FINO Paytech acquires Nokia Mobile Payment Services in India

India's leading fintech firm FINO which made mark in year 2018 with almost Rs 2000 crore valuation has recently acquired Nokia's payment services in India. FINO also has banking license in India and plans to an IPO in 2021.

With this acquisition, FINO having achieved significant scale in banking services, would be entering into the vast prepaid mobile payments space. In order to provide a smooth and quality service to its customers and maintain the dynamics of customer centric prepaid business, the new entity Alpha Payment Services India Private Limited (Alpha) (erstwhile Nokia Mobile Payment Services) would be operating as an independent company.

The new entity will wholly focus on prepaid payment services and will offer services such as money transfers, utility bill payments, mobile & DTH recharges etc under the brand Takatak Money. This service would be bank and telecom operator agnostic and would aim to cater to the requirement of both urban and rural customers.

It is estimated that more than 65% of all retail transactions in India are conducted in cash (ASSOCHAM-Deloitte August 2011 Report). This presents a huge opportunity for digital payment systems, the mobile channel being the most promising. There is huge faith being put on leveraging the large mobile penetration to tap this potential, currently estimated at 920 million subscribers in India. The rural market contributes to a considerable 35% of the total mobile subscribers in India.

Nokia Money customers to continue to enjoy mobile money by transferring to Takatak Money accounts in the near future. FINO currently services 50 mn customers across host of banking products and services and is very deep rooted in India covering over 50,000 villages. FINO has extensive experience of developing the right customer proposition and achieving scale in field and central operations, both critical for success in this market.

Studies suggest money transfer and airtime top-ups will account for most of the volume of prepaid mobile payments. Money transfers will account for the largest portion of the transaction value because of the demand for secure and efficient ways of storing and transferring money.

Source - Press Release.

Combat Volatility like a pro with Mahindra Manulife Arbitration Yojana mutual fund

Who would have thought that a majority of Indian PSU banks would be trading below Rs 50? Who would have predicted that Pharma shares would be touching sky high within a few months? There were only a few market gurus who could predict the unprecedented move of RIL in just 50 days. Analysing our sensitive stock market in tough especially in the unprecedented & unseen times like these. But investing must not stop as Ups & Downs are a part of our lives as well as markets.

Market analysts rely on INDIAVIX index during such strange times. Basically its an index which charts the future trajectory of the market cycle. When the lockdown was announced, the INDIAVIX index jumped from 10 to 80 within a fortnight. As they say, only 5% of investors make the most of such occurrences and the rest 95% end up losing their hard earned money. The damage was such that most investors even today think twice before averaging their pre-covid investments. People who traded each minute, each day during the market hour were afraid to check their trading portals.

It’s funny when they say, “When the bulls climb they take the stairs & when the bears fall they jump through the window”. The general perception was so skewed that when the market media cried a No Buy on a certain stocks and funds there were investors who took a leap of faith & made it big!

Are you aware that there is a mutual fund which can make money on both rise and fall of the market cycle? Mahindra Manulife Arbitrage Yojana is an open ended scheme for investment in arbitrage opportunities available in equity, derivatives, debt and invIT markets. Arbitrage Mutual Funds are moderately low risk investment that can generate you an income through arbitrage opportunities in cash and derivative segment. Volatility gives an investor more opportunity in cash & futures/options market. Arbitrage Mutual Funds though they invest in equity are generally considered as safe investment pick and investors making loss in this kind of investment is yet unheard of.

Depending the upon the market conditions, Mahindra Manulife Arbitrage Yojana can hedge the risk by switching between Debt & Equity investment. At times a stock is available at different prices in two exchanges. For instance, stock A is trading at Rs 1000 on NSE & Rs 950 on BSE at the same time, then the spread of Rs 50 between both exchanges acts as your profit.

Another strategy that is often used by fund managers is cash & carry arbitrage. For example, buy stock B at Rs 1000 in spot market and sell the same contract of stock B in futures market at Rs 1020 with a lock-in profit of Rs 20. It is one of the least volatile hybrid schemes that is suitable for investment across market cycles.

What differentiates Mahindra Manulife Arbitration Yojana from other liquid funds is that when you exit the fund, the credit is reflected in your account the very next day. Being an equity based fund hybrid arbitrage mutual fund, the market position gets closed immediately giving investors an instant margin facility. The scheme offers better tax efficiency on returns compared to other short-term debt funds. Also, there’s no exit load after the period of 30 days.

It’s a win-win-win situation wherever the market heads. Mahindra Manulife Arbitration Yojana is best suited for investors who are looking out for Short Term investment parking pool with investment period varied from 1 month to 6 months.

The NFO opens for subscription on August 12 and closes on August 19. The scheme will reopen for continuous sale and repurchase from August 25.

Investors can invest online in the scheme from here.

Mahindra Manulife Arbitration Yojana MF scheme details

Fund House: Mahindra Manulife Mutual Fund

Issue opens: 12 August 2020

Issue close: 19 August 2020

MF category: Hybrid

Type: Open ended

Minimum Investment: Rs 1,000

Exit Load: Nil, after 30 days.

