News digest: Essar Steel bid, Modi's debut at AGM, and more

From upcoming debut of PM Modi at annual general meeting to RBI positioning in rupee-dollar forwards, BS brings you up to speed with latest news

Ruias want to pay up, bid for Essar Steel

The Essar Group is planning to pay its dues to lenders so that it can take part in the bidding process for its steel plant in Hazira, Gujarat. Tata Steel, ArcelorMittal and others are reportedly keen to acquire it.The group has sought clarification from lenders on the overdue interest so that it can pay it and submit its bid by December-end, said a lender. Read more

RBI builds $31-bn forwards position as dollar tide rises

The Reserve Bank of India (RBI) has built up a $31-billion position in rupee-dollar forwards as a continuous foreign fund inflow has necessitated active intervention by the central bank in the spot market. Forwards contracts are designed to buy foreign currencies at pre-agreed prices. A buyer has to pay a fee, the forward premium, for the right to buy at that price. Click here

PM Modi to debut at business chamber AGM

Prime Minister Narendra Modi will for the first time attend an annual general meeting (AGM) of a leading business chamber, possibly sending out a signal that he wants to engage with India Inc at a time when the economy has started looking up. In a first for him as prime minister, Modi is slated to deliver the inaugural address at the AGM of the Federation of Indian Chambers of Commerce and Industry (Ficci) on December 13, before flying to Gujarat to cast his vote on December 14. Find out more

Before MPC meet, PM advisor says RBI should cut rates

The Indian central bank’s tendency to overestimate inflation has prevented it from cutting interest rates further and cost the economy, according to one of Prime Minister Narendra Modi’s advisors. “Their view of the economy doesn’t seem to be correct,” and by keeping rates high, they “have imposed a high output sacrifice,” said Ashima Goyal, a member of Prime Minister’s Economic Advisory Council. Read more