Indian Economy-News & Updates

[RISING SUN]

India records highest-ever number of domestic flyers this October at 1.04 crore
India saw its highest-ever number of domestic flyers in this festive month of October. According to DGCA data, 1.04 crore people flew within the country last month. It became the second time ever so far that India witnessed more than a crore domestic flyers in a month. This feat was first recorded this May when 1-crore-and-1-lakh flew in the peak summer holiday month.

This October saw 20.5 per cent more domestic flyers that the 86.7 lakh who flew in same month last year. The January to October, 2017 period has seen 9.5 crore domestic flyers, up 17.3 per cent from 8.1 crore flyers in same period last year. The record number of flyers came as airlines have been offering rock bottom fares.

Sharat Dhall, COO of travel portal Yatra, said: "The passenger traffic has remained strong as a result of increased passenger load in the peak festive season. Continuous capacity expansion by the airlines on popular routes, addition of new sectors and slightly lower fares added to the growth momentum. We anticipate that Christmas and New Year's bonanza will further accelerate the passenger traffic in the coming month."

However, the growth in flyer numbers is coming as major Indian airports are creaking under a severe infrastructure crunch. The biggest airports — Delhi and Mumbai — currently have no slots to offer to accommodate more flights. While Mumbai airport is completely choked and the city will be able to handle more flyers and flights only when the Navi Mumbai airport gets operational in about five years, Delhi Airport — despite sitting on enormous land bank — is facing a shortage of both terminal and runway capacity. The Greater Noida airport at Jewar is also some years away.

"Airport infrastructure development has not kept pace with traffic growth. Delhi is now making plans which are yet to start being implemented and may be ready only by 2021. The growth in air traffic has caught everyone by surprise but now is the time to keep the surprise aside and get cracking," said an airline official.

India lags behind on airport infra comes even as it is now the fastest growing domestic air travel market globally. Last year India became the third largest domestic air travel market globally, pushing Japan to number four spot. "On the international-cum-domestic air travel front, India saw a combined traffic similar to the UK in 2016 and they are both at number four spot now. UK was ahead of India on this front in 2015. Given the way our air traffic is growing, India is all set to overtake UK this year," said Kapil Kaul, India head of CAPA.
Meanwhile in October, 2017, when India saw the highest-ever 1.04 crore domestic flyers, IndiGo accounted for 39.5 per cent market share of this traffic followed by Jet (17.2 per cent), SpiceJet and Air India at 13.1 per cent each, GoAir at 8.8 per cent, the two Tata JV airlines (7.8 per cent) and the rest by other small players.
https://timesofindia.indiatimes.com...-1-04-crore/articleshow/61689105.cms?from=mdr

 

[RISING SUN]

Govt mulls flexible NH toll plan to commuters’ benefit
The government is considering offering a "rolling contract" for road development that will see toll collection end ahead of the contracted period if the investment and profit has been recovered, in order to blunt criticism that surfaced over Delhi-Noida-Direct (DND) flyway and Delhi-Gurgaon projects.

Conversely, the contract period may be extended if the contractor, due to certain circumstances, is unable to recover expected dues. Though the proposal offers some succour to contractors, NHAI will reserve the right to take over the project to stem public opposition over "super profits".

The ministry had a detailed discussion on this model-variable build operate and transfer (V-BOT)-on Saturday.

Cases like that of DND and other highway projects where contractors are a llowed to collect toll for years have prompted the government to explore this new public-private partnership (PPP) model for road construction.

There have been several instances of protests in states including Delhi, UP and Maharashtra against the existing practice. Even a parliamentary committee had pointed out this flaw while examining the contract period and total toll collection on the Delhi-Gurgaon Expressway.

"The real-time toll collection in each project rolled out under V-BOT will be verified using the electronic toll collection data and other IT-enabled assessments, the parametes of which will be defined clearly," said a ministry official.

Under this model, the projects will be bid out on the basis of total cost (including construction, financing, operation and maintenance) for a defined contract period. The lowest bidder will get the project and will build, operate and collect toll.

"If toll collection increases beyond the projection due to high traffic growth, the contractor will recover the cost before the quoted period and NHAI will terminate the contract. NHAI will then collect toll to recover the land cost. When that amount is recovered, toll will be slashed by 40%," another official said.
All such projects will compulsorily have 100% electronic toll collection, installation of automatic traffic count and classifier system, video image detection and other systems.

The model has been conceptualised to address all the risk factors, another official said.
https://timesofindia.indiatimes.com...ers-benefit/articleshow/61707880.cms?from=mdr

 

[RISING SUN]

'India moves up one notch to 126 in GDP per capita terms'
India has moved up one position to 126th in terms of GDP per capita of countries, still ranked lower than all its BRICS peers, while Qatar remains the world's richest on this parameter, as per IMF data.

The data, which forms part of the latest World Economic Outlook report of the International Monetary Fund, ranks over 200 countries in terms of per capita GDP based on purchasing power parity (PPP).

PPP between two countries is the rate at which the currency of one country needs to be converted into that of a second country to ensure that a given amount of the first country's currency will purchase the same volume of goods and services in the second country as it does in the first.

India has seen its per capita GDP rise to USD 7,170 in 2017, from USD 6,690 last year, helping improve its rank by a position to 126th.

Qatar remains top-ranked with per capita GDP of USD 1,24,930, followed by Macao at the second position with USD 1,14,430 and Luxembourg third with USD 1,09,190.

Among BRICS countries, India has the lowest per capita GDP. Russia boasts of a GDP per capita of USD 27,900, while for China, it stood at USD 16,620, Brazil at USD 15,500 and South Africa at USD 13,400.

