Cabinet to withdraw Vodafone conciliation offer today: Source
NEW DELHI: The Cabinet is scheduled to withdraw on Friday the conciliation offer extended to Vodafone on settling the tax demand on the telecom operator, a government official said. Once the Cabinet decides to withdraw the offer of conciliation on Friday, the tax demand raised on Vodafone will stand validated and paves the way for the tax man to collect dues worth 200 bln rupees, the official said. Vodafone tried to widen the scope of conciliation by wanting to include a separate transfer pricing dispute involving an amount of 85 bln rupees, and this ultimately convinced the government to withdraw the offer, the official said. The government will also be in a position to reply to a supplementary arbitration notice served by Vodafone under the Indo-Dutch Bilateral Investment Promotion and Protection (BIPA), once the Cabinet scraps the tax conciliation offer, the official added.
Renuka Board gives nod for rights issue
New Delhi: Renuka Sugars said its Board has given in-principal approval for issuing shares to existing shareholders through the rights issue to raise Rs 725.4 crore. Last week, Renuka Sugars had announced sale of 27.5 per cent stake in the company to Singapore-based agri-business major Wilmar International for Rs 517 crore. It had also said the company would launch rights issue to raise another Rs 725 crore. Existing promoters and Wilmar would participate in the Rights Issue.
Parekh: New govt must focus on infra
New Delhi: Expressing concern over decline in infrastructure investment, HDFC Chairman Deepak Parekh said infrastructure investment has derailed in the past two years and revitalising investment in the sector will be a big task for the new government. At India Economic Convention organised by India Foundation, Parekh said the country needs USD 1 trillion in the 12th Plan of which 47% was to come from private sector, but it has not happened in the first two years of the Plan period. Concerned over surging NPAs in banks, the banker said “as we speak, 11 banks have NPAs of over 5%”. In absolute terms to be about 4 lakh crore of which about would be required to be “written off”. Majority of this NPA comes from infrastructure sector, he added. To deal with such situation, banks need more capital. But banks, he said, has “inherent problem” in raising equity as government’s capital infusion is “inadequate”.
Tata to set up JLR plant in Saudi Arabia
New Delhi: India’s largest automobile company Tata Motors is exploring the possibility of setting up a manufacturing plant for Jaguar and Land Rover in Saudi Arabia, the Gulf kingdom’s industry minister said Thursday. Addressing an India-Saudi Arabia Business Forum meeting here, Saudi Arabia Commerce and Industry Minister Tawfig Fawzan Alrabiah said the proposed plant would be the third largest for manufacturing of high-end Jaguar and Land Rover cars. The minister said the plant is proposed to be set up eastern province of Saudi Arabia.
MFs garner Rs 1.6 lakh cr in Apr-Jan
New Delhi: Investors have pumped in more than Rs 1.6 lakh crore in various mutual fund schemes in the first ten months of the ongoing financial year, more than double the amount infused by them in entire 2012-13 fiscal. According to experts, fund mobilisation in MF schemes is expected to further grow as regulator Sebi has recently cleared its first ever long-term policy for the industry, proposing a number of tax benefits and measures for growth of this business. The policy is aimed at channelising household savings into equities and mutual funds. As per the latest data available with Sebi, there was a net inflow of Rs 1,59,631 crore during the 2013-14 fiscal (April-January) as against over Rs 76,000 crore in the preceding fiscal. Prior to that, a net amount of more than Rs 22,000 crore and over Rs 49,000 crore moved out of the mutual funds’ kitty during 2011-12 and 2010-11, respectively.