Indian Economy-News & Updates

[RISING SUN]

Talgo chief meets Rail Ministry, offers to manufacture in India
Minister Piyush Goyal today met José María Oriol, the CEO of Talgo, who offered to build the light-weight, energy efficient Spanish Talgo trains in the country under the 'Make in India' initiative, ministry officials said.

The meeting is significant as the project to introduce these trains has been in cold storage since the Indian Railways conducted trials last year to validate their speed potential.

Sources say that during the meeting Oriol told Goyal that the company was open to "everything" - from manufacturing the coaches to entire train sets in India.

The minister was assured that the company supported the government's Make in India campaign and "risked coming to India at their own cost" because they wanted to "manufacture" in the country, a ministry official said.




related news

• Train derailment: Railway Ministry announces ex-gratia
• Railways to deploy artificial intelligence to predict signalling failures

During the trial run in September last year, the train clocked a top speed of 180 km per hour and completed the 1,384 kilometre journey between New Delhi and Mumbai in 11 hours and 40 minutes, compared to the 15 hours and 50 minutes taken by the Rajdhani Express.

However, since then the idea of making them operational in the country has made little progress as a committee highlighted a series of problems with the ambitious project, including that such a large order size, technical changes to train design and high lease costs could not go through without competitive bidding.

What made Talgo trains attractive for Indian Railways was the fact that it can be deployed on existing tracks. The lightweight design and advanced suspension technology allows Talgo trains to travel faster, minimises risks of accidents and puts less force on existing tracks during high-speed manoeuvre.

While the average speed of Rajdhani and Shatabdi coaches is around 70 kmph, Talgo trains can run at an average speed of 105 kmph on the same tracks.

The successful trial of Talgo trains was even highlighted in the list of the NDA government’s achievements in its first two years.

However, a question mark hangs over the fate of the project after the Indo-Spanish joint statement issued after Prime Minister Narendra Modi's visit to Spain in May this year did not mention it.
http://www.moneycontrol.com/news/in...y-offers-to-manufacture-in-india-2446083.html

 

[RISING SUN]

Kochi Takes Crown For Indian Port Growth
High throughput growth at Kochi port (Conchin Port) on India’s west coast has meant it is now the fastest growing Indian port, according to The Hindu.
The International Container Transshipment Terminal (ICTI) registered its highest ever monthly throughput of 51,019 TEUs for October, 2017.

This improves on the previous record throughput of 50,842 TEUs hit in August 2017.

Kochi Port has also handled a total of 16.45 million tonnes of cargo between April and October in the current financial year, representing growth of 17.65% over 2016-17.

Containerised cargo traffic has shown rapid growth of 12.73% during the April-October, 2017.

Kochi port appears to have grown nearly 20% during the financial year till September, 2017, figures from the Indian Ports Association shows Kochi has the highest rate of growth of the major ports in India for the current financial year.

However, the Halida Dock Complex in Kolkata on India’s east coast came a close second with nearly 18% growth during the period.

This compares with the national average for port growth of 3%.

It was a growth of 80%. The port had handled 25.01 million tonnes of cargo during 2016-17 with a growth of 13.2% against the 22.10 million tonnes of cargo during the previous financial year.

The total containerised cargo handled by the terminal here during 2016-17 stood at 4.91 lakh TEUs with a growth of 17%.
https://www.porttechnology.org/news/kochi_takes_crown_for_indian_port_growth

 

[RISING SUN]

In 24 hours, Mumbai airport handles 969 flights; sets new world record
Creating a new world record for single-runway operations, Mumbai airport handled 969 take-offs and landings in 24 hours on Friday. It broke its own record of 935, said a Mumbai International Airport Ltd spokesperson (MIAL).

Mega cities such as New York, London, Dubai and Delhi have airports with two or more runways that operate simultaneously. Though Mumbai has two runways, they criss-cross each other, so only one runway is used at a time. Technically this puts Mumbai in the single-runway airport category. So it's in the league of busy single-runway secondary airports of cities like London (Gatwick, Stansted airports), Istanbul (Sabiha Gokcen airport) and major airports of smaller cities like San Diego (US), Fukuoka (Japan) and Xiamen (China).

Mumbai handles over 900 airline flights per day. The record high air traffic movement (take-offs and landings) happen on days when the number of unscheduled flights-charter aircraft, private aircraft-go up, like it did on Friday. These flights are banned during the morning and evening peak hours, so when the load goes up during non-peak hours, new records are set. "We hope to cross 1,000 aircraft movements per day soon,'' the MIAL official said.

In civil aviation, the norm is to record time in UTC (Coordinated Universal Time, same as GMT) and Indian Standard Time is five-and-a-half hours ahead of UTC. The feat was achieved from 5.30am on Friday to 5.30am on Saturday.

Mumbai's demand for air travel coupled with land-shortage (which means it will never have a parallel runways) has forced the private airport operator, the government-run air traffic control and airline pilots to eke out every second worth of efficiency from the 12,008 feet long main runway 27. The runway has a declared capacity to handle 46 take-offs and departure in an hour. Twice on Friday-once in the morning and once in the evening-the runway handled 50 movements in 60 minutes.

"The second a landing aircraft crosses the beginning of the runway to the second when it exits the runway is recorded. Similarly, take-offs too are recorded and the data is shared with airlines on a weekly basis,'' an airport official. Every upgrade of the runway and taxiway infrastructure, change in operational practices aims to reduce the runway occupancy time (ROT).

Kapil Kaul of Centre for Asia Pacific Aviation (CAPA), a global aviation consultancy firm, says: "Gatwick is the only single-runway airport in the world that routinely handles more than 50 flight movements in a given hour. All others are 42 or less. Mumbai has the second highest as it crosses 50.''

