Vedanta wins cases for higher claim; RBI says banks have to protect depositors; Russian Covid vaccine set for India launch

Toyota Motor said it won’t expand further in India due to high taxes. The Supreme Court ruled that Vedanta is entitled to recover a $499 million arbitration award from the central government. Russia’s sovereign wealth fund said it will supply 100 million doses of its potential coronavirus vaccine to India's Dr Reddy’s Laboratories. Tata Projects Ltd is likely to bag the government’s project to redevelop Parliament. Here is more on what made news this week.

Business Standard
19th September

  • The "primary concern" for any bank should be protecting depositors' interest, said Reserve Bank of India governor Shaktikanta Das amid a Supreme Court hearing on waiver of interest during the loan-moratorium period. "The aspect of financial stability of the banking sector needs to be also kept in mind,” he said.
  • The Supreme Court ruled that Vedanta Ltd. is entitled to recover a $499 million arbitration award from the central government for developing oil and gas fields in Rajasthan. The court rejected the government’s petition, which had said that the company, along with Videocon Industries Ltd., is entitled to recover only $198.5 million as agreed in the production-sharing contract.
  • Russia’s sovereign wealth fund will supply 100 million doses of its potential coronavirus vaccine to India's Dr Reddy’s Laboratories, the fund said. The agreement brings the total number of doses Russia has so far announced that it will supply abroad to just over 200 million: half to Latin America and half to India.
  • Tata Projects Ltd is likely to bag the government’s project to redevelop Parliament with its bid of Rs 861.9 crore compared to L&T’s Rs 865 crore. The project—expected to be completed by the first half of 2022—attracted many construction firms but bids came from only these two companies.
  • Life Insurance Corporation of India’s IPO is unlikely this financial year. A government official told Business Standard the process needs an asset valuer. “Even if one is appointed now, it may take six to eight months for the valuation to be done, given huge land assets of the state-owned insurer,” said the official.
  • Toyota Motor Corp. won’t expand further in India due to the country’s high tax regime, a blow for the government's attempts to lure global companies. The government keeps taxes on cars and motorbikes so high that companies find it hard to build scale, said Shekar Viswanathan, vice chairman of Toyota’s local unit, Toyota Kirloskar Motor.
  • The government sought Parliament nod to incur additional expenditure of Rs 1.67 trillion for 2020-21 (FY21) to recapitalise banks, fight Covid-19, and fund welfare schemes. The first batch of supplementary demand, tabled in the Lok Sabha, for grants entails an additional expenditure of Rs 2.36 trillion, but around Rs 68,868 crore will be met through savings in other schemes.

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A few links for further reading

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