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Cairn to accept $1bn refund for withdrawing arbitration cases against India

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Engineering

British energy major Cairn expects to get $1.06 billion (Rs 79,000 crore) as refund by the Government of India, following which the company will withdraw all its international arbitration award claims and cases.

Simon Thomson, Chief Executive, Cairn Energy PLC said: “Progress in resolving our Indian tax issue and active portfolio management leave Cairn well-positioned to deliver growth from a sustainable business, focused on generating further value and returns for shareholders.”

In its half yearly report announcement, the company said that the expected near-term resolution of the India tax dispute would result in a refund to Cairn by the Government of India of Rs 79 billion (around $1.06 billion).

“In accepting the terms of the new legislation in India, Cairn would be required to withdraw its international arbitration award claim, interest and costs and to end all legal enforcement actions in order to be eligible for the refund,” it said.

Further, payment of the tax refund would enable a proposed return to shareholders of up to $700 million, through a special dividend of $500 million and a share buyback programme of up to $200 million.

The remainder of the proceeds would be allocated to further expansion of the low cost, sustainable production base.

Near-term resolution of the Indian tax dispute, alongside significant recent portfolio changes, will ensure that Cairn remains well-positioned to continue successful delivery of its differentiated business model of returning value to shareholders against a backdrop of sustainable cash-flow generation and growth.

The group is considering entering into statutory undertakings with the Government of India in respect of new legislation, which would enable the refund of retrospective taxes collected from Cairn in India by way of asset seizures since 2014 totalling Rs 79,000 crore.

The final form of these statutory undertakings has yet to be published by the Government of India, but it is anticipated that the principal condition that they prescribe will be the withdrawal of Cairn’s rights under the international arbitration award.

“As the Group has not yet entered into any such undertakings, Cairn’s receivable under the award of the international arbitration remained classified as a contingent asset at the June 30 balance sheet date,” it said.

International

Iran Hangs 3 Men Accused For Spying For Israel

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Iran said Wednesday that it executed three men accused of spying for Israel, the day after a truce between the two countries came into effect.

“Idris Ali, Azad Shojai and Rasoul Ahmad Rasoul, who attempted to import equipment into the country to carry out assassinations, were arrested and tried for… cooperation favouring the Zionist regime,” the judiciary said, referring to Israel.

“The sentence was carried out this morning… and they were hanged.”

The executions took place in Urmia, a northwestern city near the border with Turkey, the judiciary said, sharing photos of the three men in blue prison uniforms.

Tehran regularly announces the arrest and execution of agents suspected of working for foreign intelligence services, including its arch-foe Israel.

After the Iran-Israel war erupted on June 13, Tehran vowed swift trials for people arrested on suspicion of collaborating with its arch-foe. 

It carried out executions of men accused of being Mossad agents on both Sunday and Monday. 

Iran is the world’s second-most prolific executioner after China, according to human rights groups, including Amnesty International.

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Business

India on track to become $5 trillion economy in next 3 years: Piyush Goyal

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New Delhi, June 25: India is well on track to achieve a $5 trillion economy and the expectation is to reach this milestone within the next three years, Commerce and Industry Minister Piyush Goyal has stressed.

By 2027, “we hope to become the third largest economy in the world,” he said, adding that all stakeholders — government, business community, industry, trade, and 140 crore Indians — are deeply aligned with the Prime Minister’s vision for ‘Viksit Bharat 2047’.

The minister stated that the government, under Prime Minister Narendra Modi, has focused on quantum change, not incremental progress and it focused not only on growth, but on inclusive, sustainable and honest growth.

He was speaking at a webinar hosted by the Merchants’ Chamber of Commerce and Industry (MCCI) on ‘India’s March Towards a $5 Trillion Economy: Navigating Global Challenges’.

On India’s economic strength, Goyal stated that the country has moved from being part of the fragile five to becoming one of the top five economies in the world.

“We have a strong macroeconomic foundation. Our banking system is strong and robust, with high ability to lend. Our inflation is among the lowest India has ever seen — down to 3 per cent again,” he said.

The minister further said that the government has focused on achieving growth that is calibrated for the Indian story and that believes in ‘Seva, Sushasan and Navachar; — Service, Good Governance and Innovation.

He highlighted that MCCI will continue to play a very important role during Amrit Kaal in achieving this goal. Such dialogues help the government better understand what needs to be done to support industries, even in the face of global volatility, turbulence, and uncertainty.

“History reminds us that great economies are not built in calm waters. Great economies are built in turbulent seas,” Goyal emphasised, adding that this is India’s time to seize the moment and that the opportunity must not be missed.

He praised MCCI’s 124-year journey, calling it a bridge between the government, stakeholders, and industries. “MCCI can be called as Mobilizing Commerce and Connecting Industries, because that is exactly what MCCI does,” Goyal added.

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National

Maharashtra Cabinet clears 802 km Shaktipeeth Expressway

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Mumbai, June 24: The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday approved the much-debated 802-km six-lane Shaktipeeth Expressway connecting 18 pilgrimage sites, including three and a half Shaktipeeths, two Jyotirlingas and Pandharpur Ambajogai in the state.

The project cost is estimated at Rs 86,300 crore and will pass through 12 districts.

The state-run Maharashtra State Road Development Corporation is the nodal agency for its development.

The cabinet cleared a provision of Rs 20,000 crore for the project design and land acquisition.

The expressway has been proposed from Pawanar in Wardha district to Patradevi in Sindhudurg district. This will reduce the travel time from the present 18 to 20 hours to just 8-10 hours.

According to the government sources, it aims to boost tourism, regional development, and provide easier access to spiritual sites. The expressway will pass through three Shakti Peethas of Mahalaxmi (Kolhapur), Tulja Bhawani (Dharashiv) and Patradevi (Goa), two Jyotirlingas of Aundha Nagnath (Hingoli) and Parli Vaijnath (Beed), historic town of Pandharpur, which houses the Shri Vitthal-Rukmini Mandir.

Last week, Chief Minister Fadnavis had directed the Finance Department to allocate Rs 12,000 crore required in connection with land acquisition for the proposed Shaktipeeth Expressway.

“Delays in projects lead to major cost escalations. All agencies concerned have been assigned specific timelines, and strict adherence to these is necessary. The land acquisition process must be treated with seriousness and executed in mission mode,” he said.

CM Fadnavis, who has been a strong advocate of the Shaktipeeth Expressway, claimed the project will open up new opportunities and transform the state.

He clarified that the government will not force the project on anyone, saying that the government will sit and understand the issues of farmers. While a section of farmers is protesting, another lot has plans to have gatherings to show their support for the project, he noted.

Today’s Cabinet approval comes amid strong protests by opposition parties, farmers and villagers who claimed that the proposed highway will damage their irrigated farmlands and is being planned for the benefit of contractors.

The Maha Vikas Aghadi has been opposing the project, claiming that it will affect farmers badly and benefit contractors.

The opposition parties are expected to take up the issue during the upcoming Monsoon Session of the state legislature, starting June 30 in Mumbai.

The Mahayuti government, ahead of state Assembly elections last year, had put on hold the land acquisition for the expressway in the wake of strong protests, especially from Kolhapur district. The Mahayuti partners BJP, Shiv Sena and NCP, had feared an electoral loss if the land acquisition had been carried out. However, the government has revived it now.

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