Interestingly, as per a recent Credit Suisse report, India is home to 2.45 lakh millionaires with a total household wealth of USD 5 trillion.

As per the IMF data, the richest 10 countries in the world in per capita GDP terms also include Singapore (4th, USD 90,530), Brunei (5th, USD 76,740), Ireland (6th, USD 72,630), Norway (7th, USD 70,590), Kuwait (8th, USD 69,670), United Arab Emirates (9th, USD 68,250) and Switzerland (10th, USD 61,360).

The US has failed to make it to the top 10 and is ranked 13th with a GDP per capita of USD 59,500 while the UK is ranked even lower.

According to a Fortune magazine report based on the IMF data, several top-ranking countries such as Qatar and Brunei "have fuel and oil propelling their economies", while investment and strong banking systems have helped propel economic growth in other countries like Iceland and Ireland.
https://economictimes.indiatimes.co...lynews&ncode=75903408e0b98cc650a2176b9dd8c4b8

 

[RISING SUN]

DATA STORY: India's household wealth grows by more than Rs 29 lakh cr, but not everyone is getting richer
Despite a 30-place jump in World Bank's Ease of Doing Business rankings, India is witnessing a lot of criticism from the domestic quarters over the state of the country's economy.

A revamped GST might help arrest the slowdown in GDP in the past five quarters as it will encourage more spending, help the demand-supply cycle and leave the Indian pockets a little heavier because of tax cuts.

However, global investment bank Credit Suisse's wealth report puts most claims by critics to test as it says that India's wealth in 2016-2017 rose by 9.9 percent.

Just 10 years after the recession hit global economies, India seems to have scaled the ranks quite high, and getting closer to the ranks of other leading economies such as Australia, Italy, France and Germany.
In India, market capitalisation rose by close to 30 percent, house prices by around 10 percent and the Indian rupee rose 4 percent against the US dollar, said the report.

Although India is quickly catching up, its projected income for 2022 still has a long way to go (Courtesy: Credit Suisse)

But there is a catch though: even if India got richer faster than many others and added a whopping Rs 29.4 lakh crore to its total wealth, it does not reflect on one key factor: income inequality.

The income disparity has also been pointed at in the Credit Suisse report: 92 percent of Indians have wealth less than Rs 6.5 lakh while 0.5 percent have a net worth of over Rs 65.2 lakh, the report maintains.

“Residents of India remain heavily concentrated in the bottom half of the distribution, accounting for more than quarter of the members,” the report said.

As per the report, the fluctuation in asset prices and exchange rates account for a greater hike during the months.

The share of an Indian adult in the country’s total wealth rose 7.9 percent in the studied period to Rs 3.7 lakh.

Yet this is just a fourth of what the our Chinese peers have thanks to unevenly distributed income in India.

India's graph for increase in wealth over time. In USD (Courtesy: Credit Suisse)

As per the report, non-financial assets seems to be one of the main compositions of wealth – both in India and China as they accounted for more than 80 percent of the wealth of individuals of both the countries.

The average personal debt for an Indian adult is estimated at around Rs 24,521 or just 9 percent of the gross assets, Credit Suisse said.

The Millionaires Club: Who's ahead?

The Credit Suisse report also says that India is home to 2,45,000 millionaires. India also has about 346,000 adults in the global top 1 percent by wealth.

There are 1,820 adults in India who have wealth over Rs 326 crore, or USd 50 million. Credit Suisse forecasts the number of Indian millionaires to reach 3,72,000 in 2022.

India has a fair share of millionaires but is nowhere close to China (Courtesy: Credit Suisse)

China, in contrast, has close to 20 lakh millionaires and has more adults with wealth above USD 50 million than any other country except the US.

Although India has improved on a lot of fronts, but when it comes to household wealth, the gap with the developed economies is wide.

Income in North America is 50 times that of India, nine times that of China and four times of Europe.
About quadrupling of wealth in India between 2000 and 2017, the report says: “Despite this remarkable increase and having four times the population of the US, total wealth in India is comparable to the level of the US 90 years ago.”

Even if India’s wealth increases to USD 6 trillion by 2022 it will only be comparable to the wealth levels existent in the US of 1936, the report said.

(Currency figures are in 1 USD= Rs 65.22)
http://www.moneycontrol.com/news/in...t-not-everyone-is-getting-richer-2439295.html

Decks cleared for first mega CEZ; 45 companies may invest Rs 15k-crore in phase-I
The government has given the go-ahead for setting up India’s first mega coastal economic zone (CEZ) at the Jawaharlal Nehru Port in Maharashtra as part of a plan to develop 14 such industrial clusters to spur manufacturing and generate jobs.

About 45 companies across telecom, auto and IT sectors will soon bid for 200 hectares of land to set up manufacturing units in the zone, senior officials told ET.

The plan envisages a total investment of Rs 15,000 crore in the first phase and creation of more than 1.5 lakh jobs, they said. “The idea is to attract large firms interested in serving the export markets as they would bring with them technology, capital, good management and links to the world markets,” said one of the officials, who did not wish to be identified.

“This in turn would help create an ecosystem around them in which productive small and medium firms would emerge and flourish,” the official said. The Union Cabinet had last year approved setting up of 14 mega CEZs under the National Perspective Plan of the Sagarmala Programme, with an aim to promote development of industrial clusters around ports, encourage portled development, reduce logistics cost and time for movement of cargo, enhance global competitiveness of India’s manufacturing sector and create hubs of job creation.

