- Two IAS officers appointed Director Census Operations Four officers laterally shifted to MHA, NITI & DFS Sinking BSNL set to get a fresh lease of life Ministry of Defence: Reddy prematurely repatriated IAS officer set to join Uber India at a salary & perks of 03 Crs a year Mismanagement and Cover-up: US halts funding to WHO IRS (C&CE): Demise of a service Resignation of IAS Rani Nagar turned down, may get home cadre J&K cadre IPS officer suspended for alleged misconduct Shinde appointed as PS to Kailash Chaudhary Former IPS officer comes forward to support upright journalists and social workers in distress Tenure of NCLAT chairperson extended NIA to investigate into gold smuggling racket case in Kerala UP government announces three days lockdown Vineel Krishna appointed OSD in CMO Odisha Gangs of Bikru, Kanpur Police and the callous social media? UIDAI: Agrawal prematurely repatriates PSFT: Tenure of the additional charge of CEO extended HHEC CMD prematurely repatriates SAIL earns net profit of 2000 Crs, maintains profitability during FY’20 IRDAI constitutes a working group to study Pandemic Risk Pool Falling for political masters: Cases of Senger and Dubey perplex people at large Tamil Nadu promotes and transfers 51 IPS officers Review meeting for Additional Secretary empanelment (IAS) held on Thursday NHAI: Appointments of Member Project & Member Technical cleared Sanjay Bhoosreddy led SIT to probe police's connivance with gangster Vikas Dubey Maharashtra: Five IAS officers get new postings Gupta tipped as MD, ONGC Videsh, a post vacant since February 2019: An inside story Khemka wants 9.5 ratings instead of 9: Writes to CJI against denial for a reply as 'propria persona'
CABINET COMMITTEE ON ECONOMIC AFFAIRS
Moody’s prediction on growth rate of India’s economy
Though the government is continuously grappling with the
pressure of taking measure to accelerate the growth rate of the country as
leading rating agency Moody’s has also predicted the growth rate of the country
for 2019-20 financial year below 6 per cent that is 5.8 per cent.
Moody’s is of the view that due to some factors impacting for long term the slowdown in Indian economy is likely to be dragged for a slightly longer time. Even Reserve Bank of India in its appraisal meeting for monetary policy in the current fiscal reduced 6.1 per cent.
Moody’s in its report says that the main reason behind slow down is slump in investment which has brought down the number of employment. This has also impacted consumption in the rural area. There are several reasons for slowdown some are domestic but some of them are going to have long-term impact.
PFC acquires govt stake in REC for Rs 14,500 crore
Power Finance Corporation Ltd. (PFC), on 20 March 2019, signed a Share Purchase Agreement to acquire 103.94 crore equity shares of INR 10/- each, of REC Limited from the President of India constituting 52.63% of the paid-up share capital of REC Limited. This is a major milestone achieved by PFC, who is now slated to become a promoter and the holding company of REC Limited.
The acquisition of REC Limited was in pursuance to the in-principle approval dated 6th December 2018 from the Cabinet Committee on Economic Affairs for the strategic sale of 52.63% of the paid-up equity shareholding of REC held by the President of India (acting through Ministry of Power, Government of India) to PFC along with transfer of management control.
Both PFC and REC are Navratna Central Public-Sector Enterprises with combined annual revenues of about Rs. 50,000 Crore and this acquisition is step towards consolidation of companies operating in the same space.
Subsequent to the PFC shareholders’ approval for the transaction, the Board of Directors of PFC considered the transaction and approved the acquisition of the 52.63% shareholding of the President of India in REC Limited, at a cash purchase consideration of INR 139.50 per share with total acquisition cost of about INR 14,500 Crore. The closing price of REC on 19th March, 2019 was INR 148.40 per share. The consideration for the transaction is expected to be paid on 28th March, 2019 and funds for the same have been arranged by PFC already.
The acquisition would enable increased efficiencies in lending processes and policies across both the institutions and would create public value by offering better loan products to the power sector. The convergence between the entities as combined group entities would help the power sector reap benefits from a decentralized outreach of REC and a professional project finance expertise of PFC. Further, the ensuing diversification of assets of the group, as well as portfolio risk would help in resolution of stressed power sector assets of the group in a better and coordinated manner.
For the acquisition transaction, Deloitte Touche Tohmatsu India LLP is the Transaction Advisor, L&L Partners (formerly Luthra & Luthra Law Offices) is the Legal Advisor and SBI Capital Markets Limited is the Valuer.
