The government may soon extend the interest equalization scheme, which lapsed on March 31, to shore up the export sector impacted by the COVID-19 pandemic, an official said. Under the scheme, exporters get 3-5 per cent subsidy on loans for specified items. It was announced in April 2015 for five years. Addressing a Webinar organised by Ficci, Director General of Foreign Trade Amit Yadav said, "In the weeks ahead, you would be hearing good news with regard to the extension of interest equalisation scheme. We are ensuring that exports come back on the track. The export data for March is an indicator; the impact of the present crisis could be seen from the export data of March and that for April would also be similar," a Ficci statement quoted Yadav as saying.
He said the government has been holding regular interactions with the stakeholders in these difficult time, which was "never imagined."
Refund £73.3 mn to Voda Idea, SC tells taxmen
The Supreme Court has granted partial relief to Vodafone Idea by asking the income tax department to refund £73.3 million to the telecom firm within four weeks, for assessment year 2014-15. Vodafone Idea, formerly known as Vodafone Mobile Services, had, however, sought £475.9 million in tax refund from for assessment years 2014-15, 2015-16, 2016-17 and 2017-18. The top court did not order I-T refund pertaining to assessment years other than 2014-15. The bench also directed the tax department to conclude as early as possible the proceedings relating to the demand of refund of the telecom firm and the scrutiny of income by the income tax department with respect to assessment years 2016-17 and 2017-18.
Govt extends AI selloff deadline
The government of India has extended the deadline to bid for Air India by two months till June 30, as the Covid-19 fallout has disrupted economic activity globally. This is the second extension in the deadline to submit bids by investors for Air India since it initiated the process of stake sale in the debt-ridden national carrier on January 27. Issuing a corrigendum to the expression of interest (EoI) for sale of Air India, the Department of Investment and Public Asset Management (DIPAM) said the deadline has been extended in view of the “request received from the IBs (interested bidders) in view of the prevailing situation arising out of Covid-19”.
Govt charts plan to boost FDI flows
The government of India has begun consultations with stakeholders on ways to step up foreign investment into the country, with commerce and industry minister Piyush Goyal launching discussions with investment bankers, consulting and law firms. While the ministry was already engaged in a dialogue with potential investors, the efforts had slowed down due to the Coronavirus pandemic and have gained momentum over the last few days after Prime Minister Narendra Modi’s repeated calls to focus on domestic production. Besides, companies are also looking to diversify their production bases beyond China, which had become the mainstay for many global corporations. During his meeting with consulting and law firms, Goyal is learnt to have talked about getting investors to invest in the interior areas and moving beyond big towns and cities. A source said the focus will be multi-fold. For instance, one approach will be to focus on areas where India has competitive strengths, such as textiles and auto parts and scale them through more investments, especially from international companies so that they can develop local facilities that meet international standards.
