1. Indirect tax collections in April post new monthly record at Rs 1.87 lakh crore
A sales boom at the beginning of the current financial year boosted goods and services tax collections in April to a record Rs 1.87 lakh crore, a 12 percent jump over receipts in the same month a year ago. GST mop-up was Rs 1.68 lakh crore in April 2022, the highest collection under the indirect tax regime till March. On 20 April, collections on a single day shot up to a record Rs 68,228 crore over 980,000 transactions.
Why it’s important: Strong tax revenues at the beginning of the financial year would provide some comfort to policymakers, who are counting on plentiful rains and an end to the Ukraine war to support economic growth.
2. April manufacturing PMI touches a four-month high on good demand for new orders
India’s purchasing managers’ index for manufacturing in April rose to a four-month high of 57.2 from 56.4 in March, driven by new orders and output, according to a survey by S&P Global. A reading above 50 signifies expansion. The March data pointed to a consecutive 22-month rise in manufacturing.
Why it’s important: The encouraging manufacturing PMI value indicates favorable operating conditions despite some rise in costs. Milder price pressures, better overseas sales, and improved supply chains contributed to a healthy reading.
3. Finance Ministry wants state-owned banks to recover loans worth Rs 2 lakh crore
India’s public sector faces a stiff loan recovery target for this financial year as the finance ministry wants them to recover at least Rs 2 trillion from loans they have written off over the years, using all available avenues. Top executives of state-owned lenders have been told at a recent meeting to maintain their focus on written-off debt and pursue recovery using all available channels, platforms, and proceedings, including negotiating with the National Asset Reconstruction Construction Company to sell some of these assets.
Why it’s important: The target seems overly optimistic since it is more than double the amount state-run banks have recovered from written-off loans in the past five years.
4. Regulator to seek government help in getting foreign investments info in Adani Group
The Securities and Exchange Board of India may approach the central government or law enforcement agencies to get information from foreign jurisdictions in the Adani-Hindenburg case. The regulator is awaiting details on end-beneficiaries of foreign portfolio investors in connection with the charges levelled by Hindenburg Research against the Adani Group. It may refer the matter to ministries because some offshore regulators were not forthcoming in providing the information sought, citing privacy reasons.
Why it’s important: Sebi has written to regulators in Bermuda, Luxembourg, and Switzerland for information on foreign portfolio investors. If the tax havens do not agree, the probe might get tougher.
5. Max Healthcare sues owner TPG over Care Hospitals acquisition
The takeover battle for Care Hospitals has landed up in the Bombay High Court, with Max Healthcare Institute filing a suit against private equity firm TPG after the Care owner spurned Max’s bid in favor of an offer by Blackstone that was about 15-20 percent higher. Hearings will begin on May 3. Max’s offer was said to be valued at Rs 3,700 crore and had the option to buy Care’s Bangladesh assets after running them for two years.
Why it’s important: Max Healthcare expected the Care acquisition to help it acquire a pan-India presence. Max is alleging that TGP shopped around to Blackstone despite a non-disclosure agreement.
6. I Squared and Hinduja remain in race to acquire Fourth Partner Energy
I Squared Capital and Hinduja Renewables Energy are vying to buy TPG Capital’s majority stake in Hyderabad-based Fourth Partner Energy at an equity value of about $350 million. Fourth Partner Energy, which operates in several Asian nations, has a current installed green energy capacity of 1GW and plans to triple it by 2025.
Why it’s important: There is strong investor interest in green energy assets ever since India is set on adding 50GW of renewable energy every year over the next five years to meet its target of 500GW by 2030.
7. Government imposes Rs 249 crore penalty on Hero Electric and Okinawa
Amid investigations into the misappropriation of subsidies under the FAME II scheme, the central government has issued recovery notices totaling Rs 249 crore to Hero Electric and Okinawa Autotech. Hero Electric and Okinawa will have to repay Rs 133 crore and Rs 116 crore, respectively, according to the notice issued by the heavy industries ministry. Both automakers have been deregistered from FAME II and the recovery of incentives claimed in 2019-20 will be done within a month.
Why it’s important: The alleged flouting of norming by electric two-wheeler makers in claiming state benefits is a setback to the rapid expansion of the market in India that may have crossed an inflection point. The automakers must clean up their acts.
8. Brookfield buys majority stake in real estate joint venture with Bharti
Canada’s Brookfield Asset Management has acquired a 51 percent stake in Rostrum Realty, a real estate joint venture in which Sunil Mittal-led Bharti Enterprises will hold the remaining 49 percent. The transaction was based on an enterprise value of Rs 5,000 crore. The exact deal size is not known. Brookfield's real estate operating arm, Brookfield Properties, will manage the portfolio, which includes Worldmark Aerocity in Delhi, Airtel Center and Worldmark 65 in Gurgaon, and Pavillion Mall in Ludhiana.
Why it’s important: Big foreign investing firms like Blackstone and Brookfield have typically been interested in India’s commercial property market. Brookfield already owns prime commercial real estate in several Indian cities.
9. Government may consider equity infusion in oil marketers after they set capex plans
The central government will weigh an equity infusion and a possible stake increase in the three oil marketing companies, Indian Oil, Bharat Petroleum and Hindustan Petroleum after they submit their capital investment plans. The budget has set aside Rs 30,000 crore as capital support for the state-run oil marketers. The capital spending will focus on emission reduction and refinery upgradation.
Why it’s important: The capital support will not be part of the subsidy for selling fuel below cost. The oil marketers are more in favor of financial grants or a loan to meet their capital expenditure requirements.
10. India’s internet entrepreneurs clamor for leadership change in industry lobby
The country’s top internet entrepreneurs are up in arms against the Internet and Mobile Association of India, the nodal industry body. They are demanding a change in leadership because the lobby group, they say, has become a mouthpiece of Big Tech while failing to represent the interests of local digital firms. Bharat Matrimony’s Murugavel Janakiraman, MapmyIndia’s Rohan Verma and Shaadi.com’s Anupam Mittal are among the entrepreneurs who are demanding a change.
Why it’s important: The development reveals the deepening chasm between the interests of global internet majors such as Google and Facebook and that of local internet startups over issues ranging from pricing policies to digital regulations.