These zones are expected to provide business-friendly ecosystem including ease of doing business, ease of exporting and importing, swift decisions on applications for environmental clearances, and speedy water and electricity connections. The Jawaharlal Nehru Port is among the busiest cargo ports in the country, but it has sufficient available land. That is why it has been chosen over other ports to kick-start the concept which was first mooted by the erstwhile NITI Aayog vice-chairman Arvind Panagariya.

The port handles over 40% of India’s export-import volume because of deep-draft ports capable of accommodating very large and heavily loaded ships. CEZs are spatial economic regions comprising a group of coastal districts or districts with a strong linkage to ports in that region to tap into synergies with the planned industrial corridor projects. The country’s first mega CEZ will stretch along north Konkan region spread across Nashik, Thane, Mumbai, Pune and Raigarh.

The government’s plan envisages investment of $100 billion (about Rs 6.5 lakh crore) in industrial development for port-led economic growth in maritime sector and inland waterways, water transport, coastal and cruise shipping, and solar and wind energy generation to boost the country’s growth momentum considering India’s huge coastline of 7,500 km. The government hopes to add two percentage points to India’s GDP through creation of worldclass infrastructure.
ET View: A Leg Up For Exports
It would be sensible to set up EOUs in the coastal zones. There’s huge potential to boost exports of labour-intensive items such as textiles, garments and ready-mades, provided we can reap economies of scale and have the required capability to meet high-volume export demand. The gestation period for labour-intensive units is also likely to be far shorter. But they need to be flexible and innovative, to keep up with changing tastes and demand patterns.
https://economictimes.indiatimes.co...gylBgORSGl_UJ6lInckw.0&utm_referrer=&from=mdr

 

[RISING SUN]

How safe are National Highways? Star rating to tell
Soon, national highways in India will get star ratings on a scale of zero to five based on a survey of their safety parameters.

The results of one such pilot survey will be out for Delhi-Mumbai and Mumbai-Chennai corridors of Golden Quadrilateral in the next few months. The survey is being carried out more than a decade after the country's fast ever mega highway programme was completed.

International Road Assessment Programme (IRAP) is carrying out the survey funded by World Bank and Bloomberg Philanthrophies.

A similar survey covering more than 10,000 km of state highways in Rajasthan, Gujarat, Karnataka, Kerala, Assam, Uttar Pradesh, Tamil Nadu, Andhra Pradesh and Telangana between 2010 and 2015 had found that at least 75% of these stretches had less than two or two star ratings. The findings show these highways were more unsafe for motorcyclists, cyclists and pedestrians in comparison to four wheel vehicles.

"After carrying out assessment of more than a million km of roads across 80 countries we have found that if we can succeed in increasing the star rating by one rank, we can avoid substantial number of accidents and fatalities," said Rob McInerney while launching the India chapter of IRAP at World Road Meet organised by International Road Federation (IRF).

Global transpiration major FedEx Express has joined hands with IRAP for this initiative. India's national and state highways network comprising only 5% of all roads, account for more than 60% of all deaths on road.
More than 90,000 people died in crashes on these roads in 2016. According to IRAP, the assessment of roads for all users is carried out on 50 road attributes and for every 100m.

"The system records features that are known to effect the likelihood and severity of a crash. Based on crash studies from around the world, the scoring and star ratings are done," it said.
https://timesofindia.indiatimes.com...ing-to-tell/articleshow/61665762.cms?from=mdr

 

[RISING SUN]

75% vehicle users in India don’t wear seat belts leading to 15 deaths every day: Study
A whopping 75 per cent passenger vehicle users (driver, co-driver and rear) in India don't wear seat belts leading to 15 deaths every day, according to a study by India's largest carmaker Maruti Suzuki. Compared to India's dismal 25 per cent compliance, 98 per cent Europeans wear seat belts, whereas the US has a compliance rate of 85 per cent. Among drivers in India, seat belt usage stood at a disappointing 28 per cent.

Road accidents, in fact, are the the leading causes of deaths in the country. According the the Ministry of Road Transport and Highways, in 2016, 1.5 lakh people died in road accidents. A total of 5.638 people died in 2016 due to non-usage of seat belts.

The pan India study across 17 cities conducted in association with Millward Brown and IMRB (Kantar Group) had some rather interesting revelations -- Zone wise data showed that overall South ranks no.1 in non-usage of seat belts, and non usage of seat belt among female drivers was highest at 81 per cent compared to male drivers at 68 per cent. The Northern Zone was most compliant with 42 per cent non-users.

SUV (Sports Utility Vehicle) drivers were the worst defaulters when it came to not wearing seat belts, with 77 per cent of them shunning the safety strap. Luxury car drivers were more conscious about wearing seat belts, with the highest compliance at 59 per cent non-usage.

Among the 2,505 respondents across metros, Tier 1 and Tier 2 cities, it was found that 78 per cent of those in Tier 2 cities did not wear seat belts. "The seat belt usage in Tier 1 cities was higher because of higher usage of seat belts at Chandigarh and Jaipur," Maruti Suzuki India's senior executive director (Sales & Marketing) RS Kalsi said. The percentage of non-usage in Tier 1 cities stood at 61 per cent, while in metros it was at 74 per cent.

When asked if Maruti Suzuki would look at developing some kind of technology that doesn't allow the driver to start the car without strapping on the seat belt, Kalsi said, "That would be an extreme measure. We would rather educate and enlighten people so that they voluntarily start wearing seat belts."

Kalsi also stressed on the use of seat belts for rear passengers. "I know of instances where passengers have been thrown off and killed from the rear seat for not wearing seat belt, whereas the driver has survived because he was wearing his seat belt." Only 4 per cent passengers wear seat belts while travelling in the rear of the car, the study showed.