A senior air traffic controller said: "Mumbai main runway's best so far is 52 arrivals or take-offs in 60 minutes.'' Gatwick has touched 55-56, he adds. "But there are times when we get the right mix of aircraft and weather conditions and we have handled 10 take offs or landings in 10 minutes,'' he says. A "right mix" is when the wind speed and visibility is good, all the aircraft involved are either A320s or B737s (similar speed and weight aircraft, that is), all are manned by pilots who are well-versed with the layout of Mumbai airport. Also, the departures should be such that they are in left-right-left pattern, which means one departure to north, followed by one to South, then to North and vice-versa. That's because departures to North turn right after lift off, those to South turn left and so adequate spacing between aircraft is automatically maintained.

https://timesofindia.indiatimes.com...l&utm_campaign=TOI&utm_content=om-bm&from=mdr

 

[RISING SUN]

Delhi-Chandigarh 200-kmph rail corridor to cost Rs 11,000 crore: French report
It will cost about Rs 11,000 crore ($1.7 billion) to increase the train speed up to 200 km per hour on the Delhi-Chandigarh route so that a passenger can travel the distance in two hours, according to the draft final report submitted by SNCF, the French railway, to Indian Railways.

The 245-km Delhi-Chandigarh corridor, one of the busiest routes in north India, is slated to be the first semi-high speed project being taken up by the state-owned transporter to run trains at maximum speeds of 200 kmph with French help.

The 1,700-page detailed report will be taken up for finalisation in Indian Railways on Monday for preparing tendering documents and drawing out an action plan as a way forward.

French President Emmanuel Macron is expected to visit India in January 2018 when the project will be formally launched.

The railways will sign a MoU with SNCF next year expanding the scope of cooperation in the rail sector, including training of drivers of semi-high speed trains and safety and security of train networks.

The total travel time will be 2 hours and 2 minutes at a maximum speed of 200 kmph with two stoppages at Panipat and Ambala, according to the report.

Currently, the Shatabdi Express covers the distance in about three hours and 30 minutes travelling at a maximum speed of 110 kmh.

SNCF has submitted the execution strategy and implementation model with detailed project cost involving an upgrade of the the route with details of cost analysis and technical parameters.

The report has pegged the total estimated cost at Rs 11,218 crore, which includes the cost of signals upgrade, main civil works and rolling stock among others.

Senior officials from both sides will examine the report and a final cost will be decided after the discussion on Monday, said a senior Railway Ministry official.

There will be re-alignment as there are about 20 major curves spanning over 32.7 km on the existing Delhi-Chandigarh rail route. However, there will be no acquisition of fresh land for the re-alignment as it will be done within the Railways right of way.

Beside Delhi-Chandigarh, there will be upgrades of seven more routes totalling about 4,000 km, including Mumbai-Goa, Chennai-Hyderabad, Mysuru-Chennai, Delhi-Kanpur and Nagpur-Secunderabad.

The Delhi-Chandigarh route is expected to be a demonstrative project by France.
https://economictimes.indiatimes.co...-crore-french-report/articleshow/61806514.cms

 

[RISING SUN]

India has potential to be $10 trillion economy: McKinsey MD Dominic Barton
Despite bitter competition, the leaders of competing consulting firms grudgingly admit that Dominic Barton ‘saved’ McKinsey. In 2009, just after his election to the firm’s corner office, Barton bore the brunt of the Rajat Gupta scandal and the firm’s impeccable reputation was suddenly at stake. Not only did the Canadian consultant steady the firm, but in the following years, also placed big bold bets to lay the foundation for McKinsey’s next growth drivers. As Barton’s term nears end, Vinod Mahanta met him to discuss the India opportunity, threats to globalisation disrupting his own firm and dealing with the Rajat Gupta episode. Edited excerpts:

In his book ‘Capitalism and Freedom,’ Milton Friedman wrote ‘the business of business is business.’ Hasn’t that approach led to gross inequities?
I think that's the problem. He wrote that article in the 1960s. That approach got us off-track and we became more focused on short-term results and the ‘financialisation,’ if you will, of business. If you go back to Adam Smith, that's not his model. Smith believed that the duty of the entrepreneur is to take care of the society in which they operate — a broad-minded theory. We've drifted away from that. That said, performance and transparency is important, but we have lost focus of the sense that the purpose of business is to solve a problem, or help meet a consumer need and if, by the way, you do well, you make money.

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McKinsey’s 25th year celebrations coincide with 25 year of economic reforms in India. How would you look at comparative journeys?
From the McKinsey point of view, the terminology we use is that it’s the end of the beginning — the first 25 years. I am very bullish. We had a debate about this: why were there only eight Indian companies in the world’s top 100 and 41Chinese companies?

My view was that, why would Indian businesses go global when the domestic growth opportunity is so enormous? We are at a place where the amount of investment, momentum and reinforcing circles are going to accelerate.

You can see that in the headlights now — the economy is going to touch $10 trillion. I don't mean it next week, but you can actually start to say that this could be a $10 trillion economy. India is one of the absolute biggest growth pockets in the world. Reforms by the (Narendra) Modi government are not perfect in terms of execution, but they are jolts. Japanese PM (Shinzo) Abe talks about three arrows. But in India, we are talking about maybe eight to nine arrows. It’s not to say there are no risks or challenges, but to have scale and population like India, the growth potential is present.

A surprising feature of China has been emergence of gigantic private sector companies. India, which has a much deeper history of entrepreneurship, hasn't created private companies of that size. Why do you think that is the case?
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I think India…is well on its way to creating bigger companies. You have more people in China participating formally in the economy than you do in India, so the base you are dealing with is different. If we can get 400 million Indians into the system formally, with bank accounts and access to smartphones, then you will see it.

Companies such as Tencent came out of nowhere. What they've done using data analytics is that they are serving 300 million people, so participation rate of Chinese in their economy is higher and that will come to India. We're just at an earlier stage. China has poor regions but not as black and white as India. But as more and more Indians get connected, get inducted formally into the system, it will happen.

It will be easier for Indian companies to globalise than the Chinese companies because Indians, by definition of having so many languages and with so many global Indians in different parts of the world, are more connected.

There is no known case in history, including China, of a country growing without an exports surge. How difficult would that kind of success be for India?
I'm not so obsessed with the export-driven element because of the size of the domestic market, which will be the growth driver for India. We have to be focused on how to get 9% growth; what is the infrastructure that needs to be built, how can we de-bottleneck that and how can we get the NPA (resolution) system to actually work?

