Selective capital reduction offers a proposed shareholder-liquidity route while preserving private-company status, subject to valuation and approval scrutiny. Tata Trusts has placed before the Tata Sons board a framework for the Shapoorji Pallonji Group to monetise part of its Tata Sons shareholding without requiring a public listing. The transaction would be valued under Rule 11UA principles, completed in two tranches over 18 months, and require Tata Sons to commence a selective capital reduction process before the National Company Law Tribunal. Completion remains contingent on financing capacity, regulatory and tribunal approvals, and scrutiny of valuation, shareholder treatment, and the legal validity of the capital-reduction structure.
Board chair reappointment validity turns on mandatory nominee-director approval, amid separate listing-compliance and succession disputes. Tata Sons' board reappointed its executive chairman by majority vote, but Tata Trusts contend that the resolution is void under the Articles of Association because both Trust-nominated directors must approve a chairmanship resolution. The dispute also concerns the effect of the chairman's earlier decision to step aside, an ongoing successor-selection process, and uncertainty over a nominee director's status following a failed general meeting. Separately, the rejection of Tata Sons' deregistration request has revived questions over compliance with the listing requirement applicable to an upper-layer non-banking financial company.
Deep-sea fishing access supports export-oriented harvesting of high-value species, with foreign-port high-seas landings recognised as exports. Deep-sea fishing policy promotes expansion of fishing operations within India's Exclusive Economic Zone (EEZ) and on the high seas to increase fisherfolk income through exports of high-value species. High-seas catch classification has been altered so that fish caught on the high seas and offloaded at a foreign port are treated as exports rather than imports.
Merchant discount rate on eligible UPI payments places charges on merchants while preserving consumer protections and small merchant exemptions. Merchant Discount Rate at 0.4 per cent will apply from October 15 to person-to-merchant UPI payments above Rs 2,000, payable by merchants and subject to a cap for high-value transactions. Individual transfers and most everyday merchant payments remain free, while eligible small QR-code merchants are exempt. Essential-service payments and capital-market transactions receive separate fee treatment, and a portion of MDR collections will support small-merchant UPI adoption.
Board reappointment validity depends on shareholder-nominated director consent, directorship quorum concerns, and leadership continuity amid listing compliance. Tata Sons' board approved by majority vote the Executive Chairman's reappointment for a further five-year term after he reconsidered an earlier decision not to seek renewal. Tata Trusts contest the validity of the resolution, maintaining that the Articles of Association require affirmative votes from both Trust-nominated directors and that a dissenting vote renders a chairmanship resolution legally void. They also cite the accepted succession process and unresolved directorship status arising from a general meeting lacking quorum.
Buyer-seller engagement supports sourcing and export-market opportunities for tools and hardware businesses through an international trade fair. International Hardware Fair India 2026 is scheduled for 23-25 October 2026 at Bharat Mandapam, New Delhi, as a trade platform for the tools and hardware sector. Organised by Koelnmesse in association with the Federation of Indian Export Organisations, it is intended to facilitate product discovery, sourcing activity and exploration of domestic and international markets. Its Reverse Buyer-Seller Meet will bring hosted international buyers together with Indian manufacturers and suppliers for direct discussions on product presentations, buyer requirements and export-market opportunities.
Financial services technology interoperability drives new card, digital banking and UPI platforms for banks, fintechs and consumers. 86400 has expanded its financial-services technology portfolio through CardsXT as a Service, a UPI app experience and IBMB, extending its activities across card-programme infrastructure, consumer-facing digital payments and digital banking. CardsXT is intended to let banks and fintechs build, launch and manage card programmes through an integrated offering, with flexibility to develop and scale card products while reducing card-lifecycle technology complexity. The UPI app experience provides a platform developed by 86400 for a more seamless consumer UPI payments experience.
Intergovernmental fiscal coordination will guide deliberations on macroeconomic priorities, agricultural transformation, energy transition, growth measurement, and technology-enabled governance. The thematic programme covers the macroeconomic outlook, financing agricultural transformation, and financing the energy transition. Background material addresses macroeconomic pathways, private financing, implications of GST 2.0 for States, agricultural markets and marketing, agricultural resilience and sustainable resource use, renewable energy and transmission assets, and carbon capture, utilisation and storage. Further sessions address measurement of growth outcomes and the contribution of new-age technology to good governance.
