Amid lockdown, Maharashtra reports fall in April GST revenue by just 1%.

Maharashtra, the worst affected state with 8,000 plus deaths may pose a gloomy picture but things ain't that bad when we see the data points of April 2020. While it may be true that retail shop owner and specialty businesses like wedding, sports have taken an 80% fall in business, the latest GST figures shared by FM Sitharaman on her official twitter handle has surprised me. Maharashtra, India's financial capital has reported a fall of just 1% in GST Revenue when compared with April 2019.

In April 2020, Maharashtra had collections of Rs 15,143 crore which came down to Rs 14,987 crore in April 2020 because of stringent national lockdown. A fall of just 1% may be the result of our robust financial system which pays GST state share in Maharashtra. State Bank of India in its filing at BSE said that 90% of clients are paying loan EMI is time. This feat wouldn't have been possible without our 'Honest Janata'.

Nationally, the gross GST revenue collected in the month of June 2020 is Rs. 90,917crore of which CGST is Rs. 18,980crore, SGST is Rs. 23,970crore, IGST is Rs. 40,302crore (including Rs. 15,709crore collected on import of goods) and Cess is Rs.7,665 crore (including Rs. 607crore collected on import of goods).

The government has settled Rs. 13,325crore to CGST and Rs. 11,117crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of June 2020 is Rs. 32,305 crore for CGST and Rs. 35,087 crore for the SGST.

The revenues for the month are 91% of the GST revenues in the same month last year. During the month, the revenues from import of goods were 71%and the revenues from the domestic transactions (including import of services) were 97% of the revenues from these sources during the same month last year. During the month of June, returns of February, March, and April 2020 have also been filed in addition to some returns of May 2020 since the Government has allowed a relaxed time schedule for the filing of GST returns. Some returns of May 2020, which would have otherwise got filed in June 2020, will get filed during first few days of July 2020.

The revenues during the financial year has been impacted due to COVID-19, firstly due to the economic impact of the pandemic and secondly due to the relaxations given by the Government in filing of returns and payment of taxes due to the pandemic. However, figures of past three months show recovery in GST revenues. The GST collections for the month of April was Rs. 32,294 crore which was 28% of the revenue collected during the same month last year and the GST collections for the month of May was Rs. 62,009 crore which was 62%of the revenue collected during the same month last year. The GST collections for the first quarter of the year is 59%of the revenue collected during the same quarter last year. However, a large number of taxpayers still have time to file their return for the month of May 2020.

As India unlock, lets hope that our GST collections rise back to Rs 1,00,000 crore.

Source - PIB.

France's Total buys 50% stake in Adani Green's 2GW solar portfolio for $500 million.

As part of its strategy to develop renewable energies, Total is expanding its partnership with Adani Group, India's largest privately-owned energy and infrastructure conglomerate, in order to contribute to the growth of solar power generation in the country.

The Indian government has a strong policy to support the renewable energy growth. India is a founding member for International Solar Alliance and is committed to increase its capacity from 81 gigawatts (GW) in 2019 to 225 GW by 2022.

Total and Adani Green Energy Limited (AGEL) will create a 50/50 joint venture into which AGEL will transfer its solar assets in operation. These projects are spread over 11 Indian states and have a cumulative capacity of over 2 GW. All the projects benefit from nearly 25-year power purchase agreements (PPA) with national and regional electricity distributors, with a fixed rate.

“Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy," said Patrick Pouyanné, Chairman & CEO of Total. “This interest in over 2 GW of solar projects represents another big step of our investment in India's energy sector. It will support our ambition to contribute to the deployment of 25 GW of renewable capacities by 2025. We are thrilled to extend the partnership with the Adani Group to renewable energies, which will allow us to benefit from its in-depth knowledge of the Indian electricity market.”

