PMC Bank’s illegal loans to realtors began in ’08

MUMBAI: The Economic Offences Wing (EOW) on Monday registered an FIR against more than 10 people, including Joy Thomas, former MD of Punjab & Maharashtra Cooperative Bank, Waryam Singh, ex-chairman of Punjab & Maharashtra Co-operative Bank, and HDIL promoters Rakesh and Sarang Wadhawan. The complaint was filed at the instance of the RBI-appointed administrator who has put the loss caused to PMC Bank through cheating at Rs 4,355.5 crore. Lookout circular notices have been issued against all accused as a preventive measure so that they can’t flee the country.

According to RBI sources, a large chunk of the bank’s loans were illegally advanced to HDIL, violating RBI norms on exposure limit. These loans turned bad, putting the bank’s deposits at risk. The bank had managed to hide these loans by diverting deposits to 40 to 45 accounts.

“The loans granted were adjusted on the book of accounts against 21,000 account holders showing loan against FDs. Moreover, all the 21,000 accounts are fictitious,” said a source.

PMC Bank’s illegal loans to realtors, hoteliers began in 2008


PMC Bank’s loans that were illegal and that went bad were granted to companies and individuals in 2008-19. The violations were on several counts: PMCB went beyond borrower and sectoral limits, lending more to real estate firms than it was supposed to, and hid the loans in fake accounts.

“We have received a complaint,” said EOW chief Rajvardhan Sinha. EOW has formed a special investigation team to probe the case.

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Besides PMC Bank’s former MD and former chairman, others named as accused in the FIR include: several accused from its board of directors and officials; other promoters and executives of HDIL, Serveall Constructions, Sapphire Land Development, Emerald Realtors, Avaas Developers, Prithvi Realtors and Hotels; and unknown persons. The accused have been booked for cheating, forgery and criminal conspiracy under the IPC. RBI in 1984 had granted licence to PMC for banking. By 2014, PMC had become a countrywide cooperative bank with branches in seven states.

The bank’s board was superseded by RBI, which appointed J B Bhoria as administrator. The bank is facing restrictions on operations with withdrawals limited at Rs 10,000 per customer.

Last week, RBI imposed restrictions on the withdrawal limit of account holders and capped it at Rs 1,000. This led to mass panic among investors and hundreds of housing societies which have accounts in PMC. The withdrawal limit was then raised to Rs 10,000. NGO Consumer Action Network has filed a PIL at Bombay high court challenging the withdrawal caps.

On Bhoria’s instructions, a PMC Bank manager filed a complaint at EOW on Monday. There are more than 9.12 lakh depositors who have lost money in the scam. “These depositors have in all more than Rs 11,618.34 crore (up to March 31, 2019) in their accounts.

It will be a lengthy investigation to find out what documents were submitted by fictitious account holders and who created these accounts. The police will be focusing on the money trail and where loan money, granted and taken by the accused, was utilised.

New consuming class: Teenagers over 60 years

MUMBAI: ‘Senagers’ — 60-plus seniors, who in a lot of ways behave like teenagers — are a growing consuming class in India. After a good career run of a few decades, today’s urban-centric senagers have a disposable income and are spending, be it on lifestyle products, eating out or investing in financial products.

A CII study on senior consumers has pegged the market for their medical needs and lifestyle products at Rs 43,000 crore. But the potential market size driven by senior citizens is as large as Rs 1,00,000 crore (excluding categories like real estate and pharmacy, along with banking, financial services & insurance, or BFSI). Of this, only Rs 10,000 crore has been tapped so far.

According to the report, the 60+ population forms 25% of the cumulative assets of existing banking deposits, while the available market is a whopping Rs 1,67,000 crore.

New consuming class: Teenagers over 60 years

In a clear indication that senagers are behaving like teenagers, RPG Group-backed Seniority, a dedicated shopping destination for senior citizens, is clocking an order a minute (around 1,500 in a day with an average order value at Rs 800-900). Seniority co-founder Ayush Agrawal said, “It is easy to assume that 60-70% of our consumers are healthy, apart from a few minor pain points here and there. We have an equal mix of medical and lifestyle products, but 80% of our sales come from the lifestyle products targeted at senior citizens.”