GST-compliant festive planning helps apparel businesses protect input tax credit, manage price thresholds, inventory, cash flow and peak-season operations. GST-sensitive festive planning for apparel businesses requires early procurement, phased inventory, supplier reorder commitments and separate stock strategies for the post-Diwali wedding season. Pricing and costing require assessment of the revised GST structure for readymade garments and GST-rate reductions affecting man-made fibres and yarns. Proper purchase documentation is important for protecting input tax credit during high-volume festive transactions. Cash-flow planning, credit limits, return policies, retail staffing, digital campaigns and weekly sell-through monitoring support replenishment and pricing decisions.
Competitive Tender Conditions: allegations question replacement of a public-sector power project with terms allegedly favouring a single supplier. Allegations of tender tailoring concern the replacement of a proposed UJVN-THDC public-sector thermal project with long-term procurement of 1,320 MW from a private generating plant. Congress alleges that 84 of 86 tender conditions were revised after the public-sector venture was abandoned, producing terms suited to an existing Korba expansion acquired by Adani Power through insolvency proceedings. The objections include plant-location flexibility, transmission costs for supply to Uttarakhand, and a 75% fixed-charge ceiling, which are alleged to narrow competition and shift long-term costs to consumers.
Upper-layer NBFC listing requirements drive Tata Sons' listing process and proposed leadership renewal, subject to shareholder approval. RBI's refusal to permit Tata Sons to surrender its core investment company registration revives the prospect of a public listing. Classified as an upper-layer non-banking financial company, Tata Sons is subject to a listing requirement whose deadline expired while its deregistration request was under consideration. Its board has agreed to advance the listing process, subject to annual general meeting approval. Any legal challenge to the refusal of deregistration may be pursued by Tata Sons itself rather than directly by the Tata Trusts.
Mandatory listing obligations for upper-layer non-banking financial companies drive leadership continuity planning after deregistration is rejected. Rejection of Tata Sons' request to deregister as a core investment company leaves it subject to the mandatory listing obligation arising from its upper-layer non-banking financial company classification. The board's majority support for N. Chandrasekaran's third term is linked to maintaining leadership continuity for prospective investors if a public listing proceeds.
Gulfood partnership expands market access for food exporters through global buyer engagement and broader inclusion of emerging enterprises. APEDA and InD Events Dubai have entered into a memorandum of understanding to support India's participation as Official Partner Country at Gulfood 2027. The partnership is directed at increasing global visibility for India's agricultural and processed food products, connecting Indian exporters with international buyers, and expanding market-access and business-engagement opportunities. Participation will bring together exporters, farmer producer organisations, MSMEs, startups, commodity boards and government institutions through product showcases, curated business-to-business meetings, conferences and industry engagements.
Foreign exchange pressure drives rupee depreciation as a stronger dollar, capital outflows, and elevated crude prices weigh on markets. Rupee depreciation continued for a seventh consecutive session, with the currency closing weaker against the US dollar amid overseas dollar strength and foreign fund outflows. Elevated crude oil prices and rising US Treasury yields increased pressure by raising importers' demand for dollars, while positive domestic equity markets limited the decline. Dollar strength reflected expectations of a US interest-rate increase, while domestic equity gains contrasted with net foreign institutional investor equity sales.
Perpetual lease termination and public-premises eviction challenge turns on privity, statutory jurisdiction bar, and interim protection. Challenges concern termination of Delhi Gymkhana Club's perpetual lease and a show-cause notice seeking eviction. The Government maintains that a member who is not party or privy to the bilateral lease has no personal estate in the land or right to restrain contractual resumption. It also contends that the Public Premises (Eviction of Unauthorised Occupants) Act bars civil-court eviction proceedings and injunctions against estate-officer action. The challengers seek a stay or status quo, arguing that the notice prematurely assumes valid lease termination.
Lawful vehicle repossession requires contractual notice, due process, and safeguards against force, stealth, harassment, and arbitrary recovery methods. Vehicle repossession by banks and non-banking financial companies must be lawful and fair despite contractual self-help repossession rights. Lenders and recovery agents must not use force, stealth, intimidation, harassment, or arbitrary methods. Legally valid repossession clauses must provide notice periods, lawful possession procedures, a final repayment opportunity, and sale or auction processes. Financial institutions must ensure recovery-agent compliance and prevent unlawful dispossession of borrowers from hypothecated vehicles.
