Editors Column
It is indeed unfair that state power agencies be burdened with unviable power assets of Tatas, Essar, Reliance, Adani and other major power generators, whose investments were based on imported coal. This is the first point that needs flagging in the aftermath of Tata’s proposal to sell 51 per cent stake in its Mundra ultra mega power project located on west coast in Gujarat for a token Re 1.
The Securities and Exchange Board of India (Sebi) decision to allow private investors takeover of stressed assets of companies without making a mandatory open offer, will boost RBI’s efforts to resolve the non-performing loans (NPAs) and assets issue.
Some traders and their lobbyists have described the anti-profiteering rules in the GST regime as draconian and harsh. While the anti-profiteering authority is yet to be set up, finance minister Arun Jaitley has mooted stringent rules for those attempting to cash-in without passing on the benefit of lower taxes on products and services to consumers.
The selection of Ram Nath Kovind as the Bharatiya Janata Party’s candidate for the presidential election is significant for more than one reason. It establishes once again prime minister Narendra Modi’s ability to spring a surprise. In this case, there was utmost secrecy in the manner in which Kovind’s name was finalised by him and BJP president Amit Shah.
The Reserve Bank of India has finally taken steps to direct banks to deal with 12 large troublesome accounts in a time bound manner under provisions of the Indian Bankruptcy Code (IBC), 2016. What happens to these bad loan accounts is crucial not just for the various stakeholders of these companies.
Narendra Modi government has just widened the arc of its campaign against black money and parallel cash economy. Unfortunately this obsession with black money is not giving handsome dividends — IDs came with trumped up numbers, the overseas amnesty scheme was a flop show and the most recent declaration scheme resulted in unearthing just Rs 5,000 crore.
Artificial barriers on movement or citizenship issues have failed to prevent Indians from finding their metier. Despite the restrictive measures undertaken by the Trump administration in the US and prime minister Theresa May in the UK, there is no stopping for Indian technology professionals from making a mark.
After having gone through anxiety pangs, the mood has suddenly changed to one of exuberance and bonhomie in most retail markets as the country gets ready to ring in the single impost, goods and services tax (GST) in two weeks.
Employment and job creation may not be the strongest point of this government and certainly not a talking point. Its track record in generating jobs over the last three years remains a chimera.
Reviving a decelerating economy and putting it on a high growth trajectory depends heavily on resolving the stressed assets and loans held by state-run banks. An early resolution of rampant defaults by corporate sector must be resolved at the earliest to bring the economy back on a healthy growth curve.