Plans: Growth, Dividend

Benchmark: Nifty 50 Arbitrage Index TRI

Riskometer: Moderately Low

Fund Managers: Srinivasan Ramamurthy & Rahul Pal

Disclaimer: Investment subject to market risk. Please consult your financial advisor before investing.

Nirma Group's Nuvoco Vistas acquires 100% stake of Emami Cement for Rs 5500 crores.

Nuvoco Vistas Corporation Limited, India’s leading building materials company and part of the Nirma Group, announced that it has entered into a share purchase agreement with Emami Group for the acquisition of 100% shareholding of Emami Cement Limited (ECL) for an enterprise value of INR 5500 crores. 

The proposed transaction is subject to approval by the Competition Commission of India (CCI) and is expected to be consummated in next 3-4 months.

Emami Cement is one of the fastest-growing Companies in the cement sector and has established its presence with a strong network in a very short span of time. ECL operates one integrated cement plant in Risdah, Chhattisgarh; and 3 grinding units in Bihar, West Bengal and Odisha with a total installed capacity of 8.3 million tonnes per annum; and with mining leases in Chhattisgarh, Rajasthan and Andhra Pradesh.

 

With the merger of the Nirmax business in Rajasthan and completion of this acquisition; Nuvoco will become one of the leading cement players in the country and specifically in the East. This will bring its total cement capacity in Eastern, Northern and Western India to 23.5 million tonnes (which includes the ongoing capacity expansion project in its Jojobera plant) and over 60 ready-mix plants. The Company has a substantial presence in slag cement in the East while reinforcing a strong portfolio of PPC and OPC products. The combined operations will span 3 facilities in Chhattisgarh, 2 each in Rajasthan and West Bengal, and 1 each in Bihar, Jharkhand, Odisha, and Haryana. Nuvoco’s cement sales will spread across 12 states: Chhattisgarh, Odisha, West Bengal, Bihar, Jharkhand, Rajasthan, Madhya Pradesh, Gujarat, NCR region, Punjab, Uttar Pradesh and Haryana.

Shardul Amarchand Mangaldas acted as the legal advisor, Deloitte Touche Tohamatsu India

LLP acted as the financial diligence advisor and Arpwood Capital acted as the financial

advisor.

Source: Press Release

Note: The owner of TheIndianCapitalist.com is a shareholder of Emami at the time of publishing of the article.

Canada Pension Plan Investment Board (CPPIB) to invest up to $600 million through NIIF.

National Investment and Infrastructure Fund (NIIF) of India and Canada Pension Plan Investment Board (CPPIB) has announced an agreement for CPPIB to invest up to US$600 million through the NIIF Master Fund. The agreement includes a commitment of US$150 million in the NIIF Master Fund and co-investment rights of up to US$450 million in future opportunities to invest alongside the NIIF Master Fund.

With CPPIB’s investment, NIIF Master Fund now has US$2.1 billion in commitments and has achieved its initially targeted fund size. In addition, NIIF Master Fund investors have co-investment rights of US$3 billion, which will enable the NIIF Master Fund to invest at the scale required for India’s large infrastructure requirements. The NIIF Master Fund invests equity capital in core infrastructure sectors in India, with a focus on transportation, energy and urban infrastructure. 

CPPIB joins Abu Dhabi Investment Authority, AustralianSuper, Ontario Teachers’ Pension Plan, Temasek, Axis Bank, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance as investors in the NIIF Master Fund, alongside Government of India.  

CPPIB will also become a shareholder in National Investment and Infrastructure Fund Limited, NIIF’s investment management company. 

Sujoy Bose, Managing Director & Chief Executive Officer of NIIF, said: “We are delighted to welcome CPPIB as an investor in the NIIF Master Fund and as a shareholder in our investment management company. CPPIB is a prominent and established investor in India, and their investment demonstrates the alignment of the NIIF Master Fund’s investment strategy with what large international investors seek in the infrastructure sector in India. With this fourth close of the NIIF Master Fund, we are pleased that the fund has achieved its initial target size of US$2.1 billion with domestic and international investors of the highest reputation and quality. We thank all our investors, and the Government of India, particularly the Ministry of Finance and the Ministry of External Affairs, for their strong support.” 

Scott Lawrence, Managing Director, Head of Infrastructure, CPPIB, said: “The opportunity to invest in, and alongside, NIIF complements our existing direct investment strategy in Indian infrastructure. Through this investment in the NIIF Master Fund, we are also able to deploy capital in additional projects and sectors across the country, providing further long-term opportunities for CPPIB to invest in Infrastructure in India.”

Source - Press Release.

Qatar Investment Authority to invest Rs 3200 crores in Adani Electricity Mumbai Ltd.

Qatar Investment Authority picks up a 25.1% stake in Adani Electricity Mumbai Ltd (AEML). AEML is a major electricity distributor in the Western suburbs of Mumbai.

Adani Transmission Limited ("ATL"), Adani Electricity Mumbai Limited ("AEML") and a subsidiary of Qatar Investment Authority ("QIA") have signed definitive agreements for the sale of a 25.1% stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML. The total QIA investment in AEML will be approximately INR 3,200 Crore (equivalent to approximately $450 million).

AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a license area of approximately 400 square kilometers in the city of Mumbai, the world's seventh-largest city by the size of population. AEML's market share of Mumbai is approximately 87% by license area, 67% by consumers served and 55% by electricity supplied.

As part of the Transaction, ATL and QIA have agreed on definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. In addition, ATL and QIA have agreed on a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.

The Transaction demonstrates the increasingly strong relations between India and Qatar and the commitment of both countries to further develop their close ties in the years ahead.

Adani Group Chairman, Mr. Gautam Adani, commented: "We are delighted to embark on this partnership with the Qatar Investment Authority. Together, we will continue to work towards improving the reliability of supply and consumer satisfaction for over 3 million AEML consumers served in Mumbai. We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long term partnership with QIA".

QIA Chief Executive Officer, Mr. Mansoor Al-Mahmoud, commented: "We believe that Adani Electricity Mumbai Limited is the best-in-class electricity utility in India and has tremendous potential for growth. We look forward to a long term partnership with the Adani Group, with whom we share an inter-generational perspective on investments and a common vision for the sustainable growth and continued success of AEML".

Mr. Al-Mahmoud added: "This investment demonstrates our confidence in India, with whom Qatar shares deep-rooted ties and excellent relations".

The Transaction is the latest in a series of investments undertaken by QIA in world-class infrastructure assets with trusted partners globally. The Transaction is expected to complete in early 2020 subject to receipt of regulatory approvals and satisfaction of customary conditions precedent.

SKN Advisors Limited acted as financial advisor and Cyril Amarchand Mangaldas acted as legal advisor to ATL and AEML on the Transaction.

J.P. Morgan acted as financial advisor and Cleary Gottlieb Steen & Hamilton LLP and AZB & Partners acted as legal advisors to QIA on the Transaction.

Source: Press Release.

Aditya Birla Finance becomes first company to list Commercial Papers on National Stock Exchange.

Aditya Birla Finance Limited, the lending subsidiary of Aditya Birla Capital Limited became the first company to list its Commercial Papers on NSE. National Stock Exchange, India’s leading stock exchange has started listing Commercial papers (CPs) which will help issuers make appropriate disclosures at the time of listing and on a continuous basis and will lead to deepening of the debt markets.

Listing of CPs is expected to lead to efficient transmission of information regarding corporate borrowings and liquidity positions to market participants. It will also contribute effectively towards development of the commercial paper market and is expected to have a positive effect on the Debt Capital market in India.

Aditya Birla Finance Limited (ABFL) listed its Commercial Paper on NSE with value date of 28th November 2019 and maturity date on February 7, 2020. ABFL is a well-diversified non-banking finance company (NBFC) with a long-term credit rating of AAA (Stable) from both ICRA as well as India Ratings.

Marking the occasion, Ms. Ishita Vora, Head Listing, NSE Ishita Vora, Head Listing, NSE Ishita Vora, Head Listing, NSE said, “NSE is committed to the development of the Commercial Paper market in India and has been at the forefront to enable the smoother transition of CPs as listed securities. We are hopeful that this will enhance transparency and enable efficient information dissemination to investors leading to deepening of investments in money market instruments.”

Mr. Rakesh Singh, MD & CEO Aditya Birla Finance Limited said, “SEBI’s announcement cited to list Commercial Papers is a welcome move for the industry as it will encourage further transparency and better corporate governance practices. We are glad to announce that ABFL is taking a thought leadership position in the market by being the first company to list its Commercial Paper in order to reinstate faith in the system. Trust in the system can only be restored with complete transparency. Through this pioneering move, we aim to set standards for Commercial Paper issuance which will bring in liquidity, transparency and thereby create trust in the minds of investors. We always strive to set a benchmark in whatever we do.”

Source - Press Release.

ADNOC, Adani, BASF and Borealis sign MoU for Chemical Complex in Mundra, Gujarat.

ADNOC, Adani, BASF and Borealis vow to invest $4 billion for Propane DeHydrogenation Unit at Mundra, Gujarat.

Abu Dhabi National Oil Company (ADNOC), Adani Group, BASF SE and Borealis AG have signed a Memorandum of Understanding (MoU) to engage in a joint feasibility study to further evaluate a collaboration for the establishment of a chemical complex in Mundra, Gujarat, India. This is the next step of BASF’s and Adani’s investment plans as announced in January 2019. With the inclusion of ADNOC and Borealis as potential partners, the parties are examining various structuring options for the chemical complex that will leverage the technical, financial and operational strengths of each company. The total investment is estimated to be up to $4 billion.

The collaboration includes evaluating a joint world-scale propane dehydrogenation (PDH) plant to produce propylene-based on propane feedstock to be supplied by ADNOC. Propylene will be partially used as feedstock for a polypropylene (PP) complex, owned by ADNOC and Borealis, based on proprietary state-of-the-art Borealis Borstar technology.

The PP complex will be the first overseas production joint investment by ADNOC and Borealis as part of a strategic framework with their current joint venture Borouge. Furthermore, propylene will be the key raw material for the previously announced acrylics value chain complex comprising glacial acrylic acid (GAA), Oxo-C4 (butanols and 2-ethyl hexanol), butyl acrylate (BA) and potentially other downstream products as part of a joint venture of BASF and Adani in which BASF holds a majority.

