Today's Biz Bit

• National Pharmaceutical Pricing Authority (NPPA) has approved 3% to 12% hike in price of 5 bulk drugs that are used to produce a large number of widely consumed medicines. The increase is owed to costlier raw materials being imported from China. Revised prices of bulk drugs will be effective within 15 days of the drug regulator’s notification. (ET)

• According to sources, the finance ministry is considering making it mandatory for companies and individuals wishing to send funds abroad to obtain a certificate from assessing officer (AO) prescribing the rate at which withholding tax is to deducted. The requirement of approval before fund transfer will ensure that the IT dept. gets taxes in time. (ET)

• According to sources, the govt has decided to allow private healthcare players and profit-making bodies to set up medical colleges in India and may also relax the existing regulations to facilitate their entry including land acquisition norms. The move is aimed at bridging healthcare needs. Govt would also encourage PPPs with government hospitals in fostering healthcare. (ET)

• According to sources, Hyderabad is about to get a 71-km metro at zero cost to state govt. The Andhra Pradesh govt is learnt to have given a concession to Satyam Group for which it will receive Rs 1,240 crore (calculated at present value) (BS)

• According to sources, the Union Cabinet is likely to clear long-pending Forward Contracts (Regulation) Amendment Bill soon to give more teeth to the regulator Forward Markets Commission (FMC). (BS)

• US-based Clinton Foundation is learnt to be in talks with Gujarat govt to set up world’s largest solar power project at a single location - an ‘Integrated Solar City’ project with a capacity to generate a 5,000 Mw over a period of time. The cost of power generation through the project is likely to be 70 per cent less — around Rs 20,000 crore — than the conventional cost of generation as the project envisages an integrated solar city wherein all raw materials including glass and panels will be produced by them, bringing down cost substantially. (BS)

• According to sources, Austrian two-wheeler maker KTM Power Sports is developing three intra-city transportation models - a trike, a budget car and a scooter - in a joint collaboration with Bajaj Auto. Bajaj owns a 21 % stake in KTM. All of the models will be marketed in developing countries and will have petrol, diesel and electric variants. (BS)

• According to sources, SEBI is now looking to focus on key reforms in mutual fund (MF) sector and will call a meeting of all MF trustees by end of August to discuss their role in detail and areas of conflict, if any. SEBI has set up a MF Panel- mutual funds advisory committee and has appointed SA Dave, former chairman UTI as the chairman of the panel. (FE)

• The empowered group of ministers (eGoM) on SEZs in its last meeting have decided to continue with the 5,000-hectare land ceiling on SEZs. The eGoM also postponed a decision to introduce a minimum alternate tax on units in SEZs proposed by finance ministry. (FE)

• Govt has exempted goods transport agencies engaged in ferrying goods through roads from 12.36 % service tax applicable for providing ancillary services like packaging, transshipment and warehousing provided these services are not outsourced. According to the circular of govt in this regard, such service form part of the GTA service and abatement of 75 % would be available on it. (FE)

• According to sources, the commerce ministry has requested Finance Commission to evolve a mechanism for refunding state level taxes to exporters. As most states are unwilling to refund these taxes, the ministry has suggested that govt should reimburse these taxes to exporters and in turn, recover them from payments due to states as per the devolution formula approved by the Commission. (FE)

• According to sources, the shipping ministry is planning to allow port-based industries to set up cargo handling facilities for their own use at 12 major state-owned ports, without going through the tendering route. It is in the process of issuing guidelines for setting up captive facilities, including berths, jetties, oil jetties, platforms and single buoy moorings for evacuating crude oil, which will be common to all. (Mint)

• According to sources, Incat International Plc., engineering and IT services firm owned by Tata Technologies Ltd, will execute an engineering design outsourcing deal with group firm Jaguar Land Rover by November, acquiring the work of around 150 people from an unknown vendor of Jaguar Land Rover. Bulk of the work would be done offshore or low-cost locations in India. (Mint)

• Tata Steel Ltd, is learnt to have identified raw material resources in America, Africa and Australia for acquisition to ensure to meet around 50% of Corus’ requirement through captive sources. (Mint)

• ArcelorMittal would invest $1.6 billion (Rs6,704 crore) to enhance its crude steel production capacity in Brazil to 6.5 mn tonnes (mt) from the current 3.9mt. The investment is expected to be completed within 30 months. (Mint)