Reasons for not using seat belts:

1. Weak legal enforcement was the topmost reason for non-usage of seat belts.
2. Negative image perceptions (27 per cent) and the belief that seat belts ruin clothes emerged as key reasons for non-usage, in the study.
3. 23 per cent did not consider seat belts as a safety device.
4. 20 per cent said that they did not wear seat belts as family and friends don't wear/ don't encourage seat belt usage.

Reasons for using seat belts:

1. 77 per cent respondents said they wear seat belts because of legal enforcements.
2. 64 per cent of car passengers wear seat belts because they considered them as a self-safety device. 3. 63 per cent respondents said that they had prior experience of seeing how seat belts had saved lives, hence they use.
4. Encouragement from family and friends to wear seat belts was one of the key reasons for wearing seat belts among 56 per cent of the respondents.
https://timesofindia.indiatimes.com...y-day-study/articleshow/61660232.cms?from=mdr

 

[RISING SUN]

Hint of recovery seen in India Inc's bottom line for the second quarter after GST

There’s a hint of recovery in India Inc’s bottom line for the second quarter that followed rollout of GST.

Net profit of a sample of 1,455 companies (excluding banking and financial institutions) rose 2.5% y-o-y after sliding 14.6% in June quarter. Operating profit grew 10% y-o-y compared with 7.8% in the previous 3 months. Growth in net sales was unchanged at 8.6%. Operating margin slipped 10 bps to 16.4%.

Performance improved in businesses like alcoholic beverages, automobiles, consumer durables and nondurables, hospitality, jewellery, media and entertainment, and retail – capturing the consumption momentum. Net profit of a sample of 219 firms from these sectors surged 32.6% — the fastest in six quarters.

The sample’s contribution of 22.4% to the larger sample’s profit was at an 11-quarter high.

After including banking and finance firms, the sample of 1,844 companies reported a net sales growth of 7.9%. In addition, net profit fell by half a percent following higher provisioning by some of the banks.

https://economictimes.indiatimes.co...m_referrer=https://www.google.co.in/&from=mdr

Domestic stainless steel output to rise 9% to 3.6 mn tonnes by year-end
Domestic stainless steel production will reach the 3.6-million tonne mark at the end of 2017, industry body ISSDA has said.

If the output crosses that level, it will be about 9 per cent more than last year's.

"The production of stainless steel in the country at the end of the calendar year 2016 was 3.3 million tonne," President of Indian Stainless Steel Development Association (ISSDA) K K Pahuja told PTI, citing data collected by the International Stainless Steel Forum (ISSF).


"At present, we (the industry) are growing at a rate of 8-9 per cent year-on-year," he added.

The growth is in response to the rising demand for stainless steel, mainly from sectors such as auto, roads and highways, housing and the like, the industry veteran said, adding that the demand will keep rising every year.

Besides, protectionist measures imposing a definitive Countervailing Duty (CVD) on certain stainless steel products from China have helped the industry, he said.

The government had removed the import duty on nickel, a key material required to produce stainless steel. Now, the steel ministry wants the import duty on ferro-nickel and stainless steel scrap to be removed.

This will further bring down the production cost of stainless steel in the country, he added.

For 2018, the domestic stainless industry is expected to produce close to 4 million tonnes.

India is the second-largest producer of stainless steel after it overtook Japan in 2016. China remains the leader.
http://www.business-standard.com/ar...3-6-mn-tonnes-by-year-end-117111900422_1.html

 

[RISING SUN]

India’s holdings of US govt securities jump to $145 bn in September
Continuing to increase its exposure, India’s holdings of American government securities touched $145.1 billion at the end of September, official data showed.

Remaining the 11th largest holder of US Treasury securities, India increased its holdings by little over $6 billion in September compared to August when the same stood at $138.9 billion.

The US government data showed that India’s holdings rose to $145.1 billion in September - also the highest so far this year.

As per data from the Treasury Department, the exposure of India to these securities has been on the rise since February when it had touched $112.3 billion.

The country’s holdings have jumped by $31.4 billion in eight months starting January when the exposure was at $113.7 billion. This also comes at a time when the American economy is recording a steady growth over the past few quarters.

Neighbouring China topped the list with holdings worth $1.1808 trillion as on September end followed by Japan whose exposure stood at $1.096 trillion during the same period.

With holdings to the tune of $310.8 billion, Ireland was at the third place followed by Brazil ($272.8 billion) and Cayman Islands ($267.6 billion) at fourth and fifth places, respectively.

India is the 11th largest holder of US Treasury securities and third largest among the BRIC grouping. At the end of September, Russia’s exposure stood at $103.9 billion.

“Foreign residents increased their holdings of long-term US securities in September; net purchases were $60.8 billion.

“Net purchases by private foreign investors were $59.5 billion, while net purchases by foreign official institutions were $1.3 billion,” the Treasury Department had said in a release on November 15.

In the third quarter, the world’s largest economy grew 3 per cent, as per the advanced estimates from the US Bureau of Economic Analysis.
http://www.thehindubusinessline.com...ump-to-145-bn-in-september/article9966630.ece

 

[RISING SUN]

Indian Oil sets up India's first electric vehicle charging station in Nagpur
Indian Oil Corporation (IOC) on Sunday announced launch of nation's first electric vehicle charging station at a petrol pump in Nagpur.

IOC, in collaboration with Ola, launched the country's first electric charging station at one of its petrol-diesel stations in Nagpur, a company statement said.

Nagpur, being the first city to introduce Electric Public Transportation Model in India, has added one more feather to its cap by adding the first electric charging station at IOC's petrol pump in Nagpur.