“We are delighted to extend our long term partnership with TOTAL to our renewable energy business in AGEL. The investment reinforces the immense potential in India’s renewable energy sector, as well as Adani group commitment towards sustainable development. This is a pivotal step in our journey towards building the world’s largest solar power company by 2025 and the world’s largest renewable power company by 2030.” - Gautam Adani, Chairman, Adani Group.

This transaction has a value of approximately $500 million and is in line with the Group’s objective of double-digit returns on renewable projects. It remains subject to the approval of the relevant authorities.

Adani Green is one of the largest renewable companies in India, with a current project portfolio of 6 GW including under construction capacity. Additionally, AGEL participated, as successful bidder in SECI’s tender of manufacturing linked development project for a capacity of 8 GW and awaiting its award.

In October 2019, Total had announced that it was acquire 37.4% stake in Adani Gas for approx Rs 6000 crores.

Source - BSE.

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.

ONGC signs MoU with EXXONMobil for study in PEL offshore blocks and open acreage areas.

Oil and Natural Gas Corporation (ONGC) Limited has signed a Memorandum of Understanding (MoU) with US petroleum giant EXXON-Mobil on 14 October 2019. This MoU will enable the two petroleum companies to undertake joint technical studies and cooperate in frontier areas like deep water and other Petroleum Exploration Licence (PEL) blocks of ONGC in the east and west coast and open acreages for joint bidding.

The MoU was signed on the side-lines of IHS-CERAWeek at Delhi by ONGC Director (Exploration) Mr R K Srivastava and EXXON-Mobil CEO, South Asia Mr William P Davis in the presence of Minister of Petroleum & Natural Gas and Steel, Mr. Dharmendra Pradhan, Petroleum Secretary, Dr. M M Kutty and ONGC CMD Mr. Shashi Shanker.

The work under the MoU will be carried out in three phases. This will lead to a joint technical study for potential collaboration areas.

Talking after the MoU, Vice President Asia Pacific ExxonMobil Mr. Michael Deal said, “We welcome the opportunity to work with ONGC and apply our collective expertise to be an even bigger part of India’s bright energy future”.

ONGC CMD Mr Shashi Shanker said, “This meaningful partnership with EXXONMobil will be a step towards unlocking value in ONGC PEL offshore blocks, study open acreage areas and enable us to get closer to meeting Country’s energy aspirations”.

Source - ONGC.

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.

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.

BHEL and LIBCOIN to Build India’s First Lithium Ion Giga Factory.

Bharat Heavy Electricals Limited (BHEL) and Libcoin are in dialogue to form a world class consortium to initially build 1GWh lithium ion battery plant in India. Its capacity will be scaled up to 30GWh in due course. With this, India has finally taken steps into its energy security and clean energy commitment to the world.

BHEL will be sending a team of senior officers for the study of the facilities, R&D infrastructure and other techno-commercial issues soon. Based upon the evaluation and recommendations of the team, further process towards the formation of Joint Venture will be carried forward.

This project will bring energy independence by replacing oil imports with abundant renewable. This project also includes “Made by India, for India”, with focus on core-cost components manufactured domestically. It will also create an integrated manufacturing ecosystem resulting in self-reliance and lower cost.

A holistic view of the supply chain in combination with cutting edge digital technologies to replace high CAPEX and high OPEX processes will be the highlight of this project in India. 

Various Indian cities including Delhi have been struggling to cut down their pollution level for the last several years and electric transportation has been considered as one of the viable approaches to cut down emission. The number of electric cars in the world already hit million-mark last year and the International Energy Agency has projected almost 140 million electric cars globally by 2030, if countries meet Paris climate accord targets, in which India has already committed to actively participate.

Source: PIB.

TCS will digitally transform India Post's 1,50,000 post offices with ERP solutions.

Indian MNC Tata Consultancy Services has received an order to digitally transform India Post's 1,50,000 e-postal network with next-gen ERP solutions. TCS has partnered with the Department of Posts in its multi-year transformational journey to become a multi-service digital hub, modernize the delivery of mail and packages, enhance customer experience, and launch innovative services that will drive new revenues.