The chemical complex in Mundra is intended to be entirely supplied from renewable energy resources. The partners are evaluating co-investment in wind and solar park with the plans at an advanced stage of development. If realized, this would be the world’s first CO2-neutral petrochemical site to be fully powered by renewable energy, fully in line with the partners’ commitment to sustainability and energy efficiency.

Commenting on the MoU signing, Dr. Sultan Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “This exciting collaboration is in line with ADNOC’s strategy to foster mutually beneficial partnerships. As a value-adding partner, ADNOC will play a crucial role as the propane feedstock supplier to this project. As the fastest growing global energy market, India is crucial to  our international growth ambitions in the downstream sector. As such, this project allows ADNOC  and its partners to capture the promising growth in the Indian polyolefins market.”

Gautam Adani, Chairman of the Adani Group, stated: “We are very pleased to collaborate with our international partners to establish a Chemical Manufacturing Complex at Mundra Port. We stand committed to the ‘Make in India’ initiative and serve the larger purpose of aligning growth opportunities with creation of goodness for the nation.”

“BASF remains committed to investing in India’s growth. We will play a key role in driving this joint collaboration which is also pioneering in terms of sustainability.  We look forward to working together with our partners in establishing a chemical cluster in Mundra and to supplying the Indian market with high-quality downstream products,” said Dr. Martin Brudermueller, Chairman of the Board of Executive Directors of BASF SE.

Alfred Stern, CEO of Borealis, added: “This partnership is a unique opportunity to strengthen our PP presence in India with proprietary Borealis Borstar PP technology and to create value and tangible benefits through innovation for customers across multiple industries.”

The partners aim to finalize the joint feasibility study by the end of Q1 2020. Production is intended to commence in 2024. Adani has allied infrastructure like sea port, airport and highway connectivity near the proposed unit. The designated site is planned at Mundra port in Gujarat, India, and the products are predominantly for the Indian market, serving a wide range of local industries, including construction, automotive and coatings.

France's Total acquires 37.4% stake in Adani Gas to supply and market Natural Gas in India.

With this announcement of Total’s Acquisition of 37.4% Stake in Adani Gas, Adani and Total join to create one of India’s largest Downstream Energy Partnerships.

As part of its strategy to develop new gas markets, Total, the world's second-largest LNG player, expands its partnership with the Adani Group; the largest energy and infrastructure conglomerate in India, to contribute to the development of the Indian natural gas market.

The Indian natural gas market represents a substantial growth perspective. It is currently only 7% of the energy consumption but has grown over the last 3 years by more than 5% per annum, supported by an active policy of the Indian Government that aims to diversify its energy mix and develop domestic use of gas in cities and as fuel for vehicles. India has set the ambitious target of increasing the share of natural gas in its energy mix to 15% by 2030.

The partnership between Adani (50%) and Total (50%) includes several assets across the gas value chain notably two imports and regasification LNG terminals: Dhamra in East India and potentially Mundra in the West, as well as Adani Gas Limited, one of the 4 main distributors of city gas in India of which Adani holds 74.8% and of which Total will acquire 37.4%.

Adani Gas shall also pursue fuel retail business in India and target to setup 1,500 fuel stations offering top of the line products in the coming years.

Adani Gas Limited aims to expand its distribution of gas in the next 10 years through its 38 concessions covering 7.5% of the Indian population and market natural gas to industrial, commercial and domestic customers, targeting 6 million homes as well as through 1,500 CNG retail outlets across 71 districts, 68 towns across 15 states in India.

Speaking on the occasion, Adani Group Chairman, Mr. Gautam Adani, said, “Adani is delighted to deepen its strategic partnership with Total, a global energy major, to one of the largest downstream gas partnerships in India. Total’s investment in Adani Gas reinforces India’s natural gas and demand potential. The partnership will derive significant synergies between Adani’s capabilities of developing world-class assets and Total’s global best practices as well as leveraging business synergies across LNG, Fuel Retail and City Gas distribution. We look forward to working together towards delivering India’s vision for clean and green energy”

As part of this partnership, Total will bring its LNG and retail expertise and will supply LNG to Adani Gas Limited. Total and Adani will also establish a joint venture to market LNG in India and Bangladesh.

“Energy needs in India are immense and the Indian energy mix is key to the climate change challenge. Firmly investing to develop the use of natural gas in India is in line with Total’s ambition to become the responsible energy major. The natural gas market in India will have strong growth and is an attractive outlet for the world's second-largest LNG player that Total has become. Adani will bring its knowledge of the local market and its expertise in the infrastructure and energy sectors. This partnership with Adani is the cornerstone to our development strategy in this country.”, said Patrick Pouyanné, Chairman and CEO of Total.

Disclaimer: Shareholder of Adani Gas.

Indiabulls Shubh trading app offers ‘Truly Unlimited Plans’ for new-age investors.

