Month: June 2019

Russia agrees with Saudi Arabia to extend deal to curb oil output

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Russia has agreed with Saudi Arabia to extend by six to nine months a deal with OPEC on reducing oil output, Russian President Vladimir Putin said, as oil prices come under renewed pressure from rising US supplies and a slowing global economy.

Saudi energy minister Khalid al-Falih said on Sunday that the deal would most likely be extended by nine months and no deeper reductions were needed.

Putin, speaking after talks with Saudi Crown Prince Mohammed bin Salman, told a news conference the deal — which is due to expire on Sunday — would be extended in its current form and with the same volumes.

The Organization of the Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC+, meet on July 1-2 to discuss the deal, which involves curbing oil output by 1.2 million barrels per day (bpd).

The United States, the world’s largest oil producer ahead of Russia and Saudi Arabia, is not participating in the pact.

“We will support the extension, both Russia and Saudi Arabia. As far as the length of the extension is concerned, we have yet to decide whether it will be six or nine months. Maybe it will be nine months,” said Putin, who met the crown prince on the sidelines of a G20 summit in Japan.

Falih, arriving in Vienna for the OPEC+ talks, told reporters when asked about Saudi preferences: “I think most likely a nine-month extension.”

Asked about a deeper cut, Falih said: “I don’t think the market needs that.”

“Demand is softening a little bit but I think it’s still healthy,” the Saudi minister said, adding that he expected the market to balance in the next six to nine months.

A nine-month extension would mean the deal runs out in March 2020. Russia’s consent means the OPEC+ group may have a smooth meeting if OPEC‘s third-largest producer Iran also endorses the arrangement.

New U.S. sanctions on Iran have reduced its exports to a trickle as Washington seeks to change what it calls a “corrupt” regime in Tehran. Iran has denounced the sanctions as illegal and says the White House is run by “mentally retarded” people.

Kirill Dmitriev, chief executive of the Russian Direct Investment Fund who helped design the OPEC-Russia deal, said the pact in place since 2017 had lifted Russian budget revenues by more than 7 trillion roubles ($110 billion).

“The strategic partnership within OPEC+ has led to the stabilisation of oil markets and allows both to reduce and increase production depending on the market demand conditions, which contributes to the predictability and growth of investments in the industry,” Dmitriev said.

Benchmark Brent crude has climbed more than 25% since the start of 2019. But prices could stall as a slowing global economy squeezes demand and U.S. oil floods the market, a Reuters poll of analysts found.

“Who needs an Opec meeting?”

Falih said the new deal would help reduce global oil stocks, balance the market and spur investments in future energy supplies.

“The agreement confirms that the Saudi-Russian partnership paved the way to guarantee the interest of producers and consumers and the continued growth of the global economy,” Falih tweeted.

That Russia and Saudi Arabia effectively announced the deal before the OPEC gatherings will likely anger smaller members of the organisation, who feel sidelined.

“Who needs an OPEC meeting?,” one delegate said after learning about the headlines from the Russia-Saudi talks. Some delegates said Iran might still put up a fight on Monday.

Russia’s Energy Minister Alexander Novak said he believed most OPEC members including Iran have already expressed support to extend the output-cutting deal.

He said it may be wise to extend the agreement by nine rather than six months to avoid raising output during weak seasonal demand.

“It might make sense to keep the deal in place during the winter period,” he told reporters.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Delhi lobby stalling air connectivity plans for Agra, local industrialists allege

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The failure of the Bharatiya Janata Party (BJP) governments at the Centre and in Uttar Pradesh to fulfil their promises of air connectivity for Agra and upgradation of the local Kheria airport is becoming a major cause of concern for the people of the district.

Connecting Agra with the country’s other major airports will help boost tourism in not just the city of the Taj Mahal, but also in neighbouring Mathura, Vrindavan, Aligarh and Firozabad.

Before 2014, the BJP leaders accused previous governments of ignoring Agra’s demand for direct flights. Prime Minister Narendra Modi had himself assured at an election rally in November 2013 that once in power, he would take up the matter on priority.

