General Affairs
Extensive Help Being Provided To Flood-Hit States: PM Narendra Modi
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Prime Minister Narendra Modi today said extensive relief is being provided to the flood-hit states and crop insurance companies have been asked to be pro-active in settlement of claims of the affected farmers.
He said the situation in flood-affected states including Assam, Gujarat, Rajasthan and West Bengal is being fully monitored and several agencies like the Army, the IAF, the National Disaster Response Force (NDRF) and paramilitary forces are engaged in rescue and relief operations Wherever possible, union ministers are visiting the affected states, PM Modi said in his monthly radio programme 'Mann Ki Baat'.
"In this situation, everybody is going all out to help the affected people," he said.
To deal with the flood situation, a 24x7 control room is working with the helpline number 1078.
Noting that floods affect everything, he particularly talked about the farmers, saying they lose their crops in the deluge.
In this context, he said crop insurance companies have been asked to be proactive so that claim settlement can be done at the earliest.
The prime minister also said that the weather prediction by the Metereological Department nowadays is almost perfect and hence people should develop the habit of carrying out their tasks according to the predictions, so as to avoid losses.
The prime minister has already visited Gujarat and is expected to travel to Assam to take stock of the flood situation there on August 1.
In his broadcast, he also talked about the Women's World Cup which concluded recently and hailed the performance of the Indian team in it, saying "our daughters" are making the nation proud in various fields.
The prime minister, who hosted the team at his residence three days back, said the players were feeling bad that they could not win the final.
"I told them whether you won or lost the match, you won the hearts of 125 crore people of the country," he said. He said he told them that in today's world, the media raises expectations to such an extent that when you don't get success, there is anger.
"We have seen incidents when the Indian players are not successful, then they face public anger. Some people even breach the line of decorum and write such bad things which cause pain.
"But it is for the first time that when our daughters could not be successful in the World Cup (cricket), the 125 crore people of the country carried that defeat on their shoulders. They did not let that burden to be on these daughters," the prime minister said.
He said the situation in flood-affected states including Assam, Gujarat, Rajasthan and West Bengal is being fully monitored and several agencies like the Army, the IAF, the National Disaster Response Force (NDRF) and paramilitary forces are engaged in rescue and relief operations Wherever possible, union ministers are visiting the affected states, PM Modi said in his monthly radio programme 'Mann Ki Baat'.
"In this situation, everybody is going all out to help the affected people," he said.
To deal with the flood situation, a 24x7 control room is working with the helpline number 1078.
In this context, he said crop insurance companies have been asked to be proactive so that claim settlement can be done at the earliest.
The prime minister also said that the weather prediction by the Metereological Department nowadays is almost perfect and hence people should develop the habit of carrying out their tasks according to the predictions, so as to avoid losses.
The prime minister has already visited Gujarat and is expected to travel to Assam to take stock of the flood situation there on August 1.
In his broadcast, he also talked about the Women's World Cup which concluded recently and hailed the performance of the Indian team in it, saying "our daughters" are making the nation proud in various fields.
The prime minister, who hosted the team at his residence three days back, said the players were feeling bad that they could not win the final.
"I told them whether you won or lost the match, you won the hearts of 125 crore people of the country," he said. He said he told them that in today's world, the media raises expectations to such an extent that when you don't get success, there is anger.
"We have seen incidents when the Indian players are not successful, then they face public anger. Some people even breach the line of decorum and write such bad things which cause pain.
"But it is for the first time that when our daughters could not be successful in the World Cup (cricket), the 125 crore people of the country carried that defeat on their shoulders. They did not let that burden to be on these daughters," the prime minister said.
Government Plan To Launch Bike Taxis On Larger Scale
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The government is planning to facilitate the rollout of bike taxis on a bigger scale and is preparing to introduce an app that will also include the new and economical way of commuting, Union Minister Nitin Gadkari said.
Road Transport and Highways Minister Nitin Gadkari is confident that bike taxis will offer solutions not only for wading through severe traffic congestions in metropolises but can provide affordable transportation to people in far-flung rural areas.
Bike taxis have been launched at a few places in the country, mostly initiated by private players.
"We are planning to facilitate launch of bikes as taxis. We are going to introduce a cab aggregator platform where commuters could choose any mode of transportation that also includes a bike taxi," Mr Gadkari said.
He said a presentation for it has already been made by experts and policy planners were looking into the details and contours of it.
"Lack of employment is a major problem for this country. Our government's priority is to provide jobs. Today, India faces shortage of 22 lakh drivers," Mr Gadkari said and added "bikes as taxis" can not only provide affordable rides to people but can generate employment for lakhs of youths.
"We are going to create an economy which is going to provide employment," he said and added that as many as 2,000 driver training institutes are on the anvil and local youths, after adequate training, would be encouraged to embrace bike taxi driving as profession.
In rural areas, poor people face problems commuting, he said and added, "The idea is that the nearest bike can be booked through aggregator. There will be competition for offering good services."
Elaborating, he said, suppose one has to travel short distances alone, one can easily book a bike taxi through app- based platform to be launched shortly by the government.
"This platform will not only be restricted to aggregators like Ola and Uber. It will be for all. Government will be a facilitator," he said.
Asked about lack of clarity on commercial bike taxi regulations, the minister said, "We are studying all aspects."
Besides, he added that there would be a system to track the movement of these taxis through GPS.
The minister last week had made it clear that driverless cars will not be allowed in India as it will lead to joblessness.
He has said that instead, the government will focus on training drivers as adequate driving skills can provide employment to about 50 lakh people.
He has also said that plans were afoot to transform public transportation in the country and replace 1.8 lakh buses across the states with luxury buses.
"Talks are on with World Bank and Asian Development Bank (ADB) to help India to replicate the London Transport Authority Model where all the public transportation buses would be replaced by luxury buses and a common man can travel in them by paying about 40 per cent less price as compared to current fares," Mr Gadkari has said.
