News this week
Ind-Ra revises outlook on non-ferrous mining & metals sector to stable
India Ratings and Research (Ind-Ra) has revised the Outlook on the non-ferrous metals and mining sector to Stable for FY16 from ‘Stable to Negative’. Also, it has maintained a Stable rating Outlook on sector companies for FY16. The agency believes that in the absence of major market disruptions such as a rise in US interest rate or a hard landing in China, most base metal prices are close to the bottom.
The agency expects industry players to sustain realisations and operating profits driven by a steady physical premium. Physical premiums on non-ferrous metals over broad market prices such as London Metal Exchange are likely to remain steady given the oligopolistic nature of the non-ferrous metals market in India... Read more
India Steel 2015: Make steel affordable, urges Naveen Jindal
While the nation is in policy dilemma on overall development for ‘Achche Din’, JSPL’s Chairman Naveen Jindal asks the government to make steel more economical and affordable to a country of 125 crore population. He observed that India’s per capita consumption of steel is quite low and a robust policy be framed to encourage industry to reach out to every section of the society.
Mr. Jindal was speaking during India Steel-2015, a biannual event organised by Federation of Indian Chambers of Commerce and Industry (FICCI). He stressed upon the government to take progressive policy decisions in order to make steel prices affordable for mass usage... Read more
Govt readies to divest 15% stake in MMTC
As the new financial year kicks in, Narendra Modi's government has its task cut-out for meeting the divestment target. The last stake sale in Rural Electrification Corp garnered Rs. 1500 crore for the government, and now it is focusing on selling 15% stake during the current fiscal, of state-run trading firm Metals and Minerals Trading Corporation of India (MMTC).
At present, the market price of the company stands at Rs. 52.80 per share, sale of 15% stake would deliver in around Rs 800 crore for the exchequer. The government holds 89.93% stake in MMTC, and with this sale it would manage the company to meet the SEBI norms of 25% to be held by public holding in PSUs... Read more
Tata Steel's sales at 24 lakh tonnes in Q4 FY15
Tata Steel completed FY 2015 with an overall increase in Production and Sales volumes. The year registered its best ever performance in hot metal, crude steel, saleable steel production and total sales. Steel Marketing & Sales has achieved its highest ever annual sales volume of 8.75 million tonnes in FY15 against 8.52 million tonnes in FY14. The company's annual Automotive sales stood at 1.36 million tonnes in FY15 as compared to 1.18 million tonnes in FY14... Read more
Govt lines up 13 PSUs for stake sale
Government has shortlisted various PSUs including IOC, National Fertilizers, MMTC, Hindustan Copper and ITDC for stake sale to achieve current fiscal's disinvestment target of Rs 41,000 crore, according to reports. Report stated that Department of Disinvestment is planning to divest 5-15% government stake in these state-owned companies.
While 10% stake each would be diluted in Engineers India Ltd, NALCO, NMDC and Indian Oil Corporation. About 15% stake would be up for sale in National Fertilizers Ltd, Hindustan Copper Ltd, India Tourism and Development Corp, State Trading Corp and MMTC, says report.
Jindal Power's coal bids may be referred to CCI: Reports
The recent Coal block auctions turned out to be a resounding success for the government, who has managed to mop up close to Rs. 2 lakh crore from it, but it did not come without its fair share of controversy. The bids of companies such as Adani Power and GMR for Gare Palma-IV/2&3 have come under the scanner, and is now being considered to be referred to the Competition Commission of India (CCI), as some news reports have suggested.
Although Anil Swarup, Coal Secretary has mentioned on record saying that there were a few 'outliers' and the government is monitoring the bids closely, so there is no concern for any mismanagement, the bids of Jindal Power have been under intense scrutiny. During the auctions, Jindal Power emerged as the lowest bidder for the Gare Palma block. The company was the owner of the coal block before a Supreme Court (SC) order of deallocation... Read more
Adani in talks with aboriginal group for land issue: Reports
Adani Group reportedly said it is in talks with an aboriginal group, which is attempting to stop its 16.5 billion dollar mine project being established on its ancestral land in Australia's Queensland state, to provide them significant and lasting benefits.
This move came after Wangan and Jagalingou (W&J) people mounted pressure to block Adani's Carmichael mine project. "It is, and will always be, a central focus of Adani to work with the W&J to deliver this benefit to the community," Adani Australia Chief Operating Officer Vora reportedly said... Read more
Reduce iron ore prices by 25%: ASSOCHAM says
Apex industry body ASSOCHAM has urged the government to reduce iron ore prices by about 25 per cent to help domestic steel industry become competitive. “Asian economies like China, Japan and Korea have become more competitive and are exporting steel to India at throwaway prices due to drop in platts iron ore index thereby creating huge problem in India and posing threat to survival and sustainability of domestic steel industry,” noted the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a communication addressed to Union Steel and Mines Minister, Narendra Singh Tomar... Read more
GST to enhance India's GDP by ~2%: Arun Jaitley
After introducing a number of administrative and legislative reforms, India is on its way to have a more modern and friendly tax system, Finance Minister Arun Jaitley said. Jaitley discussed the crucial overhaul of India’s indirect tax system at the Peterson Institute for International Economics in Washington on Thursday. Addressing the event, Jaitley said that the implementation of the goods and services tax (GST) regime proposed from April 1 next year would increase India's GDP by one to two per cent, today.
The GST tax regime is scheduled to be introduced from April 1, 2016 after the necessary constitutional amendment in the next session of the Parliament. India has already hit 7.5-8 per cent growth, it is very much possible to achieve a double digit growth, the Minister said.