Credit rating transparency strengthens public enterprise access to debt markets through disclosure, risk assessment, and capital structure optimisation. Objective and independent credit ratings measure CPSE financial strength, risk, credibility, and public-sector creditworthiness, supporting benchmarking and cost-effective access to global and domestic debt markets. Engagement between CPSE leadership and rating agencies focuses on rating methodologies, risk pricing, debt-market dynamics, transparent disclosures, and capital-structure optimisation. Such engagement is directed toward improving credit assessment, investor information, regulatory compliance, funding access at competitive rates, and market-facing disclosure practices.
Raw-material security and import-duty reform are urged to strengthen ferro-alloy competitiveness amid expanding steel demand. Ferro-alloy competitiveness depends on raw-material security, commercially viable domestic mineral access and lower input costs as steel demand expands. Faster exploration and development of manganese, chrome and other critical minerals, supported by mine-auction frameworks that encourage operational production, can reduce import dependence. Measures sought include zero import duties on unavailable-grade raw materials for noble alloys, competitive electricity costs and rationalised electricity levies. Cleaner energy, efficient furnaces, automation and improved raw-material utilisation are also necessary to reduce costs and emissions.
Free trade agreement tariff liberalisation expands market access through phased concessions, services mobility pathways, safeguards, and investment commitments. The free trade agreement grants duty-free access across all New Zealand tariff lines for Indian exports and provides Indian tariff liberalisation for a substantial share of New Zealand goods, while preserving exclusions for sensitive dairy, agricultural, industrial and other specified products. It provides duty-free entry, phased levy reductions, and quota-based concessions with minimum import price and other safeguards for identified goods. New Zealand also commits market access for Indian service suppliers and establishes skilled-employment, student-mobility and post-study work visa pathways.
Expedited criminal trials involving real-estate directors require consolidated case details and safeguards against homebuyer inconvenience. Supreme Court sought case details from the Enforcement Directorate and Delhi Police to facilitate expeditious criminal prosecution of Unitech directors without causing inconvenience to homebuyers. Protection of purchasers and completion of stalled housing projects remain central concerns. Project revival measures include RERA registration exemption for specified projects to enable stalled homebuyer loan disbursals, scrutiny of loan accounts classified as non-performing, and authority for the Centre-appointed board to raise outstanding funds, sell inventory, and monetise unencumbered assets for completion of housing units.
Extracts of FM’s reply on the Interim Budget - FURTHER CONCESSIONS IN CENTRAL EXCISE & SERVICE TAX ANNOUNCED - CUSTOMS DUTY EXEMPTION ON NAPTHA EXTENDED BEYOND THIS FISCAL
February 24, 2009
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Following are the extracts from the reply of Finance Minister, Shri Pranab Mukhejee on Interim Budget 2009-10, in Lok Sabha, here today:
"My friends from the other side have raised a number of issues. They have blamed the UPA Government for failure on the economic front, on the performance of the public sector, on employment generation, inflation, on fiscal deficit, plight of farmers, FDI and inadequacies of our regulatory framework. They have also pointed towards the "lost opportunities" in my Interim Budget speech.
Let me turn to some figures that tell their own story. A look at the comparative annual average figures between the two periods shows:
The GDP growth rate which was 5.8 per cent during 1999-2004 rose to 8.6 per cent during the 2004-2009.
The fiscal deficit and revenue deficit that stood at 5.5 per cent and 4.0 per cent respectively during 1999-2004 declined to 4.1 per cent and 2.5 per cent during 2004-09.
The Tax to GDP ratio went up from 8.8 per cent during 1999-2004 to 11.1 per cent during 2004-09, while the Savings to GDP ratio which was 25.6 per cent in 1999-2004 shot up to 34.8 per cent during 2004-08.
Similarly, Investment to GDP ratio at 25.2 per cent during 1999-2004 went upto 35.9 per cent during 2004-08.
The Government's policy on disinvestment does not envisage any outright or strategic sale of a Central Public Sector Enterprise (CPSE). The focus of the policy is to enable unlisted and profitable CPSEs to raise capital through Initial Public Offerings (IPOs) with the Government offering a minority shareholding for divestiture. The intent is to ensure that Government equity remains above 51% and Government retains management control. However, because of the adverse market conditions during the year 2008-09, there has not been a single IPO and nor has there been any disinvestment.
The UPA Government is making all possible efforts to turnaround the loss making Central PSE's like Indian Telephone Industries (ITI) through the infusion of funds and superior techno-managerial practices.
It is important to recognize that the Union Budget statement is just one of the instruments for addressing economic policy concerns. Indeed, right from the day when the financial crisis erupted in the middle of September 2008, the Government has been alert and responsive to the fast changing developments. Government has undertaken the required administrative and fiscal measures in tandem with the monetary policy initiatives of the RBI by announcing two stimulus packages on December 7, 2008 and January 2, 2009.
A number of Tax and other fiscal measures have been undertaken. These include:
• An across the board cut in CENVAT by 4 percentage points benefitting all sectors;
• Reduction of the rate of duty on cotton textiles and textile articles from 4% to Nil.
• Provision of additional funds of Rs.1100 crore to ensure full refund of Terminal Excise duty/CST.
• Specific measures on customs duties on sectors such as steel and cement through restoration of the levels of protection;
• Service tax concessions and enhancement of drawback rates for exports.
• Interest subvention on pre and post shipment credit for labour intensive exports like textiles, leather, gem and jewellery, carpets and handicrafts; and
• Extension of a Line of Credit (LoC) by Rs.5000 crore to EXIM Bank from RBI to provide pre-shipment and post-shipment credit, in rupees or dollars, to Indian exporters at competitive rates.
• Refinance facilities respectively of Rs.4000 crore for the National Housing Bank for housing sector.
• Announcement of a package by Public sector banks for borrowers of home loans of up to 20 lakhs. This sector will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory.
• Provision of additional allocation of Rs.1400 crore to clear the entire backlog in Technology Upgration Fund (TUF) Scheme in the textile sector.
• Inclusion of all items of handicrafts under 'Vishesh Krishi & Gram Udyog Yojana'.
• To facilitate the flow of credit to Medium, Small and Micro Enterprises (MSMEs), RBI has announced a refinance facility of Rs.7000 crore for SIDBI which will be available to support incremental lending, either directly to MSMEs or indirectly via banks, NBFCs and SFCs. In addition, the following steps are being taken.
(a) To boost collateral free lending, the current guarantee cover under Credit Guarantee Scheme for Micro and Small enterprises on loans will be extended from Rs.50 lakh to Rs.1 crore with guarantee cover of 50 percent.
(b) The lock in period for loans covered under the existing credit guarantee scheme will be reduced from 24 to 18 months, to encourage banks to cover more loans under the guarantee scheme.
(c) Public Sector Banks have announced a reduction of interest rates on existing as well as new loans to MSME sectors.
(d) Special monthly meetings of State Level Bankers' Committees would be held to oversee the resolution of credit issues of micro, small and medium enterprises by banks. Department of MSME and Department of Financial Services will jointly set up a Cell to monitor progress on this front. Matters of MSMEs remaining unresolved with the Banks- SME Helpline for more than a fortnight may be brought to the notice of this Cell.
To provide a measure of security to unorganized workers, we have enacted the Unorganized Worker Sector Social Security Bill, 2008. The National Commission of Enterprises in the Unorganized Sector (NCEUS) has been asked to work out the detailed schemes in this regard.
The recommendations of the Committee of Governors for speedy socio economic development and empowerment of Women is under the active consideration of the Government. Meanwhile, the UPA Government has decided:
(i) to set up a High Power Committee of eminent persons and experts to study the Status of Women of India to enable the Government to take expeditious action.
(ii) to set up a 'National Mission for Empowerment of Women' for implementation of women-centric programmes in a Mission mode to achieve better coordination and synergy amongst the participating stakeholders.
(iii) to restructure and revitalize the Rashtriya Mahila Kosh (RMK) to scale up their activities including that of backward and forward linkages to function as a single window facilitator and service provider for women Self-Help Groups (SHGs). The authorized and paid-up capital of RMK will be enhanced in a phased manner.
Monetary Policy Measures
RBI took a number of liquidity enhancing measures to deal with the global crisis. These include:
• Reduction of the repo rate from 9 per cent in August 2008 to 5.50 per cent in January 2009.
• Reduction of the reverse repo rate which remained at 6 per cent from mid 2006 in December 2008 and January 2009 respectively by 1 per cent each to bring it to a level of 4 per cent.
• Reduction of the Cash Reserve Ratio from 9 per cent as on August 30, 2008 to 5 per cent with effect from January 17, 2009.
It is important to recognize that there is always some time lag between the announcement of a measure, be it fiscal or monetary, its implementation and its intended impact on the economy and financial parameters of the economy.
Latest figures confirm that our two fiscal packages are steps in the right direction. The data available for the month of December 2008 shows that some of the key sectors of manufacture are exhibiting early signs of recovery compared to November 2008. Cement production has gone up by 8 per cent in December- January and Steel has recorded a production of 22.8 million Metric Tons which is equivalent to the production in May 2008. For the quarter ending December 2008, FMCG registered a growth of more than 25 per cent and Food and Beverages 28 per cent. Railway freight which had declined to 2.2 per cent in October-November 2008 has recovered to a growth of 7 per cent in December, 2008. These are encouraging signs considering that all forecasts point towards a much bleaker 2009 as far as international economy is concerned.
New Concessions
Within the constitutional constraints, I have some flexibility which I want to use to provide further stimulus to the economy.
Even though the signals are encouraging, the full impact of the recession in other parts of the world specially Europe and Asia is yet to unfold. Due to the strong export linkages with these economies, it is likely that the Indian economy may feel further impact in coming months. To counter any such effects, the UPA Government has taken the following decisions:
Central Excise
• General reduction in Excise Duty rates by 4 per cent points was made with effect from 7.12.2008. It is now being extended beyond 31 March, 2009. In addition, it has now been decided to:
• reduce the general rate of Central Excise duty from 10 per cent to 8 per cent.
• retain the rate of central excise duty on goods currently attracting ad valorem rates of 8 per cent and 4 per cent respectively;
• reduce the rate of central excise duty on bulk cement from 10 per cent or Rs. 290 PMT, whichever is higher to 8 per cent or Rs.230 PMT, whichever is higher.
Service Tax
The Government is keen that the business confidence in the Services sector is restored. It is also our objective that the dispersal between CENVAT rate and the Service Tax rate is reduced with a view to move towards the stated goal of a Uniform Goods and Service Tax. In line with this objective, it has been decided to reduce the rate of service tax on taxable services from 12 percent to 10 per cent.
To provide relief to the power sector, Naptha imported for generation of electric energy has been fully exempted from basic Customs Duty. This exemption which was available upto 31 March 2009, is now being extended beyond that date.
Section 10 AA of the Income Tax provides for exemption in respect of export profits of a unit located in a Special Economic Zone (SEZ). The export profits are required to be computed with reference to the total turn over of the assessee. This has resulted in discriminatory treatment of assessees having units located both in SEZ and the Domestic Tariff Area (DTA) vis-à-vis assessees having units located only within the SEZs. It has now been decided to remove this anomaly through necessary changes in the Act.
Hon'ble Members may recall that in my Budget Speech, I had indicated that we may have to review the ceiling of fiscal deficit that the States can incur in 2009-10 in terms of the debt consolidation and relief facility. As a part of the first stimulus package, it was increased by 0.5 per cent to 3.5 per cent of the Gross State Domestic Product (GSDP) for 2008-09. To spur the development of infrastructure and employment generation, this arrangement is being extended to 2009-10 with the possibility of further review, if required, in the coming months.
Our priorities are clear. Rapid development of infrastructure, both in rural and urban areas, and agriculture growth leading to employment generation and distributive justice tops the list. For us economic growth is an instrument for development and not an end in itself. Economic growth has to be both inclusive and equitable. It must provide social justice and lead to the empowerment of Aam Aadmi. In the last five years, the UPA Government has moved steadfastly in that direction. But a social revolution which must flow from these measures is a long process and has to be worked out carefully and systematically, not only through economic growth and mobilization of resources, but also through institutional changes and mobilization of the masses. It is my earnest hope that we will all walk together in the journey ahead to achieve this shared vision."
Tax rate reductions and customs exemption extended to stimulate industry, exports, and state infrastructure financing.
The interim budget implements fiscal stimulus by reducing central excise rates (general reduction of four percentage points and a cut from ten to eight percent), lowering service tax from twelve to ten percent, and extending the basic customs duty exemption on imported naphtha for power generation. It announces credit and refinance facilities for housing, MSME and export sectors, enhancement of credit guarantee cover, and operational measures to speed MSME lending. It also provides that SEZ export profit computation will be amended to remove discrimination against mixed-location assessees and extends the states' fiscal deficit accommodation to promote infrastructure and employment.
Note: It is a system-generated summary and is for quick reference only.