Road Transport and Highways Minister Nitin Gadkari is confident that bike taxis will offer solutions not only for wading through severe traffic congestions in metropolises but can provide affordable transportation to people in far-flung rural areas.
Bike taxis have been launched at a few places in the country, mostly initiated by private players.
He said a presentation for it has already been made by experts and policy planners were looking into the details and contours of it.
"Lack of employment is a major problem for this country. Our government's priority is to provide jobs. Today, India faces shortage of 22 lakh drivers," Mr Gadkari said and added "bikes as taxis" can not only provide affordable rides to people but can generate employment for lakhs of youths.
"We are going to create an economy which is going to provide employment," he said and added that as many as 2,000 driver training institutes are on the anvil and local youths, after adequate training, would be encouraged to embrace bike taxi driving as profession.
In rural areas, poor people face problems commuting, he said and added, "The idea is that the nearest bike can be booked through aggregator. There will be competition for offering good services."
"This platform will not only be restricted to aggregators like Ola and Uber. It will be for all. Government will be a facilitator," he said.
Asked about lack of clarity on commercial bike taxi regulations, the minister said, "We are studying all aspects."
Besides, he added that there would be a system to track the movement of these taxis through GPS.
The minister last week had made it clear that driverless cars will not be allowed in India as it will lead to joblessness.
He has said that instead, the government will focus on training drivers as adequate driving skills can provide employment to about 50 lakh people.
He has also said that plans were afoot to transform public transportation in the country and replace 1.8 lakh buses across the states with luxury buses.
"Talks are on with World Bank and Asian Development Bank (ADB) to help India to replicate the London Transport Authority Model where all the public transportation buses would be replaced by luxury buses and a common man can travel in them by paying about 40 per cent less price as compared to current fares," Mr Gadkari has said.
Railway Mishaps On Decline After Safety Measures, According To Data
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There has been a slight decline in the number of train accidents after implementation of a series of safety measures, including use of modern technology, according to Railway Ministry data.
In 2014-15, the number of accidents was 135 which decreased to 107 in 2015-16 and further to 104 in 2016-17, the report said.
This year, train accidents decreased from 29 to 15 during April-June in comparison to the corresponding period of 2016, an improvement of 48.3 per cent.
"There is a focus on accident prevention measures with safety getting top billing. Railway Minister Suresh Prabhu had launched 'mission zero accident' in the Rail Budget 2016-17 for carrying out a special drive to curb mishaps," said a senior Railway Ministry official.
Safety measures, including speedy track renewal, ultrasonic rail detection system and elimination of many unmanned level crossings on priority basis, have been undertaken to prevent rail accidents.
The 2016-17 fiscal saw elimination of 1,503 unmanned level crossings and 484 manned level crossings by construction of road over-bridge and under-bridge, a record so far, the official said.
Since unmanned level crossings are responsible for maximum number of train accidents, the railways intends to eliminate all such crossings on broad gauge section by 2020.
Rashtriya Rail Sanraksha Kosh, a special safety fund, was created in the Budget 2017-18 with a corpus of Rs. 1 lakh crore over a period of five years for financing critical safety- related works.
The railways has also inducted LHB coaches replacing conventional ones in a phase-wise manner resulting in reducing the chances of derailment and mitigating the possibility of grievous injury or death in case of accidents, the official said.
LHB coaches have anti-climbing features and provision of superior braking and lesser chances of uncoupling of coaches in case of accidents.
Besides, the railways has speeded up the use of modern technology such as ultrasonic system to detect defect on tracks, train protection warning system (TPWS) and train collision avoidance system (TCAS) to prevent accidents, the official said.
While the TPWS has been installed on 342-km route, the TCAS is being tried on 350-km route.
Good track condition is crucial for safe running of trains and so track renewal has been undertaken on a priority basis and adequate fund has been allocated for this, said the official.
The allocation for track renewal has been almost doubled from the last five years average of Rs. 5,548.6 crore to Rs. 9,961 crore in the Budget Estimate of 2017-18.
In 2014-15, the number of accidents was 135 which decreased to 107 in 2015-16 and further to 104 in 2016-17, the report said.
This year, train accidents decreased from 29 to 15 during April-June in comparison to the corresponding period of 2016, an improvement of 48.3 per cent.
Safety measures, including speedy track renewal, ultrasonic rail detection system and elimination of many unmanned level crossings on priority basis, have been undertaken to prevent rail accidents.
The 2016-17 fiscal saw elimination of 1,503 unmanned level crossings and 484 manned level crossings by construction of road over-bridge and under-bridge, a record so far, the official said.
Since unmanned level crossings are responsible for maximum number of train accidents, the railways intends to eliminate all such crossings on broad gauge section by 2020.
Rashtriya Rail Sanraksha Kosh, a special safety fund, was created in the Budget 2017-18 with a corpus of Rs. 1 lakh crore over a period of five years for financing critical safety- related works.
The railways has also inducted LHB coaches replacing conventional ones in a phase-wise manner resulting in reducing the chances of derailment and mitigating the possibility of grievous injury or death in case of accidents, the official said.
LHB coaches have anti-climbing features and provision of superior braking and lesser chances of uncoupling of coaches in case of accidents.
Besides, the railways has speeded up the use of modern technology such as ultrasonic system to detect defect on tracks, train protection warning system (TPWS) and train collision avoidance system (TCAS) to prevent accidents, the official said.
While the TPWS has been installed on 342-km route, the TCAS is being tried on 350-km route.
Good track condition is crucial for safe running of trains and so track renewal has been undertaken on a priority basis and adequate fund has been allocated for this, said the official.
The allocation for track renewal has been almost doubled from the last five years average of Rs. 5,548.6 crore to Rs. 9,961 crore in the Budget Estimate of 2017-18.