I've heard Apple and Foxconn want to build their facilities here, but we have to look at how to fast-track such ideas. So I will be much more obsessed with the domestic unleashing, as opposed to doing things to the export market, because digital enables more people to participate in the economy. When we look at China, we underestimate the role that Tencent and Alibaba have played. The last phase of China’s growth story was pretty much exports, but you have to see how Alibaba has hooked up hundreds of millions of SMEs into one system; that's a bigger policy shift than the Chinese government has put in terms of getting people involved in the system, even in terms of financial inclusion.
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Maybe India is where China was in the early 2000s; that's what my gut feels. The big thing is, I can now actually see $10 trillion. I never would have said that before and I don't know how long will it take, but it's not crazy. The market is acting in a certain way, you are heading towards this compounded growth rate which all of us humans underrate the impact of. I see one of those things starting to come and I just hope we can get the execution right.

What are your views on India’s digitisation push?
I think it’s the most important theme, because it’s a natural evolution. Indian IT companies are very good and that will allow the country to leapfrog technologies or deal with the issues of giving people access to education, access to markets, making them part of the formal economy. I think digitisation is the tool. We need to rethink education and even how you train someone for a job. Also, in healthcare, what digitisation allows us to do is to get a lot of data, which is a huge competitive advantage for India. GST, Aadhaar and demonetisation are serious attempts that are risky, maybe unpopular, but will lead to formalising the economy; trying to put foundations in place to build something. A lot of governments would make a single GST agenda the only focus in their entire term because they will be scared like hell about how it is going to happen. Here, it just seems one of the things that you pull out of the quiver.

With Brexit referendum, threats to NAFTA etc, the inexorable progress towards globalisation seems to be more in question. Your thoughts?
I do worry about that because one of the second order of facts of this technology disruption and trade is that you have a larger portion of the population that’s not gaining from it. There’s definitely a machine that’s anti-globalisation, anti-immigration, and it could take us to a very bad dark place. We know our history and you’ve got a machine that’s now operating.

There are two types of trade — physical and financial. I bucket that as one; then there is data-technology related trade. There is nothing anyone can do to stop this trade; just like Facebook or Netflix, where consumers are actually the ones who decide to use or not. It’s just by virtue of this, Google, Facebook, Tencent, etc have a customer base of well over two billion people. They’re beyond the government.

So on a physical side, despite President (Donald) Trump’s drive against globalisation, that’s not the collective view of the US. China is pushing very hard for it. As long as there’s an overwhelming group that wants to keep it going... the situation is a bit like climate change. I think the momentum for globalisation is strong enough and it will continue in spite of a few countries working against it. But my worry is, if you start to get two or three more countries joining the chorus against trade, then it’s a race to the bottom.

Has betting on India paid off for the McKinsey practice?
For McKinsey, India is a strategic battleground. There are places, industry sectors, capabilities for McKinsey to be relevant in the future. India is one of five markets we have selected. From a client point of view, India is a very robust market. Clients pay for good work. We have some very significant global clients present in the market. So many of our global leaders such as Ashutosh Padhi, Zubin Taraporevala, Noshir Kaka and Sajal Kohli have an India connect. India has the single biggest concentration of our advanced analytics and knowledge network work.

What is your view on artificial intelligence and the impact on jobs?
I am optimistic AI will change the nature of jobs in a very quick way and we’re not going to be able to necessarily keep up with the change because the education system will lose relevance. But it will lead to a whole bunch of jobs I can’t even imagine right now. I am actually quite positive. What I’m worried about is the education systems and lifelong learning.

How tough was it to deal with the Rajat Gupta episode?
It was very tough…because I respect Rajat. He was a guy who built a lot of what the firm is today and I don’t think he’s a bad man. So, it was very painful. What I learnt from the episode was that it’s better to be completely open about it. That way you make better decisions. I discussed it while recruiting, spoke to clients because it was the elephant in the room everywhere. I addressed it head-on. The other thing I realised is that relationships are resilient. CEOs stood by us. A lot of clients actually helped me through that period. We also put in place processes that would raise the flag much before anything like that happened.

McKinsey was also named in a South African scandal involving the Gupta family. Comments?
We hadn’t worked with the company earlier and we also ended up working alongside a group where we hadn’t completed due diligence. It was a fee at risk situation. We are giving back the money. We had over 100 people working in that place. The question was whether it was the right place to be working, given the conditions in South Africa. We are going to make mistakes in what we do and we should be open about such situations. I think one of the biggest issues is, we have to be more transparent as McKinsey.
https://m.economictimes.com/opinion...nckw.0&utm_referrer=https://www.google.co.in/

 

[RISING SUN]

Bank recapitalisation to lift GDP growth to 8% next fiscal: Goldman Sachs
The economy is likely to clip at 8 per cent next fiscal as the massive bank recapitalisation will help revive the long-stalled credit demand and private investments, says a brokerage report.

According to Wall Street brokerage Goldman Sachs, the Rs 2.11-trillion bank recapitalisation announced by government last month and a likely recovery in earnings are also likely to drive up the stock markets and has set the Nifty target of 11,600 by next December.



"We project above-consensus real GDP growth of 8 per cent in 2018-19, while we see a growth of 6.4 per cent for 2017-18, as the negative impact from shocks (demonetisation and GST implementation) this year fade and the bank recap programme unlocks credit and private investment growth," it said today.

It said CPI inflation is likely to rise above the mid-point of RBI target to 5.3 per cent in FY19 due to a pick-up in food and commodity prices, and so it expects RBI to hike policy rates by 75 basis points by mid-2019.

Keeping a "overweight" view on the stock markets, Goldman Sachs chief Asia Pacific regional equity strategist Timothy Moe told reporters that, "Nifty is estimated to hit 11,600 by December 2018 from the current levels with earnings growth to be the key propellant".

He also said the market is likely to generate 18 per cent returns in 2018 helped by the recently announced bank reforms. However, he cautioned that any delay in earnings growth can pose downside risks to this outlook.

Economic activity could pick up in first half of 2018, said the report "as the drag from the idiosyncratic shocks of demonetisation and GST implementation fade".

"Four months into GST, our channel checks suggest that there are still some headwinds to activity due to uncertainties around the new tax system and an increased compliance burden," it added.

However, it further noted that its discussions with retailers, wholesalers and manufacturers show that recent government announcements to ease compliance burden and reduced tax rates for nearly 200 products can boost activity over the next three to six months.

On the impact of the bank fund infusion, the report said it expects positive effects from the public sector bank recapitalisation to flow through the economy form the second half of 2018.