The Indian Hotels Company (IHCL), which analysed data on senior citizen travellers from 2014 onwards, found that revenue from this segment of guests has been growing at 14% year-on-year. The travellers are mostly within India, followed by the US, the UK, Australia & France. “We see that the revenues from this group have shown an increasing trend. This can be attributed to the contributions coming from their use of a higher category of rooms, food & beverage and spa,” said a company spokesperson.

Senagers are hanging out at malls as well. Viviana Malls CEO (malls) Manoj Agarwal said there is a significant presence of senior citizens on both weekdays and weekends at their Thane mall.

“We have seen a growing trend wherein more and more married senior citizen couples on their own are visiting malls for shopping, eating out, watching movies and at times just to spend time together in a comfortable environment,” said Agarwal.
“We do find that some amount of impulse shopping happens. Though, in our experience, it is more for their children and grandchildren rather than themselves,” he added.
Viviana Mall has introduced a lounge exclusively for senior citizens and it also has a golf cart pick-up and drop service in the basement parking for ease of movement from where the car is parked to the lift/escalator lobbies. “In view of this, we are actively exploring further offering of customised services for this growing senior citizen segment, being a significant part of our rather large and vibrant customer base,” said Agarwal.

At 130 million (recorded at 98.3 million by Census 2011), India is home to the second-largest 60-plus population in the world. People over 60 are likely to form 12% of India’s population by 2025.

Insurance cos can no longer exclude many illnesses

BENGALURU: In a move that will benefit lakhs of policyholders, insurance companies have been barred from excluding illness associated with hazardous work activity, artificial life maintenance, treatment of mental illness, age-related degeneration and internal congenital diseases.

The insurance regulator on Monday said that age-related ailments such as cataract surgery, knee-cap replacements, Alzheimer’s and Parkinson’s would also have to be covered. Also factory workers, working with harmful chemicals, which impact health over a long-term period, cannot be refused respiratory or skin ailments that arise as a result of workplace conditions.

The Insurance Regulatory and Development Authority (IRDAI) has also standardised exclusions—which means if an insurer does not want to cover epilepsy, chronic kidney diseases and HIV/AIDS—there are specific wordings to be used and a specific waiting period (30 days-1 year) after which coverage would begin.

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Standardisation of health norms to help portability


These guidelines will greatly benefit policyholders, who disclose pre-existing conditions, as IRDAI has said, “Every health insurance product shall cover all pre-existing diseases disclosed by the persons to be insured immediately after the expiry of the 48 months waiting period or such lower period as stipulated in the product.”

Standardisation of health regulations will also help portability as the new insurer cannot set undue waiting periods. IRDAI has said, “If a person transfers from one insurer to the other — and has already completed in part some of the waiting period requirement — then the new insurer may impose only the unexpired/residual waiting period not exceeding 48 months from the date of first issuance of porting out policy.”

“Standardising of wordings of exclusions across all insurers will avoid any grey area and provide better understanding to customers. In line with medical treatments evolving and new methods coming up, insurers will be able to cover policyholders against them,” said Gurdeep Singh Batra, head (retail underwriting), Bajaj Allianz General Insurance.

But TPAs and brokers warn that while the move is pro-policyholders, it remains to be seen how it will affect pricing. “This is definitely great news for millions of people who, till now, found it difficult to obtain a cover. However, a word of caution as it might lead to a drastic increase in the premiums if insurers faced rising claims,” said Rahul Agarwal, founder, Ideal Insurance Brokers.

In November 2018, a report was submitted by a working committee to the IRDAI that insurance companies cannot exclude diseases like Alzheimer’s, Parkinson’s, HIV/AIDS and morbid obesity. This move by the IRDAI follows the recommendations of the working group.

Core sector output falls first time in 4 years

NEW DELHI: Core sector output declined 0.5% in August — its first fall since March 2015 — with five of the eight industries that make up the infrastructure index reporting lower production.

These sectors have an over 40% weight in the index of industrial production (IIP), which is expected to see muted activity during August as several industries, led by automobiles, are in the grip of a slowdown.

“The negative growth (decline) in August 2019 does indicate stagnation in infrastructure spending thereby meaning the government’s effort to prop up investment has been limited,” said CARE chief economist Madan Sabnavis.

Steel, refinery counter fall in coal, power output


Typically, energy sectors are seen as a barometer of economic activity and barring refining, the other four that are part of the index reported a fall in production during August.