Defence Ministry Asked To Find And Share All Missing Bofors Files
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The Public Accounts Committee or PAC has asked the Defence Ministry to trace and share with it all missing files related to the Bofors scandal, according to its two members.
The six-member sub-committee on defence, headed by BJD MP Bhartruhari Mahtab, is looking into the long-pending non-compliance of certain aspects of the CAG report on the Bofors guns deal.
The Public Accounts Committee strongly objected to the ministry's suggestion that certain paragraphs of the CAG report may be dropped as some files related to it are missing, according to the minutes of the parliamentary panel's meeting, a copy of which is with news agency PTI.
The meeting was held earlier this month.
During the meeting, both PAC chairman Bhartruhari Mahtab and BJP lawmaker Nishikant Dubey stressed on the need for top ministry officials to trace and share missing files and notings related to the deal.
According to the minutes of the meeting, top defence ministry officials agreed that the ministry will share all the required details with the Public Accounts Committee.
When contacted, two lawmakers who are members of the committee confirmed that the ministry has agreed to share the details with them.
The Bofors scandal relating to alleged payment of kickbacks in procurement of howitzer artillery guns had triggered a massive political storm and led to the fall of the Rajiv Gandhi government in 1989.
The Comptroller and Auditor General or CAG report on Bofors is the oldest "pending" report before the Public Accounts Committee, which examines audit reports of the Comptroller and Auditor General of India after these are tabled in Parliament.
The six-member sub-committee on defence, headed by BJD MP Bhartruhari Mahtab, is looking into the long-pending non-compliance of certain aspects of the CAG report on the Bofors guns deal.
The Public Accounts Committee strongly objected to the ministry's suggestion that certain paragraphs of the CAG report may be dropped as some files related to it are missing, according to the minutes of the parliamentary panel's meeting, a copy of which is with news agency PTI.
The meeting was held earlier this month.
During the meeting, both PAC chairman Bhartruhari Mahtab and BJP lawmaker Nishikant Dubey stressed on the need for top ministry officials to trace and share missing files and notings related to the deal.
When contacted, two lawmakers who are members of the committee confirmed that the ministry has agreed to share the details with them.
The Bofors scandal relating to alleged payment of kickbacks in procurement of howitzer artillery guns had triggered a massive political storm and led to the fall of the Rajiv Gandhi government in 1989.
The Comptroller and Auditor General or CAG report on Bofors is the oldest "pending" report before the Public Accounts Committee, which examines audit reports of the Comptroller and Auditor General of India after these are tabled in Parliament.
PM Modi Talks Of New 'Quit India', This Time For Communalism, Casteism And Poverty
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Ahead of the 70th Independence Day, Prime Minister Narendra Modi today invoked the Quit India Movement and exhorted the countrymen to use the same spirit to expel problems of communalism, casteism, corruption, terrorism, poverty and dirt from the country by 2022.
He asked the people to take a pledge to contribute in some way or the other to create a "New India".
In his monthly radio programme 'Mann Ki Baat', Prime Minister Modi referred to the Quit India Movement launched on August 9,1942 by Mahatma Gandhi and the subsequent developments which resulted in the Britishers leaving India and the country getting freedom on August 15,1947.
"Just like five years between 1942 and 1947 became the decisive period, I can see another five-year period from 2017 to 2022 to make a resolve to end the problems of our nation," he said.
He identified these problems as communalism, casteism, corruption, terrorism, poverty and dirt and asked people to work for their removal in the same spirit of "Quit India".
"It is 70 years since we got Independence. Governments came and went, systems emerged and developed. Everyone contributed in own way to end the problems, raise employment, remove poverty and make the country progress. Successes were achieved but the expectations were also raised," the prime minister said.
He said this Independence Day should be celebrated as one of resolve to end the problems in next five years.
"If 125 crore people, remembering August 9, 1942, make a pledge on August 15 to contribute something as an individual, as a citizen, as a family person, as a person from a city or a village, as a member of a government department, there will be crores of pledges," PM Modi said.
He exhorted the citizens to use all kinds of fora to undertake this task, including through the online mode.
The prime minister also sought ideas from the public which could be incorporated in his Independence Day speech that he will deliver from the ramparts of the Red Fort.
Interestingly, he said he has heard about "complaints" that his previous Independence Day addresses were long and that he will try to keep it short this time. "I will try to finish it in 40-45-50 minutes. I have tried to make a rule for myself. I don't know whether I will be able to do it or not," he added.
He also referred to the upcoming season of festivals like Raksha Bandhan, Janmashtami, Ganesh Chaturthi and Diwali and urged the people to use the items made by the poor people of the country as it is relates to their economic empowerment. "Our festivals are not only for celebrations. Our festivals are also an instrument of societal improvement. Also, it has direct relation to the economic condition of the poor people," PM Modi said.
"This is the time when the poor people get an opportunity to make an earning," he said.
Giving the example of Diwali, he said the people should use environment-friendly 'diyas' (small oil lamps) only. Such things, he said, will give work to the poor people and help in their empowerment.
He asked the people to take a pledge to contribute in some way or the other to create a "New India".
"Just like five years between 1942 and 1947 became the decisive period, I can see another five-year period from 2017 to 2022 to make a resolve to end the problems of our nation," he said.
He identified these problems as communalism, casteism, corruption, terrorism, poverty and dirt and asked people to work for their removal in the same spirit of "Quit India".
"It is 70 years since we got Independence. Governments came and went, systems emerged and developed. Everyone contributed in own way to end the problems, raise employment, remove poverty and make the country progress. Successes were achieved but the expectations were also raised," the prime minister said.
He said this Independence Day should be celebrated as one of resolve to end the problems in next five years.
"If 125 crore people, remembering August 9, 1942, make a pledge on August 15 to contribute something as an individual, as a citizen, as a family person, as a person from a city or a village, as a member of a government department, there will be crores of pledges," PM Modi said.