Moody’s prediction on growth rate of India’s economy
By IndianMandarins 11 Oct 2019
Though the government is continuously grappling with the
pressure of taking measure to accelerate the growth rate of the country as
leading rating agency Moody’s has also predicted the growth rate of the country
for 2019-20 financial year below 6 per cent that is 5.8 per cent.
Moody’s is of the view that due to some factors impacting for long term the slowdown in Indian economy is likely to be dragged for a slightly longer time. Even Reserve Bank of India in its appraisal meeting for monetary policy in the current fiscal reduced 6.1 per cent.
Moody’s in its report says that the main reason behind slow down is slump in investment which has brought down the number of employment. This has also impacted consumption in the rural area. There are several reasons for slowdown some are domestic but some of them are going to have long-term impact.
PFC acquires govt stake in REC for Rs 14,500 crore
By IndianMandarins 22 Mar 2019
Power Finance Corporation Ltd. (PFC), on 20 March 2019, signed a Share Purchase Agreement to acquire 103.94 crore equity shares of INR 10/- each, of REC Limited from the President of India constituting 52.63% of the paid-up share capital of REC Limited. This is a major milestone achieved by PFC, who is now slated to become a promoter and the holding company of REC Limited.
The acquisition of REC Limited was in pursuance to the in-principle approval dated 6th December 2018 from the Cabinet Committee on Economic Affairs for the strategic sale of 52.63% of the paid-up equity shareholding of REC held by the President of India (acting through Ministry of Power, Government of India) to PFC along with transfer of management control.
Both PFC and REC are Navratna Central Public-Sector Enterprises with combined annual revenues of about Rs. 50,000 Crore and this acquisition is step towards consolidation of companies operating in the same space.
Subsequent to the PFC shareholders’ approval for the transaction, the Board of Directors of PFC considered the transaction and approved the acquisition of the 52.63% shareholding of the President of India in REC Limited, at a cash purchase consideration of INR 139.50 per share with total acquisition cost of about INR 14,500 Crore. The closing price of REC on 19th March, 2019 was INR 148.40 per share. The consideration for the transaction is expected to be paid on 28th March, 2019 and funds for the same have been arranged by PFC already.
The acquisition would enable increased efficiencies in lending processes and policies across both the institutions and would create public value by offering better loan products to the power sector. The convergence between the entities as combined group entities would help the power sector reap benefits from a decentralized outreach of REC and a professional project finance expertise of PFC. Further, the ensuing diversification of assets of the group, as well as portfolio risk would help in resolution of stressed power sector assets of the group in a better and coordinated manner.
For the acquisition transaction, Deloitte Touche Tohmatsu India LLP is the Transaction Advisor, L&L Partners (formerly Luthra & Luthra Law Offices) is the Legal Advisor and SBI Capital Markets Limited is the Valuer.
CCEA clears Agri marketing scheme
By IndianMandarins 08 Feb 2019
The Cabinet Committee on Economic Affairs
(CCEA) has approved a proposal for the creation of a corpus of Rs. 2,000 crores
for Agri-Market Infrastructure Fund (AMIF). It may be set up in NABARD for
development and up-gradation of agricultural marketing infrastructure in Gramin
Agricultural Markets and Regulated Wholesale Markets.
AMIF will provide the State/UT Governments subsidized loan for their proposal for developing marketing infrastructure in 585 Agriculture Produce Market Committees (APMCs) and 10,000 Grameen Agricultural Markets (GrAMs). States may also access AMIF for innovative integrated market infrastructure projects including Hub and Spoke mode and in Public Private Partnership mode. In these GrAMs, physical and basic infrastructure will be strengthened using MGNREGA and other Government Schemes.
After approval of the AMIF Scheme, the interest subsidy will be provided by DAC&FW to NABARD in alignment with annual budget releases every year up to 2024-25. The Scheme being demand driven, its progress is subject to the demands from the States and proposals received from them.
DCIL divestment; Cabinet clears strategic sale
By IndianMandarins 09 Nov 2018
The Union Cabinet, on 08 Nov,
approved strategic sale of govt stake in Dredging Corporation of India (DCIL) to
a consortium of four ports namely; Vishakhapatnam Port Trust (VPT), JNPT, Paradeep
Port Trust and Kandla Port Trust. The government currently holds 73.39 percent
in DCIL.
The Cabinet Committee on Economic Affairs (CCEA) gave in-principle approval for strategic divestment of 100 per cent GoI’s share in DCIL to the consortium which will further facilitate the linkage of dredging activities with the ports and augment the expansion of dredging activity in the country as well as potential diversification of ports into third party dredging.
As against the govt’s target of raising Rs 80,000 crore from PSU divestment this fiscal it has mopped up over Rs 15,000 crore only from PSU stake sale.