A lot of water has flown down the Yamuna since, without any progress on the demand. To rub salt into Agra’s wounds, the international airport has been hijacked by politicians to Jewar in Bulandshahr district.

Social activist Sanjay Chaturvedi said that even as dozens of smaller centres were air connected, it was shocking that the Yogi Adityanath government in Uttar Pradesh failed to connect Agra — the only city with three world heritage monuments — with major Indian cities under the Udaan scheme despite a formal clearance and announcement.

“Smaller cities have regular flights, but not India’s tourist destination number one,” said Anil Sharma, who is spearheading a movement for an international airport in Agra for the past three years.

“Clearly, there is a collective lack of interest at the highest level of policy making. The people’s representatives have not been able to press for Agra’s case convincingly.

“The international airport project has already been sabotaged… They are dragging their feet even on the construction of an enclave at the Kheria airport, citing one obstacle after another,” said Sharma.

The long-delayed Rs 400 crore terminal building at the Kheria airport, now renamed Pandit Deen Dayal Upadhyaya airport, is expected to directly employ 200 people and benefit around 2,000 indirectly.

However, sources said work on the terminal was held up due to the wrong categorisation as “industry” by the Central Pollution Control Board (CPCB) ignoring the Taj Trapezium Zone Authority members’ assertions that it was an “infrastructure project”.

The district authorities said that they had no idea as to how soon the mandatory permissions from the Union Ministry of Environment, the CPCB and finally the Supreme Court would come. But industrialists in Agra know who is stalling the process and why.

“The Delhi lobby of hotels and travel agents fear loss of business once Agra is air connected with major cities of India. At present, tourists land in Delhi and then proceed to Agra by road or train. This benefits hotels and travel agents in Delhi,” said Surendra Sharma, founder of the Agra Hotels and Restaurants Association.

“Only strong political will can help clear the road blocks,” says activist Rajiv Saxena.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

FICCI recommends tax incentives for movie theatres

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The film exhibition industry of the country needs tax incentives in the form of a tax holiday period, lower tax rates and subsidies among others to achieve its potential and for its higher penetration into the tier-II and tier-III cities, according to the Federation of Indian Chambers of Commerce and Industry (FICCI).

In its budget recommendation, the movie theatre industry body has said that although India is the world’s largest producer of movies, its film exhibition industry is largely untapped.

“While there has been de-growth in screen-counts in India over the past few years, China has recorded phenomenal growth which can partly be attributed to a lower tax rate.

“Tax incentives in the form of tax holiday period, lower rates, weighted deductions, subsidies etc for the film exhibition industry (for instance similar to the one in Section 80HHF of the Income Tax Act 1961 which has been discontinued) be provided, in order to increase penetration of the exhibition industry in Tier 2 and 3 cities,” FICCI’s recommendation said.

It has further sought clarity over the the definition of “royalty” pertaining to sale, distribution or exhibition of cinematographic films.

Definition of royalty under the Income Tax Act 1961 excludes consideration for the sale, distribution or exhibition of cinematographic films, it said, adding that the law was made when non-theatrical rights were not in existence but now with the advent of digital age, there are various non-theatrical ways to exploit film rights as well.

“There is ambiguity as to whether grant of non-theatrical rights also form part of the exclusion and clarity around this would be much appreciated. Clarity in the definition of royalty pertaining to sale, distribution or exhibition of cinematographic films be provided,” it said.

The industry body observed that Rule 9A and Rule 9B of the Income Tax Rules permit deduction of expenditure incurred on production of films and acquisition of film distribution rights respectively based on when the copyrights or distribution rights in films are exploited or depending on the date of release of the film and the provision is an old one which requires changes in light of the recent trends for instance films which are showcased on the digital platform.

“There are several ambiguities surrounding the applicability of the aforesaid rules (applicable to satellite, music), scope of its applicability on expenses (only revenue or both capital and revenue), etc to name a few. It could be clarified that these rules could be extended to movies produced on digital platform and also remove ambiguity regarding its applicability to satellite, music etc,” FICCI added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government asks states not to partner with Philip Morris-funded foundation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Health ministry has asked all state governments in the country not to partner with the Foundation for a Smoke-Free World (FSFW) because of its links to tobacco giant Philip Morris International Inc, a letter seen by Reuters showed.