At the heart of this transformation is the Core System Integration (CSI) program designed and implemented by TCS. This involved deploying an integrated ERP solution that caters to mail operations, finance and accounting, and HR functions, and connects its vast network of more than 150,000 post offices, making this the largest distributed ePostal network in the world.

The integrated solution is built to cater to the Department’s immense scale, and future needs. It supports the HR needs of over 500,000 employees, services over 40,000 concurrent users, and processes over 3 million postal transactions a day, making this one of the largest SAP implementations in the world.

On the front-end, TCS has implemented its Point of Sale (PoS) solution across 24,000 post offices with over 80,000 PoS terminals, making this amongst the largest such implementations in the world. Additionally, TCS has built a web portal with consignment tracking capabilities, and set up a multi-lingual call center for customer support.

To enable India Post to benefit from the burgeoning ecommerce opportunity, while fulfilling a vital social obligation, the web portal has an e-marketplace to help rural artisans, self-help groups, and women entrepreneurs reach out to buyers throughout the country.

An important objective of the transformation is to use the Department’s nation-wide reach to drive financial inclusion and accessibility of citizen services in remote areas. This is being accomplished through over 130,000 DARPAN hand-held devices that Gramin Dak Sevaks use to provide postal, banking, insurance, and cash management services in remote villages, even those without network connectivity.

Salim Haque, Member, Postal Services Board, said, “A program of this scale, spread and complexity, required meticulous planning and adroit execution. The TCS team has shown sheer rigor, passion, dedication and attention to detail, which have been commendable. Their maturity in understanding the requirements of India Post has been par excellence, yielding a robust design, which makes the solution state-of-the-art and adaptable to future needs.”

Department of Posts is pioneering in an initiative to build a world class, future-ready digital platform that the nation can be proud of. With the implementation of Enterprise Resource Planning solutions, the department can offer smart postal services, enriched customer experiences, and innovative value-added services to the citizens of India.

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.

India will remain one of the fastest-growing major economies in the world - Asian Development Bank

Gurugram, India.

Global lender, Asian Development Bank has predicted 7.2% GDP Growth for India in the fiscal year 2019. Strong domestic demand would ensure that India will be the fastest growing economy in the world.

Recent policy measures by the Modi government will improve the investment climate and boost private consumption and investment will help India to lift economic growth in the next two fiscal years, according to a new report from the Asian Development Bank (ADB).

In its Asian Development Outlook (ADO) 2019, ADB projects gross domestic product (GDP) growth in India to rise to 7.2% in fiscal year (FY) 2019 and reach 7.3% in FY2020, reversing two years of declining growth as reforms to improve the business and investment climate take effect.

“India will remain one of the fastest-growing major economies in the world this year given strong household spending and corporate fundamentals,” said ADB Chief Economist Mr. Yasuyuki Sawada. “India has a golden opportunity to cement recent economic gains by becoming more integrated in global value chains. The country’s young workforce, an improving business climate, and a renewed focus on export expansion all support this.”

Income support to farmers, hikes in procurement prices for food grains, and tax relief to tax payers earning less than Rs 500,000 will boost household income. Declining fuel and food prices are also expected to provide an impetus for consumption. An increase in utilization of production capacity by firms, along with falling levels of stressed assets held by banks and easing of credit restrictions on certain banks, is expected to help investment grow at a healthy rate.

Downside risks to growth include a higher-than-expected moderation in global demand and a potential escalation of trade tensions. Lower-than-targeted tax revenues or a delay in strengthening bank and corporate balance sheets could also undermine economic expansion.

Consumer price inflation is expected to rise to 4.3% in FY2019 and 4.6% in FY2020 as food costs increase slightly and domestic demand strengthens. Given that inflation is expected to average around 4.0% in the first half of FY2019, the central bank would have some room for lowering policy rates.

