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Adani Group considers bidding for Air India: Sources

Of the total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286 crore.

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gautam adani

New Delhi, Feb 24 : With the government pushing for the disinvestment of Air India, industrial conglomerate Adani Group may emerge as one of the bidders for the debt-laden national carrier, sources said.

According to highly placed sources group has held internal rounds of deliberations on whether or not to submit an Expression of Interest (EoI) and that the discussions are still in the preliminary stage.

If the company actually submits an EoI, it would be a major move towards further diversification of the company which has business interests across sectors right from edible oil, food to mining and minerals.

It also entered into airport operations and maintenance business and won bids for privatisation of six airports, Ahmedabad, Lucknow, Jaipur, Guwahati, Thiruvanathapuram and Mangaluru in 2019.

On being contacted by IANS, the company did not comment on the matter.

Air India is one of the most important divestment target for the current fiscal to reach the huge Rs 2.1 lakh crore target.

The government in January restarted the divestment process of the airline and invited bids for selling 100 per cent of its equity in the state-owned airline, including Air India’s 100 per cent shareholding in AI Express Ltd. and 50 per cent in Air India SATS Airport Services Private Ltd.

After its unsuccessful bid to sell Air India in 2018, the government this time has decided to offload its entire stake. In 2018, it had offered to sell its 76 per cent stake in the airline.

Of the total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286 crore.

Air India, along with its subsidiary Air India Express, has a total operational fleet of 146 airplanes.

Further, the disinvestment department has extended the last date for submission of written queries on the Performance Information Memorandum and Share Purchase Agreement to March 6.

The last date for submission of written queries on PIM and SPA was originally set for February 11, following which the Department of Investment and Public Asset Management (DIPAM) on February 21 issued 20 clarifications on the queries raised and expected.

Any delay in the tentatively rolled out timeline would also delay the DIPAM’s plan to identify the pre-qualified bidders by March 31 and the financial bids invitation as well. It is expected to take more than 2 months after the selection of the pre-qualified bidders to complete Air India’s sale.

Business

Extend lockdown period till April 30 to contain Covid-19: CAIT

“Nearly 7 crore small businesses employ another forty crore people and therefore if by any chance the disease starts spreading among the traders of the country, then it will have a devastating effect on the entire nation.”

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Coronavirus india lockdown

New Delhi, April 8 : The Confederation of All India Traders (CAIT) has urged the Centre to extend the lockdown period till April 30 to curb the spread of Covid-19.

Accordingly, CAIT in a letter to Prime Minister Narendra Modi said that it has made this recommendation based on a survey conducted with senior trade leaders of all states.

“Although the traders will be facing several trading, economic and financial challenges, yet in the interest of the Country, the traders are well prepared to extend best services to the nation,” the confederation said in a statement.

“However, whatever decision the Government will take, the trading community across the country will follow the same in letter and spirit,” it said further.

“Even though the economic and financial impact of a continued lockdown may be unbearable, we are hopeful that we will fight back strongly to resurrect our economy and rebuild our resources with due support from the government in the form of a well thought out financial and economic stimulus to the small and medium trading sector.”

The letter said the confederation has undertaken a survey with prominent trade leaders of all states of the country and have come to the conclusion that during these troubled times, “it would be in fitness of things, if the current lockdown period is extended up to April 30, so to negate any prospect of further spreading of COVID-19”.

The letter said that in view of the burgeoning number of cases of Covid-19 in India over the last one week and to add impetus to the Government’s overall effort to combat the disease and prevent community spread, the business community stands with “you in solidarity and whatever the decision, the government takes, the trading community will abide by such decision and follow the same in its true letter and spirit”.

“After this period is seen through and after assessing the ground realities on that day, we should plan a staggered exit and start lifting restrictions if the situation permits. Almost all national leaders of domestic trade have expressed grave health and safety hazards to the retailers because of their incessant exposure to the public at large,” the letter read.

“Nearly 7 crore small businesses employ another forty crore people and therefore if by any chance the disease starts spreading among the traders of the country, then it will have a devastating effect on the entire nation.”

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Goldman Sachs halves India’s FY21 GDP growth to 1.6%

The report, however, said that a strong sequential recovery in the second half of the fiscal year is expected based on three assumptions.

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Goldman Sachs

New Delhi, April 8 : The outlook for the Indian economy looks bleak as the Goldman Sachs has revised its forecast for the country’s real GDP growth rate for the financial year 2020-21 to 1.6 per cent.

In a report, it said that with the spread of the pandemic and the eventual lockdown have resulted in a significant contraction in economic activity.

The outlook has been revised downwards from the previous forecast of 3.3 per cent.

“The 1.6 per cent growth for FY21 would be deeper compared to widely perceived ‘recessions’ India experienced in the 1970s, 1980s, and in 2009. Notably, the global COVID-19 crisis — or more precisely, the response to that crisis — represents a physical (as opposed to purely financial) constraint on economic activity that is unprecedented in postwar history,” it said.

It said that despite the policy support provided so far the nation-wide shutdown, and rising public anxiety about the virus are likely to lead to a sharp deterioration in economic activity in March, and in the next quarter.

The report, however, said that a strong sequential recovery in the second half of the fiscal year is expected based on three assumptions.

First, the 3-week nationwide lockdown, which is expected to be removed only in a staggered fashion, and social distancing measures reduce new infections over the next 4-6 weeks. Second, while the fiscal easing so far has been limited, the expectation is for further fiscal stimulus by the Centr and the states.

“Third, we expect the RBI to continue with its monetary easing policy, along with liquidity infusion measures. While more forceful policy support could present some upside risk, the recovery could further be delayed if the pandemic is not brought under control globally and domestically over the next few months,” it added.

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NAREDCO seeks $200 bn relief for the entire economy

“Since real estate accounts for 6-7 per cent of India’s GDP and employs nearly 10-11 per cent of population, we urge the government to focus on the demand of the developers.”

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NAREDCO

Mumbai, April 8 : Real estate industry body NAREDCO has requested the Centre for $200 billion relief for the entire economy to meet the impact of the Covid-19 outbreak.

NAREDCO said that real estate has been under consistent stress since the last few years and that market dynamics have changed rapidly which has resulted in rising unsold inventories in the country.

“The Covid-19 pandemic has paused the real estate sector while disrupting the businesses across the nation. While the RBI and the Finance Minister have taken several measures to ease the load on consumers’ shoulder, real estate collectively grapples with the impact of the pandemic,” NAREDCO said in a statement.

According to the real estate industry body, in order to keep up with the world economy, the Centre should suspend all NCLT activities for next 6 months considering the downfall of the economy of India.

“The idea is to provide a breathing space to companies who have faced huge losses due to rapidly decreasing stock prices, which has made high net worth companies prone to be taken over by foreign investors, the results of which can be devastating for India,” the statement said.

“Since real estate accounts for 6-7 per cent of India’s GDP and employs nearly 10-11 per cent of population, we urge the government to focus on the demand of the developers.”

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