Iran, no longer under sanctions, has ended free shipping of crude oil to India and has terminated a three-year-old system of getting paid for half of the oil dues in rupees. The Persian Gulf nation is now insisting on being paid in Euros for the oil it sells to Indian refiners. It also wants refiners like Essar Oil and Mangalore Refinery and Petrochemicals Ltd (MPRL) to clear nearly USD 6.5 billion of past dues in Euros, officials said.
Iran had in November 2013 offered free delivery of crude oil to Indian refiners as tough Western sanctions crippled its exports. With shipping lines refusing to transport Iranian crude for fear of being sanctioned, Iran used its shipping line for the delivery and did not charge for transportation.
@ Agency report.
New Delhi, Apr 14,2016 : Issuance of rupee-denominated masala bonds overseas is a step towards making the Indian currency global, CARE Ratings said today.
Rupee-denominated bonds issued overseas can become an important instrument from the point of view of Indian companies which can raise such funds from global markets without taking on the currency risk, CARE Ratings said in a note.
“It differs from External Commercial Borrowings (ECBs) as these are issued in rupees and repaid in the same currency. It is a step towards making the rupee a global currency where foreign investors buy such bonds”, it said.
Presently the limit of USD 51 billion for foreign investment in corporate debt has been fixed in rupee terms at Rs 2,443.23 billion.
Issuance of rupee-denominated bonds overseas is also within this aggregate limit of foreign investment in corporate debt, it said.
On maturity period of three years for rupee denominated bonds issued overseas so that it is aligned with the maturity for foreign investment in corporate bonds, CARE said the it is a positive move and will lead to more companies raising funds through this route.
“This route can also be used by foreign companies or governments who would like to invest in India by borrowing from overseas markets provided the cost is favourable”, it added.
@ Agency report.
NEW DELHI : Solar power tariff remained below Rs 5 per unit in the latest auction conducted by state-run NTPC Ltd for 500 MW capacity at Pavagada Solar Park in Tumkur, Karnataka.
“The lowest tariff was quoted at Rs 4.78 per unit in the auction concluded yesterday by the NTPC Ltd for its solar capacity at Pavagada Solar Park in Tumkur district of Karnataka,” a source said.
“One company quoted Rs 4.8 per unit while four firms gave same price of Rs 4.79 per unit under the auction for solar project,” he said.
However, the tariffs bid were above the record low of 4.34/unit seen in January.
NTPC has planned a capacity addition of about 1,000 MW through renewable resources by 2017. It has already commissioned 110 MW Solar PV Projects and another 15 MW Solar PV and 8 MW Small Hydro Projects are under implementation.
@ Agency report.
New Delhi, Apr 12 ,2016 : India’s exports are estimated to throw up a conservative figure of USD 250-260 billion for the last financial year due to global demand slowdown, a top government official said today.
The merchandise exports had totalled USD 310.5 billion in 2014-15.
But the situation may improve this year on account of gradual “hardening” of commodity and oil prices, the official said, adding that “the measures announced by the government would show a positive impact on exports from this year”.
In 2015, the government has announced enhanced duty drawbacks under the Merchandise Exports from India Scheme (MEIS) and 3 per cent interest subsidy scheme.
Way back in 2008-09, the country’s out-bound shipments were less than USD 270 billion — around USD 210 billion, to be precise — said exporters body Federation of Indian Export Organisations (FIEO).
Falling for the 15th month in a row, exports tumbled 5.66 per cent in February to USD 20.73 billion.
For April-February 2016, cumulative exports declined 16.73 per cent to USD 238.41 billion as against USD 286.3 billion in April-February of 2014-15.
@ Agency report.
Mumbai : Nestle jumped over 5 per cent after the FMCG major said its popular product Maggi cleared tests conducted by Central Food Technological Research Institute (CFTRI) under the directive of Supreme Court, reiterating that the instant noodles brand is safe for consumption.
The stock after making a positive opening jumped further by 5.23 per cent to Rs 6,180 on BSE.
At NSE, shares of the company climbed 5.35 per cent to Rs 6,185.05.
“CFTRI has submitted analysis reports on Maggi noodles to the Supreme Court. We have been provided with a copy of the reports. We are happy that all 29 samples tested by CFTRI are clear,” Nestle India said in a statement yesterday.