Established in 2017, the FSFW focuses on eliminating usage of cigarettes and works towards smoking cessation using new technologies and alternative products. It says it works independently, but the World Health Organization (WHO) has said there are “clear conflicts” due to the $80 million in annual funding the foundation receives from Philip Morris.

At least three Indian anti-tobacco groups earlier this year wrote to the federal health ministry in New Delhi calling for the rejection of any possible partnerships with FSFW, according to copies of their representations seen by Reuters.

India‘s federal health ministry has sent a letter, dated June 24, to chief secretaries of all states, saying they should not partner with FSFW and also advised other departments and institutions in their region accordingly.

The ministry said Philip Morris was funding FSFW as well as manufacturing and promoting harm-reduction smoking devices. Reuters has previously reported Philip Morris has plans to launch its iQOS smoking device in India which it says is less harmful than conventional cigarettes.

“Any collaboration with the Foundation for a Smoke Free World should be avoided in the larger interest of Public Health,” senior health ministry official, Sanjeeva Kumar, wrote in the letter, which was reviewed by Reuters.

The Foundation for a Smoke-Free World, which is led by former WHO official Dr. Derek Yach, said it “operates with complete independence from Philip Morris” and was committed to full transparency about who its funders were.

Philip Morris, which has a stated longer-term vision to replace cigarette sales with products such as its iQOS device, in a statement said FSFW was “an independent body governed by its own independent Board of Directors”.

Tobacco in India

In recent years, the Indian government has intensified its tobacco-control efforts, raising cigarette taxes and ordering companies to print bigger health warnings on cigarette packs.

India has 106 million adult smokers, second only to China, and more than 900,000 people die each year in India due to tobacco-related illnesses.

A federal health ministry official said on Sunday the letter on FSFW had been sent as a preventive measure to dissuade states from any collaboration with the foundation, and similar instructions were likely to be sent to other federal ministries.

The FSFW said there were no projects with any state government institutions in India. “We seek partnerships with all who share our goal to end smoking in the world,” a spokesperson said in a statement to Reuters.

In May, FSFW said its team was committed to working with others “to accelerate an end to smoking in this generation” in India. It also invited people to study its strategic plan.

That same month, Philip Morris in a press statement said it had urged the Indian government to create a regulatory environment for devices such as its iQOS.

When the FSFW was launched in 2017, the WHO had said it will not partner with the foundation and asked governments around the world and public health communities to follow the agency’s lead.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

340 infrastructure projects show cost overruns of Rs 3.3 lakh crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As many as 340 infrastructure projects, each worth Rs 150 crore or more, have shown cost overruns to the tune of over Rs 3.3 lakh crore owing to delays and other reasons, a report said.

“Total original cost of implementation of the 1,405 projects was Rs 1,809,681.47 crore and their anticipated completion cost is likely to be Rs 2,139,924.38 crore, which reflects overall cost overruns of Rs 330,242.91 crore (18.25 percent of original cost),” the ministry of statistics and programme implementation’s latest report for March 2019 said.

The ministry monitors infrastructure projects worth Rs 150 crore and above. Of these 1,405 projects, 340 reported cost overruns and 381 time escalation.

According to the report, the expenditure incurred on these projects until March 2019 is Rs 853,680.47 crore, which is 39.89 percent of the anticipated cost of the projects.

However, it said the number of delayed projects decreases to 300 if delay is calculated on the basis of latest schedule of completion.

For 705 projects, neither the year of commissioning nor the tentative gestation period has been reported.

Out of 381 delayed projects, 117 projects have overall delay in the range of 1 to 12 months, 63 are delayed by 13 to 24 months, 103 reflect delay of 25 to 60 months and 98 projects show 61 months and above delay.

The average time overrun in these 381 delayed projects is 43.17 months.

The brief reasons for time overruns, as reported by various project implementing agencies, are delays in land acquisition, forest clearance and supply of equipment.