"The bank recapitaliation can break the vicious cycle between higher non-performing loans, weaker bank balance sheets and slower credit growth that has inhibited the acceleration in the growth cycle over the past few years," the report said, adding this can also lower borrowing costs further due to competition.
http://www.business-standard.com/ar...scal-goldman-sachs-report-117112700787_1.html

ADB to extend $20 bn loan for India over 5 years
lateral funding agency Asian Development Bank (ADB) today said it will raise annual funding to India up to USD 4 billion from existing USD 2.7 billion, from next year.

To accelerate the inclusive economic transformation of India, ADB has decided to provide loans up to USD 4 billion on annual basis including non-sovereign debt during 2018-22, said Kenichi Yokoyama, ADB Country Director in India.

So cumulatively, India, the largest recipient of ADB, will get about USD 20 billion over a period of 5 years.

As part of the country strategy 2018-22, annual sovereign funding will increase from USD 2 billion to USD 3 billion while private sector funding would be doubled to USD 1 billion, he said.

"The other priority pillars include increasing annual funding to low-income states and climate change," he said.

The India programme will focus on boosting economic competitiveness to create more and well-paid jobs, improved access to infrastructure and services, and addressing climate change and improving climate resilience over these five years.

ADB said infrastructure continues to be a major bottleneck. The agency said it has identified an investment shortfall of USD 230 billion a year in the infrastructure sector.

On GDP growth, he said, India is expected to grow at 7 percent in the current fiscal and will accelerate to 7.4 percent next fiscal.

Although the first quarter growth was muted, it is expected to pick up in the remaining quarters and average growth would be 7 percent, he said.

The Indian economy expanded by 5.7 percent in the first quarter of the current fiscal, the lowest in the three years.

On job creation, Yokoyama said, it is a challenge for India.

"Looking at past performance, India's poverty reduction record has been quite substantial. We saw rural wages growing faster than economic growth rate. It has led to reduction of agriculture labour," he said.

Skill development is an area that would help in employability, he said.
http://www.moneycontrol.com/news/bu...0-bn-loan-for-india-over-5-years-2448455.html

India's gold imports to jump to over 700 tonnes in FY18: GJEPC
India's gold imports will jump to over 700 tonnes in the current fiscal as against 500 tonnes in 2016-17, a top industry association said on Monday.

Addressing a press conference, Gems and Jewellery Export Promotion Council (GJEPC) Chairman Praveen Shankar Pandya demanded that the import duty on gold be brought down to 4-5 percent in the Budget, asserting that the prevailing 10 per cent import duty on the yellow metal gives rise to smuggling.

"The degree of difficulty of doing business in India and the import duty of 10 percent is hampering our growth," he said.


However, Sabyasachi Ray, Chief Executive Director, GJEPC, said, "We imported 500 tonnes of gold in 2016-17. This year, we will import around 700 tonnes."

According to GJEPC, the introduction of 5 percent VAT in Dubai from January 2018 and the imposition of 5 percent import duty on gold and diamond jewellery by the Gulf nation in January this year, are bound to hit India's exports from the sector.

Dubai acts as a major transit point and accounts for over 50 percent of the USD 7.5 billion gold jewellery exports from India.

The Council expects gems and jewellery exports to remain flat at USD 43 billion in the current fiscal, on account of sluggish demand in international market, the proposed introduction of VAT and imposition of imports duty by Dubai, and teething problems under the GST regime.

Besides, Ray said the Niti Aayog and Department of Economic Affairs are working on a gold policy, and "most probably it will be announced in the Budget".

He said that post the announcement, there will be a uniform policy for gold and a regulator will be in place to implement it. The policy, he said, will address issues including standardisation, imports, exchange mechanism for gold and refineries, etc.

The Council also demanded an authority like a Gold Board in India "to put a full stop to misuse of policies", claiming that 30-40 tonnes of gold had come without payment of import duty under the free trade pact between India and Korea until it was plugged.

Pandya also demanded that the government should extend the Merchandise Exports from India Scheme (MEIS) to the gems and jewellery sector.
http://www.moneycontrol.com/news/bu...ver-700-tonnes-in-fy18-gjepc-2448453.html/amp

 

[HariVamsha]

Delhi-Chandigarh 200-kmph rail corridor to cost Rs 11,000 crore: French report
It will cost about Rs 11,000 crore ($1.7 billion) to increase the train speed up to 200 km per hour on the Delhi-Chandigarh route so that a passenger can travel the distance in two hours, according to the draft final report submitted by SNCF, the French railway, to Indian Railways.

The 245-km Delhi-Chandigarh corridor, one of the busiest routes in north India, is slated to be the first semi-high speed project being taken up by the state-owned transporter to run trains at maximum speeds of 200 kmph with French help.

The 1,700-page detailed report will be taken up for finalisation in Indian Railways on Monday for preparing tendering documents and drawing out an action plan as a way forward.

French President Emmanuel Macron is expected to visit India in January 2018 when the project will be formally launched.

The railways will sign a MoU with SNCF next year expanding the scope of cooperation in the rail sector, including training of drivers of semi-high speed trains and safety and security of train networks.

The total travel time will be 2 hours and 2 minutes at a maximum speed of 200 kmph with two stoppages at Panipat and Ambala, according to the report.

Currently, the Shatabdi Express covers the distance in about three hours and 30 minutes travelling at a maximum speed of 110 kmh.

SNCF has submitted the execution strategy and implementation model with detailed project cost involving an upgrade of the the route with details of cost analysis and technical parameters.

The report has pegged the total estimated cost at Rs 11,218 crore, which includes the cost of signals upgrade, main civil works and rolling stock among others.

Senior officials from both sides will examine the report and a final cost will be decided after the discussion on Monday, said a senior Railway Ministry official.

There will be re-alignment as there are about 20 major curves spanning over 32.7 km on the existing Delhi-Chandigarh rail route. However, there will be no acquisition of fresh land for the re-alignment as it will be done within the Railways right of way.

Beside Delhi-Chandigarh, there will be upgrades of seven more routes totalling about 4,000 km, including Mumbai-Goa, Chennai-Hyderabad, Mysuru-Chennai, Delhi-Kanpur and Nagpur-Secunderabad.

