PM Modi meets Suu Kyi, discusses India-Myanmar relations

New Delhi, Jun 5: Shares of Reliance Industries on Friday gained over 2 per cent to hit their one-year high level after the company announced sale of 1.85 per cent stake in its digital unit, Jio Platforms, to Abu Dhabi-based sovereign investor Mubadala.

On BSE, the heavyweight stock jumped 2.38 per cent to Rs 1,617.70 -- its 52-week high.

It surged 2.41 per cent to its one-year high of Rs 1,618 on NSE.

Earlier in the day, Reliance Industries announced the sale of 1.85 per cent stake in its digital unit to Mubadala for Rs 9,093.60 crore, the sixth deal in as many weeks that will inject a combined Rs 87,655.35 crore in the oil-to-telecom conglomerate to help it pare debt.

"Mubadala Investment Company (Mubadala) will invest Rs 9,093.60 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore," the company said in a statement.

With this investment, Jio Platforms has raised Rs 87,655.35 crore from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.

Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd, is a next-generation technology company.

Wayanad, Mar 3: Anguished over the alleged delay in receiving flood relief from the Kerala government, a 42-year-old man committed suicide in Wayanad district, police said on Tuesday. Sanal Kumar, a native of Thrikaipatta in Meppadi near here was found hanging inside the temporary shelter built by his friends and local people on Monday. He was among the hundreds who had lost their homes in the August 2019 floods.

His home, built on a three cent plot, had been damaged partially in 2018 floods and completely in the 2019 deluge. Family members of the deceased alleged that it was due undue delay on the part of the authorities in allotting funds for rebuilding his house that drove Kumar to take the extreme step. Kumar was hoping to get a house under the Life Mission project, sources said.

A relative said Kumar had only 3 cent of land and had lot of debts. Even the Rs 10,000 assistance promised by the state government for the flood affected, had not reached him. Since the past two years he had filed several applications for assistance and apporached many revenue authroties for the promised government assistance, but it never came, the locals alleged.

According to K K Sahad, president of Meppadi Panchayat the deceased had some other financial issues and it was not the delay in rehabilitation that made him commit suicide. "It is true that he was not included in the first list of beneficiaries under the LIFE project as he had to have "pattayam" (land records) for his land.

However, he was included in the second list, thanks to the dilution in the norms that possession was enough for those who had no 'pattayam' for their property. The amount of Rs 4 lakhs was sanctioned for him, but was delayed a bit due to some technical issues."

Wayanad MLA C K Saseendran described it as an "extremely sad" development. As Kumar had some difficulties in producing the land recrods, the authroties had been unable to include his name in the LIFE housing scheme in the first phase.

The matter has been brought before the notice of the revenue authorities, he said. Vythiri Tahsildar, Abdul Hameed, visited Kumar's relatives this morning as the family members of the deceased wanted his presence before the body was taken for post-mortem.

"There was some technical issues with regard to the land as it falls within the adhivasi reserve. But they were occupying it for long. However, the issue has been sorted out and that his family members would be getting the eligibility amount of four lakhs," Hameed said.

Jan 6: India’s Finance Ministry has delivered a challenge to its revenue collectors: meet tax targets despite $20 billion of corporate tax cuts.

Through a video conference on Dec. 16, officials were exhorted to meet the direct tax mop-up target of 13.4 trillion rupees ($187 billion), a government official told reporters. Collection in the eight months to November grew at 5% from a year earlier, against the desired 17%.

The missive shows Prime Minister Narendra Modi’s urgent need to buoy public finances in a slowing economy where April-November tax collections were half the amount budgeted. Authorities withheld some payments to states and have capped ministries’ expenditure as the fiscal deficit ballooned beyond the target.

The government’s efforts to maintain its deficit goal goes against advice from some quarters, including central bank Governor Shaktikanta Das, who urged more spending to spur economic growth.

It’s uncertain though how much room Modi’s administration has to boost expenditure, given that it may already be borrowing as much as 540 billion rupees through state-run companies, a figure that isn’t reflected on the federal balance sheet. Uncertainty about public finances pushed up sovereign yields in November and December, compelling Das to announce unconventional policies to keep costs in check.

“This is not a time to conceal the fiscal deficit by off-budget borrowing or deferring payments,” said Indira Rajaraman, an economist and a former member of the Reserve Bank of India’s board. “If they were to stick to the target, that would be catastrophic because there is so much pump-priming that is needed right now.”

GDP grew 4.5% in the quarter ended September, the slowest pace in more than six years as both consumption and investments cooled in Asia’s third-largest economy. Only government spending supported the expansion, piling pressure on Modi to keep stimulating.

S&P Global Ratings warned in December it may downgrade India’s sovereign ratings if economic growth doesn’t recover. Government support seems to be waning now, with ministries asked to cap spending in the final quarter of the financial year at 25% of the amount budgeted rather than 33% allowed earlier. This new rule will hamstring sectors including agriculture, aviation and coal, where not even half of annual targets have been disbursed.

As the federal government runs short of money, it’s been delaying payouts to state administrations.

Private hospitals have threatened to suspend cash-less services to government employees over non-payment of dues, while a builder informed the stock exchange about delayed rental payments from no less than the tax office itself.

India is considering a litigation-settlement plan that will allow companies to exit lingering tax disputes by paying a portion of the money demanded by the government, the Economic Times newspaper reported Saturday.

The move will help improve the ease of doing business besides unlocking a part of the almost 8 trillion rupees ($111 billion) caught up in these disputes. The step, which is being considered as part of the annual budget, could also bridge India’s fiscal gap.

Finance Minister Nirmala Sitharaman has refused to comment on the deficit goal before the official budget presentation due Feb. 1.

A deviation from target, if any, “will need to be balanced with a credible consolidation plan further-out,” said Radhika Rao, an economist at DBS Group Holdings Ltd. in Singapore.