BUSINESS & ECONOMY
WPI inflation jumps to 3.18% in April
As per data released by the Union Ministry of Commerce and Industry, Wholesale Price Index (WPI)-based inflation stood at 3.18 percent in the month of April 2018.
Wholesale Price Index (WPI)-based inflation, April 2018:
i. WPI for April 2018 at 3.18 percent is higher as compared to 2.47 percent for the previous month.
ii. The rise can be attributed to increment in index of ‘Food Articles’ group which went up by 1.9 percent to 139.8 (provisional) from 137.2 (provisional) for the previous month.
iii. The increment was mainly on account of higher price of tea, fruits and vegetables, pork, paddy and maize.
iv. However, index of Non-Food Articles’ group declined by 0.9 percent to 119.1 (provisional) from 120.2 (provisional) for the previous month due to lower price of raw silk, floriculture, gaur seed and gingelly seed.
v. Other indexes that rose in April 2018 are Crude Petroleum and Natural Gas, Coal, Mineral Oils, Manufacture of Textiles, Manufacture of Leather and Related Products while index for Manufacture of Tobacco Products group declined.
AQUISITIONS & MERGERS
DoT approves Bharti Airtel and Telenor India merger
On 14th May 2018, Department of Telecom (DoT) approved the merger of Telenor India with Bharti Airtel.
DoT approves Bharti Airtel and Telenor India merger:
i. The Supreme Court had rejected DoT’s petition for security deposit of Rs 1,700 crore from the companies and ordered it to approve the merger.
ii. The guarantee included Rs 1,499 crore for one-time spectrum charge for the radio waves allocated to Airtel without auction, and more than Rs 200 crore for spectrum payment which is to be made by Telenor.
iii. Airtel will obtain an additional 43.4 MHz spectrum in the 1800 MHz band. Telenor India operates in 7 circles: Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam.
iv. DoT has asked Airtel to reduce its market share based on adjusted gross revenue (money earned from telecom services) in Bihar service area to a limit of 50 %, within one year from the date of approval of the merger of two companies.
v. The National Company Law Tribunal (NCLT) had approved the merger on 8 March 2018.
About Department of Telecommunications (DoT):
♦ Chairman of Telecom Commission and Telecom Secretary – Aruna Sundar Rajan
♦ Headquarters – New Delhi