The statement said: "As India's leading oil refiner and marketer, IOC considers promoting ecological sustainability as part of its core business. Thus, this partnership with Ola is the right step forward as we re-imagine how India will commute in coming years.
http://www.moneycontrol.com/news/bu...hicle-charging-station-in-nagpur-2442143.html

 

[RISING SUN]

India to use Turkish-made broken rail detection system
India has decided to use a Turkish-made broken rail detection system to prevent accidents, a Turkish engineering company’s official said.

Haluk Gokmen, general director of ENEKOM, said the company began cooperation with India’s Railtech Infraventure Pvt. Ltd. Company (Railtech).

“India is a country that has one of the longest railways in the world. The lines are constantly being renewed and new lines are added to the existing ones. Due to their extensive usage, they need a fast, efficient and secure detection system”, Gokmen told Anadolu Agency on Tuesday.
The system will initially be tested on a 50-kilometer (31 miles) rail line in India on the first quarter of 2018, and then be extended across the country.

Gokmen said that the system is “unique” because it is not affected by external factors and different climatic conditions.

“RailAcoustic” -- a system patented in Turkey, U.S., India, China, and Japan -- can perceive a fracture or a crack on the rails.
http://aa.com.tr/en/asia-pacific/india-to-use-turkish-made-broken-rail-detection-system/968948

 

[RISING SUN]

Jammu and Kashmir: Cross-LoC bus service resumes after four months due to repeated ceasefire violations
Over 50 residents of Pakistan occupied Kashmir (Azad Kashmir) travelled by a cross-LoC bus to reach Jammu and Kashmir's Poonch district on Monday, officials said.


Representative image. Reuters

The bus service had on 6 November resumed operations after remaining suspended for nearly four months owing to heavy shelling by Pakistani troops along the Line of Control (LoC) in Poonch district.

"The cross-LoC bus plied as per schedule. 52 Azad Kashmir residents arrived in Poonch while 14 Azad Kashmir residents returned from this side after spending time with their relatives," the officials said.

Nearly 74 Azad Kashmir residents have availed the facility to visit India in the past two weeks, they said, adding the service was used notwithstanding the ceasefire violations by the Pakistan army last week.

Pakistani troops had targeted forward areas along the LoC in Poonch district for from November 15 to 18, casting a shadow of uncertainty on the cross-LoC trade and travel.


The bus service was started along the Srinagar- Muzaffarabad road in April 2005 and the Poonch-Rawalakot route on 20 June, 2006 to facilitate trade and travel between Jammu and Kashmir and Azad Kashmir.

The trade between the two parts of Kashmir started in October 2008 on the barter system.
http://www.firstpost.com/india/jamm...to-repeated-ceasefire-violations-4220327.html

India's annual diesel consumption to rise by 2030
India's annual diesel consumption could rise to 150 billion litres by 2030 from 90 billion litres now, Oil Minister Dharmendra Pradhan said on Wednesday.

Annual gasoline consumption in the world's third-biggest oil consuming nation could rise to 50 billion litres by 2030 from 30 billion litres now, he said.

The energy hungry nation, which is looking to cut its oil imports by 10 percent in 2022, aims to boost use of bio fuels, the minister said.

India currently imports about 80 percent of its oil needs. (Reporting by Nidhi Verma; Editing by Vyas Mohan)
http://m.thehindubusinessline.com/e...onsumption-to-rise-by-2030/article9969808.ece

 

[RISING SUN]

India adds 2,247 MW solar cap in Jul-Sep 2017
India added nearly 2,247 MW of solar capacity during July-September period, registering a 15.40 per cent growth as compared to 1,947 MW added in Q2 of 2017, a recent survey revealed.

According to the survey by Mercom Capital, with the addition of 2,247 MW, the cumulative installed capacity between January-Spetember 2017 stands at 7,149 MW.

"With over 7,149 MW, solar is now the leading new energy source in India, accounting for 39 per cent of total new power capacity additions in the first nine months of 2017," the report said.

It further said, in the third quarter, large-scale solar projects accounted for 1,982 MW and made up 88 per cent of installations, while rooftop installations totaled 265 MW and accounted for the remaining 12 per cent.

"Large-scale installations doubled year-on-year and rose 15 per cent from the second quarter to the third quarter," it said.

Mercom said the pipeline of utility-scale projects currently stands at 11,500 MW with another 5,600 MW of tenders awaiting auction.

"Even though the Indian solar market is on pace for a record-breaking year, the momentum has definitely slowed," Mercom Capital Group CEO Raj Prabhu said.

He further said there are around 1000 MW of large-scale solar projects that are complete but unable to get connected to the grid and these factors are likely to lead to a weaker-than-projected fourth quarter.

The report said that due to a 14 per cent increase in Chinese module prices, the pending anti-dumping case, PPA re-negotiations in some states, incomplete infrastructure, evacuation issues, port customs duty, and a lack of clarity surrounding the GST, the sector faced many challenges during the third quarter of 2017.

"All of these factors led to an overall slowdown in installations and a slowdown in tenders and auctions, resulting in a reduction in the installation forecasts for for 2017 and 2018," it said.

The report forecasts that total solar installations in India will range from 9,500 MW to 10,000 MW in the full calendar year 2017 and around 7,000 MW in 2018.

"It has become challenging to pin down an installation number as so many projects that are completed are stranded and unable to commission due to evacuation delays. It will depend on what can get connected to the grid by the end of the year," Mercom India managing director Priya Sanjay said.
https://economictimes.indiatimes.co...eferrer=https://m.economictimes.com/&from=mdr

India Bars Founders From Repurchasing $31 Billion of Assets
India tightened rules to prevent errant founders from misusing an 11-month-old bankruptcy law to regain control of delinquent companies that are being sold.

