Tag: government

Government proposes to privatise IOB, Central Bank of India; details here

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

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CNBC-TV18 has learnt that government has proposed privatising Indian Overseas Bank (IOB) and Central Bank of India.

The first important leg in terms of the banking amendments is likely to go through in the current session of the Parliament, at least the proposal to bring the bill in the Parliament.

One needs to see whether it is referred to a Standing Committee or if it sails through without that. Depending on the same, the privatisation exercise of banks will go forward.

Also Read: Central Bank of India, Indian Overseas Bank shortlisted for divestment: Report

It depends now on how quickly the banking amendments move and when the government will be ready to do the transaction.

This privatisation is unlikely to happen in the current financial year at least.

Watch the accompanying video of CNBC-TV18’s Sapna Das for more details.

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

As govt drafts crypto law, industry hopes for progressive regulations

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

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Ahead of a crucial parliamentary standing committee meeting on cryptocurrencies, industry bodies have appealed to the government for progressive regulations which will ensure wealth creation and higher tax revenues for the exchequer.

“India has the potential to earn tax revenues of over $1 billion annually in the form of capital gains if the industry gets supportive regulation. Over a 5-year period, Indian holdings of crypto can exceed $100 billion,” said an industry official.

“The committee understands this is an important and urgent topic and therefore is calling in industry stakeholders to understand what they see as opportunities and challenges for cryptofinance going forward. All key players from the industry will be there,” Chairman of the Parliamentary Standing Committee on Finance Jayant Sinha told CNBC-TV18

The Union government is set to bring a bill in the winter session to regulate cryptocurrencies. On Saturday, Prime Minister Narendra Modi chaired a comprehensive meeting on the way forward for cryptocurrencies in India.

Sources said that the steps taken by the government will be progressive and forward looking but misleading advertisements need to be stopped. The Centre is also of the view that unregulated crypto markets should not be misused for money-laundering and terror-financing.

What to expect from the parliamentary standing committee meeting on cryptocurrencies?

This is the first ever meeting called by the parliamentary standing committee to seek views from industry associations and experts on the opportunities and risks in the crypto sector. Several parliamentarians have expressed concerns about potential risks to Indian investors. The committee is likely to seek views on whether regulating the sector could bring in more tax revenues. Industry experts are likely to be asked about global best practices for regulating the cryptocurrency sector.

Speaking to CNBC-TV18, BJP spokesperson Gopal Krishna Agarwal said it is high time the parliament legislates on cryptocurrencies. “We understand that ultimately cryptocurrencies are here in India and it is better it is regulated. Anything out of regulation will create a completely illegal market which is very dangerous. FM has already said that we are not going to ban cryptos but we will regulate it,” said Agarwal.

He further said, “Govt is moving more and more towards digital payments. The problem is that there is no central clearing entity on crypto currencies. Therefore, there is a chance that illegal funds can creep into the sector. RBI initially had banned cryptocurrencies, but the order was struck down by Supreme Court which asked the government to first make a legislation. So it is high time parliament legislates on cryptocurrencies.”

What is the industry view?

Industry associations have said that the government should create an independent regulator for the cryptofinance sector. Banning it would keep India out of global transformation, with loss of capital and labour, said a source.

According to reports, the crypto asset market in India is likely to be worth $15 billion, with over 6 million crypto users in the country. Foreign investments in cryptofinance ecosystem could go from $500 million currently to $25 billion by 2025, according to some industry sources. Experts have also said that stablecoins linked to rupee should become the only entry/exit points for crypto assets and there is a need for introducing central bank digital currencies.

Who are appearing before the committee?

Members of Blockchain and Crypto Assets Council, Indian Software Products Industry Roundtable, IIM-Ahmedabad, Khaitan & Co and other industry experts are likely to appear before the committee.

Only private sector representatives and experts have been called for the parliamentary standing committee meeting. After this first meeting, the committee will decide on next steps in the consultative process. The meeting is likely to address how innovations and opportunities in the cryptocurrency sector can be leveraged in the face of challenges such as unbridled speculation and illegal financing.

