Daily Pulse India: A New Bankruptcy Law On The Cards, Maggi Set To Return, Fag End of Bihar Elections

Quick Exits: It is going to get easier to exit a business once a new bankruptcy law comes into effect. One of the biggest changes in the new law is a time limit for the process – a marked difference from the earlier law under which companies would drag on for years even after being declared sick. The proposed law offers clear guidelines for companies to turnaround or engineer an exit. This will help startups and also banks who have precious money stuck in sick companies. Of course, this will also help push India higher in the Ease of Doing Business ranking of the World Bank that the government is taking so seriously. But if you want to read the fine print on this law, you can do so here and here and the recommendations are here.

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Govt Strikes Back: Earlier this week, Moody’s asked Prime Minister Modi to rein in his right-wing colleagues or risk losing global credibility. Predictably, this was played up by the media, especially in light of what’s going on among the academia at the moment. In a statement last night the finance ministry dismissed the report as the opinion of a “junior analyst” accusing the media of hyping it up. Here’s the statement from the press information bureau. At least one newspaper reached out to Moody’s Analytics, which stands by the report.

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Another #fail for Volkswagen: Its diesel cars failed the emission test in India as well, which has invited a show cause notice from the Indian regulator. The cars were emitting nine times the permitted limit of nitrous oxide. A show-cause notice has followed the tests. Models in question are the diesel versions of Volkswagen Jetta, Skoda Octavia, Audi A4 and Audi A6.

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After months of discussion, US PE firm KKR has acquired a majority stake in Indian Avendus Capital for about $115 million. Of course, everyone’s lips are sealed for now.

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Essar’s troubles are far from over. A consortium of banks has asked the group to repay its loans. Essar has sold a stake in its oil venture and is in the process of selling off assets in its steel venture to raise money. But it appears the banks are getting impatient.

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After consuming much newsprint and prime time, the Bihar elections are finally in their last phase. November 8 is when the votes will be counted and we can find out the fate of India’s second-most populous state.

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In a bid to tap into the vast gold reserves held by most Indians, the Prime Minister will unveil three gold schemes today, a week before Diwali when bulk of the country’s gold buying happens.

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Nestle may bring back Maggi as early as this month, the company says, as it has cleared most of the tests.

Cover Image: Indian labourers work at Raj firecracker factory in Liusipukuri village, on the outskirts of Siliguri. ahead of celebrations for Diwali, the Festival of Lights, next week.

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