India’s economy and its bustling stock market have witnessed a phenomenal rise in the last decade. Such has been the success that many few would believe that BSE Sensex was trading below 10,000 points just 9 years back. With reforms at the fore-front agenda, World Bank predicts that India’s economy is set to reach $5 trillion by 2025. Most leading brokerage houses have a bullish outlook on Sensex and Nifty especially after the recent historic announcements on corporate tax by FM Sitharaman. We all will unanimously agree that stock market investments, be it equity or commodity, are one of the only few investment avenues which have the potential to beat ever-rising inflation.

The times they are a changin’! From floor-based trading to branch-based services and now trading on-the-go with smartphones. A data released by National Stock Exchange states mobile trading share has more than tripled to 10.7% as on August 2019 from 3.3% in April 2016. Catching the bandwagon, Indiabulls has launched Shubh – a mobile trading platform with subscription based plans for seamless trading experience. Indiabulls Ventures Limited is one of the earliest capital market company providing securities and derivative broking services.

Karo Shubh Se Shuruat!

Shubh trading app is the newest offering from Indiabulls Ventures Limited. The discount broking platform is India’s first truly unlimited trading platform with 'Subscription based' monthly pricing options. Shubh gives the customers a choice of monthly plans that suit their broking needs starting at ₹ 1000 where they can enjoy the benefit of 0*% brokerage on both Intraday and Delivery. No need to panic on the asterisk (*) symbol, as Shubh charges maximum ₹ 0.01 brokerage per order as per SEBI rules.

Indiabulls Shubh is basically the ‘Netflix of Trading’. Once the investor is on-board and subscribed, the platform offers a transparent trading experience like never before at fixed rates. Many may not know this, but the volume of ‘Buy Today and Sell Today Tomorrow’ trades is such that several investors end up paying brokerage value amounting in thousands in just single trading day. By renewing subscription plan every month, investors can protect their capital from hefty brokerages and trade as much they want.

On plans onwards ₹ 2000 per month, Shubh trading app offers an attractive margin trading facility from ₹ 1 lakh to ₹ 50 lakh at 0% interest rate. Indiabulls Shubh is perfectly placed for new-age investors who trade in equity (NSE & BSE), futures & options (NSE F&O) and currency segments. The intraday exposure offered by Shubh is upto 4x in F&O, 5x in equity, and 4x for margin trading. As an introductory offer, the company has announced free trading for the first 30 days with no subscription charges for new customers. The one time account opening charges of Shubh is just ₹ 500 inclusive GST. Existing 7.1 lakh Indiabulls clients can also enjoy the benefits of the new plan by upgrading their current one.

Trading Made Easy

Indiabulls Shubh trading app is available on both Android and iOS platform. For the ease of trading, investors can execute trades at a lightning fast speed on app, web and on desktop. If in a hurry, no worry! Users can even place trading orders on the phone at no additional charges. The Shubh app is built on the philosophy of speed, stability and simplicity.

With an enormous amount of data and continuous transactions, traders often complain of mobile app downtimes. This is unique to sentimental capital markets like India. Be it budget, government policy, US fed, or China- US trade war, the downtime of trading apps is a major issue where traders may potentially lose their hard-earned money. Unlike some newbies in the business, Indiabulls leverages its market experience of the past 20 years to offer seamless trading experience even during major events.

“Shubh’s subscription plans have been designed keeping in mind the needs of today’s new-age traders. We have built a clean, vanilla type of product where customers can trade through app, web, and even through calls with ease. We invite traders to experience our all new Shubh platform” - Divyesh Shah, CEO, Indiabulls Ventures Limited.

The Indiabulls Shubh app and web platforms offer an entirely online process for opening a Demat Account. Open the app, fill out the e-KYC details with e-signature Et Voila! Traders can further subscribe to monthly plans as per their needs.

Download the Indiabulls Shubh app from Play Store and Apple App Store and try it yourself!

Govt of India sanctions subsidy for 5595 electric buses in 64 cities under FAME II.

Tata Ultra Electric bus has been deployed in Lucknow, Kolkata, Guwahati, Jammu Kashmir under FAME I scheme.

The Department of Heavy Industry has approved the sanction of 5595 electric buses to 64 Cities, State Government Entities, State Transport Undertakings (STUs) for intra-city and intercity operation under FAME India scheme phase II in order to give a further push to clean mobility in public transportation.

The Department had invited the Expression of Interest (EoI) from million-plus cities, smart cities, State/UT capitals and cities from special category states for submission of proposal for deployment of electric buses on an operational cost basis.

Eight six proposals from 26 States/UTs for the deployment of 14988 e-Buses were received. After evaluation of these proposals as per EoI, on the advice of Project Implementation and Sanctioning Committee, the Government sanctioned 5095 electric buses to 64 Cities / State Transport Corporations for intra-city operation, 400 electric buses for intercity operation and 100 electric buses for last-mile connectivity to Delhi Metro Rail Corporation (DMRC).

Each selected City/STUsis required to initiate the procurement process in a time-bound manner for the deployment of sanctioned electric buses on an operational cost basis. As per EoI, buses which satisfy required localization level and technical eligibility notified under FAME India scheme phase II will be eligible for funding under FAME India scheme phase II.