Index heavyweights — steel and refinery product — salvaged the situation as they saw higher production, somewhat countering the 8.6% fall in coal output and a 2.9% lower electricity generation.

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Natural gas and crude oil reported lower production. On a year-on-year basis, cement production was also down 4.9%, in what can be seen as a pointer to a further slowdown in the construction sector.

The data comes days before the monetary policy committee (MPC) headed by Reserve Bank of India governor Shaktikanta Das decides on key policy rates amid expectations that the six-member panel may opt for a further 25 basis points reduction, signalling softer rates to lend a helping hand in reviving demand in the economy.

“The contraction in the core sector growth in August 2019 confirms our view that the modest pick-up in the IIP growth in July 2019 did not signal the start of an industrial recovery. With the contraction in the core sector output, auto production and non-oil merchandise exports, we expect the IIP growth to print at a muted sub-1% in August 2019. We continue to expect the MPC to cut the repo rate by 25 bps in the upcoming October 2019 policy review,” said Aditi Nayar, principal economist at rating agency ICRA.

In recent weeks, the government has announced a series of measures to spur growth, which slowed to a six-year low of 5% during the April-June quarter.

Government mulls exiting BPCL, SCI

NEW DELHI: In what could be a pathbreaking disinvestment move, a panel of secretaries has proposed that the government exit four public sector undertakings (PSUs) — fuel retailer Bharat Petroleum, Shipping Corporation of India, and power companies THDC and NEEPCO — while paring its holding in Concor from around 55% to 25%.

The plan will have to be cleared by the Union cabinet before the sale process can commence, officials familiar with the development told TOI. A source said following the recommendations of the committee, the proposal will be moved for cabinet approval in the next two weeks.

Based on the current market value of the three listed PSUs, the government can hope to raise around Rs 65,000 crore through stake sale in BPCL, Concor and Shipping Corporation.

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“Whatever is the government holding in four PSUs will be put up for sale, while only 30% stake will be sold in container company Concor,” a source said. This is in line with Niti Aayog’s recommendations to raise much-needed cash at a time when the government is stepping up public spending and is expected to take a Rs 1.45 lakh crore hit due to its decision to lower corporation tax rates.

This year, the government is hoping to raise Rs 1.05 lakh crore through disinvestment, including strategic sale, which will result in the Centre selling a block of shares to a corporate entity, and handing over management control.

During its first term, the Narendra Modi government had moved slowly on strategic sale, having had to abort its plan to sell loss-making Air India only to restart it after assuming office three months ago. With the government having resorted to selling its stake in PSUs such as HPCL to ONGC and REC to Power Finance Corporation, experts are wary of the Centre’s intent to actually “privatise” companies.

Officials, however, said that the idea is privatise the companies, including a sale to foreign players.
The latest plan to sell stake in five companies will, however, require legislative changes, at least in the case of BPCL, which was formed through nationalisation. The Atal Bihari Vajpayee government, which had initiated the sale process over 15 years ago, had to drop it after a Supreme Court ruling, which cited the need for Parliamentary approval.

While ministries such as railways are open to the sale plan, there are concerns over the government’s decision to exit entities such as Shipping Corporation, where the holding is seen to be strategic as the PSU is tapped for oil and other shipments in times of need.

Police file FIR against PMC Bank, HDIL officials

MUMBAI: The Mumbai Police on Monday filed a case against the former bank management and promoters of HDIL in the Punjab and Maharashtra Cooperative Bank (PMC Bank) case and said a special investigation team will be probing the case.

Based on a complaint by RBI-appointed administrator, the city police’s economic offences wing filed a first information report (FIR) in the case for forgery, cheating and criminal conspiracy against the officials.

As per initial investigations, the bank’s losses since 2008 were Rs 4,355.46 crore, police said.

The bank’s former chairman Waryam Singh, managing director Joy Thomas and other senior officials, along with the director of HDIL, Wadhawan, have been named in the FIR. First name of Wadhawan was not immediately available.

PMC Bank has over Rs 6,500 crore exposure to HDIL: Ex-MD Thomas

Suspended MD of the crisis-hit Punjab and Maharashtra Cooperative Bank (PMC) Joy Thomas has reportedly admitted to the RBI that the bank’s actual exposure to the bankrupt HDIL is over Rs 6,500 crore—four times the regulatory cap or 73% of its entire assets of Rs 8,880 crore.

