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Essar Acquisition Deal

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Rosneft closes $13-billion Essar Oil acquisition deal The completion of Rosneft’s Essar Oil acquisition deal paves the way for the Essar group to reduce its debt Initially,the deal was refused by the lenders which took a little longer than what the company had anticipated due to delay in  approvals. The lenders, including state-run Life Insurance Corp. of India (LIC), had exposure to various Essar companies and demanded a repayment of their debts by the group as a pre-condition for approving the deal. As per law, Essar Oil had to secure approvals from all its lenders to go ahead with the deal, which was initially expected to be consummated by the end of March. why lenders refused for approvals initially? At the time of signing the deal, Essar group director Prashant Ruia had said in an interview that the deal would wipe out a substantial part of the holding company’s debt. About $5 billion debt at the operating company level (Essar Oil, Vadinar Port and Vadinar Pow...
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Use Aadhaar for financial transactions

Sebi’s reported plan to make Aadhaar, a person’s unique identification number, compulsory for stock trading is welcome. It will create audit trails, curb money laundering and tax evasion through the stock markets. Already, large financial transactions are tagged to the tax department’s Permanent Account Number (PAN). Quoting of PAN is mandatory for, say, opening a demat account, investment in mutual funds and even trading in unlisted shares beyond prescribed limits. However, PAN is not foolproof. To weed out duplicate PANs, the government has mandated linking PAN with Aadhaar. Eventually, PAN will become redundant at least for individuals and should be phased out. Already, over a billion people have secured their Aadhaar, compared to about 30 crore people who have PAN cards. Instead of multiple identifiers, Aadhaar should become the single identifier that should be tagged to all financial transactions. The tax deduction and collection number, or TAN, is mandatory for legal en...
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Gorkhaland agitation

The Centre’s stance marks the end of the current phase   of struggle The BJP’s position seems to be dictated by the consideration that it is eyeing a big share of the 42 Lok Sabha seats in the 2019 elections, and exploring a separate state may be politically suicidal in Benga l. Though politics is an art of the possible, it appears Bengal chief minister Mamata Banerjee, who has vowed not to allow a division of Bengal, is having her way. Mr Singh has told the agitators who have already set a record 62-day shutdown of the north Bengal hills to restore normalcy and go for talks with the state government. The Centre’s stand has put its ally, Gorkha Janmukti Morcha, in a fix, and did not leave the agitators even a face-saving formula. While those campaigning for Gorkhaland were hoping for a tripartite meeting, the Centre washed its hands off by asking them to prepare for bipartite talks. The leaders of the hill parties have already withdrawn the fast-unto-death programme and are in...
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