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Govt may nudge LIC, SBI to buy out IL&FS

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New Delhi: It emerges that outright sale of IL&FS is the best option before its new board. But it is a big challenge to find buyers. Keeping this in mind, the government is likely to approach cash-cow LIC and SBI for sale of the infrastructure giant and group entities if it doesn’t find prospective buyers. It is also expected that the new board may go for equity routes if the deals come to fructification.

Meanwhile, speculation is rife that Abu Dhabi Investment Authority (ADIA), one of the major shareholders in IL&FS, is likely to either exit or significantly reduce its stake if it is not satisfied with the board’s resolution roadmap.

A top source in the ministry of corporate affairs (MCA) told FC, “Though the new board has not announced the plan for sale of IL&FS subsidiaries so far, an initial attempt was made to test the waters in this regard. However, it has been observed that there are no takers, both nationally and internationally. In that scenario, I think the government will save the company by any means. Roping in LIC & SBI as the prospective investors can’t be ruled out at this juncture. If the sakes deals get finalised, the new board may prefer equity route for this plan.”

 

“The MCA has given a timeframe to the new board for the resolution plan. If the options like consolidation or other revival plans fail to reach a decisive conclusion in this regard, the outright sale option of IL&FS will be final way out for the resolution. For this, we need to have right investors to sell the company with good valuation. Also, it is expected that some key stakeholders like ADIA has intended to exit the company if the new board fails to come with a decisive conclusion,” the source added.

LIC and ORIX Corporation of Japan are the largest shareholders in IL&FS having 25.34 per cent and 23.54 per cent stake respectively, while ADIA has 12.56 per cent stake in the company. Besides, all other stakeholders such as HDFC, Central Bank of India and State Bank of India hold 9.02 per cent, 7.67 per cent and 6.42 per cent respectively.

According to a report submitted by IL&FS new board to NCLT, over 130 creditors have issued notices to IL&FS group entities as on October 26, 2018.

“Individual creditor action is unlikely to realise value for creditors, making an orderly resolution impossible. It has requested the NCLT to extend the moratorium so that legal action can’t be taken by creditors against IL&FS or its 347 group entities,” the report had said. On the other hand, an insider of the new board said that the board could look at merging four different subsidiaries functioning under the financial services vertical.

“The web of complexities is very large in which the revival option is very difficult at this point in time. For instance, in the infrastructure space, particularly in the transportation segment, where at present 203 different entities function and they have maximum exposure to various lenders. Besides, other segment such as mutual fund, private equity and security brokerage operations tell the same story,” he said.


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Business

WPI inflation at 8-month low of 3.80 pc in Dec on softening fuel, food prices

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New Delhi: Inflation based on wholesale prices fell to a 8-month low of 3.80 per cent in December, 2018, on softening prices of fuel and some food items.

The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November, 2018, and 3.58 per cent in December 2017. According to the government data released on Monday, deflation in food articles stood at 0.07 per cent in December, against 3.31 per cent in November.

Vegetables, too, saw deflation at 17.55 per cent in December, compared to 26.98 per cent in the previous month. Inflation in the ‘fuel and power’ basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent in November.

 

This was on account of lowering of prices of petrol and diesel through December. Individually, in petrol and diesel inflation was 1.57 per cent and 8.61 per cent, respectively, and for liquified petroleum gas (LPG) it was 6.87 per cent during December.

Among food articles, potato prices became cheaper substantially with inflation at 48.68 per cent in December, as against 86.45 per cent in November.

Inflation in pulses stood at 2.11 per cent, while in ‘egg, meat and fish’ it was 4.55 per cent. Onion witnessed deflation of 63.83 per cent in December, compared to 47.60 per cent in November.

The 3.80 per cent inflation is the lowest in 8 months, and a lower inflation than this was last seen in April at 3.62 per cent. Data for retail or consumer price index-based inflation would be released later in the day.

The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy. In its fifth monetary policy review for the fiscal, last month, the Reserve Bank kept interest rates unchanged, but held out a promise to cut them if the upside risks to inflation do not materialise.

The central bank lowered retail inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.

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Air tickets, identity cards to become redundant; flyers can use facial recognition to enter airport

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New Delhi: The hassle to show air tickets and identity cards at Airport will be over as air travellers can soon enter airport with facial recognition biometric facility.

GMR Hyderabad International Airport Ltd (GHIAL) that operates the Rajiv Gandhi International Airport (RGIA), has successfully conducted the trial of facial recognition technology. During the first phase of the trial, employees of GHIAL were included. The second phase of the trial is expected to be launched by the end of this month, in which GHIAL will include common air fliers. And if the second phase of the trial is successful, GHIAL will implement facial recognition technology in Hyderabad airport from March onwards.

Three phases of facial recognition technology

 

First phase: GHIAL has installed facial recognition cameras in the Hyderabad. In the first phase, the imaging of passengers will be done through these cameras which will recognise the faces of the flyers.

Second phase: There would be a centralised registration system for passengers. Each passenger’s face will be attached with his/her photo identity like passport, Aadhaar, voting id, driving licence etc. The details of passengers along with his facial mapping will be scanned and stored by GHIAL through the centralised registration system at the Airport.

Third phase: The ID proof of the passengers along with their facial mapping will be stored at the e-boarding gate of the Airport.The data centres at Airlines will also have similar information. Whenever such passengers book tickets, the data system will alert the Hyderabad Airport authorities.

The moment you book a flight ticket originating from Hyderabad airport, your details will be shared by the data centre and the information will be given to all the concerned authorities.

When you reach the Hyderabad terminal gate, face recognition technology will identify you and all your details will be shared on the screen. The security personnel at the gate will access all your information via the system.

Similarly, your details can be accessed by the security personnel at the check-in counter, security check-in. Once the formalities are done, passengers will get an online boarding pass on their mobile phone.

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Maruti all-new WagonR 2019 available for booking at Rs 11,000

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New Delhi: Country’s largest car manufacturer Maruti Suzuki India on Monday said that its all-new WagonR is available for booking starting.

Customers can book the 3rd generation WagonR at authorized dealer network across the country by paying Rs 11,000. They can also book the car online.

The New WagonR is powered by the advanced K-series engine offering high fuel efficiency and an unmatched driving experience, Maruti said. The car now comes with a new 1.2 L engine option that delivers powerful and impressive performance coupled with great fuel economy. Customers will also have the choice of 1.0 L engine for the all-new WagonR.

 

Maruti Suzuki’s acclaimed two pedal technology will also be offered in the new WagonR. The Auto Gear Shift (AGS) offers. Maruti said that for the first it is going to offer the most innovative SmartPlay Studio infotainment experience in the Big New WagonR.

The car will be available in Pearl Poolside Blue, Pearl Nutmeg Brown, Magma Grey, Pearl Autumn Orange, Silky Silver and Superior White Range of variants. The Petrol: 1.0 L engine will be available in Lxi, Vxi / Vxi AGS variants while the Petrol: 1.2 L will be available in Vxi, Vxi AGS, Zxi / Zxi AGS variants.

“The new WagonR gets bigger with enhanced comfort. The car’s sturdy and masculine look with true tall boy design makes for a strong road presence. The Big New WagonR not only embodies strong looks but is also stronger inside out,” Maruti said in a release.

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