Founders of companies whose borrowings have been classified as non-performing for a year or more and that are unable to pay overdue amounts, including interest and charges, are barred from repurchasing their assets, the corporate affairs ministry said in a statement. The latter category would include bad loans totaling about $31 billion extended to the country’s 12 top delinquent firms, that lenders are seeking to sell by March.

A change in the Insolvency and Bankruptcy Code, that was passed by India’s parliament in 2016, comes at a time when about 50 of the nation’s biggest defaulting companies face insolvency proceedings and may be sold by court-appointed professionals over the next year. That necessitated an executive order to prevent “habitually non-compliant” people from regaining control of these companies, according to the statement. The President signed the ordinance on Thursday, making the law effective immediately.

“This change in law will not bring down the valuation as there is adequate interest from buyers,” said Rajnish Kumar, chairman of India’s largest lender State Bank of India. “If the law is clear and explicit it will help. Evaluation of the bids will be transparent.”

Steel manufacturers, power and construction companies dominated an initial list of 12 borrowers that Indian banks were ordered to refer to insolvency courts over bad loans of more than 2 trillion rupees ($31 billion). The central bank followed with a list of about 40 companies, which need to be referred for insolvency unless a restructuring is worked out before Dec. 13.

Wilful defaulters, those who have given an enforceable guarantee for a corporate undergoing insolvency or liquidation as well as promoters or management connected to them are also barred from bidding in bankruptcy proceedings, the finance ministry statement said. Wilful defaulters are defined as those firms that didn’t repay loans while having the capacity to do so, or those in which controlling shareholders siphoned off money or assets.

The modifications need to approved by parliament in its next session.

While the Insolvency and Bankruptcy Code is being tweaked to stop misuse, it doesn’t ban all founders from the sale process. Some owners had written to the government blaming adverse business cycles for their inability to repay, saying it wouldn’t be fair to ban them.

“The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code,” according to the statement. Reforms by the government “would help strengthen the formal economy and encourage honest businesses and budding entrepreneurs to work in a trustworthy, predictable regulatory environment.”

Prime Minister Narendra Modi’s regime last year overhauled Indian bankruptcy laws that dated back a century. The new law is one of the biggest steps in India’s battle to clean up $207 billion of stressed assets. The inability to shut loss-making companies and collect on dues had locked up funds at banks and damped lending and investment.

The changes will “make things difficult for unscrupulous promoters,” Kalpesh Mehta, a Mumbai-based partner for Deloitte Haskins & Sells LLP’s financial-services practice, said in an email. “There is now a real chance that promoters can lose control and are no longer in a position to take creditors for a ride.”
https://www.bloomberg.com/news/arti...ules-to-bar-errant-founders-bidding-for-firms

 

[Nilgiri]

India adds 2,247 MW solar cap in Jul-Sep 2017
India added nearly 2,247 MW of solar capacity during July-September period, registering a 15.40 per cent growth as compared to 1,947 MW added in Q2 of 2017, a recent survey revealed.

According to the survey by Mercom Capital, with the addition of 2,247 MW, the cumulative installed capacity between January-Spetember 2017 stands at 7,149 MW.

"With over 7,149 MW, solar is now the leading new energy source in India, accounting for 39 per cent of total new power capacity additions in the first nine months of 2017," the report said.

It further said, in the third quarter, large-scale solar projects accounted for 1,982 MW and made up 88 per cent of installations, while rooftop installations totaled 265 MW and accounted for the remaining 12 per cent.

"Large-scale installations doubled year-on-year and rose 15 per cent from the second quarter to the third quarter," it said.

Mercom said the pipeline of utility-scale projects currently stands at 11,500 MW with another 5,600 MW of tenders awaiting auction.

"Even though the Indian solar market is on pace for a record-breaking year, the momentum has definitely slowed," Mercom Capital Group CEO Raj Prabhu said.

He further said there are around 1000 MW of large-scale solar projects that are complete but unable to get connected to the grid and these factors are likely to lead to a weaker-than-projected fourth quarter.

The report said that due to a 14 per cent increase in Chinese module prices, the pending anti-dumping case, PPA re-negotiations in some states, incomplete infrastructure, evacuation issues, port customs duty, and a lack of clarity surrounding the GST, the sector faced many challenges during the third quarter of 2017.

"All of these factors led to an overall slowdown in installations and a slowdown in tenders and auctions, resulting in a reduction in the installation forecasts for for 2017 and 2018," it said.

The report forecasts that total solar installations in India will range from 9,500 MW to 10,000 MW in the full calendar year 2017 and around 7,000 MW in 2018.

"It has become challenging to pin down an installation number as so many projects that are completed are stranded and unable to commission due to evacuation delays. It will depend on what can get connected to the grid by the end of the year," Mercom India managing director Priya Sanjay said.
https://economictimes.indiatimes.co...eferrer=https://m.economictimes.com/&from=mdr

India Bars Founders From Repurchasing $31 Billion of Assets
India tightened rules to prevent errant founders from misusing an 11-month-old bankruptcy law to regain control of delinquent companies that are being sold.

Founders of companies whose borrowings have been classified as non-performing for a year or more and that are unable to pay overdue amounts, including interest and charges, are barred from repurchasing their assets, the corporate affairs ministry said in a statement. The latter category would include bad loans totaling about $31 billion extended to the country’s 12 top delinquent firms, that lenders are seeking to sell by March.

