Business

Mumbai, Oct 19 (IANS) In a surprise move, the Reliance Capital (RCap) Administrator has proposed to change the whole structure of RCap as a core investment company (CIC).

The proposal to change the structure, that too at an advanced stage of the bidding process, has come as a big surprise to many.

According to sources, the Administrator has proposed to reconstruct RCap CIC into four different CICs, and has also written to the Reserve Bank of India (RBI) to seek its views and approval on the new structure.

As per the proposal, the Administrator wants to reconstruct RCAP CIC into four different CICs. CIC-1 will comprise Reliance General Insurance Company (RGIC), while the second CIC will own Reliance Nippon Life Insurance Company (RNLIC).

Sources disclosed that the third CIC will have all other businesses of RCap, including Reliance Securities, ARC, private equity, investment, real estate etc.

The fourth CIC will house Reliance Commercial Finance and Reliance Home Finance.

The sole objective of reconstructing RCap CIC into four CICs is to help select bidders of RCap's insurance businesses circumvent the IRDAI guidelines related to the five-year lock-in period.

As per the extant IRDAI guidelines, equity contribution of promoters and other investors, including private equity funds, in an insurance company will have a lock-in period of five years at the time of granting the final approval.

According to the legal view given by AZB and Partners, the legal advisor to the Administrator, the IRDAI guidelines related to lock-in period of five years will not apply to the new proposed structure.

Currently there are four companies in fray for RCap's general insurance and life insurance ventures - Piramal, Zurich, Advent Private Equity and Aditya Birla Capital.

The circumvention of five-year lock-in period will help companies like Advent Private Equity to exit the insurance venture at any time.

The new proposed structure has also received the approval of a three-member advisory committee of RCap Administrator, comprising ex-State Bank of India DMD Sanjeev Nautiyal; ex-Axis Bank DMD Srinivasan Varadarajan; and Praveen P. Kadle, ex-MD and CEO of Tata Capital.

As per the rules, the RBI does not allow more than one CIC in a company, hence to reconstruct four CICs out of Reliance Capital CIC would need the central bank's prior approval.

According to the RBI, a CIC is a non-banking financial company (NBFC) which carries on the business of acquisition of shares and securities and holds not less than 90 per cent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.

As per the current CIRP process, Reliance Capital bidders have two options. Under option 1, they can bid for Reliance Capital at a CIC level, as a going concern.

Under Option 2, Reliance Capital's multiple businesses have been divided into eight different clusters. The key clusters are: Investment in Reliance General Insurance and Reliance Health Insurance, investment in Reliance Nippon Life Insurance, investment in Reliance Asset Reconstruction, investment in Reliance Securities, Reliance Financial, Reliance Wealth and Reliance Commodities, and investment in Real Estate.

Reliance Capital Administrator has also written to RBI informing the latter about the 90-day extension granted by NCLT Mumbai to complete the resolution process by January 31, 2023.

--IANS
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San Francisco, Oct 19 (IANS) Electric vehicle company Tesla has launched a home charging station -- or Wall Connector as it calls it -- that works with other electric cars too, not just Tesla vehicles.

According to auto-tech website Electrek, the company has launched a brand new version of its J1772 Wall Connector for $550 on its website.

"Our J1772 Wall Connector is a convenient charging solution for Tesla and non-Tesla electric vehicles alike, and is ideal for houses, apartments, hospitality properties and workplaces," the company was quoted as saying.

Based on Tesla's description, it looks like the automaker might be going after the commercial charging market, the report said.

With up to 44 miles of range added per hour, a 24-foot cable, multiple power settings and a versatile indoor/outdoor design, the J1772 Wall Connector provides unparalleled convenience.

It can also power-share to maximise existing electrical capacity, automatically distributing power and allowing charging of multiple vehicles simultaneously.

Tesla's own vehicles can also use the station, but they will need to use an adapter that comes with the vehicle.

--IANS
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New Delhi, Oct 19 (IANS) The Centre has approved the appointment of retired IAS officer Pradeep Singh Kharola as Chairman and Managing Director of the India Trade Promotion Organisation (ITPO).