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

India’s FY22 vaccine spend may rise to Rs 50,000 crore

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

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India’s vaccine spend may rise to Rs 50,000 crore this fiscal which is significantly higher than the budget estimate of Rs 35,000 crore.

CNBC-TV18 learns that till date government has spent Rs 30,000 crore on the vaccination drive.

Also Read: Zydus Cadila agrees to reduce Covid vaccine price to Rs 265 a dose

Sapna Das reports that the government is also planning to part finance the entire expenditure from multi-lateral agency loans.

Watch video for more.

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

Uttar Pradesh govt likely to address pending land acquisition disputes

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

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The Uttar Pradesh (UP) government is likely to address pending land acquisition disputes in the state. There will be a focus on the land acquisition disputes in the areas like group housing, urbanisation, institutional development schemes that have been launched so far in the state. The focus will be on resolving the stuck compensation in these land acquisition cases.

The disputes are mainly involving farmers and the municipal state development authorities with respect to non-payment of compensation.

The UP government is likely to call an urgent review of all such disputes. The government is also likely to give a broad direction to local authorities that the local authorities should pre-assess viability and availability of funds before announcing any future land acquisition proposal in the state.

Also Read: PepsiCo commissions Rs 814-crore foods plant in Uttar Pradesh’s Mathura

Senior government officials indicated that most of the cases are sub-judice either before High Court or Supreme Court and the government is looking at various ways to address this ahead of the upcoming elections.

The state government is addressing these pending land acquisition disputes; especially on the terms of compensation payment delays, so the government could soon come up with a scheme to avoid these delays and also the land acquisition that has been announced, but the acquisition has not yet been started leading to delay in payments and delay to either acquire. So, farmers are in the doldrums whether they will get the payment or they should continue with their land, whether their land is going to be acquired or not – that is something that needs to be cleared by the government. Some of the local development authorities are also facing a lack of funds resulting in these issues.

Landowners are looking for either timely payment or compensation or release of land. So all these issues are likely to be addressed very soon by the UP government.

Watch the accompanying video of CNBC-TV18’s Timsy Jaipuria for more details.

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

Govt sanctions ad hoc bonus to employees for FY21

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

Listen to the Article (6 Minutes)

The government has sanctioned non-productivity linked or ad hoc bonuses for central government employees for the fiscal year 2020-21. In an office memorandum, the Department of Expenditure under the Finance Ministry said the employees of central paramilitary forces and armed forces too would be eligible for the bonus.

Employees who were in service as of March 31, 2021, and have rendered at least six months of continuous service during the 2020-21 fiscal year would be eligible for this ad hoc bonus. The non-productivity linked bonus (ad hoc bonus) would be paid to the central government employees in Group C and all non-gazetted employees in Group B, who are not covered by any productivity-linked bonus scheme. The calculation ceiling for payment of this bonus would be monthly emoluments of Rs 7,000.

”The quantum of ad hoc bonus will be worked out on the basis of average emoluments/calculation ceiling whichever is lower,” the Department of Expenditure said. To calculate the ad hoc bonus for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month).

This will, thereafter, be multiplied by the number of days of bonus granted. Giving an illustration, the memorandum said given the calculation ceiling of monthly emoluments of Rs 7,000 (where actual average emoluments exceed Rs 7,000), the non-productivity linked bonus or ad-hoc bonus for 30 days would work out to be Rs 6,908.

It also clarified that in case of employees who resigned, retired from service or expired before March 31, 2021, the ad hoc bonus would be paid only to those who superannuated or retired on medical grounds or died before March 31, 2021, but after completing at least six months regular service during the year.

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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

Telecom relief package: Government announces contours of equity conversion formula with telcos

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

Listen to the Article (6 Minutes)

The telecom department, in consultation with the finance ministry, has written to telecom companies, sharing the contours of the equity conversion formula.