The reports state that lead levels for all samples are within permissible limits, it added.
“All 29 samples of Maggi Noodles,(the initial 13 and subsequent 16 samples), were collected by the relevant authorities following due process and then directly submitted to CFTRI,” Nestle India said.
The Supreme Court on December 16 last year, ordered testing of samples of Maggi noodles in Mysore laboratory after the National Consumer Disputes Redressal Commission (NCDRC) had directed that it be done in Chennai.
@ Agency report.
London : UK business minister Sajid Javid is rushing to Mumbai to hold crunch talks with Tata Group chairman Cyrus Mistry in an effort to save the British steel industry after the Indian steel giant decided to sell its loss making plants in the country.
But before he leaves today for the hurriedly planned India trip, Javid is also set to hold crucial talks with Indian-origin businessman Sanjeev Gupta, who has expressed an interest in acquiring Tata Steel’s embattled Port Talbot plant in South Wales.
“Many of them are loss making at the moment but we believe they can be turned around,” Gupta, founder & CEO of commodities firm Liberty House, told the BBC.
His firm is conducting due diligence of the Tata Steel operations and have held talks with the Tata Group over the prospect of acquiring the unit and saving thousands of jobs.
“If we get involved in Port Talbot we will only do so on the basis that we are confident there will not be any mass redundancies,” he said.
“We have an alternative suggestion which is to still make hot metal but to make it from local raw material rather than imported raw material, so it’s a change of technology rather than ending liquid steel making,” he added.
Gupta indicated Tata Steel s pension fund, with 130,000 members and liabilities of almost 15 billion pounds, could prove a barrier to rescue.
Meanwhile, British Prime Minister David Cameron has become personally involved in trying to work out a solution to the crisis triggered as a result of a combination of cheap imports from China, falling global demand, high energy prices and a tougher tax regime than many rival nations.
According to the ‘Financial Times’, Downing Street has indicated that under state aid rules, the UK could provide financial support for the steelmaking sites, which could include reducing pensions and energy costs.
But the government remains opposed to imposing higher tariffs on Chinese steel imports.
Cameron held a meeting with Welsh first minister Carwyn Jones to discuss how to attract potential buyers for sites such as Port Talbot. He said the UK was “doing everything it can to find a long-term, viable solution to save the Port Talbot steelworks”.
Tata Steel Europe had announced its plans to sell its UK steel business last week after a “strategic review” by its board, throwing the industry into chaos.
UK steel unions have called for state support as members of the Community, GMB and Unite trade unions held talks in London on Monday.
They urged the government to back a plan that involves 1.5 billion pounds being invested into Tata s operations over 10 years, with the government providing support for two to three years until the business is self-sufficient.
@ Agency report.
New Delhi : In yet another step aimed at reducing human interface between taxman and the taxpayer, the Income Tax department today operationalised a facility for e-filing of the first appeal before a tax officer.
The department said the facility of filing the appeal form, like filing Income Tax Returns (ITRs), can be done using a digital signature from now on, while the Electronic Verification (EVC) facility for the same using the Aadhaar, mobile number and email id will be activated soon on the official web portal of the tax department –http://incometaxindiaefiling.gov.in/.
The existing two-page document used for this, called ‘Form No. 35’, has been re-formatted by the department recently so that it can be electronically uploaded on the e-filing portal of the department.
In the new e-form, an applicant or taxpayer seeking appeal against an Assessing Officer’s order has been given an avenue to append ‘Statement of Facts’ in 1,000 words as also furnish the grounds of appeal in another 100 words.
Documentary evidence can also be appended to the new form by an assessee using the electronic internet-based facility.
The IT department has four stages of appeal mechanism for the assessees to put forth their grievance beginning with the Commissioner of IT (Appeals), the Income Tax Appellate Tribunal (ITAT), the High Court and finally the Supreme Court.
The new form is applicable for the CIT (Appeal) fora and those taxpayers who file e-returns will be eligible to use this new facility.
In view of launch of this facility and activation of a select category of ITRs today, the taxman has asked filers to “update their profile and select higher security option to secure their e-filing account” created over the portal.
The systems wing of the department will soon roll out detailed procedures for taxpayers to begin using this facility, a senior official said.
