OPINION, P8 COMPANIES, P6 INTERNATIONAL, P14 EDITORIAL INSOLVENCY PROCESS COURTING TROUBLE Promoter Gaur offers to clear Jaypee Infra dues totalling `8,358 cr 16 US states sue Trump over wall emergency declaration Bad idea to link banks’ lending rates to external benchmarks Sharp hike in minimum wage will worsen jobs scenario with staffing-cuts LUCKNOW, WEDNESDAY, FEBRUARY 20, 2019 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XII NO. 87, 28 PAGES, `6.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 35,352.61 ▼ 145.83 NIFTY: 10,604.35 ▼ 36.60 NIKKEI 225: 21,302.65 ▲ 20.80 HANG SENG: 28,228.13 ▼ 118.88 `/$: 71.36 ▼ 0.13 `/€: 80.80 ▼ 0.47 BRENT: $66.32 ▼ $0.18 GOLD: `33,519 ▲ `148 POSSIBLE. India and Airbus – a proud bond of 50 years. Together, we have developed India’s aerospace industry. In fact, every commercial aircraft manufactured by Airbus today is partly ‘Made in India’. And we stand ready to boost the growth of its armed forces. It’s a partnership that has created more than 6,500 jobs, and generates more than $550 million of sourcing volume every year. And as India grows, we grow too. Airbus – Proud to be ‘Made in India’. airbus.com 2,817 Dena Bank Bank of Maharashtra All figures in ` crore, except percentages 4,783%y-o-yriseinwrite-offs to `562 crore in Q3FY19. According to sources, State Bank of India (SBI), the country’s largest bank, wrote off Boost to coal, oil & gas output; DA hiked by 3% INASLEWofdecisionsonTuesday,the Cabinet sought to provide a boost to captive coal production in the wake of rising demandforthefuelthatthreatens to pressure the country’s current account, approved a system for hydrocarbon exploration awards that gives higher weight to work programmes rather than revenue sharing and gave its go-ahead for a policy to more than quadruple the domestic electronics production to $400 billion by2025. The Cabinet also increased the dearness allowance by3% to 12%, effective from January 1, 2019. Continued on Page 2 186 145 132 562 12 IDBI Bank 1,211 1,705 Vijaya Bank 4,583 ● CABINET DECISIONS FE BUREAU New Delhi, February 19 « Continued on Page 2 24,250 551 « theywill be covered bythe new rules and quashed, Central Board of DirectTaxes member Akhilesh Ranjan said. In about 100-odd cases where tax demand has already been raised, the taxmen will not take coercive action and the appeal process will be fast-tracked so that these can be disposed of quickly, he added. The department for promotion of industry and internal trade (DPIIT) has also 1,076 « Continued on Page 2 Angel tax exemption limit Most tax notices already for funding by issued are mere assessment unlisted firms ones, will be quashed in start-ups No such limit for investments by listed raised to firms with net worth above `100 cr or `25 cr from turnover of `250 cr `10 cr Q3FY18 30,583 Q3FY19 40,929 y-o-y change (in %) 34 « THE GST COUNCIL on Wednesday will consider various proposals to cut tax rates on under-construction residential property, including a tiered structure with 2-3 rates corresponding to different base prices of the houses, reports Sumit Jha in New Delhi. relaxed rules to recognise all those companies that are in operation for up to 10 years, instead of the current seven years,as start-ups,if theymeet other eligibility criteria on innovation and turnover. Even the annual turnover limit for the start-up tag has been raised fourtimes to `100 crore to extend benefits meant for start-ups to a much larger number of companies. In 100-odd cases where tax demand has been raised will be disposed of after appeal; no coercive action to be taken LOANS WRITTEN OFF by a clutchof19largeandmid-sized public-sector banks (PSBs) in the December quarter of FY19 rose 34% year-on-year (y-o-y) to nearly `41,000 crore, contributingtoareductionintheir non-performing assets (NPAs). These banks had written off loansworthonly`33,259crore in Q2FY19,up 24%y-o-y,indicatingagatheringofpaceinthe write-off exercise. Vijaya Bank saw the steepest increase in write-offs — 243 times y-o-y to `487 crore in Q3FY19. This was followed by IDBI Bank, which saw a Total for 19 PSBs 2,034 « IN THE NEWS Many proposals for cutting GST on houses IN A MAJOR relief to thousands of start-ups, most of which have been slapped with tax notices, the government on Tuesday raised the cap of funding by unlisted firms or individuals in a start-up that would be exempted from the so-called angel tax to `25 crore from the current `10 crore and also relaxed a clutch of rules to ease investment flow into such entities. Investments bylisted companies having a net worth above `100 crore or annual turnover of `250 crore will be exempt from any limit or tax, accordingtoaproposalcleared by commerce and industry minister Suresh Prabhu. Since a large proportion of the notices already issued are typically“assessment notices”, FLIPKART CO-FOUNDER SACHIN Bansal has invested `650 crore in ride-haling firm Ola, making it the largest investment byan individual in Ola till date.The investment is part of Ola’s larger Series J funding round,the firm said in a statement on Tuesday. The funding will provide more power to Ola to compete with rival Uberand also reduce its dependence on another investor,SoftBank,whichisthe largestshareholderinthefirm. Reportedly, SoftBank has offered to invest more in Ola and increase its stake. It is not clear whether Ola founder Bhavish Aggarwal will take more funds from SoftBank. In January this year,Bansal had invested `150 crore in Ola. The investment had valued the business at close to $5.5-6 billion, according to industrywatchers. Industry sources said Bansal is expected to invest more in Ola in subsequent rounds but would not take an advisoryora day-to-dayrole in the organisation. Firms to be called start-ups up to ten years, instead of 7 years; their turnover limit raised four times to `100 cr FE BUREAU New Delhi, February 19 FE BUREAU Mumbai/New Delhi, February 19 SHRITAMA BOSE Mumbai, February 19 « NO MORE TAXING TIMES 19 PSBs write off nearly `41,000 crore in Q3 « AERO INDIA 2019 Along with steps to put the dreaded tax genie back in the bottle, the govt also eases rules to boost investments in start-ups Bansal invests `650 cr in Ola BAD LOANS 487 Angel tax exemption cap hiked to `25 cr ● IN THE CART 2 BREATHER FOR START-UPS United Bank of India Source: Banks loans worth around `10,000 crore during Q3FY19, up 7% from `9,312 crore a year ago. Continued on Page 2 SPECIAL FEATURE Are businesses in India ready for the digital future? ■ eFE, P13
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