Besides, there are other reasons like fund constraints, geological surprises, geo-mining conditions, slow progress in civil works, shortage of labour, inadequate mobilisation by the contractor, Maoist problems, court cases, contractual issues, ROU/ROW (right of use/right of way) problems, law and order situation, among others, the report said.

It also observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures are under-reported.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BJP eyeing 1 crore membership from West Bengal after stellar Lok Sabha showing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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West Bengal Bharatiya Janata Party (BJP) president and party MP Dilip Ghosh said on Sunday that the saffron outfit was eyeing one crore membership from West Bengal this year.

“Last year, we had enlisted 42 lakh members. In the 2014 Lok Sabha polls, the party had got 86 lakh votes. In the recently held general elections, we got 2.30 crore votes and half of them should be enlisted as party members.

“We will renew the membership of the existing members and target over one crore membership from West Bengal this year,” he told party workers at a meeting in Howrah district.

Urging the party workers to expedite the process of enlisting members, which will commence from July 6, Ghosh told them to reach out to those who did not vote for the BJP.

“Other states may look at 20-30 per cent increase in membership, but West Bengal is different. The state is at the centre of the country’s focus. We should double our membership,” he said, adding that the party is gaining popularity everyday as workers from other parties are joining the BJP.

Ghosh also accused the state’s ruling Trinamool Congress of inciting violence in West Bengal and destroying the democratic rights of the citizens.

“Fed up with Trinamool’s extortion, people have started to come to a party which had three members in the legislative Assembly before four new BJP MLAs were elected in the by-elections. Many Trinamool Congress MLAs too have crossed over to the BJP,” Ghosh said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Auli now clean after Rs 200 crore Gupta weddings, say municipality officials

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The ski resort of Auli in Uttarakhand, the scene of the high profile weddings of two sons of South Africa-based businessmen Gupta brothers, has been cleaned, top officials of the Joshimath municipality said on Sunday.

“Auli is totally clean now. We have picked up all the garbage and cleaned all the pit sewage,” said SP Nautiyal, the executive officer of the Joshimath municipality. The official had last week asserted that Auli will be cleaned by June 30.

The municipality has also slapped a fine of Rs 2.5 lakh on Gupta brothers for scattering garbage and defecating in open in the picturesque mountain resort where the weddings were held last week.

Rs 1 lakh was slapped for defecating in open, and Rs 1.5 lakh is the penalty for scattering garbage, Nautiyal said. A copy of the chalan has already been sent to the event management company which made arrangements for the weddings, Nautiyal said.

In addition to this, the municipality has also prepared a bill of Rs 8.14 lakh for collecting the garbage left as environmentalists raised concerns. Already, Gupta brothers have deposited Rs 5.54 lakh with the municipality which also includes Rs 54,000 as user charges.

The Gupta brothers have assured the municipality officials that they would pay all the bills and fines shortly.

Following the Gupta weddings, the Joshimath municipality collected a total of 321 quintal of garbage from the site.

Meanwhile, the issue of the refund of the Rs 3 crore security deposited by the Gupta brothers with the Chamoli district administration in Uttarakhand will be decided on July 8, the next day of the hearing in the Nainital High Court.

Under the strict orders of the Nainital High Court, a group of 13 officials had monitored the functions and also videographed the main events at Auli.

All the 13 officials are from different government departments which include forests, state pollution control board, Chamoli district administration, Uttarakhand Jal Sansthan, revenue, PWD and others.

Helicopters were not allowed to land at Auli completely. Instead, the choppers carrying guests landed at Ravigram near Joshimath helipad from where they were taken to the marriage site by cars.

As per the high court’s orders, only 150 guests were allowed in the function. Chief minister Trivendra Singh Rawat, Baba Ramdev were among the VIPs who also blessed the newly-weds.

A bevy of Bollywood stars including actress Katrina Kaif also performed at the weddings.

