Tuesday, June 23, 1998
A limited rescue act
Financial institutions have taken a leaf from venture capital funds' book. FIs have decided to accept the promoters' equity in telecom ventures in lieu of their licence. The objective is to accelerate the pace of financial closure of telecom companies, held back so far because telecom licences are not assignable. This trade-off is eminently sensible.
Temporary eclipse
The pressure on the rupee, due to the combined impact of the sanctions, Moody's downgrading of the Indian economy and speculation, appears to have stymied for some time at least the prospects of heavy external commercial borrowings by Indian firms. However, this should not be considered as the end of the road for Indian project finance, nor, indeed, for international borrowings.
Plan for prompt `samadhan' of disputed taxes
The Finance (No.2) Bill 1998 has introduced yet another scheme to recover taxes and increase the revenue collections. Unlike VDIS 97 scheme introduced through the last budget, the present scheme does not invite any disclosure of income but offers waiver of a portion of the tax outstanding as on 31.03.1998, both under the direct as well as the indirect taxes.
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