The Delhi-Chandigarh route is expected to be a demonstrative project by France.
https://economictimes.indiatimes.co...-crore-french-report/articleshow/61806514.cms

Invite the chinese to this line and ask them to give us a quote.

They might even extend this to lahore.

 

[RISING SUN]

Top NSE listed firms log best profit growth in six quarters

Earnings for companies in India's broader NSE Nifty rose at their best pace in six quarters during July-September, according to Thomson Reuters Eikon data, showcasing how profits are finally looking up after a prolonged spell of sluggish growth.

Net profits for companies in the index rose by an average of 11.9 per cent in the September quarter, the biggest gain since a 31 per cent expansion in January-March 2016, data available for 25 companies in the index showed.


That was a median 5.2 per cent above consensus forecasts, the biggest beat since the March 2016 quarter.

According to the data, Indian companies' total profits are expected to grow 25 per cent in the next fiscal year, which would be the highest in Asia.

Analysts said the results in the quarter were a needed validation for a stock market that has surged this year on bets that earnings would improve. This follows India's action to remove high-value currency bills late last year that dented the cash-dependant economy, leading to several quarters of sluggish profit growth.

The results also highlighted how Indian companies withstood the unveiling of a national goods and services tax on July 1, which sent profits down 3.1 per cent for the Nifty companies in the April-June quarter as they curbed production to prepare for the tax rollout.

"It's the beginning of better times, as far as India Inc is concerned," said Deven Choksey, promoter of KR Choksey Group.

"The economy is gaining momentum, this is the beginning of higher earnings for the corporate sector."

The NSE index has surged nearly 27 per cent this year, setting a record-breaking rally.

Sectors such as consumer goods and automakers posted strong profit growth, in a welcome indication that demand was improving, analysts said.

Tata Motors Ltd reported a nearly three-fold jump in quarterly profit at 24.83 billion rupees ($386 million), blowing past estimates for the September quarter.

Energy and metals companies also performed well in the quarter, helped by higher commodity prices.

Reliance Industries Ltd, for example, posted a 7.3 per cent rise in standalone profit at 82.65 billion rupees ($1.28 billion), its highest ever.

But telecom firms posted a drop in profits as the sector continues to be hurt by cutthroat competition from upstart Jio Infocomm, while healthcare stocks were hit by regulatory scrutiny and pricing pressure in the key United States market.
http://www.business-standard.com/ar...it-growth-in-six-quarters-117112900707_1.html

VoLTE subscribers in India to reach 800 mn by 2023: Ericsson
India will have a total of 800 million VoLTE subscribers by 2023, posting an annual growth of 42.5 per cent between 2017 and 2023, according to a study by mobile equipment manufacturer Ericsson.

LTE will account for more than 60 per cent of the total subscriptions in the country by 2023 compared with 12 per cent LTE subscriptions in 2017, the November edition of the Ericsson Mobility Report released today said.


“We expect LTE to be the most dominant technology in India by 2023,” said Nitin Bansal, Managing Director, Ericsson India.

The total mobile data traffic per month in India is expected to grow 11 times during the forecast period from 1.3 Exabytes (EB) to 14 EB by 2023. The report estimates that the monthly data usage per smartphone (GB/month) in India will rise 5 times from 3.9 GB in 2017 to 18 GB by 2023.

The total mobile subscriptions in the country as per the report stood at 1.185 billion in third quarter of 2017.

Globally, there will be 1 billion 5G subscriptions for enhanced mobile broadband by 2023, Ericsson forecasts.

Expected to be deployed first in dense urban areas, 5G will cover over 20 per cent of the world’s population by the end of 2023. The first commercial networks based on 5G New Radio (NR) are expected to go live in 2019, with major deployments from 2020. Early 5G deployments are foreseen in several markets, including the US, South Korea, Japan, and China.

Global mobile data traffic to surpass 100 Exabytes per month in 2023, it added.

Mobile data traffic is expected to surge by eight times during the forecast period, reaching 110 Exabytes per month by 2023. This corresponds to 5.5 million years of HD video streaming.
http://m.thehindubusinessline.com/i...ch-800-mn-by-2023-ericsson/article9975339.ece

 

[RISING SUN]

Government transfers Coal India shares to Bharat 22 ETF
government has transferred Coal India shares worth nearly Rs 507 crore to Bharat 22 ETF, says a regulatory filing.

"The Ministry of Coal... on behalf of the President of India has transferred 1,92,99,613 equity shares to 'Bharat 22 ETF' at a value of Rs 5,06,51,14,597, which is 0.31 per cent of total equity share capital of the company," Coal India said in a filing to BSE.

"Post transfer, holding of President of India is 4,87,56,71,716 equity shares, which is 78.546 per cent of equity share capital of the company," the filing said.

The Bharat 22 Exchange Traded Fund (ETF), comprising scrips of 22 blue-chip companies, this month attracted robust bids, with the portion reserved for anchor investors getting subscribed six times to the tune of Rs 12,000 crore on the opening day.

The ICICI Prudential MF-managed Bharat 22 ETF's new fund offer (NFO) has a size of over Rs 8,000 crore.
www.moneycontrol.com/news/business/markets-business/government-transfers-coal-india-shares-to-bharat-22-etf-2448673.html

Government says India's chemical industry to hit $300 billion by 2025
chemical sector is expected to double its size at USD 300 billion by 2025, clocking an annual growth rate of 8-10 percent per, the government said today.

To meet this objective, the Centre also announced plans to bring a new policy to promote the domestic industry and curb imports.

Addressing a CII conference, Department of Chemicals and Petrochemicals secretary Rajeev Kapoor said this industry is critical and one of the driving engine of manufacturing sector.

"Indian chemical sector is worth USD 150-155 billion at present and is growing at 8-10 per cent annually," Kapoor said, adding the sector's size is poised to reach USD 300 billion by 2025.

The sub-sectors like speciality chemicals and agro- chemicals are growing at a higher pace, he noted.

The secretary said the department is working on a draft chemical policy which would focus on meeting the rising demand of chemicals from domestic industry and reduce dependence on imports.

Kapoor did not give any deadline by when this draft would be unveiled.

Taking about the challenges faced by the industry, he said there is a lot of negativity about plastic and petrochemicals and stressed on the need to create awareness among consumers that "plastic is not devil".

