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Mint
12 hours ago
- Business
- Mint
The week in charts: GST revamp, Oil Plan B, Wegovy launch, India tops again
A revamp of the goods and services tax (GST) regime is on the cards, with the compensation cess likely to be merged into the main GST rates. Separately, India has activated a Plan B to secure oil supplies amid continued tensions in West Asia. Despite global headwinds, India retained its top spot among emerging market peers in May. GST revamp The finance ministry may merge the compensation cess on sin and luxury goods into the goods and services tax (GST) rates, Mint reported. The decision won't impact consumers as overall tax outgo would remain unchanged. Compensation cess, which makes up about 7% of the total collections, was levied on top of the GST rate to compensate states for potential revenue loss due to the transition to GST regime. This arrangement is set to expire in March 2026. The shift may become a part of recommendations on the tax-sharing formula for five years starting FY27 by the Sixteenth Finance Commission. Hefty bounty Indian companies doled out a record dividend of ₹4.9 trillion in FY25, despite the lacklustre earnings. Promoters, led by those in private firms, pocketed 51.5% of total dividends declared. A Mint analysis of 370 consistent dividend-payers from the BSE 500 shows that promoters with over 70% stake saw their dividend receipts surge by 45%. Those holding 50-70% and below 50% experienced more modest increases of 8.5% and 8.9% respectively. This trend indicates that higher promoter holdings, in some instances, led to increased dividend payouts. VIP deal 26%: Is the stake domestic private equity (PE) firms such as Multiples Alternatives and 360 One are eyeing in luggage maker VIP Industries, Mint reported. The stake sale could also trigger an open offer. The promoters currently own a little more than 50% of VIP Industries, shows stock exchange data. The sale is part of the promoters' ongoing efforts to exit the business. Last November, the company's talks with PE firm Advent International to sell a controlling stake fell through due to valuation mismatches. Oil Plan B India has devised an emergency plan to secure oil supplies amid the uncertainties in West Asia, Mint reported. It involves bypassing the Strait of Hormuz via two pipelines: Abu Dhabi National Oil Co's Habshan-Fujairah that opens to the Gulf of Oman, and Saudi Aramco's East-West to the Red Sea. India could also boost imports from the US. The recent conflict between Israel and Iran, with threats of closure of Strait of Hormuz had exposed India's vulnerability as the country imports over 40% of its oil from West Asian countries. India tops India, with a score of 67 out of 100, retained top spot among emerging economies in May, showed Mint's emerging markets tracker. However, the win came with a narrow lead. Thailand came a close second with a score of 66.6 due to best export performance. While India's score was driven by India's fastest GDP growth among peers, robust manufacturing activity, and sustained stock market gains, the lead narrowed due to deteriorated export growth and currency fluctuations. In April, India had scored 87.9. Slim deal ₹17,345: That is the starting price in India for Novo Nordisk's weight-loss drug Wegovy, launched earlier this week. The drug is administered as a once-a-week injectable pen and is prescribed for chronic weight management and reducing major adverse cardiovascular events. Available in five dosing strengths—0.25 mg, 0.5 mg, 1 mg, 1.7 mg and 2.4 mg—Wegovy is expected in pharmacies by end of the month. The launch follows rival Eli Lilly's introduction of Mounjaro in March 2025, intensifying competition in India's obesity treatment market. Bumper bonus Indian investment banks awarded record bonuses to their top brass this year as they earned substantial fees in FY25, Mint reported. It was fuelled by a surge in deals and initial public offering activity, and hefty fees earned by investment banks from them. Firms like Kotak Mahindra Capital, Axis Capital, Avendus Capital, and JM Financial reportedly distributed over $1 million bonuses to top executives. Indian investment banks earned over $1.35 billion in fee income in FY25, highest in the post-pandemic period, showed data from London Stock Exchange Group. Chart of the week: Space take-off Shubhanshu Shukla made history by becoming the first Indian astronaut to travel to the International Space Station (ISS). A look at data shows that ISIS visits are dominated by individuals representing the US (169), which is also home to Nasa. This is followed by Russia (63), Japan (11), and Canada (9). Follow our data stories on the'In Charts" and'Plain Facts" pages on the Mint website.
