Six years after Modi stated FDI in retail would help “Italian businessmen”, his government has done away with mandatory sourcing conditions.
Now foreign companies can invest upto 100% through the automatic route in their single brand retail operations in India.
What industry captains are looking forward to is how the government prioritises its expenditure and if it will follow up on its long-pending promise to rationalise corporate tax rates.
In a rallying message to trade and industry associations, the commerce and industry minister talked about green shoots appearing in the Indian economy, suggesting that it is poised for a recovery in 2018.
If anything, GST has proved a nightmare for businesses in the short-term, especially for those in the informal sector.
A lobby group of private generators has claimed that CIL and its subsidiaries supplied excess coal to the tune of 8.6 million tonne to state-owned power plants without a long-term fuel linkage.
A review of the national auditor’s calculation of presumptive loss in other sectors shows that it usually offers multiple figures and often revises its estimates downwards.
Two members of MERC have recused themselves from all fresh hearings over political pressure and differences with current chairman Anand Kulkarni.
Sources say that Anand Kulkarni superseded Azeez Mehdi Khan as chairman of the MERC because the government was unhappy that the latter refused to toe the official line.
The domestic auto industry wants 2047 to be the deadline for doing away with fossil fuel-powered vehicles, while Nitin Gadkari wanted the change to happen by 2030.
While stakeholders within the system have complained that the rules may hurt clean bidders too, the insolvency and bankruptcy board appears in no mood to review the ordinance.
One set of long-pending disputes revolves around whether discoms must pay the fixed charges for power supplied by private companies such as GMR, GVK and Reliance Infrastructure.
Developed countries claim that India’s price support for crops such as paddy and wheat have breached the cap prescribed by the WTO.
If ‘e-mobility’ takes off in a big way, it could adversely affect the demand for petrol and diesel in domestic as well as in overseas markets, potentially upending the calculations of India’s refiners.
The company recently petitioned the Maharashtra and Rajasthan electricity regulatory commissions, asking to be reimbursed for extra fuel costs incurred by its power plants.
India’s exports turned negative with a 1.1% drop in October. There is fear that it could fall further in November with exporters finding it difficult to comply with GST.
The precipitous drop in October exports shows that the feared GST-fuelled disruption of MSME supply chains has now started taking its toll on the country’s export performance.
While right-wing trade groups that support the ruling NDA government have enthusiastically campaigned for a boycott of Chinese products, demonetisation and the hasty roll-out of GST might have even caused a bump in imports.
Some of NTPC’s power plants are getting excess coal at a time when private power producers are reeling from the dry fuel shortage.
A new ordinance will stop a majority of promoters from bidding for their own stressed assets, but may result in lower revenue for lenders.
While India’s coal imports have dropped 12% over the last three years, as the Modi government pursues a domestic strategy, they have picked up in recent times and are likely to continue to rise.
Developed countries want to include new issues like e-commerce, investment facilitation and government procurement in the discussion.
Coal and railway minister Piyush Goyal has remained curiously silent, even though the current crisis has been sparked by the railways’ failure to transport adequate amounts of coal.
While investors have given a thumbs-down to the deals as they would add to the PSUs’ loan burden, they will likely help the heavily-indebted Adani group secure bank loans and make future investments.
In its quest to reduce electricity tariffs, the state appears to be getting support from UP’s electricity watchdog whose behaviour is not in line with its duty to act as an unbiased adjudicator in disputes between discoms and generators.
While Tata Trust officials had raised concerns over the acquisition, Welspun Renewables’s robust earnings are now starting to partially offset the losses being racked up by the imported coal-based Mundra power plant.
Although the state-run power sector lender doesn’t follow RBI guidelines on loan restructuring norms yet, the CAG has in the past pointed to gaps in its due diligence process.
While digital transactions have started ebbing, with cash remaining king in the real estate sector, what has been hit are new investment proposals and the informal economy in general.
Hitting Rs 2.22 lakh crore at the end of March 2016, the debt has risen due to the rising costs of Gujarat’s infrastructure projects and ill-advised investments in state-owned companies and statutory corporations.
Gold is widely seen as a safe investment option in times of economic crisis. So is the gold import surge a sign of falling confidence in the Modi government’s economic management?
While Gujarat’s IMR reduction has been better than the national average, it stacks up unfavourably when compared to other affluent states like Maharashtra and Punjab or even ‘special category’ states like Himachal Pradesh and Jammu and Kashmir.
While ministries and Central government institutions have enthusiastically pushed khadi and khadi products, the actual sales figures haven’t quite touched the numbers touted by the prime minister in his latest Mann Ki Baat address.
Modi, while inaugurating a RoRo ferry service in Gujarat, said it was the first of its kind. But RoRo vessels have been used by companies to move cars, coal and fertiliser across the country for some time now.
Amid an emerging crisis triggered by a fall in hydel and nuclear power generation, the coal ministry is continuing to discourage imports in an effort to defend its narrative of surplus coal availability.
At a recent top-level meeting, it was mooted that a change in the ‘power surplus’ narrative would help in tackling India’s abnormally low capacity utilisation levels.
Growth in bad loans raises questions about due diligence measures followed by renewable energy, power PSUs over last five years.
Changes to GST rates may open a Pandora’s box, while the jewelry-PAN decision sees the government walking away from its fight against black money.
Over the last decade, Bangladesh and Vietnam have eaten India’s lunch when it comes to everything, from apparels to furniture.
Thanks to the uneven utilisation of funds, actual spending on amenities like foot overbridges has seen negative growth in recent years.
Free electricity connections for the poor have been part of the Centre’s electrification programme since the UPA regime, though the prime minister has tried to sell it as new.