He asked the industry to focus on research activities to come out with new innovative products based on the feedback of user industries like automobiles.

Kapoor pointed out that the use of plastics in Indian automobiles sector is lower than the global average.

The secretary said the industry should also focus on assuring feedstock supply and even suggested that the domestic players should together place order to buy such from global markets at cheaper price.

Kapoor also spoke about the need to rework the current Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) policy to make them more effective and encourage additional investments.

He emphasised on the need to rationalise regulations related to environment.

The department has taken up the issues related with FTAs (free trade agreements) in the chemical sector with the commerce ministry, Kapoor added.
http://www.moneycontrol.com/news/bu...ustry-to-hit-300-billion-by-2025-2449457.html

Core sector grows 4.7% in October
Higher output of steel and fertilisers made India’s eight infrastructure sectors grow 4.7% in October same as September last month but lower than the 7.1% growth registered in October last year.

The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, constitute 40.27% of the total industrial production.

As per the data released by commerce and industry ministry on Thursday, steel production rose 8.4%. Fertiliser output increased 3% after declining 7.7% in September.

October's flat growth is attributed to lower production in coal, crude oil, cement and natural gas.

Cement production rose 3.9% in October compared with a 10.4% growth in September.
https://economictimes.indiatimes.co...lynews&ncode=75903408e0b98cc650a2176b9dd8c4b8

Final GST data may push up Q2 GDP
Second-quarter growth could be revised upwards once indirect tax collections are finalised: Anant
The Goods and Services Tax (GST) appears to have had an immediate and significant impact on economic growth, according to tax analysts and government officials.

The fiscal second quarter (July-September), which coincided with the July 1 roll-out of GST, saw GDP growth accelerate to 6.3%, from 5.7% in the first quarter. The new indirect tax regime had an impact — both in terms of the methodology of calculating GDP, as well as on the performance of the input parameters themselves.

‘Uncertainty over GST’

“In a normal year, businesses are conversant with the tax processes, and so know their tax liability, so the collections are usually in line with what is anticipated,” TCA Anant, Chief Statistician of India and Secretary to the Ministry of Statistics and Programme Implementation, said on Thursday. “However, this year, the uncertainty surrounding GST procedures, and the leeway the government has given in terms of extended deadlines, has meant that the indirect tax collections for the particular period are still being updated.” Gross Domestic Product (GSP) is calculated by adding the indirect taxes figure to Gross Value Added (GVA), and subtracting subsidies, Mr. Anant said, highlighting the reason that GST collections are so crucial for accurate GDP computation.

“On the one hand, there would possibly have been some disruption in the early days of GST due to the uncertainty surrounding the new processes,” Anis Chakravarty, Lead Economist at Deloitte India, told The Hindu. “On the other hand, net taxes are added back to the GVA and somewhat lower collections on the GST front could have had some dampening effect as compared to a non-GST year.”

Mr. Anant said the GDP data for the second quarter could see an upward revision when the government released its revised estimates as it would reflect the final indirect tax collections — a figure that would include the taxes collected from late filers as well.

“The Q2 growth pick up is almost entirely due to the growth pick up in manufacturing, which came to a standstill prior to GST due to destocking,” D.K. Srivastava, Chief Policy Advisor at EY India, said. “When GST got implemented, then orders started flowing in and growth picked up. So, GST has had a major impact on this quarter’s growth rate. In the coming quarters, the GST reforms in terms of rates and compliance should play a significant part in manufacturing sector growth.”

Mr. Anant said services was another area impacted by GST as earlier sales tax data was used to gauge activity.

“What we looked at instead was the sales tax collections for items that are currently outside GST, and what we found was that there is a stable ratio between those collections and overall sales tax collections in the past,” Mr. Anant said. “So, we used that as the basis to estimate services sector activity in this quarter.”

According to tax analysts, the services sector, especially hotels and restaurants, have suffered due to the increase in their effective tax rate under GST, and so the tax collection data from these sectors could be dampened.
http://www.thehindu.com/business/final-gst-data-may-push-up-q2-gdp/article21235908.ece

 

[RISING SUN]

Power Finance Corp lists green bond on London Stock Exchange
India's Power Finance Corporation's (PFC) has listed its first international bond in almost two decades on the London Stock Exchange to finance renewable energy projects in the UK.

The 10-year dated green bond raised USD 400 million, paying a 3.75 per cent semi-annual coupon and listed on London Stock Exchange's new International Securities Market (ISM) this week.

"The funds raised will help promote renewable energy projects across the country and aid in achieving the government's target of 175GW of installed renewable energy capacity by 2022," said PFC chairman Rajeev Sharma.

"The bond issuance allows PFC to access a new offshore investor base and also diversify its funding sources," he said.

The PFC said that projects eligible for the funds will be identified within its Green Bond Framework, which was drafted in accordance with the Green Bond Principles, a global set of guidelines framing the issuance of green bonds.

The latest Climate Bonds Initiative certified bond is the seventh green bond listed on London Stock Exchange in November 2017, and the fifth green bond by an Indian issuer in London. "PFC is unlocking and promoting green finance across India, enabling the country to achieve its ambitious climate change targets set out under the COP21 agreement," said Nikhil Rathi, CEO of London Stock Exchange Plc.

"London Stock Exchange is a recognised world leader in green, sustainable and debt financing, highlighted by this year's exceptional green fixed income activity. London supports issuers from Abu Dhabi to China, Finland to India in accessing international investment capital," he said.


He added that there has been an "undeniable shift" in momentum in green and sustainable financing across the world which has triggered a "green funding revolution".

According to the LSE, green bonds in London have raised over USD 3.2 billion in November 2017 alone.

In total, there are 59 green bonds listed in London that have raised over USD 19.5 billion in aggregate terms across seven currencies.

The London Stock Exchange Group (LSEG) said it has been supporting investors and issuers in the transition to a low- carbon and sustainable economy for over a decade, developing innovative products and services in close collaboration with the market.

"The comprehensive sustainable finance offering is focused on green financing for issuers (both debt and equity), indexing and analytics," LSEG said.

