Premier Mark McGowan today hailed the start of construction of Blackburne’s $280 million ONE Subiaco project as the first stage of the suburb’s transformation.…
States will have to bear the interest burden if they decide to borrow the entire Rs 2.35 trillion shortfall estimated in goods and services tax (GST) revenue: that’s the second option proposed the central government has proposed to raise resources to compensate states amid inadequate cess collection.
The finance ministry, in a letter to states, Saturday shared the details of the two options, which states will examine over seven days. The GST Council, which met Thursday, will convene again after for discussions.
The centre gave states two options at the GST Council meeting for compensation: they can either borrow up to Rs 97,000 crore, which is a shortfall arising out of GST implementation or the entire Rs 2.35 trillion, which accounts for the Covid-19 situation.
States, if they take up the first option, will have to borrow Rs 970,00 crore through issue of debt under a Special Window coordinated by the Ministry of Finance. In case of the second option, the entire shortfall of Rs 235,000 crores may be borrowed by states through issue of market debt.
As second option, “the interest shall be paid by the States from their resources,” said the finance ministry’s letter.
Reliance Retail Ventures Limited (RRVL), a subsidiary of Mukesh Ambani-owned Reliance Industries Ltd, today announced that it is acquiring the entire retail, wholesale, logistics and warehousing businesses from the Future Group as a going concern basis for a total consideration of Rs 24,713 crore.
While the widely anticipated acquisition means exit of Kishore Biyani, the “retail king” of India and founder of Future group from the industry after close to three decades, it will consolidate Ambani’s position in the Indian retail industry which is witnessing huge investments by multinational players in the e-commerce segment such as Amazon and Walmart. The merger also means increased competition to existing brick and mortar companies like D-Mart and Aditya Birla Fashion.
The merger will help Biyani to get rid of debt – both at the promoter level and in the listed entities level which were hit hard by the Corona pandemic – resulting in the closure of several stores since March.
Indian conglomerate Reliance is acquiring the retail, wholesale and logistics businesses of the Future Group for $3.38 billion, the oil-to-telecoms giant announced late Saturday, strengthening its presence in the country’s hugely competitive e-commerce sector.
Reliance, which is owned by Asia’s richest man Mukesh Ambani, has been locked in battle with US tech behemoth Amazon and Walmart-backed Flipkart for a share of India’s lucrative online market, establishing its digital platform JioMart in May.
After spending years battling local mom-and-pop shops for customers, the online retailers are now trying to work hand-in-hand with the smaller stores that dominate India’s towns and hinterlands to bring them online.
Future Group owns some of the country’s best-known supermarket brands such as Big Bazaar but its founder Kishore Biyani, once known as India’s retail king, has struggled in recent years, with the coronavirus pandemic dealing a heavy blow to his empire.
Ambani’s daughter Isha, director of Reliance’s retail subsidiary RRVL, said the deal would give a big boost to India’s retail sector and was “a strong strategic fit” for her company.
“We hope to continue the growth momentum of the retail industry with our unique model of active collaboration with small merchants … as well as