Top headlines: Tatas in talks for AirAsia stake, google tax collection dips

From govt calling off merger of three public general insurers to technology players in fray for railway signalling tender, here are top headlines of the day.

Tata Sons in talks to acquire AirAsia India stake at a steep discount

Tata Sons, the holding company of the Tata group, is in talks to buy out AirAsia Berhad’s stake in their joint venture airline in India at a steep discount — taking into account the crash in valuations of airline stocks globally owing to the Covid-19 pandemic. The Tata group is likely to tie up with other financial investors to acquire its Malaysian partner's 49 per cent stake in AirAsia India, said banking sources. The Tatas own 51 per cent in the airline and have the right of first refusal in acquiring shares of its partner. Read More...

Govt proposes two dates for e-commerce cos on displaying country of origin

The government has asked e-commerce companies to ensure that the ‘country of origin’ of all products is clearly listed on their platform so that the consumer can make informed decisions. In a follow-up meeting with the Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday, the government gave the recommendation to online retailers that for new products listed on e-commerce platforms, the country of origin should be displayed next to the products from August 1, 2020. It also suggested the firms to display the country of origin for existing products from October 1, 2020. The development comes amid a growing clamour for the boycott of Chinese products in India, combined with the government’s push for Aatmanirbhar Bharat. Read More...

Bombardier, Hitachi, Siemens in fray for railway signalling tender

Global technology players such as Bombardier, Hitachi Rail STS, and Siemens are in the race for a tender floated by Railtel Enterprises (REL) to modernise the national transporter’s signalling system. Though Railtel’s arm hasn’t mentioned the size of the tender, it is expected to be worth Rs 1,000-1,500 crore. The firm that wins the tender will help the Indian Railways upgrade to European Train Control System (ETCS) Level-2, a system wherein radio waves are used to help in train spacing. Read More...

Govt calls off merger of the three public sector general insurers

The Union government said on Wednesday that the merger of three ailing public sector general insurance companies has been shelved and the focus will be on making them profitable instead. The Cabinet also approved capital infusion of Rs 12,450 crore into the three firms — Oriental Insurance Company, National Insurance Company, and United India Insurance Company. This sum includes the Rs 2,500 crore already infused in February. “...given the current scenario, the process of merger has been ceased so far and instead focus shall be on their solvency and profitable growth, after capital infusion”, a release by Press Information Bureau (PIB) read. Read More...

Withdrawal from Galwan Valley puts Indian troops further from LAC

Details of the mutual troop disengagement in the contested Galwan River valley, which senior government sources have shared with Business Standard, illustrate that the Line of Actual Control (LAC) — the de facto border — has been effectively shifted by a kilometre into India. The terms of disengagement, negotiated on June 30, regard the LAC as running through the so-called Y-Nallah Junction. This is 1 km inside India, when compared with the LAC’s historical alignment next to Patrolling Point 14 (PP-14). Read More...

Google tax collections remain muted in Q1, mop-up drops 30% to Rs 216 cr

The equalisation levy or the so-called Google tax showed muted collections in the first quarter (Q1) of the current financial year, despite its expansion to e-commerce companies. The yield declined 30 per cent after the first instalment deadline ended on Tuesday, compared to the same period last year, revealed preliminary collection figures. As on Tuesday, Rs 216 crore had been collected, against Rs 309 crore mopped up in the same period last year, said sources. Read More...

Signs of green shoots? Seven firms bag orders worth Rs 42,000 cr in Q1

Contract award activity was expected to be a total washout globally during the first quarter. However, order inflow for capital goods and construction firms received a shot in the arm thanks to state-owned entities and foreign markets like the US and West Asia. Industry executives and analysts said most of this new order activity was a spillover, and fresh project finalisation remains weak. According to disclosures by more than 20 firms to the exchanges, at least seven companies bagged orders worth Rs 42,000 crore. Read More...

Rossari Biotech to launch Rs 500 cr initial public offering on Monday

Rossari Biotech, a specialty chemicals company, will launch its Rs 500-crore initial public offering (IPO) on Monday, ending a four-month lull in the primary market. The last IPO to hit the domestic market was that of SBI Cards and Payment Services in early March. The Covid-19 pandemic and the economic lockdown have forced many companies to hold back their IPO plans despite regulatory clearances. Rossari had intended to launch its IPO in March only, but decided to postpone the plan. The company on Wednesday conducted media and analyst meetings through the video-conferencing service Zoom. Read More...

HUL, Emami and the aggressive play in Rs 5,000-cr fairness creams category

The fight over the newly renamed Glow & Handsome may have boiled down to the use of an ampersand (Hindustan Unilever uses the symbol while Emami expands it); and hit a temporary pause, as the Bombay High Court granted interim relief to HUL, stating that there must at least a week’s notice before any legal action is initiated against the use of the trademark, but the battle say experts, has just begun. The clash is not just over the use of a name, but one for loyalty and affinity in a category that is controversial, cluttered with promises and full of look-alikes. Read More...

Govt sends questions to 59 Chinese apps, seeks beneficial owner details

The government has sent a list of over 50 questions to the 59 banned Chinese apps, quizzing them over their beneficial owners and countries of their incorporation, officials said. “We are sending out a list of questions to the Chinese companies,” a senior government official told ET. The questions are around the financial structure of these companies, who is the beneficial owner, the country of incorporation of the company, identifying the parent company, board of directors and the location of their data centres, the official added according to The Economic Times.