LSEG had joined the UN's Sustainable Stock Exchanges initiative as a Partner Exchange in 2014 and has also signed The Paris Pledge for Action.
https://m.economictimes.com/default_pwa.cms?article=61861419

 

[RISING SUN]

Railways to allow train ticket bookings on BHIM app
Buoyed by a 12% surge in the number of reserved tickets being booked digitally, the Railways on Thursday said passengers can now book their tickets on an app called Bharat Interface for Money (BHIM).

Ticket buyers can use the BHIM app from Friday, said Mohd Jamshed, member (traffic) of the railway board. Before demonetisation, around 58% of reserved tickets were booked online. The number has risen to 70% since October 2016, he said.

Indian Railway Catering and Tourism Corporation (IRCTC), a subsidiary of the Indian Railways, handles online ticketing operations of the national carrier.

BHIM or UPI (Unified Payments Interface) promoted by Prime Minister Narendra Modi post demonetisation facilitates instant fund transfers between two bank accounts on a mobile platform. Details of the beneficiary’s bank account are not needed for this.

Indian Railways has seen a surge in digital payments since October 2016 through e-tickets, but at counters, only 2-3% transactions are cashless. “Around 3-5 crore people in the reserved (ticket) category have migrated towards digital transactions through e-ticketing. At the counters, around 30% passengers buy reserved tickets. We have installed card swiping machines for debit or credit cards,” he said.

But the Railways wanted to find a way to help passengers who did not wish to carry card or cash, but just their phones, he said. “So we are starting UPI from tomorrow. Passenger can go to the counter with their handsets and get their reserved tickets,” he said.

Reserved tickets worth around Rs80 crore are bought through e-ticketing daily while tickets worth Rs30 crore are purchased from counters at railway stations, Jamshed said.
http://www.livemint.com/Politics/M7...-allow-train-ticket-bookings-on-BHIM-app.html

High-speed rail to interlink four metros by 2022
The high-speed network of trains will run at 160 kmph, against the current average speed of around 88-90 kmph.

The cost assessments of the four other routes are being considered for inclusion in the works programme for 2018-2019.
New Delhi: An ambitious project of the Indian Railways which will reduce travel time by interconnecting the four major metros of New Delhi, Mumbai, Chennai and Kolkata will be launched in August 2022. The high-speed network of trains will run at 160 kmph, against the current average speed of around 88-90 kmph.

Named as the “Golden Quadrilateral”, the project plans to create a 10,000-km network of semi-high speed routes linking the four major cities and is likely to be launched on August 15, 2022 to coincide with 75 years of India’s Independence.

The blueprint to draw up an interconnecting line between the four metros — Delhi-Mumbai, Delhi-Howrah, Delhi-Chennai, Chennai-Howrah, Chennai-Mumbai and Howrah-Mumbai — was drawn up on Tuesday. Sources said the project has been cleared by the Niti Aayog and is awaiting Cabinet sanction, which is under process.

A senior Railway Board official said: “We are still finalising the blueprint and efforts are on to officially launch the project by August 2022 to coincide with the celebrations around India’s 75th year of Independence. However, everything depends on how we manage to meet every deadline set for the project.”

The Delhi-Mumbai and Delhi-Howrah routes were included in Budget 2017-2018 at a cost of Rs 11,189 crores and Rs 6,975 crores respectively. The cost assessments of the four other routes are being considered for inclusion in the works programme for 2018-2019.

The Railway Board is expected to finalise a detailed cost estimate for the remaining routes by December 31 this year. An extra budgetary allocation of around Rs 36,000 crores will be required for the project.
http://www.asianage.com/india/all-india/011217/high-speed-rail-to-interlink-4-metros-by-2022.html

 

[Hindustani78]

Ministry of Railways
05-December, 2017 16:11 IST
Ministry of Railways earmarks seats for Security Personnel of escorting teams in the trains

Berth no.63 in S1 Coach of the train earmarked for Security Personnel

To help passenger to contact security personnel onboard a running train, Indian Railways has decided to earmark seats for security personnel of train escort team. In a recent circular issued from Ministry of Railways, provision of one side lower berth (berth no.63) in coach S1 has been earmarked in Sleeper Class coach in the entire train in which this security staff is travelling. If the train is being escorted by GRP, one berth will be earmarked for GRP and in case the train is escorted by RPF, one berth in Sleeper class will be earmarked for RPF. In case no RPF/GRP is escorting the train, no accommodation will be earmarked for them.

In case of any untoward incident or for any security related issues during journey, passengers may contact the security staff at the earmarked accommodation.

*****

 

[Hindustani78]

File photo of the Kacheguda railway station in Hyderabad. | Photo Credit: P.V.SIVAKUMAR

http://www.thehindu.com/news/cities...way-station/article21299445.ece?homepage=true


Kacheguda Railway Station under the South Central Railway (SCR) has earned the unique distinction of being the first Energy Efficient ‘A1 Category’ Railway Station on Indian Railways.

The station has achieved 100% energy efficiency by replacing 1,312 conventional lights with light-emitting diode (LED) lighting, among other steps. About 370 ceiling fans, too, were replaced with energy efficient Brushless DC Electrical (BLDC) motors fans, and 12 air conditioners with energy efficient inverter-type air conditioners. All these measures would save about 1.76 lakh units and ₹14.08 lakh per annum with reduction of the connected load by 46.18 kW for Railways, said General Manager Vinod Kumar Yadav.

Complimenting Divisional Railway Manager Arun Kumar Jain and his colleagues V. Venkata Ramana and P. Prem Kumar for the feat, Mr. Yadav said they had put in extensive efforts to achieve this distinction.

Kacheguda Railway station is a historic building and had completed 100 years. Situated in the heart of Hyderabad, it was built in 1916 by the Nizam’s Guaranteed State Railway during the reign of Mir Osman Ali Khan, the seventh Nizam.

 

[KapitaanAli]

Anubhuti coaches with aircraft-like features to replace Shatabdi 1st-AC Executive chair cars; 20 amazing facts
By: Smriti Jain

1. 01 / 21
   Anubhuti luxury coaches are all set to replace AC-1st class Executive Chair car coaches in some Shatabdi Express trains. As many as 10 Anubhuti coaches have been manufactured with idea of giving passengers an aircraft-like experience during their train journeys. From LCD entertainment screens that allow you to play movies, to cushioned leg rests and reading lights - Anubhuti coaches are a definite upgrade from the existing Executive chair cars. Adding to the good news is the fact that all these features are unlikely to translate into a fare hike for passengers. Financial Express Online brings you an exclusive preview of the Anubhuti coaches..check out the amazing features and images:
   
   
2. 
   