He exhorted the citizens to use all kinds of fora to undertake this task, including through the online mode.
The prime minister also sought ideas from the public which could be incorporated in his Independence Day speech that he will deliver from the ramparts of the Red Fort.
Interestingly, he said he has heard about "complaints" that his previous Independence Day addresses were long and that he will try to keep it short this time. "I will try to finish it in 40-45-50 minutes. I have tried to make a rule for myself. I don't know whether I will be able to do it or not," he added.
He also referred to the upcoming season of festivals like Raksha Bandhan, Janmashtami, Ganesh Chaturthi and Diwali and urged the people to use the items made by the poor people of the country as it is relates to their economic empowerment. "Our festivals are not only for celebrations. Our festivals are also an instrument of societal improvement. Also, it has direct relation to the economic condition of the poor people," PM Modi said.
"This is the time when the poor people get an opportunity to make an earning," he said.
Giving the example of Diwali, he said the people should use environment-friendly 'diyas' (small oil lamps) only. Such things, he said, will give work to the poor people and help in their empowerment.
Business Affairs
RBI likely to cut rate on August 2 as inflation hits record low
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With retail inflation receding to record low levels, the Reserve Bank is likely to cut the benchmark lending rate by at least 0.25 per cent in its third bi-monthly monetary policy review on Wednesday, says experts and bankers.
Encouraged by significant price improvement, bankers expect RBI, which has kept rates on hold at 6.25 per cent for the fourth straight time citing risk to inflation, to change its monetary stance and may even go for an aggressive rate cut.
"The expectation is of rate cut of a minimum 25 basis points as inflation has eased and also as industrial growth continues to remain weak. A rate cut will give a push to credit growth which has been sluggish from last many quarters," Bank of Maharashtra Managing Director R P Marathe said.
Echoing similar views, Indian Bank Managing Director Kishor Kharat said there is an expectation that there could be 0.25 per cent rate cut by RBI this time.
The RBI may not touch Cash Reserve Ratio or Statutory Liquidity Ratio as there is adequate liquidity in the market, Kharat added.
The six-member monetary policy committee (MPC) of the RBI headed by RBI Governor Urjit Patel will announce the outcome of the meeting on August 2 afternoon.
According to HDFC Bank Managing Director Aditya Puri, there is always a case, but there are a number of members on the committee who will examine it.
"Yes, inflation has come down, but will it remain at this level? We all know that given the base effect change, it will go up to some extent. Is there still a case for a decline in interest rates? I think most people think so. What will happen, I do not have a clue," Puri said.
Private sector Kotak Bank is of the opinion that since the RBI has revised down its inflation trajectory sharply in the June policy, and given that inflation reading, the central bank has some room to be accommodative.
"We expect the MPC to cut repo rate by 25 basis points in the August meeting," the bank said in a report.
Global Research firm Bank of America Merrill Lynch (BofAML) too expects the MPC to cut rates by 25 basis points (0.25 percentage point).
An SBI report said that most inflation risks are now on the downside and expect the retail inflation to be sub-2 per cent for the next month, sub-3 per cent for August-September and sub-4 per cent for October-November and 4-4.5 per cent between December and March.
For 2017-18, CPI inflation average could thus be below 3.5 per cent with a downward bias, the report added.
The retail inflation, which the RBI mainly factors in while deciding interest rate, has declined to historical low of 1.54 per cent in June. The wholesale price inflation for the month too has dropped to eight month low.
Commenting on the retail inflation data, Chief Economic Advisor Arvind Subramanian had said the "paradigm shift" in inflationary process has been missed by all, who have made "systematic inflation forecast error", apparently referring to the RBI.
In the MPC, RBI Governor Urjit Patel had argued for avoiding "premature policy action" and waiting for more inflation data.
"Incoming data is expected to provide greater clarity on the durability of recent food and non-food disinflation," he had opined.
One of the MPC members, Ravindra Dholakia, however, had advocated a 50 basis point cut in the repo rate, saying several noteworthy developments recently on prices and output fronts warrant a decisive policy action.
As always, India Inc has been pitching for the rate cut to stimulate growth.
Citing inflation at a five-year low and deceleration in factory output, Assocham has written to RBI Governor Urjit Patel for at least 25 basis points cut in the policy interest rate.
"The deceleration in factory output growth could further bolster the case for a rate cut next month to boost Asia's third-largest economy, which grew 6.1 per cent in the January-March quarter -- its weakest pace in more than two years," it said.
However, factory output slumped to 1.7 per cent in May, from 8 per cent a year ago due to poor performance of mining and manufacturing.
With retail inflation receding to record low levels, the Reserve Bank is likely to cut the benchmark lending rate by at least 0.25 per cent in its third bi-monthly monetary policy review on Wednesday, says experts and bankers.
Encouraged by significant price improvement, bankers expect RBI, which has kept rates on hold at 6.25 per cent for the fourth straight time citing risk to inflation, to change its monetary stance and may even go for an aggressive rate cut.
"The expectation is of rate cut of a minimum 25 basis points as inflation has eased and also as industrial growth continues to remain weak. A rate cut will give a push to credit growth which has been sluggish from last many quarters," Bank of Maharashtra Managing Director R P Marathe said.
Echoing similar views, Indian Bank Managing Director Kishor Kharat said there is an expectation that there could be 0.25 per cent rate cut by RBI this time.
The RBI may not touch Cash Reserve Ratio or Statutory Liquidity Ratio as there is adequate liquidity in the market, Kharat added.
The six-member monetary policy committee (MPC) of the RBI headed by RBI Governor Urjit Patel will announce the outcome of the meeting on August 2 afternoon.
According to HDFC Bank Managing Director Aditya Puri, there is always a case, but there are a number of members on the committee who will examine it.
"Yes, inflation has come down, but will it remain at this level? We all know that given the base effect change, it will go up to some extent. Is there still a case for a decline in interest rates? I think most people think so. What will happen, I do not have a clue," Puri said.