Tier 1 cities like Mumbai, Hyderabad, Delhi, Hyderabad, Bangalore will receive 300 electric buses each. Surprisingly, Chennai's proposal seems to be rejected. Pune and Surat are set to get 150 electric buses each. 400 electric buses will be deployed towards intercity operations and will be handed over to State Transport Corporations. Maharashtra has received highest allocation of 775 buses followed by Uttar Pradesh, Gujarat, and Tamil Nadu.

These buses will run about 4 billion kilometers during their contract period and are expected to save cumulatively about 1.2 billion liters of fuel over the contract period, which will result into avoidance of 2.6 million tonnes of CO2 emission.

Complete list - https://dhi.nic.in/writereaddata/UploadFile/Press%20Release%20Final.pdf

Source - PIB.

Tamal Bandyopadhyay’s HDFC Bank 2.0 book narrates the Puri legacy.

Indian banking industry is not in the pink of health now but that’s largely the story of the government-owned banks. If we look at the private sector, barring a few odd banks which are not the best examples of corporate governance, over the last three decades, the industry has witnessed phenomenal growth with consumerism. The privitisation push in 1991 was a defining moment for the financial sector in India. What we have achieved today would not have been possible without India’s private sector banks like HDFC Bank. It is a child of economic liberalisation.

In the 1990’s, talking about banks as dinosaurs, Bill Gates of Microsoft famously said, “We need banking, but we don’t need banks anymore”. Three decades later, a bank is still relevant and will continue to do so if it’s willing to reinvent itself to be in sync with the changing milieu where it operates – by embracing digitalisation.

From a nimble start-up in 1995 to India’s most valuable banking brand, HDFC Bank has a made  gigantic strides into the world of digital banking under the leadership of Mr Aditya Puri. In a sector marred by controversies, Mr Puri has not just been the longest serving chairman of any bank globally but the face of a world class bank in India. Tamal Bandyopadhyay’s latest book “HDFC Bank 2.0: From Dawn to Digital” narrates this unique story of the  transformation of India’s most valued lender from a life cycle bank to a lifestyle bank. 

For starters, let me remind you that this book is not a sponsored project. It chronicles the HDFC Bank story warts and all. While highlighting the bank’s unique features, Tamal also criticises the unforgivable mistakes done by HDFC Bank during this journey through his unparalleled  writing skills. 

One of the key reasons why Indian banks were largely unaffected  during the Global Financial Crisis of 2009 was the fact that they were truly connected with their roots. During that  period, Mr Puri had guided HDFC Bank to add branches and ATM network in tier three cities and rural areas. The expansion drive created the credit card, auto and home loan boom. The book describes how  a bank reaching out to person for a loan – and not  the other way round - creates a new sense of trust in the aspirational class of India.

The era of Digital Disruption

Mr Puri believes that digitalisation and disruption are intertwined. Whenever there’s change, people tend to panic but if handled correctly, it can open up new beginnings. HDFC Bank saw this transformation ahead of others. During his Silicon Valley trip in 2014, Mr Puri saw how the fintech companies – the new kids on the  tech block – were venturing into fund transfers, mobile banking and shopping. They could build products that could give instant loan with slick user interface on their phones. Home grown fintech innovations like the United Payments Interface (UPI) were set to transform the way we Indians bank.

“Why don’t we disrupt ourselves instead of waiting to be disrupted by fintech companies? Why can’t we give a loan in 10 seconds? Why can’t we invent something to transfer money in just a click? HDFC Bank aspires to become a financial marketplace. It wants to be India’s Alibaba or Netflix when it comes to banking”. - Mr Aditya Puri, Chairman & Managing Director, HDFC Bank.

HDFC Bank first tied up with Chillr, an app which sends money over the phone using a UPI technology. A BharatQR code-based payments service named PayZapp is popular in many stores. The bank has also used AI for many applications like chatbots and social media interactions. Indigenously developed IRA robots have been deployed at several branches to solve customer queries. 

While adopting this technological shift, there were times when the bank failed on the customer front. For instance, the HDFC bank app crash in November 2018 became a hot topic in the media and  the bank was subjected to national outrage and ridicule. The book – “HDFC Bank 2.0: From Dawn to Digital” – clinically  chronicles the journey over the years.

About the book

Tamal Bandyopadhyay’s HDFC Bank 2.0: From Dawn to Digital is published by Jaico Publishing House. The book was launched by Rajnish Kumar, Chairman, State Bank of India at Nehru Centre, Mumbai. Aditya Puri, Managing Director, HDFC Bank Ltd  and many  luminaries in the financial services industry were present there. Tamal Bandyopadhyay is an author, columnist and keen watcher of banking and finance. His Banker’s Trust column, which now appears every Monday in Business Standard, is the most popular column on banking and finance with over half a million followers on the Linkedin platform.

“Tamal combines his financial knowledge, eye for detail, and an excellent storytelling style to create a vivid portrait of India’s most valued bank and its path to future” - Nandan Nilekani, Co-foundar & Chairman, Infosys & founding chairman of UIDAI, has written in his forward to the book.

HDFC Bank 2.0: From Dawn to Digital (ISBN: 978-93-88423-35-9) are now available at Crossword, Amazon, Flipkart and other leading book stores.

Cashkrupt Pakistan receives $6 billion bailout from International Monetary Fund.