“Electronic filing of appeal along with the documents relied upon before CIT (Appeals) will remove human interface, reduce paperwork and decrease the transaction cost for the taxpayer. It would ensure consistent and error-free service as validations will be in-built, resulting in fewer deficient appeals. Online filing will also facilitate fixation of hearing of appeals electronically.
“The new format for filing of appeals is more structured, objective, systematic and aligned with the current provisions of the Income Tax Act,” the Central Board of Direct Taxes had earlier said.
With these changes, it had said, the “burden of compliance on the taxpayers in appellate proceedings will be significantly reduced.
@ Agency report.
London, Apr 2,2016 : The beleaguered Tata Steel may shut its British plants in six weeks if it does not find a buyer soon even as it is in talks to buy steel assets of one of German’s largest producers.
The Indian steel giant is only “going through the motions” of a sale and has privately given up hope of finding a white knight to rescue the loss-making unit and save 15,000 jobs, the Financial Times reported today, citing people familiar with the company’s internal plans.
“Tata Steel could mothball plants in as little as six weeks. They have to go through the motions. But if they have not found a buyer by the next board meeting at the end of April, they will close it and they are not expecting anyone to come forward now,” it said, citing a person.
The company is likely to appoint bankers to run through the sale process in the next few days.
The Daily Telegraph said Tata is in talks to buy the steel assets of one of Germany’s largest producers after quitting its operations in the UK. It has entered into discussions to merge its European business with ThyssenKrupp, to create one of Europe’s biggest industrial companies.
Tata Steel had in January announced laying off 750 workers in a desperate bid to salvage its ailing Port Talbot steel plant in South Wales – the UK’s biggest.
This week, Tata Steel announced plans to sell its entire UK business as the company battles to control its “deteriorating financial performance”, nine years after it had acquired Corus to become Europe’s second-largest steel maker.
The board of one of the world’s largest steelmakers met earlier this week to decide on the future course of action in a bid to steer its embattled operations in Europe out of the rut, which face supply glut, increase in cheap imports amid a continued weakness in demand in European markets.
The board noted with “deep concern the deteriorating financial performance of the UK subsidiary in the last 12 months”.
Tata acquired Corus, now Tata Steel Europe, in April 2007. The European behemoth was formed by a merger of British Steel and Dutch firm Koninklijke Hoogovens in 1999.
In its 2007-08 annual report, Tata Steel said it has completed the long-term financing programme for Corus acquisition.
Of the total enterprise value of USD 14.2 billion, at the close of Corus acquisition process on April 2, 2007, the financing included about USD 10.5 billion as bridge funding, the balance being applied out of Tata Steel’s own cash and borrowings.
However, shortly after the deal, an economic slowdown and continued weakness in European markets hit the company’s sales, from which the steel maker is still trying to recover.
While the global steel demand, especially in developed markets like Europe remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently.
This is mostly due to structural factors such as global oversupply of steel, increase in third-country exports into Europe, high manufacturing cost, continued weakness in domestic steel demand and a volatile currency.
@ Agency report.
New Delhi : The government on Tuesday permitted 100 per cent FDI in the market place format of e-commerce retailing with a view to attract more foreign investments.
As per the guidelines issued by the Department of Industrial Policy and Promotion (DIPP) on FDI in e-commerce, foreign direct investment (FDI) has not been allowed in inventory-based model of e-commerce.
At present, global e-tailer giants like Amazon and Ebay are operating online marketplaces in India while homegrown players like Flipkart and Snapdeal have foreign investments even as there were no clear FDI guidelines on various online retail models.
To bring clarity, the DIPP has also come out with the definition of ‘e-commerce’, ‘inventory-based model’ and ‘market place model’.
Market place model of e-commerce means providing of an IT platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.
The inventory-based model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to consumers directly, according to the guidelines.
A market place entity will be permitted to enter into transactions with sellers registered on its platform on business-to-business basis, DIPP said.
It said that an e-commerce firm, however, will not be permitted to sell more than 25 per cent of the sales affected through its market place from one vendor or their group companies.
“In order to provide clarity to the extant policy, guidelines for FDI on e-commerce sector have been formulated,” DIPP said.
The government has already allowed 100 per cent FDI in business-to-business (B2B) e-commerce.
@ Agency report.