Imports are expected to rise mainly due to stronger domestic demand while a growth slowdown in India’s key export destinations would dent export growth. The current account deficit is expected to widen a bit to 2.4% of GDP in FY2019 and 2.5% of GDP in FY2019. The deficit is expected to be financed comfortably by capital flows, given that India has emerged as an attractive destination for foreign investment.

A key factor driving India’s persistent current account deficit is its tepid export performance compared to other East and Southeast Asian economies. India’s export performance could benefit from greater participation in global value chains (GVCs). Lower trade costs, improved infrastructure quality, and enhanced worker skills could help India integrate more with GVCs. Global experience suggests that enhanced GVC participation is also associated with other development goals that India strives to achieve such as higher economic growth, an increase in the share of manufacturing in GDP, and faster job creation.

Popular schemes like PM Kisan Yojana may enhance domestic consumption further. India is today a bright spot in the world economy and it would continue to remain so with a high GDP growth rate.

GAIL, BHEL sign pact for development of Solar based power projects.

State-owned Gas utility GAIL India Limited has signed Memorandum of Understanding (MoU) with Bharat Heavy Industries Limited in New Delhi for cooperation in the development of solar-based power projects.

GAIL shall be the project developer and BHEL shall act as an Engineering, Procurement, Construction and Project Management Contractor. BHEL shall also provide Operation and Maintenance services during the initial period upon becoming successful bidder. This development will help both the companies to leverage their competitive strengths to build a substantial portfolio in solar power projects in line with INDC targets of Government of India. The MOU aims at building a closer strategic partnership between the two Maharatna PSUs for jointly pursuing commercial solar power projects through participation in Tariff / Viability Gap Funding (VGF) based competitive bidding process.

Speaking on the occasion, Shri Manoj Jain, Director (Business Development) stated “GAIL is a proud member of India’s clean energy infrastructure and is always committed to incorporate initiatives for sustainable development of the nation. We are happy to enter into this strategic relationship with BHEL, a pioneer in India’s Engineering sector. The skills and strengths of both the companies would create a synergy for achieving the objective of MoU."

GAIL (India) Limited is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG regasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of around 11,400 km of high pressure trunk pipelines. It is working concurrently on multiple pipeline projects, aggregating over 5400 kms at an investment of about Rs. 24,000 crores, to operate over 16,000 kms by 2021. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. 

GAIL also has a formidable market share in City Gas Distribution and is currently operating in 38 cities/Geographical Areas directly and through its eight Joint ventures/ subsidiaries. In the Liquefied Natural Gas (LNG) market, GAIL has one of the largest portfolios in the world. GAIL has hired its first LNG vessel “Meridian Spirit" on time charter basis to transport US volumes to India. GAIL is also expanding its presence in renewable energy like solar and wind. In fact, it has India‘s second-largest rooftop solar PV power plant at its Petrochemical Complex at Pata, Uttar Pradesh. It has an overseas presence through offices and subsidiaries in the US, Singapore and Myanmar.

BHEL is one of the few companies in the world, and only company in India, having capability to manufacture the entire range of Power plant equipment and has proven turnkey abilities for executing Power projects from concept to commissioning in the field of Thermal, Gas, Hydro and Nuclear. BHEL has also been in the field of design, engineering, manufacturing, installation and commissioning of solar power plants over three decades and has a portfolio of more than 700 MW. BHEL is the only company in India having manufacturing capability of almost entire range for Solar equipment i.e. Solar Cells, Solar Modules, SCADA, Inverters, Power Transformers, Switchgear and Modules Mounting Structures with tracking system. BHEL has a dedicated R&D centre for Solar PV at ASSCP, Gurgaon to develop high-efficiency Solar Cells and process optimization.

Source - Press Release.

Brookefield-led India Infrastructure Trust (InvIT) to acquire East West gas pipeline for Rs 13,000 crores.