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Business Standard
30-05-2025
- Business
- Business Standard
Jharkhand govt urges finance commission to raise tax share to 50%
The Jharkhand government on Friday appealed to the Sixteenth Finance Commission to raise the vertical devolution of central taxes from the existing 41 per cent to 50 per cent. A finance commission team, headed by its chairman Dr Arvind Panagariya, held discussions with the state government. Jharkhand Finance Minister Radhakrishna Kishore and Chief Secretary Alka Tiwari were present during the meeting. "Increase the vertical devolution share from 41 per cent to 50 per cent," the state government appealed to the panel. The commission also held a series of meetings with representatives from local bodies, trade organisations, industry associations, chambers of commerce, and political parties. The finance commission team on Thursday visited Jharkhand's temple town of Deoghar and offered obeisance at the Baba Baidyanath temple. The finance panel also held discussions with representatives of panchayati raj institutions and administrators of urban local bodies from all six districts of Santhal Pargana. The delegation had arrived in Ranchi on Wednesday on a four-day visit to Jharkhand and met Chief Minister Hemant Soren. The CM sought support from the finance commission for the all-around development of various sectors and communities in the state. "Jharkhand contributes significantly to the country's development as a state with extensive mining activities. But, it also faces consequences, such as environmental degradation, displacement of people, and loss of land. The land reclamation work by central mining companies is not being carried out in a planned manner," Soren told the commission members. He also sought autonomy to utilise financial resources according to the needs of the local population, as each state has different requirements. The Centre's vision of 'Viksit Bharat' could be realised through the development of states and villages, Soren said. "A large population of the state depends on agriculture. So, agriculture and allied activities are a focus area for the government. Jharkhand has significant potential in the farming sector," he added. There is a need for special efforts in priority areas such as health, education, and livelihoods, Soren said. The team is scheduled to return to Delhi on May 31. Jharkhand has prepared a Rs 1.45 lakh-crore budget for the ongoing fiscal, with a whopping Rs 62,844 crore earmarked for social welfare programmes to help the poor, women and other vulnerable groups. For its popular Jharkhand Mukhyamantri Maiya Samman Yojana, which aims to enhance the financial security and well-being of women in the age bracket of 18-50 years, it allocated Rs 13,363 crore. Besides, Rs 5,000 crore has been allocated towards providing free electricity. Last month, the chief minister called for a provision in the Coal Bearing Areas (Acquisition and Development) (CBA) Act, requiring companies to return land to the state government after mining activities. The CM also demanded the release of Rs 1.40 lakh crore, owed by mining companies, at the recent NITI Aayog Governing Council meeting chaired by Prime Minister Narendra Modi. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
The Print
19-05-2025
- Business
- The Print
16th Finance Commission will submit its report to Centre by Oct 31: Chairman
The chairman praised Uttarakhand for moving ahead rapidly on the development front and said that in view of the difficult geographical conditions, extensive discussions will be held to find solutions to the challenges being faced by other hill states, including Uttarakhand. Panagariya said this in a meeting of the commission held here with Chief Minister Pushkar Singh Dhami. Dehradun, May 19 (PTI) Chairman of the Sixteenth Finance Commission Dr. Arvind Panagariya on Monday said the commission will submit its report to the central government by October 31. Earlier in the meeting, CM Dhami presented his views on the financial situation, challenges and development needs of the state. He requested the Finance Commission to provide suitable compensation in keeping with the spirit of 'environmental federalism' in view of Uttarakhand's 'eco service cost', increase the weightage of forest cover in 'tax-devolution' to 20 per cent and consider special grants for proper management and conservation of forests in the state. The Chief Minister said that in the last 25 years, Uttarakhand has made remarkable progress in the field of financial management like other areas. The size of the state budget has crossed Rs 1 lakh crore, while in the SDG Index Report of the year 2023-24 released