Security at China owned Port of Gwadar, Balochistan.

Failed economic policies, sponsorships for Islamic terror, high inflation and active corruption at all stages of government has taken down India's enemy neighbour, Pakistan at its knee. Pak PM Imran Khan has put the onus of degrading economic position on former PM Nawaz Shariff. The much touted economic corridor of prosperity, CPEC, has turned into an economic nightmare for taxpaying Pakistani citizens. For instance, the Chinese owned Gwadar Port in Balochistan rarely has any shipping calls. China has assured continuous economic help for the fulfillment of CPEC, as of now. After personally escorting Saudi King, Pakistan has received moratorium for deferred oil payments for one year. But this was not enough to save Pakistan's depleting economic reserves.

In April 2019, the finance minister of Pakistan requested the 13th bailout since the 80s from International Monetary Fund (IMF). In response to a request by the Pakistani authorities, an International Monetary Fund (IMF) mission led by Mr. Ernesto Ramirez Rigo visited Islamabad, Pakistan from April 29 to May 11 to discuss IMF support for the authorities’ economic reform program.

The Pakistani authorities and the IMF team have reached a staff-level agreement on economic policies that could be supported by a 39-month Extended Fund Arrangement (EFF) for about US$6 billion. This agreement is subject to IMF management approval and to approval by the Executive Board, subject to the timely implementation of prior actions and confirmation of international partners’ financial commitments. The program aims to support the authorities’ strategy for stronger and more balanced growth by reducing domestic and external imbalances, improving the business environment, strengthening institutions, increasing transparency, and protecting social spending.

At the end of the visit, the IMF representative Mr. Ramirez Rigo made the following statement:

"Pakistan is facing a challenging economic environment, with lackluster growth, elevated inflation, high indebtedness, and a weak external position. This reflects the legacy of uneven and procyclical economic policies in recent years aiming to boost growth, but at the expense of rising vulnerabilities and lingering structural and institutional weaknesses. The authorities recognize the need to address these challenges, as well as to tackle the large informality in the economy, the low spending in human capital, and poverty. In this regard, the government has already initiated a difficult, but necessary, adjustment to stabilize the economy, including thorough support from the State Bank of Pakistan. These efforts need to be strengthened. Decisive policies and reforms, together with significant external financing are necessary to reduce vulnerabilities faster, increase confidence, and put the economy back on a sustainable growth path, with stronger private sector activity and job creation."

"The EFF aims to support the authorities’ ambitious macroeconomic and structural reform agenda during the next three years. This includes improving public finances and reducing public debt through tax policy and administrative reforms to strengthen revenue mobilization and ensure a more equal and transparent distribution of the tax burden. At the same time, a comprehensive plan for cost-recovery in the energy sectors and state-owned enterprises will help eliminate or reduce the quasi-fiscal deficit that drains scarce government resources. These efforts will create fiscal space for a substantial increase in social spending to strengthen social protection as well as in infrastructure and human capital development. The modernization of the public finance management framework will increase transparency and spending efficiency. Provinces are committed to contributing to these efforts by better aligning their fiscal objectives with those of the federal government."

"The forthcoming budget for FY2019/20 is a first critical step in the authorities’ fiscal strategy. The budget will aim for a primary deficit of 0.6 percent of GDP supported by tax policy revenue mobilization measures to eliminate exemptions, curtail special treatments, and improve tax administration."

What Next?

The State Bank of Pakistan has assured the IMF that it will focus on reducing inflation, which disproportionately affects the poor, and safeguarding financial stability. A market-determined exchange rate will help the functioning of the financial sector and contribute to better resource allocation in the economy.

While a $6 billion bailout comes as a breather for tumbling Pakistan. The question arises that till when will this $6 billion help last. Will Pakistan stop the financing of Jihad for the moment at least to avoid the hanging sword of Paris based FATF? Any adventure with the world's fastest growing economy, India could spell doomsday for Pakistan at this very moment.

- Chaitanya Kulkarni

Source: IMF.

Philippines based Atlantic Gulf and Pacific company bags 9 licenses in 10th City Gas Distribution bidding.

Atlantic Gulf & Pacific Company of Manila (AG&P), a leading global gas logistics company, has emerged as a dominant LNG player in South India, securing nine licenses in the 10th round auction of City Gas Distribution (CGD) concessions by the Petroleum & Natural Gas Regulatory Board (PNGRB). AGP will provide piped gas in 9 districts of South India and will establish more than 1000 CNG stations.

AG&P is only one of two foreign companies to secure the coveted agreements to deliver natural gas directly to the residential, commercial, industrial and transport sectors in some of India’s most densely populated states. AG&P’s 25-year exclusive rights cover natural gas pipelines to residential users, supply for commercial establishments and CNG stations for cars, buses and trucks in Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Rajasthan.

The districts are home to the automobile, chemical, fertilizer, glass, steel, ceramics, food and pharmaceutical industries as well as major commercial centres. AG&P will build compressed natural gas stations, supported by steel pipelines and delivery of LNG by truck. Through its CGD networks, AG&P will bring significant foreign direct investment and generate direct and indirect employment across the country. The construction and operation of AG&P’s CGD networks will create thousands of local jobs. Like all AG&P employees, these workers will be trained to the highest international standards of safety and technical excellence.