The Appointments Committee of the Cabinet has approved appointment of Kharola as Chairman & Managing Director, ITPO in the rank and pay of Secretary to the Government of India on contract basis for a period of two years from the date of assumption of charge of the post or until further orders, whichever is earlier," said an order issued by the Department of Personnel and Training on Wednesday.

Kharola will continue to hold the charge of the post of Chairman, National Recruitment Agency till appointment of a regular incumbent in his place, it added.

The 1985 batch IAS officer was appointed as the Chairman of the NRA in March this year. He has also served as CMD Air India and Secretary, Civil Aviation.

--IANS
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New Delhi, Oct 19 (IANS) Aiming to address the issue of storage of food grains, the Food Corporation of India (FCI) plans to construct modern steel silos, with 111.125 lakh metric tonnes (LMT) capacity, at 249 locations spread across 12 states under the Hub and Spoke model.

To be set up under the Public Private Partnership (PPP) route with an investment of Rs 9,236 crore, these silos would be constructed in three phases over next three-four years, sources aware of the development said.

In the first phase, silos of 34.875 LMT capacity at 80 locations would be constructed by the FCI. Out of this, 10.125 LMT at 14 locations would be under the develop build operate and transfer (DBFOT) mode and 24.75 LMT at 66 locations would be under the develop build own and operate (DBFOO) mode.

The tender under DBFOO mode would be opened on October 31 while the tender for DBFOT mode had opened on August 10.

One project has already been awarded to a developer and for other projects, the process is underway.

These modern silos with bulk handling facilities would be a scientific way of storage of foodgrains and ensure their better preservation.

--IANS
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New Delhi, Oct 19 (IANS) The rupee on Wednesday hit a new low of 82.95 against the US dollar on anticipation of more rate hikes by major central banks across the globe to curb rising inflation.

The currency fell to a record low of 82.95 after the US dollar strengthened against all major currencies globally.

the dollar's ascent has been triggered by inflation in the UK hitting a 40-year high level last month, owing to rising food prices.

There are speculations that the Bank of England may hike interest rates sooner than expected to curb price rise.

Last week while commenting on the rupee's fall, Finance Minister Nirmala Sitharaman had said in Washington that she saw it as the US dollar strengthening rather than the rupee falling.

--IANS
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By IANSlife
New Delhi, Oct 19 (IANSlife) The Indian art market is on course to have its best-performing year ever based on the first six months of FY23. Having a turnover of USD 75.8 million as of 30 September 2022, according to Indian Art Investor's Indian Art Market Report for H1FY23, FY23 may exceed FY22. The first six months of FY23 have been able to produce more than the yearly turnover of 34 of the 39 years of prior auction data held by IAI. The study states that a total of 468 artists - or 57 per cent of the works sold in FY22-have contributed to this accomplishment through the sale of 2,053 pieces.



"The top tier of the market continues to break norms and make headlines. Works priced >USD 1.2 million are responsible for 67 per cent of the turnover, with the top 5 most expensive works alone bringing in 20 per cent . But as the divide widens, so does the lowest tier. Works priced

New Delhi, Oct 16 (IANS) As the rupee continues with its downward trend against the dollar, touching 82.32 on Friday, Finance Minister Nirmala Sitharaman has said that she sees the phenomenon as dollar strengthening and not the Indian currency sliding.

Addressing a press conference in Washington on Friday, Sitharaman said that rupee has withstood dollar's rise and has performed better than those of many emerging market currencies.

"I won't see this as rupee sliding but as dollar strengthening. It is a matter of fact that the rupee has withstood the rise of dollar. But it has performed better than many other emerging market currencies," she said.

The Finance Minister added that RBI is working to prevent its slide and contain it's volatility.

"I will just say that rupee will find its own level," she said.

On rising inflation and soaring food prices, the Finance Minister said that the economic fundamentals "are good".

Foreign exchange reserves are in a "comfortable position" and inflation is also "manageable" she said.

"Fundamentals are good. Foreign exchange is good though it has come down. It is in a comfortable position. Inflation too is manageable though we would love to bring it down... are making efforts to bring it down. However look at other nations' inflation rates," she said, but at the same time added that the Government is "conscious of fiscal deficit".