Explaining the modus operandi of the case, the FIR said HDIL promoters allegedly colluded with the bank management, to draw loans from the bank’s Bhandup branch.

Despite non-payment, the bank officials did not classify the loans as non performing advances and intentionally hid the information about the same from RBI, an official statement from the police said.

They also created fictitious accounts of companies which borrowed small sums of money, and created fake reports of the bank to hide from the regulatory supervision, it said.

‘PMC Bank was breaking RBI rules for 6-7 years’

Suspended MD of PMC Bank Joy Thomas has admitted that the troubled bank has had a long relationship with realty group HDIL and that the lender had been breaking RBI’s rules for six to seven years. In fact, the bank appointed Waryam Singh, who was on the board of HDIL—the bank’s largest borrower—as its chairman in 2015.

The FIR has been filed under sections 409 (criminal breach of trust by a public servant or banker), 420 (cheating), and 465, 466 and 471 (related to forgery) of the Indian Penal Code along with 120 (b) (criminal conspiracy).

The bank, which has 137 branches and over Rs 11,000 crore in deposits, has been put under restrictions since last week after the RBI discovered certain financial irregularities in the functioning of the multi-state lender.

According to sources, the overall exposure of the bank to the financially stressed HDIL group is around Rs 6,500 crore or over 73 per cent of the advances, and all of it is not being serviced.

Under the restrictions, which are to be applicable for six months, a depositor is able to withdraw only Rs 10,000 per account. It can also not take fresh deposits or extend any new loans.

The restrictions have led to a massive public outcry with people thronging the branches for their money. The RBI has said that 60 per cent of the accounts have balances under Rs 10,000 and will not be impacted by the measures.

Forever 21 is closing its doors in Canada: Here’s what you need to know

Forever 21, the low-price fast-fashion chain, is ceasing all operations in Canada.

The Los Angeles-based company announced Sunday that it has filed for bankruptcy in both the U.S. and Canada.

The “wind-down” of the Canadian arm is part of plans to restructure and refocus the business. The retailer currently employs approximately 2,000 people at its 44 locations across Canada.

READ MORE: Popular fashion retailer Forever 21 files for Chapter 11 bankruptcy

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“Forever 21 has made the difficult decision to discontinue further financial and operational support for Forever 21 Canada as we reposition the brand and global business to adapt to the current retail environment,” the company said in a statement to Global News.

Here’s what Canadian shoppers need to know about the closures.

When will stores close?

Forever 21 Canada has locations in Alberta, British Columbia, Manitoba, Ontario, Quebec and Nova Scotia.

A spokesperson told Global News that all 44 stores will close before the end of the year.

READ MORE: Calgary’s only Forever 21 location closes its doors

The Canadian subsidiary, under creditor protection, plans to “conduct a responsible, controlled and orderly wind-down of the Canadian business.”

A specific timeline of closures was not provided. It’s not clear whether some stores will close sooner than others.

What about online shopping and gift cards?

Canadian customers will still be able to shop online once stores close, though it will be from a U.S. website.

“Canadian customers can continue to shop our curated assortment of merchandise on our U.S. website,” said the spokesperson.

READ MORE: Forever 21 accused of ‘triggering’ plus-sized customers after including diet bars in online orders

As for gift cards, customers will have until the end of Oct. 15, 2019 to use existing cards at Canadian locations.

No further gift cards will be sold from Canada as of Sept. 30.

There is “potential” that Canadian customers could use existing, unused gift cards at remaining stores in the States, the spokesperson said, but that has not yet been determined.

“More information will be provided shortly,” she said.

When will liquidation sales start?

So far, a firm date hasn’t been set on when liquidation sales will start.

“It will begin imminently,” a spokesperson said Monday morning.

When it does begin, all sales will be final.

“However, Forever 21 Canada will honour its existing return and exchange policy up to, and including, Oct. 15, 2019 for all goods purchased on or before Oct. 7, 2019.”

WATCH: Ariana Grande sues Forever 21 for $10 million

The store routinely has items at discounted prices and on clearance.

Recently, shoppers have reported particularly cheap clearance sales at locations worldwide.

At the time of publication, the store’s website was touting a sale with prices as low as $2.

