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DoT nod for Rs 25k cr RJio-Brookfield tower deal

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Reliance Jio. (Photo: Twitter/@reliancejio)

The Department of Telecommunications has approved the Rs 25,215 crore deal between Reliance Jio and Brookfield Infrastructure.

A SEBI filing said: “The DoT through its letter dated August 11, 2020 has approved Rs 1,053.50 million downstream foreign investment for acquisition of the remaining 49 per cent of the paid-up equity share capital of Tower Co. from RIL by the Trust.”

Further, the department has also approved the increase in foreign investment in Tower Co. to 100 per cent of the paid-up equity share capital.

In December last year, Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly owned subsidiary of Reliance Industries Limited (RIL) entered into an agreement under which it will receive Rs 25,215 crore investment by Canadian entity Brookfield Infrastructure and its institutional partners in its tower infrastructure trust.

As per the deal at the closing of the transaction, the trust will own 100 per cent of the issued and paid up equity share capital of Reliance Jio lnfratel Private Limited (RJIPL).

DoT gave the approval subject to the condition – “The Tower Co. shall ensure compliance with the InvIT Regulations” and “the investment of Rs 2,52,150 million by the Brookfield Sponsor and other investors into the Trust by way of the Issue should be in compliance with applicable FEMA rules and regulations and the InvIT Regulations”.

Further, the Rs 25,000 crore trust loan to be provided by the trust to the tower company should be in compliance with the extant provisions of the law.

The approval of the DoT is also subject to, amongst others, foreign investors not being provided any assured return on exit, compliance with pricing guidelines, documentation and reporting requirements of the Reserve Bank of India and compliance with other applicable laws, the filing said.

The Centre had sought the view of the Securities and Exchange Board of India (SEBI) on whether the debt-equity ratio of the deal is compliant with its guidelines for infrastructure investment trusts (InvITs). The approval was finally given after Jio clarified the doubts raised by the Ministry of Home Affairs, DoT and SEBI.

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SpiceJet plane lands in Mumbai with cracked outer windshield

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A SpiceJet flight landed safely in Mumbai with its outer windshield of the cockpit cracked, an airline spokesperson said on Monday.

The incident took place on SpiceJet flight SG-3324 operating from Kandla (Gujarat) to Mumbai by a turboprop Q400 aircraft.

At around 23,000 feet height, the outer pane of the windshield on the co-pilot’s side cracked but the cabin pressurisation was observed to be normal.

The flight landed safely at Chhatrapati Shivaji Maharaj International Airport later, said the spokesperson, but the cause of the accident – the second on Monday for the low-cost carrier – is not clear yet.

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Nepal’s economy not like Sri Lanka’s, but can go that way: Former central bank Guv

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Dipendra Bahadur Chhetri, the former Governor of Nepal Rastra Bank (NRB), has said that the situation of Nepal’s economy is not like that of Sri Lanka.

However, if the political rights are given to the wrong persons like in Sri Lanka, there is a possibility of Nepal becoming the next Sri Lanka, he said, Republica reported.

Speaking at an interaction programme on the current economic situation in Nepal held in Kathmandu, Chhetri said the present situation in Sri Lanka is due to arbitrary tax rates imposed by the same family as the president, prime minister and finance minister.

He also mentioned that Nepal should not be associated with Sri Lanka as it has just held local elections and is now preparing to hold federal and provincial elections, Republica reported.

Similarly, the former central bank Governor said that Nepal’s foreign exchange reserves, SDRs and gold in foreign currency accounted for seven months of imports to meet the growing imports and consumption of petroleum products.

Likewise, he doubted that the forthcoming monetary policy to be introduced by the NRB would be as extensive as in the past. He said that the loans given by the banks to expand the capacity of the industry were used for import.

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Turkey increases minimum wage amid soaring inflation, currency volatility

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Turkish President Recep Tayyip Erdogan announced that the country’s minimum wage would be hiked up in the face of soaring inflation and volatile currency rates.

“The minimum wage will be 5,500 Turkish liras ($328) with an interim increase of 30 percent, effective immediately starting on July 1,” Erdogan said.

At the beginning of this year, the government increased the monthly minimum wage by 50 per cent to alleviate the financial burden on workers, reports Xinhua news agency.

Turkey has long been struggling against ever-increasing inflation.

In June, the total losses of the Turkish lira against the US dollar amounted to almost 100 per cent in one year.

Erdogan has long been focusing on a low-interest policy to increase exports and production for a stabilised lira, asking for patience from his voters.

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