Brookfield has filed the preliminary placement memorandum, in terms of which India Infrastructure Trust, an InvIT set up by Brookfield as Sponsor and 90% investor, will invest Rs. 13,000 crore to acquire the East West Pipeline (“Pipeline”). As a part of the transaction, the InvIT will acquire 100% equity interest in Pipeline Infrastructure Private Limited (“PIPL”) which currently owns and operates the Pipeline.

Pursuant to this acquisition by Brookfield, the existing pipeline usage agreement has been reworked as follows:

• The reserved capacity reduced to 33 MMSCMD against the 56 MMSCMD.
• Any unutilized capacity payment by RIL will be the difference between Rs. 500 crore a quarter and actual revenue earned by PIPL.
• RIL will continue to be entitled to transport gas, either by itself or of any customers, free of cost against any outstanding unutilized capacity payments.

At the current approved final tariff of Rs. 71.66/MMBTU, if the average volume of gas transported is 22 MMSCMD, RIL will not be liable to make unutilized capacity payments.

The next review of tariff in April 2020 will also consider upward revision to tariff arising from the determination of lower revised capacity of the pipeline. Considering the new investments in the upstream sector in the KG basin, and the growing LNG imports, ability to swap gas, the average volume expected to be transported through the pipeline is expected to be significantly higher compared to the current levels.

RIL will be entitled to a significant participation in the net earnings of PIPL under the mechanism specified in the pipeline usage agreement. RIL’s current investment in preference shares valued at Rs. 4,000 crore to continue and will be converted into equity at the end of 20 years.

Further, at the end of 20 years, RIL has the right to acquire equity shares of PIPL held by the InvIT at an equity value of Rs. 50 crore.

National Mineral Exploration Policy 2019 to give fillip to Metals and Mining industry in India.

Over the years the dynamics of the mineral sector have undergone sea change thereby creating new demands and imperatives. There is a compelling need to provide an impetus to exploration activity in the country. This has prompted the Government to carry out a comprehensive review of its exploration policy and strategy. The Government of India allowed 100% FDI in the mining sector for the growth of Metals and Mining industry.

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the National Mineral Exploration Policy (NMEP). National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 which was announced in the year 2008. The NMEP primarily aims at accelerating the exploration activity in the country through enhanced participation of the private sector. There is a need for comprehensive mineral exploration of the country to uncover its full mineral potential so as to put the nation's mineral resources (non-fuel and non-coal) to best use and thereby maximize sectoral contribution to the Indian economy. 

The policy emphasizes on making available baseline geoscientific data of world standards in the public domain, quality research in a public-private partnership, special initiatives for the search of deep-seated and concealed deposits, quick aero geophysical surveys of the country, and creation of a dedicated geoscience database etc.

The National Mineral Exploration Policy has the following main features for facilitating exploration in the country:- 

• The Ministry of Mines will carry out auctioning of identified exploration blocks for exploration by the private sector on revenue sharing basis in case their exploration leads to auctionable resources. The revenue will be borne by the successful bidder of those auctionable blocks. 

• If the explorer agencies do not discover any auctionable resources, their exploration expenditure will be reimbursed on a normative cost basis. 

• Creation of baseline geoscientific data as a public good for open dissemination free of charge. 

• The government will carry out a National Aerogeophysical Program for acquiring state-of-the-art baseline data for targeting concealed mineral deposits. 

• A National Geoscientific Data Repository is proposed to be set up to collate all baseline and mineral exploration information generated by various central & state government agencies and also mineral concession holders and to maintain these on the geospatial database.

• Government proposes to establish a not-for-profit autonomous institution that will be known as the National Centre for Mineral Targeting (NCMT) in collaboration with scientific and research bodies, universities and industry for scientific and technological research to address the mineral exploration challenges in the country. 

• Provisions for inviting private investment in exploration through attractive revenue sharing models. 