by NITI Aayog, Uttarakhand has emerged as the leading state in the country among the states achieving the goals of sustainable development, he said. Referring to the two main challenges being faced by the state due to more than 70 per cent of the total geographical area of Uttarakhand being covered by forests, Dhami said that on one hand this leads to more expenditure for the conservation of forests, while on the other hand, due to the prohibition of any other development activity in the forest area, 'eco service cost' also has to be borne. In this regard, he requested for appropriate compensation to the State in accordance with the spirit of 'Environmental Federalism', increasing the weight prescribed for forest cover in 'Tax-Transfer' by 20 percent and special grant for proper management and conservation of forests in the State. He said that since the state's industrial package ended in 2010, the locational disadvantage is not being met, while special budget provisions have to be made in the hilly regions of the state due to difficult geographical conditions and other practical difficulties as the private sector participation in important sectors like education and health is very limited. Describing Uttarakhand as very sensitive to natural disasters, the CM said that the state needs continuous financial support to effectively deal with disasters and for relief and rehabilitation work. Dhami, referring to the limited possibilities of hydropower generation in Uttarakhand due to the rules implemented after the Ganges was declared a national river, said that due to this the hydropower sector is not able to make the expected contribution and there is a huge loss in the field of employment along with revenue. He also requested the Finance Commission to provide special assistance in view of the higher cost involved in developing additional infrastructure for transport, drinking water, health, waste management and other services in view of the 'floating population' visiting pilgrimage sites. A delegation of the party led by State Congress Vice-President Suryakant Dhasmana also met Dr. Panagariya and requested for a green bonus for the state and economic package to stop migration and consider the special geographical conditions of the state. Dhasmana demanded that the state should be given a green bonus as compensation for its environmental services, protection of water, forest and biodiversity for the country. He said that there should also be a provision of a special package for the state for long-term disaster management preparedness. PTI DPT NB NB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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Business Standard
19-05-2025
- Business
- Business Standard
16th Finance Commission will submit report to Centre by Oct 31: Chairman
Chairman of the Sixteenth Finance Commission Dr. Arvind Panagariya on Monday said the commission will submit its report to the central government by October 31. Panagariya said this in a meeting of the commission held here with Chief Minister Pushkar Singh Dhami. The chairman praised Uttarakhand for moving ahead rapidly on the development front and said that in view of the difficult geographical conditions, extensive discussions will be held to find solutions to the challenges being faced by other hill states, including Uttarakhand. Earlier in the meeting, CM Dhami presented his views on the financial situation, challenges and development needs of the state. He requested the Finance Commission to provide suitable compensation in keeping with the spirit of 'environmental federalism' in view of Uttarakhand's 'eco service cost', increase the weightage of forest cover in 'tax-devolution' to 20 per cent and consider special grants for proper management and conservation of forests in the state. The Chief Minister said that in the last 25 years, Uttarakhand has made remarkable progress in the field of financial management like other areas. The size of the state budget has crossed Rs 1 lakh crore, while in the SDG Index Report of the year 2023-24 released by NITI Aayog, Uttarakhand has emerged as the leading state in the country among the states achieving the goals of sustainable development, he said. Referring to the two main challenges being faced by the state due to more than 70 per cent of the total geographical area of Uttarakhand being covered by forests, Dhami said that on one hand this leads to more expenditure for the conservation of forests, while on the other hand, due to the prohibition of any other development activity in the forest area, 'eco service cost' also has to be borne. In this regard, he requested for appropriate compensation to the State in accordance with the