New Industrial Policy to focus on jobs, push tech use, cut red tape
The much-anticipated New Industrial Policy, which will replace the 27-year-old existing policy and pave the way for promotion of new technology and reduced regulations, has been placed before the Union Cabinet for approval. “The New Industrial Policy is now just a Cabinet nod away. Its implementation will lead to job creation and modernization of units, and will encourage entrepreneurs to experiment with new technology to improve efficiency,” a government official told Business Line. “All ministries and departments concerned were kept in the loop throughout the drafting process. Hence, there were no major changes proposed during the inter-ministerial consultations,” the official said.
Court asks CBDT to clarify on STT by August 28
The Bombay High Court on Thursday directed Additional Solicitor General (ASG) Anil Singh to seek clarity from CBDT by August 28 on securities transaction tax (STT) on physical delivery of equity derivatives. The brokers’ association ANMI moved the court last month against SEBI and NSE for holding brokers responsible for collecting STT on physical delivery of equity derivatives. CBDT too has been made a party to the matter. Brokers say there is no provision in law to tax derivative trades that result in delivery. ANMI reasons that unless Parliament passes a law for STT levy on contracts in the equity futures and options (F&O) segment that result in delivery, there is no mandate for brokerages to collect it from their clients or for exchanges to levy it on brokers.
Ruchi Soya lenders approve Adani Wilmar’s Rs 6,000 crore bid
Lenders of Ruchi Soya have approved the Rs 6,000 crore bid of Adani Wimar to acquire the debt-ridden edible oil firm, sources said. Adani Wilmar and Baba Ramdev’s Patanjali group have been engaged in a long-drawn battle to take over Ruchi Soya. Adani Wimar’s bid was approved by the committee of creditors (CoC) with about 96 per cent votes in favour. The resolution professional will now seek approval from the National Company Law Tribunal (NCLT). Adani group firm Adani Wilmar, which sells cooking oil under Fortune brand, and Baba Ramdev-led Patanjali were in the fray to acquire Ruchi Soya.
Resurgent, Adani, JSW & Vedanta eye stressed power projects at half of cost
Tata Power and ICICI Bank-backed Resurgent Power, Adani Power, JSW Energy and Vedanta Plc are eyeing a large chunk of stressed power assets at half of the projects’ cost as lenders rush to close deals ahead of August 27 deadline. Resurgent Power, 26% owned by Tata Power, has put in a bid of about Rs 4,600 crore for the beleaguered Jaiprakash Power Ventures Ltd (JPVL), about 40% of the projects’ cost. JPVL owns three power plants — 1,320 Mw Nigrie with an attached coal mine, 500 Mw Bina, 400 Mw Vishnuprayag hydro plant — and a transmission line, sources said.
Sebi alarmed over top MFs holding big chunk of AUM
The Securities and Exchange Board of India is worried over the growing concentration of the mutual fund industry’s assets under management among a top few players and is examining proposals to cut a key fee charged by funds to investors. Chairman Ajay Tyagi said on Thursday that capital market regulator is examining whether the high profitability of a few funds is because of the high total expense ratio — the fee that mutual funds charge investors to manage the schemes. It will also come out with a policy on close-ended schemes, he said.
Banks look to oust Lanco Devihalli from road project to recover loans
A consortium of lenders, led by the State Bank of India (SBI), is looking for a bidder to replace Lanco Devihalli Highways Ltd as the operator of a road project in Karnataka to recover loans of 340 crore, according to two bankers involved in the deal. The move comes at a time when the parent company Lanco Infratech is at the Hyderabad bankruptcy court awaiting orders on a liquidation plea filed by its resolution professional. Its committee of creditors (CoC) rejected a revised bid by Thriveni Earthmovers, PTI reported on 21 August.
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