Connect with us

Business

India’s industrial output lowers in June

Published

on

Manufacturing sector

New Delhi, Aug 11 : A decline in the manufacturing sector brought down India’s factory output in June, official data showed on Friday.

The factory output, as per the new Index of Industrial Production (IIP) with revised base year of 2011-12, declined by (-)0.1 per cent during June from a rise of 2.80 per cent reported for May, 2017.

The factory output had expanded by eight per cent in the corresponding month of the previous year.

On a year-to-date basis, the output rose by 2 per cent during April-June, 2017.

As per the IIP data released by the Central Statistics Office (CSO), last month’s contraction was mainly on account of a (-)0.4 per cent deceleration in manufacturing output, which has the maximum weight in the overall index.

Besides manufacturing, the output of other two major sub-indices — mining and electricity — slowed during the month under review.

The mining output inched-up by 0.4 per cent and that for electricity generation edged higher by 2.1 per cent.

Among the six use-based classification groups, the output of primary goods contracted by (-) 0.2 per cent, (-) 0.6 per cent in intermediate goods, consumer durables declined by (-) 2.1 per cent and capital goods’ was lower by (-) 6.8 per cent.

In contrast, the output of consumer non-durables edge-higher by 4.9 per cent and 0.6 percent in infrastructure or construction goods.

“In terms of industries, fifteen out of the twenty three industry groups in the manufacturing sector have shown negative growth during the month of June 2017 as compared to the corresponding month of the previous year,” the “Quick Estimates of IIP” for the month of June 2017 said.

“The industry group ‘manufacture of electrical equipment’ has shown the highest negative growth of (-) 20.1 percent… On the other hand, the industry group ‘other manufacturing’ has shown the highest positive growth of 28.1 per cent.”

India Inc expressed grave concern over the fall in manufacturing sector’s output and urged for more reforms.

Commenting on the IIP data for June, A. Didar Singh, Secretary General, Ficci said: “The fall in manufacturing which is more broadbased this time is a cause for concern and underlines the need for more reforms especially at the state level. This is important to improve the investment climate further.”

“Besides reforms at the state level, we need to ensure faster development of our infrastructure which is a major enabler of growth and instrumental in reducing the cost of doing business in the country to make our manufacturing competitive.”

Another key industry body Assocham said that latest estimates of IIP point to negative sign towards the growth cycle of industrial activity.

“Considering the need for creating conducive environment for investments, capacity utilisation and augmentation of industrial production on priority basis the Government of India must initiate more effective short term revival measures,” said D.S. Rawat, Secretary General, Assocham.

Business

ONGC to buy government’s 51.11% stake in HPCL for Rs 36,915 cr

Published

on

ONGC

New Delhi, Jan 20: State-run Oil and Natural Gas Corporation Ltd (ONGC) will acquire the government’s 51.11 per cent equity share-holding in Hindustan Petroleum Corporation Ltd (HPCL) at a consideration of Rs 36,915 crore.

Through the single share sale, the Centre would be able to meet half of its disinvestment target of Rs 72,500 crore for 2017-18.

“The Government of India has entered into an agreement with ONGC today (Saturday) for strategic sale of its 51.11 per cent equity share-holding in HPCL at a consideration of Rs 36,915 crore,” a statement said.

In line with the budget announcement, ONGC had proposed to acquire the Centre’s existing equity shareholding in HPCL.

Accordingly, the Union Cabinet, in its meeting held in July last year, gave “in-principle” approval to the proposal and decided to set up an alternative mechanism to decide on the price, timing and the terms and conditions of the strategic sale.

“The Alternative mechanism under the Chairmanship of Finance Minister (Arun Jaitley) in its meeting today (Saturday) approved the price bid of ONGC and the terms and conditions of the sale,” it said.

Through this acquisition, ONGC will become India’s first vertically integrated “oil major” company, having presence across the entire value chain.

According to the statement, the integrated entity will have advantage of having enhanced capacity to bear higher risks, take higher investment decisions and neutralising the impact of volatility of global crude oil prices.

“In this process, ONGC has acquired significant mid-stream and downstream capacity and will attain economies of scale at various levels of operations,” it said.

Through this economic consolidation, HPCL will join as a member of an integrated oil and gas major group. This will help it in further leveraging synergy at various levels of vertical value chains and look for economic consolidation within and outside the group.

HPCL will continue to be a Central Public Sector Enterprise (CPSE).

In fact, Prime Minister Narendra Modi had underlined the need of efficient management of government investments in CPSEs during the review in February 2016.

The centre accordingly expanded the approach from disinvestment to investment and public asset management.

As part of investment management strategy, Government decided to explore possibilities of consolidation, mergers and acquisitions within CPSE space.

IANS

Continue Reading

Business

Govt. sends tax notice to the people dealing in cryptocurrency

Published

on

Bitcoin
Representative Image

The government has sent tax notices to the people dealing in cryptocurrency mainly Bitcoin. The government’s move came after a nationwide survey showed more than $3.5 billion worth of transactions have been conducted over a 17-month period, the income tax department said.

Tech-savvy young investors, real estate players and jewellers are among those invested in bitcoin and other virtual currencies, tax officials told Reuters after gathering data from nine exchanges in Mumbai, Delhi, Bengaluru and Pune.

Governments around the world are grappling with how to regulate cryptocurrency trading, and policymakers are expected to discuss the matter at a G20 summit in Argentina in March.

With inputs from media reports

Continue Reading

Business

‘I don’t regret’ firing man who wrote anti-diversity memo: Pichai

Published

on

Google CEO Sundar Pichai

San Francisco, Jan 20: Indian-born Google CEO Sundar Pichai has said he does not regret firing James Damore, a former employee who was ousted from the company last year for criticising the tech giant for its diversity policy.

When asked about Google’s decision to fire Damore during an interview with MSNBC, Pichai said. “I don’t regret it. It was the right decision”.

“The last thing we do when we make decisions like this is look at it with a political lens,” Pichai told the TV show hosts late on Friday.

Damore, who was ousted for writing a 10-page anti-diversity memo last year, filed a class-action lawsuit against Google this month, claiming that it discriminates against white men.

Damore, in his lawsuit filed in a California court, said that Google “ostracised, belittled and punished” him and a fellow plaintiff.

He added that he and others who share his views at Google long have been “singled out, mistreated, and systematically punished and terminated from Google, in violation of their legal rights”.

The former Google employee also wrote an op-ed titled “Why I Was Fired by Google” in the Wall Street Journal in August last year.

Pichai had earlier described Damore’s memo as “offensive”.

IANS

Continue Reading
Advertisement

Most Popular