What about other stores?

The focus will turn to the company’s U.S. operations.

The company expects 178 of its stores to close, but a significant number will stay open. While it doesn’t list the locations of the stores, the company says it does not anticipate to exit any major American markets.

“We have requested approval to close up to 178 stores across the U.S.,” the company said. “The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords.”

WATCH Toys ‘R’ Us closes around 180 stores across U.S.

Founded in 1984, the American retailer has joined a growing list of brick-and-mortar brands that have buckled under the weight of online shopping.

“We had hoped for a different outcome,” Bradley Sell, the chief financial officer for Forever 21 Canada, said in a statement.

“But after years of poor performance and challenges set forth by the headwinds facing the retail industry today, our Canadian operations are simply no longer economically viable.”

The teen retailer also plans to close most stores in Asia and Europe but will keep some doors open in Mexico and Latin America.

— With files from Reuters

Lower crude narrows CAD to 2% in Q1

MUMBAI: Lower crude prices and higher invisible receipts have helped the country narrow the current account deficit (CAD) to 2 per cent of GDP or at $14.3 billion in the first quarter, down 30 basis points (bps) from year-ago, the Reserve Bank said on Monday.

In the year-ago period, CAD had printed at 2.3 per cent of GDP or $15.8 billion.

“CAD contracted on an annualised basis primarily due to higher invisible receipts at $31.9 billion compared to $29.9 billion a year ago,” RBI said.

The net foreign direct investment was $13.9 billion in Q1 up from $9.6 billion last year.

During the quarter, foreign portfolio investment recorded net inflow of $4.8 billion as against an outflow of $8.1 billion in Q1 of 2018-19, on account of net purchases in both debt and equity markets.

Net inflow on account of external commercial borrowings was $6.3 billion as against an outflow of $1.5 billion a year ago.

Net services receipts rose 7.3 per cent annualised, mainly on the back of a rise in net earnings from travel, financial services and telecommunications, computer and information services.

There was an accretion of $14 billion to the foreign exchange reserves during the quarter as against a depletion of $11.3 billion in Q1 of 2018-19, RBI said.

Aditi Nayar, the principal economist at rating agency Icra, described the narrowed numbers as “a positive surprise.”

“At 2 per cent, CAD printed modestly lower than expected helped by lower-than-anticipated outflows of primary income. Additionally, healthy growth in surplus of services and secondary income, as well as lower crude prices helped narrow the gap, despite a spike in gold imports and jump in prices,” Nayar said.

Gold imports rose sharply by 35.6 per cent to $11.4 billion from $8.4 billion.

Based on the July-August trends, she expects CAD to decline substantially to $10-11 billion in Q2 from $19 billion, due to moderate crude prices, weak appetite for gold and subdued domestic demand for the yellow metal.

Icra expects CAD to marrow further to $52 billion or 1.8 per cent of GDP for full year to March 2020 from $57.2 billion or 2.1 per cent of GDP in FY19, unless crude prices jump or domestic investment and consumption demand display a revival.”

Fiscal deficit reaches over 78% at Rs 5.54L cr

NEW DELHI: The country’s fiscal deficit touched Rs 5.54 lakh crore at the end of August, which was 78.7 per cent of the Budget Estimate for 2019-20, official data showed on Monday. In absolute terms, the fiscal deficit or the gap between expenditure and revenue was Rs 5,53,840 crore as on August 31, according to the data released by the Controller General of Accounts (CGA).

The deficit was at 86.5 per cent of the 2018-19 Budget Estimate (BE) in corresponding month a year ago.

The government has pegged the fiscal deficit for the current financial year at Rs 7.03 lakh crore, while aiming to restrict the deficit at 3.3 per cent of the gross domestic product (GDP).

However, the government has let go of its revenues to the tune of Rs 1.45 lakh crore by announcing cuts in corporate tax, aimed at boosting the faltering economy.

Economic affairs secretary Atanu Chakraborty on Monday said the government maintains the fiscal glide path with the borrowing target of Rs 2.68 lakh crore for the second half of this financial year.

The CGA data showed that revenue receipts of the government during the April-August 2019 period rose to 30.7 per cent of the BE compared to 26.9 per cent in the corresponding period last year.

