Buzz in market for LIC IPO, going ahead with it, says FM Nirmala Sitharaman

Sitharaman, who is in Mumbai on a two-day visit, has been meeting industry, trade and financial market stakeholders since February 21. The discussions were held over the recently passed Union Budget for financial year 2022-23.

The finance minister's press conference comes at a time when the fragile situation in eastern Europe has sent jitters to markets across the world. The oil prices have sharply shot up, crossing $99 per barrel earlier in the day.

On being asked by reporters whether the government would consider tax relief in view of the rising crude prices, Sitharaman said, "Crude oil is a worrisome situation where we actually voiced that we wanted a diplomatic solution for the situation that is developing in Ukraine, all these headwinds on the crude.  It is one of the very important considerations. We'll have to see how it goes. We are keeping a watch on  Brent."

The finance minister pointed out that the Centre had already reduced taxation on fuel from its end, in October last year, in a bid to ease the domestic fuel prices.

"The prime minister had cut fuel tax before Diwali in response to calls from the public. The problem is that fuel prices are high because of global supply issues," she said, further noting that "what oil marketing companies do (with fuel prices), I cannot answer."

"When we come to stage that we need to take a decision on excise duty cut on fuel prices, we will come out publicly," Sitharaman added.

The recent fluctuations in the stock market is also a result of the geopolitical factors, Sitharaman said. "We are watching the development and how it can impact us," she noted, adding that at this moment, "the impact (of Russia-Ukraine) on our trade is yet to be felt".

On the corporate governance lapses in the National Stock Exchange, as pointed out in the recently released SEBI order, Sitharaman said she could not comment whether adequate regulatory action was taken in the case.

"On NSE, I have no comment to make on whether there was an adequate correctional step taken. I have no view this way or that until I get to the bottom of what is available before me. I am looking into it, but I won't be able to comment on it," she said.

On the row between the Centre and states over the payment of GST compensation to the latter, Sitharaman said there is "no adversarial relationship" between the two sides.

"GST Council has itself decided that compensation cess will continue to be collected until March 2026. This will make up for the shortfall until now. This extension in GST compensation collection will also be used to pay interest on the borrowed money," she said.

Sitharaman, on being asked on the banning of certain Chinese mobile applications, said the decision should not be linked to the bilateral trade. " Apps are banned because they are deleterious on some grounds or other and that is about it. We banned apps in the past and it did not impact trade."

Economic Affairs Secretary Ajay Seth, who accompanied Sitharaman at the press briefing, said the market will be informed in advance if the government takes a decision on borrowing.

"As far as these (cancelled) bond auctions are concerned, we did not feel the need. So we did not (borrow from the market)...This is a dynamic situation. We have to tell the market in advance. But let me assure, there will not be any surprises for the market," Seth said.

The economic affairs secretary also noted that the decision on the inclusion of Indian government bonds on global bond indices is yet to be taken. "Those decisions as and when taken will be informed. But I would like to clarify that when the conversation started on this (global bond indices), all those conditions which were needed to include government bonds on global indices are all have been met," he added.