spirit of 'Environmental Federalism', increasing the weight prescribed for forest cover in 'Tax-Transfer' by 20 percent and special grant for proper management and conservation of forests in the State. He said that since the state's industrial package ended in 2010, the locational disadvantage is not being met, while special budget provisions have to be made in the hilly regions of the state due to difficult geographical conditions and other practical difficulties as the private sector participation in important sectors like education and health is very limited. Describing Uttarakhand as very sensitive to natural disasters, the CM said that the state needs continuous financial support to effectively deal with disasters and for relief and rehabilitation work. Dhami, referring to the limited possibilities of hydropower generation in Uttarakhand due to the rules implemented after the Ganges was declared a national river, said that due to this the hydropower sector is not able to make the expected contribution and there is a huge loss in the field of employment along with revenue. He also requested the Finance Commission to provide special assistance in view of the higher cost involved in developing additional infrastructure for transport, drinking water, health, waste management and other services in view of the 'floating population' visiting pilgrimage sites. A delegation of the party led by State Congress Vice-President Suryakant Dhasmana also met Dr. Panagariya and requested for a green bonus for the state and economic package to stop migration and consider the special geographical conditions of the state. Dhasmana demanded that the state should be given a green bonus as compensation for its environmental services, protection of water, forest and biodiversity for the country. He said that there should also be a provision of a special package for the state for long-term disaster management preparedness.
Hindustan Times
16-05-2025
- Business
- Hindustan Times
Ghaziabad: Two ramps to Hindon elevated road proposed in Indirapuram, Vasundhara
The Ghaziabad development authority (GDA) has proposed to build two ramps on the Hindon Elevated Road: an on-ramp in Indirapuram on the carriageway from Raj Nagar Extension to UP Gate, and an off-ramp in Vasundhara on the carriageway from UP Gate to Raj Nagar Extension. The ramps will be built at a cost of ₹200 crore, and the proposal will soon be sent to the state government for approval, officials said on Thursday. The 10.3km Hindon Elevated Road connects Raj Nagar Extension in Ghaziabad with UP Gate on the Delhi-Ghaziabad border. The proposal to build the ramps comes after Uttar Pradesh housing and development board officials asked GDA to provide access to the Hindon Elevated Road from Vasundhara and Siddharth Vihar townships. 'We have prepared a report proposing the development of a new on-ramp from Indirapuram and a new off-ramp towards Vasundhara. The estimated cost for these two additional accesses is ₹200 crore, and we will try to seek funds from the Sixteenth Finance Commission. For now, the report will be sent to the state government for further action,' said Atul Vats, vice-chairperson of GDA. The Hindon Elevated Road has an entry/exit point at Karhera rotary and an entry/exit point at UP-Gate. In between, the elevated road has an exit at Indirapuram for commuters coming from Raj Nagar Extension. Likewise, commuters from Vasundhara also have an entry to the elevated road, but it is meant only for commuters going to Raj Nagar Extension. 'The two new proposed entry and exit points, a ramp up from Indirapuram and a ramp down on the other side at Vasundhara, will help commuters of trans-Hindon areas get full access to the elevated road. It will also help commuters from nearby Siddharth Vihar get access to the elevated road and reach Delhi,' said an officer from GDA's engineering department. The Vasundhara and Siddharth Vihar housing schemes are spread over an area of 1,138 acres and 704 acres, respectively. Siddharth Vihar is an under-development scheme and residents settling here will need direct connectivity to Delhi. In Vasundhara, the board has a presence of 80 acres of vacant land in sectors 7 and 8, which also fall under the transit-oriented development (TOD) zone and have mixed and commercial land use being located in a 1.5km radius of the Sahibabad station of the Regional Rapid Transit System project. The TOD zones along eight RRTS stations have been defined according to the state government's TOD policy and also made part of the draft Master Plan 2031 by GDA. Ten acres of land in these two sectors is also proposed to be given for a satellite centre of the All-India Institute of Medical Sciences (AIIMS).
