1. Centre approves ?4,066 cr for internet in all panchayats
The government has approved ?4,066 crore for providing internet connectivity to people in all gram panchayats under BharatNet project. ?4,066 crore has been approved for providing last-mile connectivity, through Wi-Fi or any other suitable broadband technology, at all the GPs (approximately 2,50,000) in the country. The government is rolling BharatNet project to provide high-speed broadband connectivity at gram panchayat (GP) levels.
As on December 24, the government provided optical fibre connectivity to 1,08,237 GPs by laying 2,52,547 km Optical Fibre Cable (OFC) and 96,039 gram panchayats are ready for broadband services.
2. Govt extends deadline for filing final GST returns till 10 January
The Goods and Services Tax (GST) Council has extended by 10 days the due date for filing sales returns for the July-September quarter for small businesses and monthly returns up to October by larger entities.
As per a notification issued by CBEC on Friday, based on a decision of the Council, small businesses with turnover up to Rs 1.5 crore, which were to file the first quarterly GST return relating to supplies in the GSTR-1 form by 31 December, can now file it by 10 January.
3. Allahabad Bank raises Rs500 crore in debt
State-owned Allahabad Bank on Friday said it has raised Rs500 crore to comply with the global banking standards under Basel-III norms. The bank had earlier in May informed about getting board approval to raise additional tier I capital worth Rs2,000 crore through private placement in one or more tranches within this fiscal. To comply with Basel-III capital regulations, banks need to improve and strengthen their capital planning processes. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
Indian banking system has been implementing Basel-III standards in phases since 1 April 2013. The banks are expected to fully implement these norms by March 2019. This will align full implementation of Basel-III in India closer to the internationally agreed date of 1 January 2019.
4. GST, demonetisation reset India’s FMCG distribution business in 2017
Dual disruptions caused by demonetization and the implementation of the Goods and Services Tax (GST) have permanently changed the way India’s largely unorganized and fragmented consumer goods distribution network operates. Distributors are struggling with a higher compliance burden and associated costs and have trimmed inventory levels, according to industry executives and distributors.
While discontinuation of high-value bank notes in November 2016 plagued cash-dependent distributors through the first half of 2017, they have been struggling to function under a higher compliance burden since GST was implemented on 1 July. Almost all packaged consumer goods firms say that while effects of demonetization were short-lived, the higher compliance burden under GST has led to a longer-term disruption and more permanent changes in the distribution network.
5. Bank of India gets Rs2,257 crore from govt
State-run Bank of India on Saturday said it has received capital infusion of Rs2,257 crore from the government. The bank has on December 29 received infusion of Rs2257 crore from the Government of India, in form of Common Equity Tier-1 Capital, which is being kept as Share Application money and would be alloted after due procedure/conditions for allotment. The government had on 24 October unveiled a Rs2.11 trillion two-year roadmap for strengthening NPA-hit public sector banks, which includes recapitalisation bonds, budgetary support and equity dilution.
6. India’s April-November fiscal deficit hits 112% of full-year target
India reported a fiscal deficit of 6.12 trillion rupees ($95.77 billion) for April-November, or 112 percent of the budgeted target for the current fiscal year that ends in March. Net tax receipts in the first eight months of 2017/18 fiscal year were 6.99 trillion rupees ($109.39 billion), government data showed on Friday. On Wednesday, the finance ministry said it would borrow an additional 500 billion rupees ($7.82 billion) this fiscal year that could lead to it breaching its fiscal deficit target of 3.2 percent of gross domestic product.
7. Indian economic growth slowed down in 2016-17: Government
The Indian economy slowed down in 2016-17, with the gross domestic product declining drastically from 8 per cent in 2015-16 to 7.1 per cent the next year, government said today.The slower economic growth reflected lower growth in the industry and the services sectors, due to a number of factors including structural, external, fiscal and monetary factors. He said in the Lok Sabha that the lower rate of global economic growth in 2016, along with a reduction in gross fixed investment to GDP ratio, stressed balance sheets of the corporate sector, lower credit growth in industry sector were some of the reasons for the low growth rate in 2016-17. “Slower growth in 2016-17 reflects lower growth in industry and services sector. Economic growth of a country depends on a number of factors including structural, external, fiscal and monetary factors,” he said during Question Hour.
8. Centre releases Rs 24,500 crore to compensate states post GST
The revenue loss to states on account of GST implementation was Rs 24,500 crore between July-October and the Centre has released compensation to make up for it, Parliament was informed today. As per the details of GST compensation released to states as on November 30, Karnataka got maximum compensation from the Centre at Rs 3,271 crore, followed by Gujarat (Rs 2,282 crore) and Punjab (Rs 2,098 crore).
Under the Goods and Services Tax (GST) regime, a cess is levied on luxury, demerit and sin goods to make good the loss suffered by the states on account of roll out of the new indirect tax regime. This is levied on top of the highest tax rate of 28 per cent on this goods. The other states that required hefty compensation include Rajasthan (Rs 1,911 crore), Bihar (Rs 1,746 crore), Uttar Pradesh (Rs 1,520 crore), West Bengal (Rs 1,008 crore) and Odisha (Rs 1,020 crore). In a seprate reply, Shukla said the GST anti-profiteering authority has till December 26 received 169 complaints alleging suppliers of goods have not passed on benefit of cost reduction to customers.
9. DLF announces appointment of Saurabh Chawla as Group CFO
Real estate major DLF Ltd announced the appointment of Saurabh Chawla as the Key Managerial Personnel (KMP) and Group Chief Financial Officer (CFO). The appointment follows the elevation of former Group CFO Ashok Kumar Tyagi as the whole-time director of the company. The appointment of Chawla was facilitated by the Board of Directors in their meeting on Friday, on the recommendations of Nomination and Remuneration and the Audit Committees. An alumnus of the University of Delhi and Pace University, New York, 53-year old Chawla joined DLF Ltd in April 2006 and has work experience of over 20 years in the field of corporate finance. Prior to joining DLF, Chawla worked with Global Capital Management Group, First Capital, GE Capital, Intellistudent Services Private Limited and Moser Baer India Ltd.
He currently spearheads the Investor Relations function at the Group level, and is also responsible for Private Equity, M&A transactions and Capital Market transactions (debt or equity) within the DLF Group.