Private sector Kotak Bank is of the opinion that since the RBI has revised down its inflation trajectory sharply in the June policy, and given that inflation reading, the central bank has some room to be accommodative.
"We expect the MPC to cut repo rate by 25 basis points in the August meeting," the bank said in a report.
Global Research firm Bank of America Merrill Lynch (BofAML) too expects the MPC to cut rates by 25 basis points (0.25 percentage point).
An SBI report said that most inflation risks are now on the downside and expect the retail inflation to be sub-2 per cent for the next month, sub-3 per cent for August-September and sub-4 per cent for October-November and 4-4.5 per cent between December and March.
For 2017-18, CPI inflation average could thus be below 3.5 per cent with a downward bias, the report added.
The retail inflation, which the RBI mainly factors in while deciding interest rate, has declined to historical low of 1.54 per cent in June. The wholesale price inflation for the month too has dropped to eight month low.
Commenting on the retail inflation data, Chief Economic Advisor Arvind Subramanian had said the "paradigm shift" in inflationary process has been missed by all, who have made "systematic inflation forecast error", apparently referring to the RBI.
In the MPC, RBI Governor Urjit Patel had argued for avoiding "premature policy action" and waiting for more inflation data.
"Incoming data is expected to provide greater clarity on the durability of recent food and non-food disinflation," he had opined.
One of the MPC members, Ravindra Dholakia, however, had advocated a 50 basis point cut in the repo rate, saying several noteworthy developments recently on prices and output fronts warrant a decisive policy action.
As always, India Inc has been pitching for the rate cut to stimulate growth.
Citing inflation at a five-year low and deceleration in factory output, Assocham has written to RBI Governor Urjit Patel for at least 25 basis points cut in the policy interest rate.
"The deceleration in factory output growth could further bolster the case for a rate cut next month to boost Asia's third-largest economy, which grew 6.1 per cent in the January-March quarter -- its weakest pace in more than two years," it said.
However, factory output slumped to 1.7 per cent in May, from 8 per cent a year ago due to poor performance of mining and manufacturing.
Snapdeal to send Flipkart's proposal to shareholders this week
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Snapdeal is likely to send Flipkart's USD 900-950 million buyout proposal to its shareholders this week to seek their views on the plan, according to sources.
The Board wants to get the shareholders' opinion on the proposed deal, two people aware of the developments said.
The company will share details of the buyout offer with all shareholders, which includes the likes of industrialist Ratan Tata and PremjiInvest.
They did not want to be identified as discussions are still on and the deal has not been finalised yet.
When contacted, a Snapdeal spokesperson said: "No formal communication has been shared with shareholders and no board vote has happened on a proposed deal".
He, however, did not comment on the timeline for sending out the proposal to shareholders.
An official at Ratan Tata's office also confirmed that they have not received any communication yet on the proposal.
He did not want to be named as he is not authorised to speak on the matter.
The statement assumes significance as some reports had said that Ratan Tata has already approved the deal.
Snapdeal's largest investor -- Japanese conglomerate SoftBank -- has been proactively mediating the sale for the past few months.
Snapdeal has a number of investors, including Ontario Teachers Pension Plan, PremjiInvest, Ratan Tata, Foxconn, Temasek and BlackRock.
Interestingly, PremjiInvest -- the personal investment arm of Wipro Chairman Azim Premji -- has already written to Snapdeal seeking greater clarity on the deal terms.
It has also called for equal treatment of shareholders for payouts from the deal.
Reportedly, early investors Nexus Venture Partners (NVP) and Kalaari -- who also have Board representation -- could receive payouts worth over USD 150 million once the deal with Flipkart is closed.
The Snapdeal Board is also expected to meet later this week.
The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.
One of the leading contenders in the Indian e-commerce market, Snapdeal has seen its fortunes failing amid strong competition from Amazon and Flipkart.
Compared to a valuation of about USD 6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about USD 1 billion.
Snapdeal is likely to send Flipkart's USD 900-950 million buyout proposal to its shareholders this week to seek their views on the plan, according to sources.
The Board wants to get the shareholders' opinion on the proposed deal, two people aware of the developments said.
The company will share details of the buyout offer with all shareholders, which includes the likes of industrialist Ratan Tata and PremjiInvest.
They did not want to be identified as discussions are still on and the deal has not been finalised yet.
When contacted, a Snapdeal spokesperson said: "No formal communication has been shared with shareholders and no board vote has happened on a proposed deal".
He, however, did not comment on the timeline for sending out the proposal to shareholders.
An official at Ratan Tata's office also confirmed that they have not received any communication yet on the proposal.
He did not want to be named as he is not authorised to speak on the matter.
The statement assumes significance as some reports had said that Ratan Tata has already approved the deal.
Snapdeal's largest investor -- Japanese conglomerate SoftBank -- has been proactively mediating the sale for the past few months.
Snapdeal has a number of investors, including Ontario Teachers Pension Plan, PremjiInvest, Ratan Tata, Foxconn, Temasek and BlackRock.
Interestingly, PremjiInvest -- the personal investment arm of Wipro Chairman Azim Premji -- has already written to Snapdeal seeking greater clarity on the deal terms.
It has also called for equal treatment of shareholders for payouts from the deal.
Reportedly, early investors Nexus Venture Partners (NVP) and Kalaari -- who also have Board representation -- could receive payouts worth over USD 150 million once the deal with Flipkart is closed.
The Snapdeal Board is also expected to meet later this week.
The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.
One of the leading contenders in the Indian e-commerce market, Snapdeal has seen its fortunes failing amid strong competition from Amazon and Flipkart.
Compared to a valuation of about USD 6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about USD 1 billion.
GST has transformed economy, says PM Modi
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Almost a month after the GST rollout, Prime Minister Narendra Modi today said it has transformed the economy and marks an example of cooperative federalism as states have been partners in all the decisions related to the new indirect tax regime.