The cheaper supplies of natural gas will be made available by the Honourable Government of India for domestic and vehicular needs. The commercial and industrial sector needs will be secured through uninterrupted imported LNG supplies, channelled through commissioned and upcoming LNG terminals.

“AG&P Group, a 119-year young multinational, with operation headquarters in Manila, Philippines has arrived in the Indian sub-continent with a vision of supporting the growth and development of India’s ever-growing energy needs and to touch the lives of millions of people. As a global player, we understand and value the responsibility and commitment entrusted to us for shouldering the infrastructure development to meet these energy needs with international best practices in safety, technology, conserving the environment, efficient and cost-effective energy solutions,” - Mr. PPG Sarma, Managing Director, City Gas Distribution & Logistics.

List of cities/districts

Andhra Pradesh: Anantapur, Cuddapah, Nellore, Chittoor.

Karnataka: Kolar, Bagalkot, Kopal, Raichur, Chikmaggaluru, Hassan, Kodagu, Gulbarga, Vijaypura, Mysure, Mandya, Chamarajnagar, Uttara Kannada, Haveri, Shivamogga.

Tamil Nadu: Vellore, Ramanathapuram, Kanchipuram.

Kerala: Alapuzzha, Trivandrum, Kollam

Rajasthan (North West India): Barmer, Jaisalmer and Jodhpur.

Once operational, AG&P’s CGD networks will accelerate industrialization, drive further economic development and overall, improve the quality of life of millions of Indians, while helping lay the foundations for the delivery of India’s goal of a clean energy future. 10th CGD bidding will bring clean cooking fuel and cheap CNG in 50 districts of India which would further enhance safe cooking and viable transportation.

- Press Release.

BRICS funding agency New Development Bank plans to double its loan book to $16 billion

The New Development Bank (NDB), a multilateral finance institution established by Brazil, Russia, India, China and South Africa (BRICS) in 2014, plans to almost double its loan book to USD 16 billion this year and increase its impact, as the Bank seeks to broaden its global development partnerships and mobilise more institutional and private capital. These announcements were made at the 4th Annual Meeting of the NDB in Cape Town, South Africa which brought together senior government officials from BRICS countries, leaders of multilateral and national development institutions, distinguished scholars, prominent commercial bankers, captains of industry and representatives of civil society organizations.

NDB is headed by renowned Indian banker Shri KV Kamath. In his keynote speech, he mentioned that in the year 2019 New Development Bank will build on the strong momentum in its operations with an aims to double its loan approval book to about USD 16 billion. The Bank will ramp up its hard currency financing from the international capital markets.

The NDB was established to mobilize resources for infrastructure and sustainable development projects in member states as well as other emerging economies, and the Bank is strongly committed to supporting the sustainable development agenda of its member countries.

In 2018, the NDB approved 17 loans totaling about USD 4.6 billion, building on its base of 13 loans worth USD 3.4 billion as of the end of 2017. That brought the total loan book of the bank to 30 projects worth approximately USD 8 billion by the end of last year.

The NDB has approved five additional projects with loans aggregating to approximately USD 1.2 billion, two in China and three in South Africa, taking its total loan book to USD 9.2 billion as of today. These five new projects include RMB 825 million (USD 123 million) for the Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II); USD 300 million for the Guangxi Chongzuo Urban Water System Ecological Restoration Project; USD 480 million to Eskom for the Environmental Protection Project at Medupi Thermal Power Plant; ZAR 1.15 billion (USD 80 million) to the Industrial Development Corporation (IDC) for its Renewable Energy Sector Development Project; and ZAR 3.2 billion (USD 220 million) to South Africa's Trans Caledon Tunnel Authority (TCTA) for work on the Lesotho Highlands Water Project (Phase II).

In India, the New Development Bank has financed an ambitious Mumbai Metro Line 2B (DN Nagar - Mankhurd) prItst. It's loan book to India include Rural Road, Bridges and Water Supply projects in the states of Madhya Pradesh, Bihar and Rajasthan. NDB has also approved a Renewable Energy Financing Scheme of USD 250 million with Canara Bank.

New Development Bank has principally approved a loan to Mumbai Metropolitan Region Development Authority for the financing of Mumbai Metro Line 8 (Chhatrapati Shivaji International Airport - Navi Mumbai International Airport), Line 10 (Gaimukh - Shivaji Chowk) and Line 11 (Wadala - GPO). Other proposed loans to India include USD 224 million for 8km Brahmaputra bridge in Guwahati, Assam.

"The share of the BRICS countries in world GDP in PPP terms has grown from 30% to 36% since 2010. This growth has put increased pressures on natural resources and the environment. Fortunately, however, our members have explicitly recognized these pressures and are increasingly investing in undoing some of the past damage. Our members are also focusing on implementing development strategies aimed at minimizing adverse impacts in the future. In both these endeavours, the Bank is being called upon to assist," said Mr. Kamath in his keynote speech.

The NDB now plans to open additional regional offices in Brazil and Russia and is considering opening an Indian regional office in due course.

- Chaitanya Kulkarni.