, during the Defexpo India 2016 in Goa the country’s ministry of defence along with several companies signed more than a dozen memorandums for the manufacturing of 500 transport planes as well as the supply of gas turbines for Indian warships. This took place in light of the previously frozen joint project with Russia about the development of a transport warplane Multi-role Transport Aircraft (MTA) and the rejection from the Russian side to service the ships. The Defexpo India 2016 theme covers the manufacturing and development of weapons for ground forces and army naval forces, including air defence, army aviation as well as dual-use products. The exhibition is pivotal for the whole of South and Southeast Asia. It is held every two years and this was the ninth exhibition to date. More than 600 companies from around the world take part in the exhibit. The Defexpo India 2016 display area is about 40 thousand square metres.