He said the "smooth transition" of such a huge measure in a vast country involving crores of people was historic and can be a case study for universities around the world.
The prime minister said the priority of the government, while ushering in the GST (Goods and Services Tax), has been that there should no burden on the plate of the poor man.
In his monthly radio programme 'Mann Ki Baat', Modi also spoke about various other issues like the flood situation in various parts of the country and mentioned about the freedom movement in view of the upcoming Independence Day.
In the 30-minute broadcast also stressed the need for using only the environment-friendly items made by the poor people of the country during the festivals and hailed the performance by the Indian Women's Cricket team in the recent World Cup.
Referring to the GST which was rolled out on July 1, the prime minister said, "one nation, one tax -- how big a dream has been fulfilled."
Underlining that GST is more than just a tax reform, he said it ushers in a new culture.
"It has been about a month since the GST was implemented and I feel satisfied and happy when someone writes to me to say how the prices of goods needed by the poor have reduced," Modi said.
"GST has transformed the economy," Modi said.
"GST, which I call 'Good and Simple Tax', has really made a very positive impact on our economy and in such a short span of time," he added.
He said the speed at which the smooth transition, migration and new registration has taken place has led to a new confidence in the country.
Describing GST rollout is an example of cooperative federalism, the prime minister said all states are partners in it and have a responsibility as well. "All decisions were taken by the Centre and the states through consensus," he said.
Modi said is an example of success of the collective effort of India and marks a "historic achievement".
He said it was not only a tax reform but "is a measure that lends strength to the new culture of honesty. In a way it is campaign for cultural improvement."
The prime minister said the magnitude of the exercise is an example in itself and will surely be studied by the world.
Modi said the people from the North East, far off mountains and those living in the jungles have written letters, saying that initially there were fears but as they started understanding the GST, it became easy and business became easier.
"And the biggest thing is that the trust of customers in traders has started going up," the prime minister said.
"I am seeing how GST has impacted upon the transport and logistics sector, how the movement of trucks has increased, how their travel time has decreased, how highways have become clutter-free.
"With the increase in the speed of trucks, pollution has also reduced. Delivery of goods has also been speeded up.
Besides making life easier, it also strengthens the economic progress," he said.
Almost a month after the GST rollout, Prime Minister Narendra Modi today said it has transformed the economy and marks an example of cooperative federalism as states have been partners in all the decisions related to the new indirect tax regime.
He said the "smooth transition" of such a huge measure in a vast country involving crores of people was historic and can be a case study for universities around the world.
The prime minister said the priority of the government, while ushering in the GST (Goods and Services Tax), has been that there should no burden on the plate of the poor man.
In his monthly radio programme 'Mann Ki Baat', Modi also spoke about various other issues like the flood situation in various parts of the country and mentioned about the freedom movement in view of the upcoming Independence Day.
In the 30-minute broadcast also stressed the need for using only the environment-friendly items made by the poor people of the country during the festivals and hailed the performance by the Indian Women's Cricket team in the recent World Cup.
Referring to the GST which was rolled out on July 1, the prime minister said, "one nation, one tax -- how big a dream has been fulfilled."
Underlining that GST is more than just a tax reform, he said it ushers in a new culture.
"It has been about a month since the GST was implemented and I feel satisfied and happy when someone writes to me to say how the prices of goods needed by the poor have reduced," Modi said.
"GST has transformed the economy," Modi said.
"GST, which I call 'Good and Simple Tax', has really made a very positive impact on our economy and in such a short span of time," he added.
He said the speed at which the smooth transition, migration and new registration has taken place has led to a new confidence in the country.
Describing GST rollout is an example of cooperative federalism, the prime minister said all states are partners in it and have a responsibility as well. "All decisions were taken by the Centre and the states through consensus," he said.
Modi said is an example of success of the collective effort of India and marks a "historic achievement".
He said it was not only a tax reform but "is a measure that lends strength to the new culture of honesty. In a way it is campaign for cultural improvement."
The prime minister said the magnitude of the exercise is an example in itself and will surely be studied by the world.
Modi said the people from the North East, far off mountains and those living in the jungles have written letters, saying that initially there were fears but as they started understanding the GST, it became easy and business became easier.
"And the biggest thing is that the trust of customers in traders has started going up," the prime minister said.
"I am seeing how GST has impacted upon the transport and logistics sector, how the movement of trucks has increased, how their travel time has decreased, how highways have become clutter-free.
"With the increase in the speed of trucks, pollution has also reduced. Delivery of goods has also been speeded up.
Besides making life easier, it also strengthens the economic progress," he said.
Turning around Tata Motors domestic biz need of the hour, says Chandrasekaran
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Tata Motors Chairman N Chandrasekaran has said turning around domestic business of the company is "the need of the hour" as it has suffered from delays in new product launches, lack of adequate response to competition and an unsustainable cost structure.
Addressing shareholders in the company's Annual Report 2016-17, he said Tata Motors' standalone net revenues increased by 3.7 per cent to Rs 44,777 crore for the 12 months ended March 31, 2017 but standalone loss before tax for the year fell to Rs 2,421 crore, compared with Rs 67 crore in the prior year.
"In the domestic business segment, business turnaround is the need of the hour and management is working with renewed focus and energy to improve our market share, reduce our cost base, streamline the supply chain and ensure launch of products on time to delight our customers," he said.
The company's market share in commercial vehicles (CV) segment has fallen to 44.4 per cent from a high of 59.4 per cent in FY2011-12, while market share for passenger vehicles (PV) declined to 5.2 per cent from 13.1 per cent in the same period, he added.
"Overall, delays in new product launches as well as lack of adequate responsiveness to the competitive environment and an unsustainable cost structure have contributed to this performance," Chandrasekaran said.