In absolute terms, revenue receipts stood at Rs 6.03 lakh crore at the end of August. For the entire 2019-20, the revenue receipts has been pegged at Rs 19.62 lakh crore.

The capital expenditure was 40.3 per cent of the BE as compares with 44.1 per cent in the year-ago period, the CGA said.
Total expenditure during the April-August period stood at Rs 11.75 lakh crore or 42.2 per cent of the BE. It was 43.8 per cent of BE in the corresponding period of the previous financial year.
The government has pegged its total expenditure for the financial year 2019-20 at Rs 27.86 lakh crore.
The CGA further said the fiscal deficit figure in monthly accounts during a financial year is not necessarily an indicator of fiscal deficit for the year.

Its data gets impacted by temporal mismatch between flow of non-debt receipts and expenditure up to that month on account of various transitional factors both on receipt and expenditure side, which may get substantially offset by the end of the financial year.

Government cuts natural gas price by over 12%

NEW DELHI: The government on Monday cut domestic natural gas price for the first time in two-and-a-half years but rates for gas produced from difficult fields such as Reliance Industries’ under-development fields in KG-D6 block are still at almost the same level as the one fixed during the Congress-led UPA regime.

The price of most of the natural gas produced by state-owned ONGC and Oil India Ltd, which account for bulk of India’s existing gas output, was cut to $3.23 per million British thermal unit for the six-month period beginning October 1, from $3.69 as of now, according to the oil ministry’s Petroleum Planning and Analysis Cell (PPAC).

This is the first reduction in rate since April 1, 2017.

Simultaneously, the government cut the price of gas produced from difficult fields to $8.43 from $9.32, the PPAC notification said.

Prices of natural gas, which is used to produce fertiliser and generate electricity and is also converted into CNG for use in automobiles as fuel and cooking gas for households, are set every six months — on April 1 and October 1 each year.

The rates, besides dictating the price of urea, electricity and CNG, also decide the revenue of gas producers such as Oil and Natural Gas Corp (ONGC) and Reliance Industries.

Rates were last hiked on April 1 when price of ONGC and RIL’s currently producing fields was raised by 10 per cent to three-year high of $3.69 per mmBtu and those from difficult fields such as deep sea by 21.5 per cent to a record $9.32.

The Modi government, after storming to power in 2014, had scrapped the gas pricing formula approved by the previous Congress-led UPA regime.

The Congress government had approved pricing of all domestically produced natural gas at an average of netback price that LNG exporters to India got and the rate commanded by global gas producers.

The price according to this formula, which was recommended by a high-power committee headed by C Rangarajan, came to about $8.4 per mmBtu on April 1, 2014, as compared to $4.2 price prevalent then.

The Modi government replaced this formula with the average rate prevailing in gas exporting countries such as the US, UK, Canada, and Russia. This tempered down the rates to $5.05 when it was implemented from November 2014.

But subsequently, the rates kept falling and producers did not find them remunerative enough to invest in development of new discoveries and fields. This prompted the government to price gas from yet-to-be-developed difficult fields such as deep sea and high-pressure-high-temperature fields at a higher cap price arrived at by using rates of alternate fuels.

The cap price for difficult fields, when implemented from April 2016, came to $6.61 per mmBtu as compared to $3.06 per mmBtu rate for existing producing fields of ONGC and Reliance.

Industry officials explained that the price as per the Rangarajan formula too would have declined in 2015 and 2016 following a global slump in gas prices, which was the benchmark used. Gas price according to the Rangarajan formula was at par or lower than the difficult field price.

While the $3.52 per mmBtu rate is applicable to gas produced from all fields given to ONGC and OIL on nomination basis and existing D1 and D3 fields of Reliance in the KG-D6 block, the difficult field price would be applicable to any field that these firms brought to production post-2016.
So this cap price would apply to Satellite, R-Series and MJ discoveries of Reliance in the KG-D6 block.
According to the 2014 pricing formula approved by the Modi government, rates are calculated by taking the weighted average price at Henry Hub of the US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia with a lag of one quarter.
The cut in price will lower earnings of producers like ONGC and Reliance Industries but will also lead to a reduction in the price of CNG, which uses natural gas as input.

It would also lead to lower cost of natural gas piped to households (PNG) for cooking purposes as well as of feedstock cost for manufacturing of fertilisers and petrochemicals.