Golden goose
Delay in LIC IPO sends finmin babus scrambling for numbers
The finance ministry is frantically reworking numbers as the much-awaited IPO of LIC, a major move the Modi government was banking upon, has been delayed. Since the proceeds of the blockbuster IPO would accrue only in the next financial year, the task at hand for North Block is to fill the gaping hole of Rs 60,000 crore that the government was expecting from the IPO. Numbers on GST and IT collections are being updated on a daily basis to make the figure of this financial year presentable to the boss across the street in South Block. Sources said that the front-loading of collections being carried out would result in higher refunds. The finance ministry hopes to be able to manage the payout with yield from the blue chip IPO. But the Russian invasion and market volatility is giving sleepless nights to officials of the North Block.
War impact
Revival of rupee-rouble trade on the cards after the US sanctions on Russia
The sanctions imposed by the United States and NATO nations on Russia after its Ukraine invasion have opened a window for restarting the rupee-rouble trade between India and Russia. Indian businessmen, especially traders and exporters, have had a long and happy run in the earlier avatar of the rupee-rouble trade. Under this bilateral trade, when one country buys a product from another, the value of export has to be matched with imports from that country. India buys large amount of arms and ammunitions from Russia. The payment for these imports is made in roubles. Russia spends these roubles on imports from India. This provides Indian exporters a great opportunity to sell their products in Russia without any competition. There is an escrow type of arrangement made to spend the money in this trade. This trade does not use US dollar and is conducted using a special window. Old timers are already lining up to reap the benefits of this new opportunity. India has already ignored a US advisory and decided to import crude from Russia. Items like fertilizers, newsprint, rough diamonds and a range of raw materials for manufacturers could be imported from Russia. This would also create a huge opportunity for exports from India in items like textiles, pharmaceuticals, etc. Sources said talks between India and Russia for revival of the rupee-rouble trade is in an advanced stage and a deal may be sealed soon. Indian exporters are already planning to fly to Moscow to finalise tie-ups.
Emerging trend
Congress decline brings regional satraps to centre-stage
Tamil Nadu Chief Minister M K Stalin is arriving in Delhi in the first week of April to inaugurate a new DMK office in the national capital. Invitations have been personally handed to Congress president Sonia Gandhi, BJP president J P Nadda and leaders of other parties by senior DMK leader T R Baalu. Sources said that the party office inauguration would be used to launch Stalin on the national stage. Demand for Stalin to play a national role has been raised by many DMK leaders who have praised his ability to organise people and lead them from the front. Earlier, TRS leader K Chandrashekar Rao had undertaken a whirlwind tour of Delhi and some other state capitals. TMC chief Mamata Banerjee, too, had made attempts to form a non-Congress front against the BJP. Regional leaders see a great opportunity to lead an opposition alliance against the BJP as the Congress continues to shrink. Sources in the Congress said it would not mind a group of regional parties challenging the BJP in the 2024 general elections if they could come to an understanding on who would lead them.