SECTORS ALERT – 17.06.2014
* AUTOMOBILES: Renault on Monday launched a special edition of its mid-sized sedan
Scala in India. Suzuki Motorcycle India has slashed the price of its premium bike
Inazuma by one lakh rupees. With validity of excise duty cuts on cars, two-wheelers and
commercial vehicles set to lapse soon, automobile manufacturers met commerce minister
Nirmala Sitharaman to convince her of the need to extend the benefit beyond Jun 20.
* AVIATION: AirAsia India has announced the addition of Kochi to its network,
with Bengaluru-Kochi flights starting Jul 20.
* BANKING: Reserve Bank of India has accepted the Nachiket Mor committee's
recommendations on introducing payments banks to small businesses after making some
significant changes to the proposed characteristics of these entities.
* ENERGY: India recorded the largest volumetric decline in natural gas production and
consumption in 2013.Coal and Power Minister Piyush Goyal has met senior officials of
both the ministries late last week to thrash out issues relating to coal pricing and fuel
quality. Losses on sale of diesel have dipped to a record low of 1.62 rupees a litre,
raising prospect of deregulation of the nation's most consumed fuel.
The power ministry has requested the coal ministry to ensure that Coal India signs fuel
supply pacts with 10 power units of companies such as Abhijeet, Lanco and DVC for
4,000 MW.
* HIGHWAYS: The road transport and highways ministry has sought 300-350 bln rupees
from the Finance Ministry as budgetary support to implement various projects.
* INFRASTRUCTURE: The Maharashtra government is contemplating on converting
the overground Mumbai Metro Line 2 metro into an underground one, even as it awaits
environmental clearance for the planned Charkop-Bandra-Mankhurd route.
Maharashtra government has decided to drop the idea of constructing the Western
Freeway, a series of bridges over the Arabian Sea, connecting the Mumbai with the
western suburbs and has instead decided to build a Coastal Freeway, a road along the
entire length of Mumbai's western coast.
* INVESTMENT: The Union government is likely to issue far less of tax-free bonds in this financial year.
* POWER: Power Minister Piyush Goyal has said that POWER GRID CORP OF INDIA
has been asked to take up permanent restoration of three damaged lines in Delhi, which
has been leading to prolonged power cuts in the national capital.
REGULATORS: Securities and Exchange Board of India may relax restrictions on sale
of bonus shares held by promoters or other investors during an initial public offer of a
company even if these shares have been held for less than a year.
* STEEL: Rashtriya Ispat Nigam said that two contract engineers died at its Vizag plant
while carrying out inspection in a container laboratory. Essar Steel has got an order to
supply 120,000 tn of pipes for Gujarat government's water management programme.
POSCO's long delayed $ 12 bln steel project may start within a year as opposition from
villagers is fading.
* SUGAR: The oil ministry could be looking to cap the quantum of ethanol blending in
petrol at 10%.
* TAX: A tax reform panel, appointed by the then Congress-led United Progressive
Alliance government, has suggested abolition of the post of revenue secretary and
convergence of the two boards of direct and indirect taxes in the next five years.
* TELECOM: The department of economic affairs will shortly come up with 'a general
formula' to incentivise telecom tower firms, leveraging their infrastructure status. GSM
industry lobby Cellular Operators Association of India has asked the telecom ministry to
relax merger and acquisition norms to encourage consolidation in the sector and rival
CDMA lobby group Auspi has sought retrospective implementation of a scheme that
could reduce fines for radiation norm violations. China-based ZTE Corp plans to have its
first batch of 5G gear prototypes by next year to ensure that it figures among the first
vendors to launch 5G devices commercially in the international markets including India.
* WEATHER: The average rainfall in the country during Jun 1-16 was 49% below
normal at 34.1 mm.
* AUTOMOBILES: Renault on Monday launched a special edition of its mid-sized sedan
Scala in India. Suzuki Motorcycle India has slashed the price of its premium bike
Inazuma by one lakh rupees. With validity of excise duty cuts on cars, two-wheelers and
commercial vehicles set to lapse soon, automobile manufacturers met commerce minister
Nirmala Sitharaman to convince her of the need to extend the benefit beyond Jun 20.
* AVIATION: AirAsia India has announced the addition of Kochi to its network,
with Bengaluru-Kochi flights starting Jul 20.
* BANKING: Reserve Bank of India has accepted the Nachiket Mor committee's
recommendations on introducing payments banks to small businesses after making some
significant changes to the proposed characteristics of these entities.
* ENERGY: India recorded the largest volumetric decline in natural gas production and
consumption in 2013.Coal and Power Minister Piyush Goyal has met senior officials of
both the ministries late last week to thrash out issues relating to coal pricing and fuel
quality. Losses on sale of diesel have dipped to a record low of 1.62 rupees a litre,
raising prospect of deregulation of the nation's most consumed fuel.
The power ministry has requested the coal ministry to ensure that Coal India signs fuel
supply pacts with 10 power units of companies such as Abhijeet, Lanco and DVC for
4,000 MW.
* HIGHWAYS: The road transport and highways ministry has sought 300-350 bln rupees
from the Finance Ministry as budgetary support to implement various projects.
* INFRASTRUCTURE: The Maharashtra government is contemplating on converting
the overground Mumbai Metro Line 2 metro into an underground one, even as it awaits
environmental clearance for the planned Charkop-Bandra-Mankhurd route.
Maharashtra government has decided to drop the idea of constructing the Western
Freeway, a series of bridges over the Arabian Sea, connecting the Mumbai with the
western suburbs and has instead decided to build a Coastal Freeway, a road along the
entire length of Mumbai's western coast.
* INVESTMENT: The Union government is likely to issue far less of tax-free bonds in this financial year.
* POWER: Power Minister Piyush Goyal has said that POWER GRID CORP OF INDIA
has been asked to take up permanent restoration of three damaged lines in Delhi, which
has been leading to prolonged power cuts in the national capital.
REGULATORS: Securities and Exchange Board of India may relax restrictions on sale
of bonus shares held by promoters or other investors during an initial public offer of a
company even if these shares have been held for less than a year.
* STEEL: Rashtriya Ispat Nigam said that two contract engineers died at its Vizag plant
while carrying out inspection in a container laboratory. Essar Steel has got an order to
supply 120,000 tn of pipes for Gujarat government's water management programme.
POSCO's long delayed $ 12 bln steel project may start within a year as opposition from
villagers is fading.
* SUGAR: The oil ministry could be looking to cap the quantum of ethanol blending in
petrol at 10%.
* TAX: A tax reform panel, appointed by the then Congress-led United Progressive
Alliance government, has suggested abolition of the post of revenue secretary and
convergence of the two boards of direct and indirect taxes in the next five years.
* TELECOM: The department of economic affairs will shortly come up with 'a general
formula' to incentivise telecom tower firms, leveraging their infrastructure status. GSM
industry lobby Cellular Operators Association of India has asked the telecom ministry to
relax merger and acquisition norms to encourage consolidation in the sector and rival
CDMA lobby group Auspi has sought retrospective implementation of a scheme that
could reduce fines for radiation norm violations. China-based ZTE Corp plans to have its
first batch of 5G gear prototypes by next year to ensure that it figures among the first
vendors to launch 5G devices commercially in the international markets including India.
* WEATHER: The average rainfall in the country during Jun 1-16 was 49% below
normal at 34.1 mm.
