SECTORS ALERT – 04.06.2014
* AVIATION: AirAsia India's plan to unbundle services has run into trouble with the
Directorate General of Civil Aviation as the aviation regulator has asked the airline to
withdraw all fees and charges.
* BANKING: The finance ministry is mulling creation of a national asset management
company to take over big non-performing assets of banks. The finance ministry discussed
various options to capitalise state-owned banks, including reducing government's stake in
some banks below 58%.
* BULLION: The finance ministry is likely to reduce the gold import duty by 2-4% from
15% currently.
* COAL: The inter-ministerial group on coal headed by the additional secretary in the
coal ministry will meet on Jun 10 to review the issue of bank guarantee of 61 coal blocks.
* COURTS: The Supreme Court will today pass its order on whether to allow Sahara
group to sell properties, including three hotels in London and New York, and on group
head Subrata Roy's plea for release from jail.
* DEFENCE: The government might allow foreign direct investment up to 49% in the
defence sector without any mandatory transfer of technology.
* ENERGY: The finance ministry has vetoed the oil ministry's plan to provide special
benefits like a 10-year tax holiday and zero cess and royalty for ultra deep water
exploration.
* FINANCE: L&T Infrastructure Debt Fund is in advanced talks with an Indian public
sector bank, a US bank, and multilateral agencies to offload 49% in the fund.
* FMCG: Pernod Ricard plans to borrow 9 bln rupees in a bid to intensify its competition
with Diageo in India.
* GOVERNMENT: Prime Minister Narendra Modi's meeting with secretaries of all the
departments scheduled Tuesday has been postponed. Ahead of the full Budget, ministers
for Railways and Civil Aviation, D.V. Sadananda Gowda and Ashok Gajapathi Raju met
Finance Minister Arun Jaitley at the latter's North Block office.
* HOSPITALITY: Lemon Tree Hotel Co plans to invest around 45 bln rupees to add5,200 rooms across India in the next four years. Average occupancy rates in key
hospitality markets of Delhi, Mumbai, Bengaluru, Chennai and Kolkata are likely to fall
5-7% in 2014, as per a report by Cushman and Wakefield.
* REGULATORY: The finance ministry is said to be considering a unified law for all
financial-sector regulators, including the Reserve Bank of India. The Securities and
Exchange Board of India has modified the framework that provides guidelines to short
sellers for borrowing securities for making delivery.
* STATES: Tamil Nadu Chief Minister J. Jayalalithaa has said her party, the All India
Anna Dravida Munnetra Kazhagam, will consider offering issue-based support to the
National Democratic Alliance government in Rajya Sabha.
* WEATHER: The Australian Bureau of Meteorology sees a 70% chance of El Nino
developing this year in the tropical Pacific Ocean and expects the weather phenomenon
to be established by August.
* AVIATION: AirAsia India's plan to unbundle services has run into trouble with the
Directorate General of Civil Aviation as the aviation regulator has asked the airline to
withdraw all fees and charges.
* BANKING: The finance ministry is mulling creation of a national asset management
company to take over big non-performing assets of banks. The finance ministry discussed
various options to capitalise state-owned banks, including reducing government's stake in
some banks below 58%.
* BULLION: The finance ministry is likely to reduce the gold import duty by 2-4% from
15% currently.
* COAL: The inter-ministerial group on coal headed by the additional secretary in the
coal ministry will meet on Jun 10 to review the issue of bank guarantee of 61 coal blocks.
* COURTS: The Supreme Court will today pass its order on whether to allow Sahara
group to sell properties, including three hotels in London and New York, and on group
head Subrata Roy's plea for release from jail.
* DEFENCE: The government might allow foreign direct investment up to 49% in the
defence sector without any mandatory transfer of technology.
* ENERGY: The finance ministry has vetoed the oil ministry's plan to provide special
benefits like a 10-year tax holiday and zero cess and royalty for ultra deep water
exploration.
* FINANCE: L&T Infrastructure Debt Fund is in advanced talks with an Indian public
sector bank, a US bank, and multilateral agencies to offload 49% in the fund.
* FMCG: Pernod Ricard plans to borrow 9 bln rupees in a bid to intensify its competition
with Diageo in India.
* GOVERNMENT: Prime Minister Narendra Modi's meeting with secretaries of all the
departments scheduled Tuesday has been postponed. Ahead of the full Budget, ministers
for Railways and Civil Aviation, D.V. Sadananda Gowda and Ashok Gajapathi Raju met
Finance Minister Arun Jaitley at the latter's North Block office.
* HOSPITALITY: Lemon Tree Hotel Co plans to invest around 45 bln rupees to add5,200 rooms across India in the next four years. Average occupancy rates in key
hospitality markets of Delhi, Mumbai, Bengaluru, Chennai and Kolkata are likely to fall
5-7% in 2014, as per a report by Cushman and Wakefield.
* REGULATORY: The finance ministry is said to be considering a unified law for all
financial-sector regulators, including the Reserve Bank of India. The Securities and
Exchange Board of India has modified the framework that provides guidelines to short
sellers for borrowing securities for making delivery.
* STATES: Tamil Nadu Chief Minister J. Jayalalithaa has said her party, the All India
Anna Dravida Munnetra Kazhagam, will consider offering issue-based support to the
National Democratic Alliance government in Rajya Sabha.
* WEATHER: The Australian Bureau of Meteorology sees a 70% chance of El Nino
developing this year in the tropical Pacific Ocean and expects the weather phenomenon
to be established by August.
