India

Talwar Thakore & Associates | English | AcademicThink | Jan. 22, 2025 | UndeterminedMergers & Acquisitions

Corporate restructurings in India encounter legal challenges, particularly concerning stamp duty on court-sanctioned mergers, which vary by state. A recent ruling by the Delhi High Court in the Ambuja Cement Ltd. vs. Collector of Stamps case clarifies the implications of stamp duty for mergers between subsidiaries of a common parent under the Indian Stamp Act of 1899, referencing a 1937 exemption notification for intra-group mergers in Delhi.

Holcim (India) Private Limited challenged a stamp duty order linked to a 2011 merger sanctioned by the Delhi High Court, involving Ambuja Cements India Private Limited and Holcim India, both subsidiaries of Holderind Investment Limited. The Court addressed whether the merger constituted a conveyance under the Act and upheld the validity of the 1937 Notification exempting certain subsidiary transactions from stamp duty.

The Court determined the merger qualifies as a conveyance and rejected Holcim India's assertion that the transfer of only moveable property affects its stamp duty status, citing no legal foundation for this distinction. It affirmed the 1937 Notification's validity, confirming the merger met the necessary ownership criteria for exemption from stamp duty, countering the Collector's claims of repeal.

This ruling provides crucial clarity for mergers involving group subsidiaries, reinforcing the 1937 Notification and streamlining processes with stamp authorities that typically complicate such mergers. While discussions regarding the potential repeal of the notification continue, the decision is expected to facilitate more efficient corporate restructuring and reduce unnecessary costs.

Hindu Business Line | English | News | Jan. 22, 2025 | UndeterminedEnergy Prices

India's liquefied natural gas (LNG) imports surged over 27 percent year-on-year in 2024, reaching approximately 37,336 million standard cubic meters (MSCM). This increase is attributed to higher consumption across city gas distribution, power, and various industries, with record monthly imports recorded in July, October, and May. Despite a steady import level of 3,022 MSCM in December, the annual figures reflect a growth of over 18 percent, and a remarkable 39.4 percent increase compared to 2022.

Factors contributing to this rise in LNG imports include extremely low temperatures, decreasing global LNG prices, and a government mandate for optimal operation of gas-based power plants amid rising electricity demand. The average LNG import level reached 3,111 MSCM in 2024, up from 2,445 MSCM in 2023 and 2,232 MSCM in 2022. By November 2024, LNG imports fulfilled nearly 51 percent of India’s total natural gas requirements.

Total natural gas consumption in India rose by nearly 13 percent year-on-year to 66.36 billion cubic meters (BCM), with a 10 percent increase noted in the first half of fiscal year 2025. Leading organizations like the International Energy Agency (IEA) and Fitch Ratings have upgraded their growth forecasts for India's gas demand, predicting increases of 8.5 percent and around 10 percent, respectively, for the upcoming fiscal year. LNG imports are expected to grow by approximately 20 percent in fiscal year 2025, driven by escalating demand and favorable international prices, further heightening India's dependency on imported LNG.

The Hindu | English | News | Jan. 21, 2025 | Geopolitical Conflict and Disputes

Navies from nine Indo-Pacific countries, including India, are participating in the multilateral exercise La Perouse, hosted by France in the strategic straits of Malacca, Sunda, and Lombok. The Indian Navy has deployed the guided-missile destroyer INS Mumbai for the exercise, which runs from January 16 to 24, led by the French Carrier Strike Group, including the Charles de Gaulle. The increased presence of the Chinese Navy in the region highlights the significance of these crucial waterways.

La Perouse aims to enhance maritime safety and interoperability among nations in response to potential maritime crises. The straits are vital for global trade but face risks such as maritime accidents, illegal immigration, drug trafficking, and natural disasters like earthquakes and tsunamis. Participants include Australia, Canada, France, India, Indonesia, Malaysia, Singapore, the U.K., and the U.S.

The exercise will employ IORIS, a communication and coordination system, to improve response efforts during crises. Training will focus on search and intervention operations against suspected illicit activities, emphasizing maritime surveillance, interdiction, and air operations. The Indian Navy's involvement underscores a commitment among like-minded nations to uphold a rules-based maritime order.

Drills will include complex exercises such as surface warfare, anti-air warfare, and tactical maneuvers, along with constabulary missions like Visit, Board, Search and Seizure (VBSS). Prior to La Perouse, the French Carrier Strike Group visited Goa and Kochi and conducted the 42nd bilateral exercise Varuna with the Indian Navy.