India's most valuable company Reliance Industries Ltd (RIL), owned by the country's richest man Mukesh Ambani, has taken an important decision. Reliance Industries has announced the formation of a separate company for the Oil-to-Chemical (O2C) business. RIL said that the process of obtaining regulatory approval has started and is expected to be completed by the second quarter of FY22. This move will help him pursue opportunities for growth with strategic partners.

All refining, marketing and petrochemical assets will be transferred to the O2C subsidiary, RIL said. The existing O2C operating team will be transferred to the new subsidiary company with the transfer of business, but there will be no restriction on income reduction or cash flow.

Reliance said that it expects approval from National Company Law Tribunal (NCLT) Mumbai and NCLT Ahmedabad by the second quarter of FY22. Reliance first reported O2C business earnings in the third quarter financial results. The Oil-to-Chemical (O2C) business unit owns Reliance's oil refinery and petrochemical assets and the retail fuel business, but does not have oil and gas producing sectors such as KG-D6 and textile businesses.

Saudi Aramco will help in the deal

This announcement of Reliance will help the company to bring in investors like Saudi Aramco. Along with this, it will also help in finding new opportunities in the O2C business. RIL will give loan to this new subsidiary for 10 years. The company will be given a loan of $ 25 billion to the new subsidiary. With this loan amount, the subsidiary will buy the O2C business. However, loan for O2C business will remain with RIL.

On Friday, on the issue of Goods and Services Tax (GST) and e-commerce, business organizations are divided over Friday's 'Bharat Trade Bandh'. The Confederation of All India Traders (CAIT), a trade union, has called for a nationwide bandh. CAT claims that eight crore businessmen from more than 40,000 business organizations will be involved in the India trade-off. At the same time, some other trade organizations said that they are not supporting the bandh.

Kat said that the All India Transport Welfare Association representing one crore transporters has supported the bandh. The hawkers' joint action committee, the national organization of hawkers, also supported the shutdown. However, other trade organizations such as the Federation of All India Trade Chambers and the Bharatiya Udyog Vyapar Mandal said that they are not supporting the bandh. CAT general secretary Praveen Khandelwal said that 1,500 big and small organizations from all states will protest against the GST amendment. He said that essential services like drug shops, milk and vegetable shops have been kept out of the bandh.

Trade board is not in favor of bandh for some demands

At the same time, VK Bansal, National General Secretary of Federation of All India Trade Chambers said that in favor of some demands we are not in favor of closing shops. However, we believe that GST has deviated from its original objective during the last 43 months. Rakesh Yadav, general secretary of the Indian Industry Trade Board, Delhi, said that we are not supporting the bandh. He said that his organization has given memorandum to the government on issues related to GST.

Angry among traders due to changed rules

Khandelwal said that on December 22 and thereafter, several unilateral amendments were made in the GST rules, due to which there is great anger among traders across the country. Through these amendments, unlimited powers have been given to the tax authorities, in particular, now any officer can suspend or cancel the GST registration number of any trader for any reason, according to his discretion. Not only this, the tax officer can now seize the bank account and property of any trader and the important thing is that before doing this, no notice will be given to the trader and no chance of hearing will be given. What kind of rule is this? Businessmen have been denied their fundamental rights.

The new rule will increase corruption

He said that such rules will not only increase corruption but officers will be able to harass any businessman. Similarly, traders will also be deprived of taking credit for their money which is deposited with the department as input. Apart from this, there are many other rules in which the businessman is denied fundamental rights. He said whether such laws are justified in democracy? He stressed that we support the government's action against those who are not following the law, but the history of the last 75 years shows that whenever the authorities were given such rights, the oppression of traders across the country Has been done. In this sense, there is a lot of concern and resentment among the traders about these amendments.