A change in the Insolvency and Bankruptcy Code, that was passed by India’s parliament in 2016, comes at a time when about 50 of the nation’s biggest defaulting companies face insolvency proceedings and may be sold by court-appointed professionals over the next year. That necessitated an executive order to prevent “habitually non-compliant” people from regaining control of these companies, according to the statement. The President signed the ordinance on Thursday, making the law effective immediately.

“This change in law will not bring down the valuation as there is adequate interest from buyers,” said Rajnish Kumar, chairman of India’s largest lender State Bank of India. “If the law is clear and explicit it will help. Evaluation of the bids will be transparent.”

Steel manufacturers, power and construction companies dominated an initial list of 12 borrowers that Indian banks were ordered to refer to insolvency courts over bad loans of more than 2 trillion rupees ($31 billion). The central bank followed with a list of about 40 companies, which need to be referred for insolvency unless a restructuring is worked out before Dec. 13.

Wilful defaulters, those who have given an enforceable guarantee for a corporate undergoing insolvency or liquidation as well as promoters or management connected to them are also barred from bidding in bankruptcy proceedings, the finance ministry statement said. Wilful defaulters are defined as those firms that didn’t repay loans while having the capacity to do so, or those in which controlling shareholders siphoned off money or assets.

The modifications need to approved by parliament in its next session.

While the Insolvency and Bankruptcy Code is being tweaked to stop misuse, it doesn’t ban all founders from the sale process. Some owners had written to the government blaming adverse business cycles for their inability to repay, saying it wouldn’t be fair to ban them.

“The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code,” according to the statement. Reforms by the government “would help strengthen the formal economy and encourage honest businesses and budding entrepreneurs to work in a trustworthy, predictable regulatory environment.”

Prime Minister Narendra Modi’s regime last year overhauled Indian bankruptcy laws that dated back a century. The new law is one of the biggest steps in India’s battle to clean up $207 billion of stressed assets. The inability to shut loss-making companies and collect on dues had locked up funds at banks and damped lending and investment.

The changes will “make things difficult for unscrupulous promoters,” Kalpesh Mehta, a Mumbai-based partner for Deloitte Haskins & Sells LLP’s financial-services practice, said in an email. “There is now a real chance that promoters can lose control and are no longer in a position to take creditors for a ride.”
https://www.bloomberg.com/news/arti...ules-to-bar-errant-founders-bidding-for-firms

India has more accountable reporting of its bad loans compared to China (where bank buy back etc pushes down the figure, but credit rating dont care because China has rest of its mercantile apparatus at play to support its funds/bonds etc well....whereas India definitely is much more reliant on its more independent banking system).

Thus 10% to 2% is not apples to apples comparison....applied standards for those numbers are different.

India must keep making itself more accountable, the clampdown on the remaining routes banks/finance have for buy back to be able to under-report bad loan on bank sheet is a very welcome move....its is more US system compared to earlier UK system as far as bankruptcy/defaulting structure.....which is welcome for better growth in todays world....because Indian govt will never be strong enough to be a mercantile monolith like say the UK system created under East India Company.

@anant_s

 

[anant_s]

India has more accountable reporting of its bad loans compared to China (where bank buy back etc pushes down the figure, but credit rating dont care because China has rest of its mercantile apparatus at play to support its funds/bonds etc well....whereas India definitely is much more reliant on its more independent banking system).

Thus 10% to 2% is not apples to apples comparison....applied standards for those numbers are different.

India must keep making itself more accountable, the clampdown on the remaining routes banks/finance have for buy back to be able to under-report bad loan on bank sheet is a very welcome move....its is more US system compared to earlier UK system as far as bankruptcy/defaulting structure.....which is welcome for better growth in todays world....because Indian govt will never be strong enough to be a mercantile monolith like say the UK system created under East India Company.

@anant_s

Can't agree more.
Rather than a wild number chase, it is important that banking system becomes accountable and transparent. Fiscal discipline is paramount as it will lay a very solid foundation for long and sustainable growth rather than a short duration high growth burst.

 

[RISING SUN]

Indian outbound market to GCC expected to increase 50% by 2021

The India stand at ATM 2017, with 25 Indian participants in total including two regional tourism boards. (Supplied)
Around nine million Indians are expected to travel to the GCC by 2021, according to the latest figures from Colliers International.

Reports from the UNWTO suggest the outbound Indian travel market will grow to 50 million by 2021, with the average spend per trip by Indian travellers also increasing – UNWTO statistics reveal India is among the top 12 source markets globally that showed double digit growth in expenditure in 2016 – visitor spend reached a total of $23.1 billion in 2016, up 15.1 year-on-year.

Simon Press, Senior Exhibition Director, Arabian Travel Market (ATM), said: “Surprisingly, there are just over 65 million passport holders in India out of a population of around 1.3 billion. Still it is no surprise that the growth of the global travel industry is being led by Asian travellers and the Middle East region can expect to benefit, with Indian tourist arrivals expected to grow by CAGR of 7-8 per cent.

“We have witnessed this growth first hand with ATM 2017 welcoming 54 percent more visitors from India compared to 2014.”

The Colliers International report was published as destinations throughout the Middle East prepare to showcase their latest offering at the ATM, which is being held at Dubai World Trade Centre from April 22-25, 2018.

Over the five-year period from 2012 to 2016, the average percentage of Indian arrivals out of total arrivals in Kuwait was 15.4%; Saudi Arabia, 10.6%; Bahrain, 17.6%; Oman, 11.2%; and UAE 9.8%.

According to ATM’s official research partner, Colliers, by 2021, this is expected to increase to: Kuwait (17.12%), KSA (11.88%), Bahrain (19.26%), UAE (10.8%) and Oman (11.9%) – helped in no small terms by a decision in October 2017, when the Sultanate approved on-arrival visas up to a period of one month for Indians holding valid US, UK, Canada, Australia or Schengen visas.