Asked about rising trade deficit with China, Sitharaman said: "Trade deficit is actually growing across board and more importantly, imports are more than exports. However the imports are more of intermediary goods. So we are not anxious about rising imports as they are of goods which are of value added products for exports purposes".

The Finance Minister further said that on crypto currency G20 will collate data on it from global institutions and arrive at a framework which would look at platforms facilitating crypto trade.

India is due to take over G20 presidency next month.

"We will try and understand the money trail, detect money laundering and try and bring some kind of regulation on it. There is consensus among G20 members on it as many of them have raised concerns on this," she said.

To a question on Income Tax department and Enforcement Directorate's (ED) conviction rates, Sitharaman said: "ED is independent in what it does. It works on predicate offences and comes in the picture after other agencies pick up a case. There are instances which have stood out and if ED goes after them, it is with prima facie evidence."

--IANS
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Chennai, Oct 15 (IANS) The Tamil Nadu firecracker industry, which contributes to around 90 per cent of the country's overall demand, has jacked up the prices of its products ahead of Diwali.

Legal issues related to green crackers being used in the industry, as well as heavy rain were some of the reasons behind escalating the prices.

Traders have predicted that it was possible for the prices to go up to 50 per cent in retail markets across the state.

Manickam, a firecracker trader in Chennai's Ashok Nagar, told IANS: "The firecracker industry is going through a rough phase. With green crackers being made the norm and even long-chain crackers being banned, the fun is gone. Heavy rain in Tamil Nadu has led to a dip in production leading to the prices being hiked. Compared to last year, the new rates are 20 per cent higher and this will go up and may even touch 50 per cent in the days to come."

The crackers including Kambi Thiri, Pookutti, and floor chakras require drying and due to the heavy rain, Virudhunagar district, which houses almost all the production houses in Tamil Nadu, was inundated.

The demand as usual is heavy but the supply -- another factor that has also led to an increase in the prices.

While speaking to IANS, Muthukumaran, who runs a firecracker unit employing around 100 workers, said: "The industry is facing harrowing times. First, we are fighting legal issues over the green crackers and removing barium nitrate from the cracker industry. Second is heavy rain leading to less production... We have no other option but to increase the prices and the industry as a whole has advocated for this."

The production has dipped by around 50 per cent as the green cracker norms were implemented and the manufacturing as per the Petroleum and Explosives Safety Organisation (PESO) is difficult and time-consuming.

Another issue for the price hike is the import cost of raw materials that is plaguing the industry and restrictions in many states on the bursting of crackers.

Mohammed Hassan, a third-generation trader of firecrackers in Chennai's Arumbagam, told IANS: "We are yet to touch the pre- Covid sale in Tamil Nadu. In 2019, Diwali sale in Chennai alsone was around Rs 125 crore but now it is much less than that. Coupled with the increase in prices by the Sivakasi factories and the green norms, the supply is less, but the demand as usual is more. So it remains to be seen how can we strike a balance and sell crackers without incurring losses to us."

--IANS
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New Delhi, Oct 14 (IANS) Bharti Airtel on Friday launched the 'Always On' IoT (Internet of Things) connectivity solution in the domestic market.

The 'Always On' solution contains dual profile M2M (machine to machine) eSim, which allows an IoT device to stay connected to a mobile network from different Mobile Network Operators in the eSIM.

An 'eSIM' is a SIM card that is embedded in a mobile device and can connect you to any operator that offers eSIM services.

"Our strengths in the network, modern and GSMA compliant platform offering real-time access to data and flexibility to integrate the solution with custom APIs will make Airtel Business stand out in the market," said Ajay Chitkara, Director and CEO of Airtel Business.

Moreover, the 'Always On' solution is best suited for vehicle tracking providers, auto manufacturers and any use-cases where equipment work in remote locations requiring universal connectivity, according to the company.

Airtel is looking to acquire market leadership in this segment in the next few years, the company added.

India was the fastest growing Internet of Things (IoT) module market with more than 264 per cent growth in the second quarter this year, a report showed last month.

Although growing on a lower base, the growth in IoT modules in India was driven by smart meters, telematics, point of sale (POS) and automotive applications, according to Counterpoint Research.

--IANS
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