Govt unveils new policy to help PSUs buy overseas assets
PrintListen to this Article
The government on Thursday unveiled a new policy which accords greater autonomy to profit-making PSUs in acquiring raw material assets abroad, and said it will also consider setting up a sovereign wealth fund.
"While some countries have already taken the lead in acquiring the sources of raw material assets globally, Indian companies have not been very assertive. Today, the Cabinet approved the policy for acquisition of raw material assets abroad by CPSEs," Information and Broadcasting Minister Ambika Soni said after the meet.
The new policy, aimed at facilitating faster acquisitions, proposes to enhance the investment limit by Navratna firms to Rs. 3,000 crore from present Rs. 1,000 crore for any asset buy out. Any additional amount beyond the prescribed limit would require the government's nod.
"Navratna companies have been given powers for acquiring assets up to Rs. 3,000 crore as against Rs. 1,000 crore. Rs. 1,000 crore in today's context is very small," said Heavy Industries and Public Enterprises Secretary S Sundareshan.
An empowered committee of Secretaries, headed by the Cabinet Secretary, would be formed to make quick decisions in cases where the buyout amount exceeds the limit set by the government. For Maharatna firms, the limit is Rs. 5,000 crore.
Powers delegated to the boards of Maharatna and Navratna firms would be enhanced for such acquisitions and a Coordinating Committee of Secretaries (CCoS) headed by the Cabinet Secretary would be formed to examine proposals where the buyout amount exceeds the funding amount allocated by the government.
The CCoS will facilitate quick and coordinated decision-making, coordinate the grant of concessional credit to foreign enterprises, recommend government funding and decide about the nature of such funding on a case-to-case basis, an official statement said. (PTI)
Category : International Business | Comments : 0 | Hits : 231
Chartered accountants from the UK and Canada might be allowed to practice in India on a reciprocal basis, with the apex body ICAI making the proposal to the Government. ICAI President Ranjeet Kumar Agarwal, on February 21, said the proposal will be implemented strictly on the reciprocal basis that chartered accountants (CAs) from India will also be allowed to practice in the United Kingdom and Canada. It will be the first time that overseas CAs will be allowed to practice in India. The pro...
The tax department is considering a proposal under which credit card holders will have to file a declaration with the issuer entity within a stipulated time, specifying the nature of expenses incurred in foreign currency for the purpose of TCS levy, sources said. The I-T department is in talks with the RBI and other stakeholders to firm up a mechanism for distinguishing whether the expense is towards medical/education which attract a 5 per cent TCS or for other purposes on which a 20 per cent...
Concerns have been raised about the applicability of Tax Collection at Source (TCS) to small transactions under the Liberalized Remittance Scheme (LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards upto Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS. Existing beneficial TCS treatment for education and health payments will also co...
The ministry on May 16 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023, to include international credit card payments in the LRS. Any remittance beyond USD 2.5 lakh or its equivalent in foreign currency would require approval from the RBI. Earlier, the usage of international credit cards (ICCs) for making payments for fulfilling expenses during travel outside India was not included in the LRS limit. According to the notification, the Finance ...
Canada’s immigration minister Sean Fraser has announced Express Entry invitations to FSWP and CEC candidates will resume by “early July 2022” The vast majority of new Express Entry applications will be processed within the six-month service standard. According to IRCC, current Express Entry processing times range from seven months to in excess of 20 months. Summary of Canada's Immigration Levels Plan Each year, the federal department of Immigration, Refugees ...
Comments