Ashmit Kumar reports that the letter gives a 10-day deadline to reply on whether they will be opting for the AGR (spectrum) dues moratorium and whether they will be opting for the equity conversion scheme.

The letter from the Department of Telecom (DoT) says the scheme is optional for telcos; they may or may not choose to participate in it.

The Cabinet had said that there will be a four-year moratorium for AGR as well as spectrum dues, and the interest for these dues can be converted to a loan. This loan then can be converted to equity, and the telcos will be bound to issue equity shares on preferential basis.

Also Read: Kumar Mangalam Birla may infuse capital into Vodafone Idea: Reports

Sanjay Kapoor, former CEO – India and South Asia, Airtel, in an interview to CNBC-TV18, said, “The government had already mentioned about this option being available. All they have done today is to announce that the prices will be based on August 14, 2021; the price of the shares will not be less than the average price of the last six months, and the shares will be allotted on  preferential basis. According to me, this information has to be processed by the shareholders of each of these companies; no one individual can go and take this call. So, I am sure they will see how the dilution for other shareholders takes place based on this option available and how their rights get impacted by this. So, based on that, they will take a decision.”

Also Read: DoT allows telcos to digitise CAFs

Watch video for more.

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

Centre exploring insurance bonds as alternative to bank guarantees

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

Listen to the Article (6 Minutes)

The government is considering to introduce insurance bonds as an alternative to bank guarantees, finance secretary T V Somanathan said in Mumbai on Tuesday.

Somanathan made the announcement during a meeting between industry captains and finance minister Nirmala Sitharaman, who is on a two-day visit to the financial capital. “Government is exploring on instituting insurance bonds as alternatives to bank guarantees,” an official statement said.

Bank guarantees are usually asked for while extending a loan and typically require a collateral. An insurance bond is also a surety but it does not require any collateral. As per reports last year, insurance regulator Irdai was also looking at the option of insurers offering surety bonds in the context of road projects.

Also read: War of words on oil bonds, explained

Sitharaman, who met the industry captains in the evening, said the government is committed to working towards ensuring policy certainty, adding that the regulators also have a key role in ensuring the same.

She said the government is working with the regulators on this “important issue”, as per the statement. The finance minister emphasised the importance of ‘India’s own equity capital’ while addressing the industry and assured government facilitation for sunrise sectors and startups. Revenue Secretary Tarun Bajaj said his department was working on tax-related issues of startups and sought industry inputs on the same.

Sitharaman also assured the industry of addressing issues related to competitiveness, including high power tariffs, and matters related to cumbersome regulatory compliances, the statement said.

The economy is moving gradually from a bank-led lending model to a more market-based finance model and the operationalisation of the Development Finance Institution (DFI) will ensure long-term lending for projects, Sitharaman said. The DFI will increase competition for banks and also improve their efficiency, the statement quoted her as saying.

Also read: HDFC Bank raises $1 billion in maiden AT1 bond issue

In the meeting, which comes in the wake of a controversy caused by her cabinet colleague Piyush Goyal’s reported remarks about disenchantment with the industry for not keeping the nation’s interest in mind, Sitharaman said, “This government believes in listening, working and responding and would extend all possible support.”

Tata Steel’s T V Narendran said for growth to take deep roots, sustained demand is critical, and the immediate source of demand has to be government expenditure.

Narendran also recommended frontloading of the committed capital expenditure, especially on infrastructure, adding that the first quarter’s handsome revenues create a room for the same, as per the statement.

On the issue of arbitration awards being appealed, Somanathan said there is a need for a behaviourial change and added that the government trusts wealth creators. The constraint on vaccination is on the supply side and the same is likely to be addressed soon, he further said.

Sitharaman met officials from income tax, Goods and Services Tax (GST) and customs departments in two separate meetings in what is her maiden visit to the financial capital since the second wave of COVID-19. She is scheduled to address chiefs of state-run banks at a meeting on Wednesday.

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