Newsmakers: Reliance Defence forms JV with Rafael, FM on rate cut and more

Reliance Defence forms JV with Rafael
Anil Ambani-led Reliance Defence has inked a pact with Israel's Rafael Advanced Defence System to set up a joint venture in India for specialised areas including air-to-air missiles that will oversee projects worth $10 billion (over Rs 65,000 crore) in ten years. "In one of the biggest joint ventures between an Indian company with any original equipment manufacturer (OEM), Reliance Defence, a 100 per cent subsidiary of Reliance Infrastructure and Rafael Advanced Defence Systems have decided to set up a joint venture company in India in the highly specialised areas of air-to-air missiles, air defence systems and large aerostats," the company said.

Motor insurance premiums hiked by 40%
Insurance of vehicle, including cars and bikes, will become costlier from April 1 as insurance regulator Irdai has decided to increase premiums by up to 40 per cent from the next fiscal. Third party motor insurance premium for small cars (up to 1,000 cc) will now be up 39.9 per cent to Rs 2,055 from Rs 1,468 being currently charged. The hike in mid-segment cars (1,000 - 1,500 cc) too is about 40 per cent. Premium hike in case of bigger cars and SUVs (above 1,500 cc) is 25 per cent. It will now cost Rs 6,164 from April as against the current Rs 4,931.

I want what everybody wants: FM on rate cut
Indicating his desire for the Reserve Bank to cut interest rates at its monetary policy review next week, Finance Minister Arun Jaitley has said he wants "what everybody wants". The government has done its bit by sticking to fiscal consolidation path to contain deficit at 3.9 per cent of GDP this fiscal and further cut it to 3.5 per cent of GDP in the year beginning April 1. Also, the government has lowered small savings interest rates to make room for lower lending rates.

RBI tweaks upcoming lending rates rules
The Reserve Bank of India said on Tuesday fixed-rate loans of up to three years offered by lenders will have to be set based on their marginal cost of funding, although loans above that tenor would be exempt. Previously all fixed-rate loans had been exempted from being set based on their marginal cost of funding. The tweak will apply to new rules the RBI will implement starting on April 1, which force lenders to base most of their lending rates on their marginal cost of funds and not the average cost of funds currently in use.

SC allows SEBI to sell Sahara properties
The Supreme Court has asked the Securities and Exchange Board of India (SEBI) to start the process of selling some of embattled conglomerate Sahara's real estate assets in the country to refund millions of investors, lawyers said on Tuesday. Sahara , a household name in India as the former main sponsor of the national cricket team, has major hotels overseas including the Plaza in New York and the Grosvenor House in London, besides vast real estate assets in India.