September GST at Rs 944 billion, continues to be lower than expected

Collection of goods and services tax (GST) stood at Rs 944 billion in September 2018, marginally improving by 0.5 per cent over collections that stood at Rs 940 billion in August.

Year-on-year, GST collections improved 2.5 per cent over September 2017 mop up of Rs 922 billion. The y-o-y growth in August was 3.3 per cent.

This has brought down the average monthly GST collection in 2018-19 marginally, from Rs 967 billion (April - August) to Rs 963 billion (April – September).

Sources in the government pointed to two reasons for the tepid growth in GST collections.

Firstly, the rate reduction for various items in successive council meetings have had a downward impact.
ALSO READ: August GST collections likely to drop on rate cuts effected in last meet

Secondly, due to explicit political concerns in an election year, the tendency to assess and penalize for non-compliance has reduced.

Over 5,000 biogas plants to be set up in 5 years at Rs 1.75 trn: Pradhan

Oil Minister Dharmendra Pradhan on Monday said as many as 5,000 plants for extracting biogas from agricultural residue, cattle dung and municipal solid waste are envisaged to be set up in the country in next five years at a massive Rs 1.75 trillion investment.

Pradhan announced that state-owned fuel marketing companies will purchase all the biogas from these plants at Rs 46 per kg in a bid to cut reliance on imports for meeting oil needs.

India is more than 81 per cent dependent on imports for meeting its oil needs and the move to use biogas extracted from waste/bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste and sewage treatment plant waste is aimed at cutting that.

"We are today inviting Expression of Interest (EoI) from producers to offer compressed biogas (CBG) that oil companies can use as a fuel for transportation," he said at the launch event here.

We are very close to achieving profitability, Musk tells Tesla employees

Elon Musk told Tesla employees that the company was on the cusp of making money, hours after he and the carmaker reached a settlement with the US. “We are very close to achiev-ing profitability and proving the naysayers wrong, but, to be certain, we must execute really well tomorrow (Sunday),” Musk mailed to staff. “If we go all out tomorrow, we will achieve an epic victory beyond all expectations.” Sunday marks the end of the third quarter, and Tesla has frantically pushed to boost deliveries before the period ends.

IL&FS to get $2.1 bn lifeline, Alvarez & Marsal to come up with revamp plan

An Indian financier that roiled markets by defaulting on debt unveiled details of its restructuring proposal over the weekend, including hiring a firm to turn around the distressed company.

Stockholders endorsed Infrastructure Leasing & Financial Services Ltd.’s plan to raise as much as 150 billion rupees ($2.1 billion) through a non-convertible debt sale, and increase the firm’s borrowing limit by 100 billion rupees to 350 billion rupees, IL&FS said in a filing. The lender also got permission to boost its share capital to enable a rights offering.

Rescuing the firm, which has total debt of $12.6 billion -- 61 percent in the form of loans from financial institutions -- is vital for authorities to stem the risk of default spreading to other lenders in the world’s fastest-growing major economy. The latest move will ease investor concerns but doesn’t resolve the matter, according to Jagannadham Thunuguntla, senior vice president at Mumbai-based Centrum Broking Pvt.

GMR Infra emerges highest bidder for Nagpur Airport privatisation

GMR Airports, a subsidiary of G M Rao-led GMR Infrastructure has emerged as the highest bidder for the development, operations and management of Nagpur’s Babasaheb Ambedkar International Airport on a public-private partnership (PPP) basis.

MIHAN India, a joint venture between Maharashtra Airport Development Company (a Government of Maharashtra undertaking) and Airport Authority of India, had in March 2018 sought requests for proposal to privatise the Nagpur airport.

The project involves upgrade, modernisation, operation and maintenance of the Nagpur airport for a period of 30 years and includes the construction of a new terminal among other things. Bids had been received from two bidders — GMR Airports and GVK. The former, which submitted the highest revenue-share bid, is expecting the letter of award shortl

Bajaj Auto September sales surge 17% to 5,02,009 units; exports up 30%

Bajaj Auto Monday reported 17 per cent increase in total sales to 5,02,009 units for September as against 4,28,752 units in the same month last year.

Total domestic sales during the month stood at 3,11,503 units as against 2,81,779 units in September last year, a growth of 11 per cent, Bajaj Auto said in a statement.

Motorcycle sales in the domestic market were up 10 per cent at 2,73,029 units in September as against 2,47,418 units in the year-ago month.

Commercial vehicles sales stood at 38,474 units as compared to 34,361 units last September, it added.

Total exports in September stood at 1,90,506 units as against 1,46,973 units in the same month last year, up 30 per cent, the company sai

Govt to move NCLT to remove IL&FS management following serial defaults

Union government has decided to remove the management of IL&FS following serial defaults by the company and its subsidiaries to lenders.

IL&FS has Rs 910 billion of debt and is unable to repay loans in the last one month.

IL&FS has also moved the NCLT Mumbai seeking to restructure its debt under Section 230 of the Companies Act 2013. IL&FS shareholders led by LIC has decided to chip in Rs 45 billion via its rights issue, which is expected to close by October end.

A source said the government is looking to appoint a new management, which would turn around the company.

The Modi government had come under heavy criticism from the Opposition led by Congress for failing to contain IL&FS contagion.