Chief minister Rawat had strongly defended the marriage saying environmental concerns were not justifiable and Auli can be developed as a big tourist destination.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NBCC not interested in Jaypee Infratech acquisition anymore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Although the distressed home buyers of Jaypee Infratech Limited (JIL) are urging the government to intervene in the resolution process of the bankrupt realty firm in support of NBCC’s bid, the public sector construction major, according to sources, is no more interested in acquiring JIL and its stalled projects.

After the latest round of voting, whereby NBCC’s bid was rejected as the banks led by IDBI Bank voted against it, the management in the state-run company is not enthusiastic about moving ahead on that front as there is no “possible chance of unanimity among the home buyers and the banks,” sources said.

“Such are the differences that, if the banks are ‘north pole’, home buyers are ‘south pole’. The only possible way forward for Jaypee seems to be liquidation,” said an NBCC official.

“We are not aggressive. If we were aggressive, our lawyer would have been there at the NCLAT now,” the official added.

Further, change in guard at the ‘Navratna’ company has also impacted its approach towards the bankrupt JIL, people in the know of things said.

NBCC chairman Anoop Kumar Mittal, who was known to be bullish with his intention to acquire JIL, relinquished his office in March 2019 after the government denied extension of his service till his date of superannuation in January 2020.

Another bureaucrat, Shiv Das Meena, assumed the office of chairman-cum-managing director, NBCC (India), with effect from April 5, 2019.

Home buyers, on the other hand, have off late protested and written letters to the prime minister, finance minister and the housing and urban affairs minister asking the government to direct the IDBI Bank to accept the NBCC bid.

The bid to acquire the insolvent JIL was put to vote from May 31 to June 10 and a majority of the lenders, led by IDBI Bank, voted against the bid on the grounds that it was conditional. Home buyers, however, were in favour of the bid.

The NBCC’s bid seeks the cancellation of an estimated income tax liability of Rs 33,000 crore due over a period of 30 years under the concession agreement for the transfer of land from the Yamuna Expressway Industrial Development Authority to JIL.

After the last round of voting, Adani Infrastructure and Development (AIDPL), which in April had shown interest in acquiring Jaypee Infratech’s assets, earlier this week said that it would complete the stalled projects in four years time if it is allowed to take over JIL. This is the second time Adani group has shown interest in acquiring the insolvent company.

In the committee of creditors’ (CoC) meeting on June 20, the offer was discussed and it was decided that resolution professional (RP) Anuj Jain would inquire from AIDPL about the completion timeline.

The CoC is likely to issue fresh expressions of interest (EoI) for JIL after the National Company Law Appellate Tribunal’s (NCLAT) hearing on the IDBI Bank’s plea over NBCC bid on July 2.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Draft e-commerce policy, data protection may figure at India-EU meet in Brussels

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Issues such as draft e-commerce policy, data protection and price control on some medical devices are expected to figure in the upcoming meeting between India and the European Union (EU) on July 4 in Brussels, sources said.

The officials of both the sides may discuss these issues as part of their Trade Sub-Commission meeting.

The other matters which could come up for deliberations include phase II of India’s Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme, steel quality issues, market access for alcoholic beverages, and rules pertaining to cosmetic sector.

The main objective of the FAME scheme is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentive on purchase of electric vehicles and also by way of establishing necessary charging infrastructure.

“The main aim of the meeting is to find more ways to enhance trade and investments between the two sides,” the sources said.

India and the EU are already negotiating a comprehensive free trade pact, officially dubbed as the Bilateral Trade and Investment Agreement (BTIA), but the talks are stalled since May 2013 due to differences on several matters.

Deliberations of issues such as the country’s draft e-commerce policy, data protection norms and price control on some medical devices like coronary stents in the meeting would assume significance as several multi-national firms have allegedly raised concerns on these matters.

The draft e-commerce policy has proposed setting up a legal and technological framework for restrictions on cross-border data flow and has also laid out conditions for businesses regarding collection or processing of sensitive data locally and storing it abroad.

The European Union is seeking greater market access for its alcoholic beverages and have raised concerns over high duties in Indian states.

The two-way trade between the two regions have increased to $115.6 billion in 2018-19 from $101.5 billion in 2017-18.

European countries, including Germany and France, are among the top ten investors in India.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow