Economy
Petrol, diesel prices cut
  • The three state-run oil marketing companies on Monday reduced petrol and diesel prices. Petrol and diesel will be cheaper by Rs.0.58 and Rs.0.25 per litre respectively in the national capital.
 
The reduction will be effective from midnight Monday.
 
Making the fortnightly revision in retail prices, Indian Oil Corp (IOC) said: "The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision."
 
Allowing for local levies, IOC said the price of petrol per litre from Tuesday will be Rs.60.48 in Delhi, Rs.65.93 in Kolkata, Rs.67.55 in Mumbai and Rs.60.80 in Chennai.
 
Diesel will cost Rs.46.55 a litre in Delhi, Rs.50.10 in Kolkata, Rs.53.78 in Mumbai and Rs.47.77 in Chennai.
 
The Indian basket of crude oils closed on the previous trading day on Friday at $41.01 a barrel, after having dropped below $40 during the fortnight in consideration.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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UDAY debt recast reforms vital for power sector: Fitch
American Ratings agency Fitch on Monday maintained a stable outlook for state-run power utilities - NTPC PowerGrid and NHPC - saying the implementation of the government's UDAY debt recast and reform package is key to their ratings outlook in future.
 
"Successfully addressing the weak financial positions of state distribution companies (discoms) is key to improving the health of India's power sector. The weak fiscal position of these entities has led to sustained delays in payment to market participants and weak offtake from power generators, in addition to increasing the risks associated with much-needed investment in the sector," Fitch said In a report.
 
"States opting for the package and delivering on loss reductions and efficiency improvements over the medium term remains essential for the success of the programme.
 
"The debt restructuring plan will substantially reduce discoms' near-term debt burden; and more importanly, their high interest costs, which account for a large share of the discoms' losses," it added.
 
Fitch said a failure of the distribution companies' (discom) reforms would be negative for the entire power sector.
 
Moreover, any increase in receivable days for central utilities following the expiry of tri-partite agreements would be a negative for their financial profiles of these entities, it added.
 
State-run power distribution companies have accumulated a debt burden of over Rs.400,000 crore, crippling capacity in many cases to purchase power.
 
Earlier this month, the union cabinet approved the Ujjwal Discom Assurance Yojana (UDAY), under which states are being encouraged to take over 75 percent of the debt of the ailing state electricity boards.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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RBI revises oversees borrowing limits for India Inc
Aiming to encourage the flow of foreign funds into India, the country's central bank on Monday revised a major guideline which administered the oversees borrowing limits for India Inc.
 
The Reserve Bank of India (RBI) said that it has revised the framework governing the external commercial borrowing (ECB) facility for the Indian industry.
 
It said that the revised framework has been drafted considering the current macro-economic developments and the experience gained over the last 10 years.
 
The RBI elaborated that the new framework takes a more liberal approach towards ECB, with fewer restrictions on end uses and higher all-in-cost ceiling.
 
Similarly, the new norms, take a more liberal approach for Indian rupee (INR) denominated ECBs, where the currency risk is borne by the lender.
 
Furthermore, the list of overseas lenders have been expanded to include long term lenders like sovereign wealth funds, pension funds and insurance companies.
 
However, the RBI has maintained a small negative list of end-use requirements applicable to long-term ECBs and INR denominated ECBs.
 
Other major features of the new policy include, raising of limit for small value ECBs with minimum average maturity (MAM) of 3 years to $50 million from the existing $20 million.
 
The Indian apex bank said that the framework for ECB as a means to attract flow of funds from abroad will continue to be a major tool to calibrate the policy towards capital account management in response to evolving macro-economic situation. 
 
Commenting on the latest reform measure, Shaktikanta Das, secretary economic affairs, with finance ministry twitted that the government, RBI, SEBI are working together with positive interaction and understanding and will continue to work for reforms and stability.
 
In addition to the latest reform measure, RBI said that it will review the new ECB guidelines after one year based on the experience and evolving macro-economic situation.
 
In September 2015, RBI had placed the draft proposal for new ECB framework in the public domain for wider consultation.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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