Consolidated net revenues declined by 1.2 per cent to Rs 2,69,850 crore for the 12 months ended March 31, 2017 and consolidated profit before tax for the year fell sharply to Rs 9,315 crore, compared with Rs 14,126 crore in the prior year, he added.
Chandrasekaran, however, expressed confidence that a series of actions taken by the management team would succeed and show an improved performance in both the commercial vehicle and passenger vehicle segments in India and deliver better financial results.
Expressing similar views, Tata Motors Managing Director Guenter Butschek said: "Our immediate priority now is on execution - to address the top concerns of supply constraints, to advance the launch time of some of our new products."
He further said: "In full alignment with the board, we have finalised a business turnaround plan through which we take upon ourselves to deliver a robust bottom-line improvement in FY17/18."
Butschek said one of the most important initiatives in 2016-17 was the Organisational Effectiveness (OE) exercise, with the objective of bringing "the much needed empowerment and accountability within the business unit, strong functional oversight based on the key principles of speed, simplicity and agility".
"Due to its magnitude and complexity, the transition of the new management structure w.e.f. from April 1, 2017 faced some challenges, which in the meanwhile is getting addressed on a case to case basis," he added.
While challenges such as demonetisation and transition to BS IV affected business, Butschek also admitted that Tata Motors did not adequately react to the changing environment.
Due to the unexpected and unprecedented changes in the market, he said, "we faced a rather hostile business cycle with headwinds in the form of demonetisation, the famous Supreme Court ruling on BS4 transition."
As a matter of fact, Butschek further said, "it was not only the market volatility which affected our performance, but mainly our sluggishness in reading the market in time, as we were effectively late to respond."
Tata Motors' ImpACT (Improvement by Action) projects with full time senior leaders and dedicated teams having ownership at executive committee level helped the company focus on four areas intense top-line focus, cost optimisation, customer centricity and structural improvements in processes, he said.
"These projects have started to payback and have created a great change of momentum in the entire organisation. We have built a very strong savings potential with positive effects in FY17/18 and the years to come," Butschek said.
Tata Motors Chairman N Chandrasekaran has said turning around domestic business of the company is "the need of the hour" as it has suffered from delays in new product launches, lack of adequate response to competition and an unsustainable cost structure.
Addressing shareholders in the company's Annual Report 2016-17, he said Tata Motors' standalone net revenues increased by 3.7 per cent to Rs 44,777 crore for the 12 months ended March 31, 2017 but standalone loss before tax for the year fell to Rs 2,421 crore, compared with Rs 67 crore in the prior year.
"In the domestic business segment, business turnaround is the need of the hour and management is working with renewed focus and energy to improve our market share, reduce our cost base, streamline the supply chain and ensure launch of products on time to delight our customers," he said.
The company's market share in commercial vehicles (CV) segment has fallen to 44.4 per cent from a high of 59.4 per cent in FY2011-12, while market share for passenger vehicles (PV) declined to 5.2 per cent from 13.1 per cent in the same period, he added.
"Overall, delays in new product launches as well as lack of adequate responsiveness to the competitive environment and an unsustainable cost structure have contributed to this performance," Chandrasekaran said.
Consolidated net revenues declined by 1.2 per cent to Rs 2,69,850 crore for the 12 months ended March 31, 2017 and consolidated profit before tax for the year fell sharply to Rs 9,315 crore, compared with Rs 14,126 crore in the prior year, he added.
Chandrasekaran, however, expressed confidence that a series of actions taken by the management team would succeed and show an improved performance in both the commercial vehicle and passenger vehicle segments in India and deliver better financial results.
Expressing similar views, Tata Motors Managing Director Guenter Butschek said: "Our immediate priority now is on execution - to address the top concerns of supply constraints, to advance the launch time of some of our new products."
He further said: "In full alignment with the board, we have finalised a business turnaround plan through which we take upon ourselves to deliver a robust bottom-line improvement in FY17/18."
Butschek said one of the most important initiatives in 2016-17 was the Organisational Effectiveness (OE) exercise, with the objective of bringing "the much needed empowerment and accountability within the business unit, strong functional oversight based on the key principles of speed, simplicity and agility".
"Due to its magnitude and complexity, the transition of the new management structure w.e.f. from April 1, 2017 faced some challenges, which in the meanwhile is getting addressed on a case to case basis," he added.
While challenges such as demonetisation and transition to BS IV affected business, Butschek also admitted that Tata Motors did not adequately react to the changing environment.
Due to the unexpected and unprecedented changes in the market, he said, "we faced a rather hostile business cycle with headwinds in the form of demonetisation, the famous Supreme Court ruling on BS4 transition."
As a matter of fact, Butschek further said, "it was not only the market volatility which affected our performance, but mainly our sluggishness in reading the market in time, as we were effectively late to respond."
Tata Motors' ImpACT (Improvement by Action) projects with full time senior leaders and dedicated teams having ownership at executive committee level helped the company focus on four areas intense top-line focus, cost optimisation, customer centricity and structural improvements in processes, he said.
"These projects have started to payback and have created a great change of momentum in the entire organisation. We have built a very strong savings potential with positive effects in FY17/18 and the years to come," Butschek said.
IBC an opportunity for asset reconstruction companies: Jaitley
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Insolvency and Bankruptcy Code (IBC) and the government's emphasis on resolution provide opportunity for asset reconstruction companies as stressed assets still have inherent value, Finance Minister Arun Jaitley said.
During discussions with Asset Reconstruction Companies (ARCs) and Private Equity firms (PE) today, he said these non-performing assets (NPAs) were essentially productive assets which, if turned around, would not only create additional jobs but also contribute to national output.
For this to happen, timely interventions, transparent price discovery and right management were required, he said.
The internal advisory committee (IAC) of the RBI, after its meeting on June 13, had recommended 12 accounts totalling about 25 per cent of the gross NPAs of the banking system for immediate reference under Insolvency and Bankruptcy Code.