Top spot in Dubai
India retained top spot on Dubai’s list of source markets for inbound tourism, with 1,478,000 Indian tourists arriving in the city between January and September, registering a significant 20 per cent rise over the same period in 2016. The increase can also be attributed to relaxed visa restrictions for Indian passport holders, which is currently under further consideration, including the possibility of extending on-arrival visas to Indians.

In terms of Bahrain, Indians are eligible for Visit-e-Visa, which means there is no need to have a physical visa stamped in their passports prior to arrival in the country.

Press said: “The influx of Indian visitors to the GCC shows no sign of abating and is expected to continue rising, with the added benefit of an increase in the average spent by Indians on outbound travel. This is supported by India’s steady GDP growth, which stood at 7.1% in 2016 and, although this is forecast to drop to 5.7% this year due to the introduction of a general sales tax (GST), it is expected to recover and steady at 8% over the next few years.”

Middle-income households
The Colliers research reveals Indian outbound travel growth is to be driven by the middle-income households rather than the higher-income as the former is expected to grow to nearly 20 percent (58 million) of the total Indian households by 2021, while the latter will represent less than 3% (6.5 million).

Press said: “At 61 percent, India’s youth population is exceptional, providing a great opportunity to develop lifestyle and budget brands that offer differentiated products and experiences.”

Medical tourism to India
India is also attracting visitors from the GCC, which is a top source market for medical tourism, and is expected to grow, as an entire industry, to $8 billion by 2020 from the $3.9 billion of 2016. While the west coast resorts, such as Goa, remain popular with Middle East travellers, given its close proximity to the region.

There was a 45 percent increase in sharers at the India stand at ATM 2017, 25 Indian participants in total including two regional boards and another strong contingent is expected at ATM 2018. Not only are the two regional boards returning to the show, there are other regional boards from the India who have shown interest in exhibiting at the next edition of the ATM.
http://english.alarabiya.net/en/bus...t-to-GCC-expected-to-increase-50-by-2021.html

Modi's Make in India may get $6 billion cheque from Lotte, Peugeot
South Korean conglomerate Lotte Group and French automotive group Peugeot SA have discussed proposals to invest as much as $6 billion combined in India, a move that would boost Prime Minister Narendra Modi’s attempts to attract foreign capital in Asia’s third-largest economy, a person with direct knowledge of the matter said.

Lotte may invest between $3 billion and $5 billion in the next five years, the person said asking not to be identified as the proposals are preliminary. The South Korean firm intends to invest in retail, chemicals, food processing and real estate, as well as develop railway platforms in the country, the person said. Separately, PSA Group, the maker of Peugeot and Citroen cars, plans to spend about 1 billion euros ($1.2 billion) to build a car factory and an engine plant in southern India, the person said.

Modi’s flagship "Make in India" plan encourages foreign firms to manufacture locally by offering easier land acquisition, pruning the number of approvals and, in some cases, offering incentives. The efforts have helped India move up in the World Bank’s ease of doing business survey and achieve an unexpected credit rating upgrade last week by Moody’s Investors Services.

"Lotte is exploring various business opportunities in India and other countries, but there is nothing confirmed or discussed in detail as to which areas to enter and how much money to invest," Lotte said in a statement. A Paris-based spokesman for PSA referred to a statement in January on the cooperation with C.K. Birla Group in India, which included an initial investment of 100 million euros.

Lotte plans to develop urban real estate by adopting railway stations and maintaining them, the person said. In return, the railways will allow the South Korean firm to operate restaurants, hotels and shops, the person said. The confectionery arm of Lotte is in the process of setting up a new factory in India, according to the person.

The Indian government is discussing more than 550 foreign investment proposals worth about $85 billion, offering competitive terms to companies and ensuring uninterrupted supply of power and water to plants, the person said. The proposed projects include setting up factories in the areas of food processing, electric vehicle components and electronics among others, the person said.
https://economictimes.indiatimes.co...e-from-lotte-peugeot/articleshow/61764225.cms

Cryptic world: Billdesk launches India's first crypto-currency exchange
Mumbai based payment gateway Billdesk has launched ‘Coinome’, India's first crypto-currency exchange.

Coinome will allow users to be on-boarded via Instant e-KYC. Users can start transacting in crypto-currencies almost immediately upon registering.


The exchange supports instant deposits using payment gateway and instant withdrawals, thereby allowing transactions even on weekends or business holidays.

The exchange plans to support 20 mainstream crypto-currencies by 2018.

Headquartered in Mumbai, Coinome is incorporated under Hatio Innovations Pvt. Ltd, a wholly owned subsidiary of BillDesk.

“We would fundamentally like to provide Indian users with a secure and convenient means for buying or selling Bitcoins, and other crypto-currencies and promoting the same within Indian masses as commercially viable alternatives for building their digital assets,” said Vivek Steve Francis, CEO of Coinome.

BillDesk’s expertise in secure online payments will support Coinome in promoting crypto-currencies as viable avenues for investments, transactions, and building digital assets.

Srinivasu MN, Co-founder, and director of BillDesk said, “Advancements in Blockchain, as well as crypto-currency space, are happening at a rapid pace. We are making the long-term bet that digital currencies are going to be powering transactions in the future and change the way consumers and organizations interact and transact with one another.”

As an open order book crypto-currency exchange, Coinome offers optimum price discovery to users.
http://www.moneycontrol.com/news/bu...rst-crypto-currency-exchange-2445875.html/amp