Govt may ease rules to help companies boost overseas borrowings

News Network
January 21, 2020

Jan 21: Indian policymakers may make it easier for companies to tap foreign funding, as a prolonged cash squeeze makes it tough for firms to borrow at home.

Investors are speculating about potential steps Finance Minister Nirmala Sitharaman could unveil when she presents the nation’s budget on Feb. 1. These measures may include freeing up firms to borrow at higher rates and offering tax breaks to global funds.

“The government will need to relax local rules to make it easier for Indian companies to raise debt overseas and tide over the funding crunch in the onshore market,” said Raj Kothari, London-based head of trading at Jay Capital Ltd. “At the same time, they need to ensure that the borrowers tapping offshore markets abide with stricter corporate governance so as to avoid further defaults.”

A prolonged crisis in India’s shadow bank sector and a pile of bad loans at traditional lenders is making it expensive for Indian companies, other than the best-rated firms, to access funding. The government has tried a series of measures to spur domestic credit, including providing so-called credit enhancement and allowing tiny firms to restructure debt.

Here are some steps Sitharaman may consider to spur foreign borrowing:

• She could raise the cap of 450 basis points above Libor, which limits overall foreign debt costs for Indian companies

• This could help lower-rated firms sell bonds abroad. Indian companies rated BBB currently borrow at more than 10%, about 3.8 percentage points more than their top-rated peers;

• Sitharaman could waive the withholding tax foreign investors need to pay on holdings of rupee-denominated debt sold by Indian companies abroad

• The waiver was offered between September 2018 to March 2019, but wasn’t extended as the highest global interest rates since the financial crisis deterred Indian borrowers. Since then, the three-month Libor has dropped by about 1 percentage point

• She could permit Indian property developers and housing finance lenders to sell overseas bonds for reasons beyond affordable housing projects

• New funding lines to the real estate sector, arguably ground zero of India’s economic slowdown, could help kickstart consumption and investment as the industry is the nation’s biggest job-creator.

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Agencies
March 22,2020

New Delhi, Mar 22: The exercise to update the National Population Register (NPR) and the first phase of the Census 2021, scheduled to begin from April 1, are likely to be deferred for an indefinite period due to Coronavirus pandemic, officials said.

A formal order on this effect is expected within a day or two.

Discussions are going on at the highest level of the government and in all probability, the NPR and house listing phase of the Census work will be deferred till the threat of the Coronavirus is over, a home ministry official said.

The exercise to update NPR and the housing listing phase of the Census is scheduled to be carried out across the country from April 1 to September 30.

Last week, the home ministry had said the preparation for the Census 2021 and updation of the NPR were at its peak and they will begin from April 1.

The ministry said this after a conference of the Directors of the Census Operations on status of preparatory work around Census 2021 and NPR updation.

There has been opposition from several state governments to the NPR and some of the assemblies even adopted resolutions expressing reservations on the exercise.

The states which have been opposing the NPR include Kerala, West Bengal, Punjab, Rajasthan, Chhattisgarh and Bihar.

However, most of them also said they will cooperate with the house listing phase of the Census.

The objective of the NPR is to create a comprehensive identity database of every usual resident in the country.

The database would contain demographic as well as biometric particulars, they said.

The notification for the house listing census and NPR exercise came recently amid furore over the contentious Citizenship Amendment Act (CAA).

The home ministry officials said most of the states have notified provisions related to the NPR.

The NPR is a register of usual residents of the country. It is being prepared at the local (village/sub-town), subdistrict, district, state and national levels under provisions of the Citizenship Act, 1955 and the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, 2003.

The data for NPR was last collected in 2010 along with the house listing phase of the Census 2011. Updating of this data was done during 2015 by conducting door to door survey.

While updating the register in 2015, the government has asked details like Aadhaar and their mobile number.

This time, the information related to their driving licence and voter ID card may also be gathered, the officials said, adding that PAN card details will not be collected as part of this exercise.

Though information regarding the place of birth of parents will be sought, it is up to the residents whether to respond the question as it is voluntary.

For the purposes of the NPR, a 'resident' is defined as a person who has lived in a local area for the past six months or more, or a person who intends to reside in that area for the next six months.

The law compulsorily seeks to register every citizen of India and issue a national identity card.

The demographic details of every individual are required for every usual resident: name, relationship to head of household, father's name, mother's name, spouse's name (if married), sex, date of birth, marital status, place of birth, nationality (as declared), present address of usual residence, duration of stay at present address, permanent residential address, occupation, educational qualification.

The Union Cabinet has approved Rs 3,941.35 crore for the NPR exercise.

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News Network
June 8,2020

New Delhi, Jun 8: Places of worship on Monday across the country reopened after staying shut since March due to the COVID-19 induced lockdown.

Scores of temples, mosques and gurudwaras were seen opening up keeping in view the Standard Operating Procedure (SOP) issued by Union Home Ministry to prevent coronavirus spread.

As per Ministry of Health guidelines, touching of idols/holy books, choir/singing groups, etc are not allowed.

In Delhi, people gathered at Gauri Shankar Temple in Chandni Chowk to offer prayers. With national capital seeing a rise in coronavirus cases, the devotees were seen wearing masks and taking precautions. People were also seen offering prayers at Kalka Ji Temple.

Several people arrived at Sri Bangla Sahib Gurudwara to offer prayers. Devotees were made to pass through the disinfectant tunnel before entering the Gurdwara in order to prevent the virus.

In Uttar Pradesh, Chief Minister Yogi Adityanath offered prayers at Gorakhnath Temple after state government allowed re-opening of places of worship from today.

Devotees were seen offering prayers at Eidgah Mosque in Lucknow.

Devotees also offered prayers at Shree Dodda Ganapathi Temple in Basavanagudi, Bengaluru.

Hanuman Garhi Temple in Ayodhya also reopened on Monday.

Prayers were offered at Durga Mata Mandir near Jagraon Bridge in Ludhiana, as the government has allowed reopening of places of worship.

Although religious places have opened in most of the states, however, there are some states which are yet to do so.

Preparations related to Yatra of Char Dhams including Badrinath have been completed, however, local representative of the areas from where the routes of this yatra pass have requested the government to not allow the commencement of the Yatra.

Based on the assessment of the situation, the Odisha Government ordered that all religious places/places of worship for the public will continue to remain closed till June 30.

Earlier, the Union Ministry of Home Affairs (MHA) said that religious places and places of worship for public, hotels, restaurants and other hospitality services along with shopping malls will be permitted to open from June 8.

However, these facilities will not be able to resume operations inside containment zones designated by authorities in states.

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Agencies
July 7,2020

New Delhi, Jul 7: Diesel price in the national capital on Tuesday touched an all-time high following a rate hike after a week-long hiatus.

Diesel price on Tuesday was increased by 25 paise per litre, according to a price notification of state-owned oil marketing companies.

This took the retail selling price of diesel to Rs 80.78 per litre in the national capital - the highest ever.

There was no change in petrol price for the 8th straight day, and it continues to be priced at Rs 80.43 per litre.

Rates vary from state to state depending on the incidence of local sales tax or VAT.

Petrol and diesel price were last revised on June 29.

In the last one month, diesel price has been increased on 23 occasions while petrol rates have risen 21 times.

The cumulative increase since the oil companies started the cycle on June 7, totals to Rs 9.17 for petrol and Rs 11.39 in diesel.

In Mumbai, petrol is priced at Rs 87.19 - unchanged since June 29, while diesel was hiked to Rs 79.05 a litre from Rs 78.83.

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