These accounts have an exposure of more than Rs 5,000 crore each, with 60 per cent or more classified as bad loans by banks as of March 2016.
The 12 accounts alone constitute a quarter of over Rs 8 lakh crore of NPAs. Of the total, Rs 6 lakh crore are with public sector banks.
Pointing out various legislative and regulatory changes made over the last 18 months, he said, these have created an enabling and supportive operational environment for ARCs and for takeover of stressed assets by PE firms/special situation funds.
"These include 100 per cent ownership by sponsors, higher ceiling of 100 per cent for FDI in ARCs, pass through status to ARC trusts for income tax, exemption from stamp duty, enabling trading of security receipts etc," he said.
"Resultant collaboration between banks, ARCs, PE, Asset Management Companies and resolution professionals could pave the way to a virtuous cycle of fresh investments, new jobs and additional demand," he said.
As a result, a number of new ARCs have sought and obtained registration during recent months.
The increasing number of players in the market was indicative of an increasing interest in the sector but also presented an opportunity for banks to offload stressed assets before fully provisioning for them, he said.
Meanwhile, some of the players suggested that sale of project loan by a consortium instead of individual banks selling their loan account could be a much more effective way of ensuring debt aggregation in a timely manner.
During discussions with Asset Reconstruction Companies (ARCs) and Private Equity firms (PE) today, he said these non-performing assets (NPAs) were essentially productive assets which, if turned around, would not only create additional jobs but also contribute to national output.
For this to happen, timely interventions, transparent price discovery and right management were required, he said.
The internal advisory committee (IAC) of the RBI, after its meeting on June 13, had recommended 12 accounts totalling about 25 per cent of the gross NPAs of the banking system for immediate reference under Insolvency and Bankruptcy Code.
These accounts have an exposure of more than Rs 5,000 crore each, with 60 per cent or more classified as bad loans by banks as of March 2016.
The 12 accounts alone constitute a quarter of over Rs 8 lakh crore of NPAs. Of the total, Rs 6 lakh crore are with public sector banks.
Pointing out various legislative and regulatory changes made over the last 18 months, he said, these have created an enabling and supportive operational environment for ARCs and for takeover of stressed assets by PE firms/special situation funds.
"These include 100 per cent ownership by sponsors, higher ceiling of 100 per cent for FDI in ARCs, pass through status to ARC trusts for income tax, exemption from stamp duty, enabling trading of security receipts etc," he said.
"Resultant collaboration between banks, ARCs, PE, Asset Management Companies and resolution professionals could pave the way to a virtuous cycle of fresh investments, new jobs and additional demand," he said.
As a result, a number of new ARCs have sought and obtained registration during recent months.
The increasing number of players in the market was indicative of an increasing interest in the sector but also presented an opportunity for banks to offload stressed assets before fully provisioning for them, he said.
Meanwhile, some of the players suggested that sale of project loan by a consortium instead of individual banks selling their loan account could be a much more effective way of ensuring debt aggregation in a timely manner.
General Awareness
India among top nations with potential for digital payments’ – Digital Evolution Index
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India has featured among 60 nations on Digital Evolution Index 2017, exhibiting a high potential in terms of digital payments.
Digital Payments potential in India:
On the Digital Evolution Index 2017, India has been categorised under the “break out” segment which refers to countries that have relatively lower absolute levels of digital advancement, yet remain poised for growth and are attractive to investors by virtue of their potential.
- The report outlined that India has been experiencing rapid strides of progress with an evolving payments landscape, catalysed by the government’s demonetisation decision.
- Indian government’s endeavour to boost the acceptance infrastructure coupled with a host of other economic reforms has further hastened the momentum for the country’s journey towards a cashless society.
- Adoption of digital payments has also witnessed a massive growth with a shift in behaviour change as more people adopt digital payments in daily life.
- Porush Singh, country corporate officer, India and Division President, South Asia, Mastercard has mentioned that “With new players foraying into the market and an entire gamut of solutions for alternate payments, the Indian payment ecosystem is growing each day”.
About Digital Evolution Index 2017:
Digital Evolution Index 2017 is a joint study, conducted by the Fletcher School at Tufts University with Mastercard.
- The Index provides comprehensive research and keeps a tap on the progress made by countries in developing their digital economies and integrating connectivity into several lives.
- The Index has four key drivers for measurement namely supply, consumer demand, institutional environment, and innovation.
- The research exhibits the development of 60 countries, explaining their competitiveness and market potential for further growth in terms of digital economy.
India has featured among 60 nations on Digital Evolution Index 2017, exhibiting a high potential in terms of digital payments.
Digital Payments potential in India:
On the Digital Evolution Index 2017, India has been categorised under the “break out” segment which refers to countries that have relatively lower absolute levels of digital advancement, yet remain poised for growth and are attractive to investors by virtue of their potential.
- The report outlined that India has been experiencing rapid strides of progress with an evolving payments landscape, catalysed by the government’s demonetisation decision.
- Indian government’s endeavour to boost the acceptance infrastructure coupled with a host of other economic reforms has further hastened the momentum for the country’s journey towards a cashless society.
- Adoption of digital payments has also witnessed a massive growth with a shift in behaviour change as more people adopt digital payments in daily life.
- Porush Singh, country corporate officer, India and Division President, South Asia, Mastercard has mentioned that “With new players foraying into the market and an entire gamut of solutions for alternate payments, the Indian payment ecosystem is growing each day”.
About Digital Evolution Index 2017:
Digital Evolution Index 2017 is a joint study, conducted by the Fletcher School at Tufts University with Mastercard.
- The Index provides comprehensive research and keeps a tap on the progress made by countries in developing their digital economies and integrating connectivity into several lives.
- The Index has four key drivers for measurement namely supply, consumer demand, institutional environment, and innovation.
- The research exhibits the development of 60 countries, explaining their competitiveness and market potential for further growth in terms of digital economy.