   02 / 21
   The exterior of the coach has been given an artistic touch, while maintaining the overall blue scheme of the Shatabdi trains. Like all new trains of Indian Railways, this one too has an anti-graffiti vinyl wrapping.
   
   
3. 
   
   03 / 21
   The 56-seat coach has seats in the 2+2 configuration. LED lights have been fitted to save energy and also provide better lighting.
   
   
4. 
   
   04 / 21
   The upgraded executive-class coach has cushioned seats with an airline-like leg-rest to make your train travel more comfortable. The seat can also be reclined.
   
   
5. 
   
   05 / 21
   Yet another aircraft-like facility includes the provision of LCD entertainment screens with every seat. Passengers can play music and movies while enjoying the experience with a personalised headphone that will be provided by Indian Railways. This is similar to the feature that was introduced with the Mumbai-Goa Tejas Express train.
   
   
6. 
   
   06 / 21
   The seats in the middle too have been provided with LCD entertainment screens for all eight passengers (4 on each side). These screens can be made to slide back into the table by the simple action of a push in the downward direction.
   
   
7. 
   
   07 / 21
   An added advantage for the passengers is the provision of USB and mobile charging points in the space that joins two seats.
   
   
8. 
   
   08 / 21
   The favourite snack table that is usually attached to the back of the seat has now found its way in a compact compartment under the arm rest of the seat. Passengers are required to just pull it out and pack it back again after eating.
   
   
9. 
   
   09 / 21
   Just like an aircraft, this coach too comes with a personalised reading light which will not disturb the fellow passenger.
   
   
10. 
    
    10 / 21
    There is also an attendant calling facility above the seat. The 'bell' button will make sure that your queries are answered without moving from your seat.
    
    
11. 
    
    11 / 21
    The luggage racks are spacious and the area above them has been coated with anti-graffiti vinyl wrapping. This will ensure that the walls remain free of scratches.
    
    
12. 
    
    12 / 21
    In the middle of the coach there are passenger information display boards on both sides. These will display useful information such as the approaching station, distance, speed etc.
    
    
13. 
    
    13 / 21
    There are mobile charging points next to each seat area in addition to those provided between the seats.
    
    
14. 
    
    14 / 21
    The seat stickers have been braille-integrated to make them user friendly for the visually impaired.
    
    
15. 
    
    15 / 21
    Anubhuti coaches get a modular toilet with improved features such as touch-free tap and soap dispenser, hand dryer. This is meant to ensure less wastage of water and also allows for better hygiene. The bio-toilet is in line with Indian Railways' aim to make tracks defecation free.
    
    
16. 
    
    16 / 21
    There are toilet occupancy indicators at each end of the coach that light up if the washroom is occupied.
    
    
17. 
    
    17 / 21
    There is also an announcement system at the end of the coach, similar to that in an aircraft.
    
    
18. 
    
    18 / 21
    The mini-pantry remains the same with the only addition being that of a soap boiler, which means an added drink on the menu for passengers.
    
    
19. 
    
    19 / 21
    The doorway area has also been upgraded with anti-graffiti vinyl wrapping, ensuring better cleanliness.
    
    
20. 
    
    20 / 21
    The standard display plate on the exterior has been replaced with an LED display panel that is meant to not only flash the train name and number, but also the destination.
    
    
21. 
    
    21 / 21
    The coaches have been manufactured by the Integral Coach Factory in Chennai. The average cost of manufacturing each coach is Rs 2.84 crore. Indian Railways hopes to start plying these coaches by December-end or January 2018 beginning, but the routes have not yet been decided. At a time when Indian Railways faces growing competition from the aviation sector, the focus on aircraft-like experience is a step in the right direction, but other factors such as punctuality and safety would play an equally crucial role in luring passengers.
    

 

[Hindustani78]

Around 400 labourers worked day and night as zonal railways incurred a cost of just about Rs 7 crore to get the bridge restored. (Source: Express photo)

http://indianexpress.com/article/in...raku-valley-region-in-record-58-days-4974972/

The challenge was to do it within a tight deadline of 60 days. In the end, Railways in fact did it in just 58 days, as the broken bridge in the mountains of Eastern Ghats stood restored before time on Friday. On October 6-7, a 700-ton boulder fell on the half-a-decade-old “bridge number 249” in the Araku Valley region of Andhra Pradesh; shattered its pier and rendered the country’s highest broad-gauge freight line useless.

Within five days, work started to restore the bridge on war footing keeping a never-before 60-day deadline, putting to test Indian Railways’ engineering capability, and its ability to deliver on time. Incidentally, the bridge work coincided with time the Army was called in to build three foot overbridges in Mumbai’s suburban network in what was viewed by a section of railway bureaucracy as a snub to the national transporter’s engineering prowess.

Around 400 labourers worked day and night as zonal railways incurred a cost of just about Rs 7 crore to get the bridge restored. According to East Coast Railway, this is a record. “This is the record of any bridge work done in so short a period,” said a statement issued by the zonal railway Friday.

The work site was inaccessible from the beginning thanks to the rocky mountains and an adjacent waterfall.

Chairman Railway Board Ashwani Lohani is due to visit the site next week and formally restore traffic. Sources said he will reward the team that spearheaded the job as this was no mean feat, officials claimed.

The work site was inaccessible from the beginning thanks to the rocky mountains and an adjacent waterfall. The impact of the boulder was such that a new pier had to be constructed from scratch after diverting the waterfall to gain access to the work site.

On Friday, Laxmi Narayan, Principal Chief Engineer, East Coast Railway and Mukul S Mathur, Divisional Railway Manager, Waltair Division of the zonal railway flagged off the first train to mark the formal commissioning of the bridge after engineers furnished a written certificate that the bridge was fit. The formal launch of commercial operations will start on December 12.

The impact of the boulder was such that a new pier had to be constructed from scratch after diverting the waterfall to gain access to the work site.

“The bridge stands commissioned from engineering point of view. We are just clearing the various machines and construction material from either side of the bridge. We moved the first vehicle on it today. Full-scale operation will start next week,” Mathur told The Indian Express.