• On the lines of UNCOVER project of Australia, the government intends to launch a special initiative to probe deep-seated/ concealed minerals deposits in the country in collaboration with National Geophysical Research Institute and the proposed NCMT and Geoscience Australia.

In order to implement the recommendations of the NMEP, initially, an amount of about Rs.2116 crore over 5 years would be required over and above the annual plan budget of the Geological Survey of India under the Ministry of Mines. The NMEP will benefit the entire mineral sector across the country. 

The major impact of NMEP are:- 

1) The pre-competitive baseline geoscientific data will be created as a public good and will be fully available for open dissemination free of charge. This is expected to benefit public and private exploration agencies. 

2) The collaboration with scientific and research bodies, universities and industry for the scientific and technological development necessary for exploration in a public-private partnership. 

3) The government will launch a special initiative to probe deep-seated/concealed mineral deposits in the country. Characterizing India's geological cover, investigating India's lithospheric architecture, resolving 4D geodynamic and metallogenic evolution, and detecting and characterizing the distal footprints of ore deposits, would be the main components of this initiative. 

4) A National Aerogeophysical Mapping program will be launched to map the entire country with low altitude and close space flight to delineate the deep-seated and concealed mineral deposits. 

5) The government will engage private agencies for carrying out exploration in identified blocks/areas with the right to certain share in the revenue accruing to the State government through auction. 

6) Public expenditure on regional and detailed exploration will be prioritized and subject to periodical review based on assessment of criticality and strategic interests.

Among the changes introduced in the National Mineral Policy, 2019 include the focus on #MakeInIndia initiative and Gender sensitivity in terms of the vision.  In so far as the regulation in Minerals is concerned, E-Governance, IT enabled systems, awareness and Information campaigns have been incorporated.  Regarding the role of state in mineral development online public portal with provision for generating triggers at higher level in the event of delay of clearances has been put in place.  NMP 2019 aims to attract private investment through incentives while the efforts would be made to maintain a database of mineral resources and tenements under mining tenement systems.   

The new policy focusses on use coastal waterways and inland shipping for evacuation and transportation of minerals and encourages dedicated mineral corridors to facilitate the transportation of minerals.  The utilization of the district mineral fund for equitable development of project affected persons and areas. NMP 2019 proposes a long term export import policy for the mineral sector to provide stability and as an incentive for investing in large scale commercial mining activity.

The 2019 Policy also introduces the concept of Inter-Generational Equity that deals with the well-being not only of the present generation but also of the generations to come and also proposes to constitute an inter-ministerial body to institutionalize the mechanism for ensuring sustainable development in mining.

Source - IBEF and PIB.

"One Nation One Card" for Metro, Local Train, Buses across India. NPCI, CDAC and Bharat Electronics develop National Common Mobility Card.

National Payments Corporation of India, Centre for Development of Advanced Computing and Bharat Electronics Limited have jointly developed an intelligent transport system smart-card. In line with the spirit of 'One Nation', the smart card once recharged can be used anywhere on any metro system, suburban trains, and buses across India. At this moment, the Delhi Metro card cannot be used on AFC gates in Mumbai Metro. Similarly, Mumbai Metro, Monorail, Local trains and BEST buses issue different smart cards dedicated only for its respective ticketing service.

Soon, a Pan-India transport card will be made available for the common public. Such smart cards are operational in advanced city nations like Singapore and Hong Kong. Transport evangelists believe that other services like taxis and toll tax could also be linked on this National Common Mobility Card.

PM Narendra Modi launched today One Nation, One Card for transport mobility at a function in Ahmedabad today. The Indigenous Automatic Fare Collection System based on One Nation One Card Model i.e. National Common Mobility Card (NCMC) is the first of its kind in India.

India’s First Indigenously Developed Payment Eco-system for transport consisting of NCMC Card, SWEEKAR (Swachalit Kiraya: Automatic Fare Collection System) and SWAGAT (Swachalit Gate) is based on NCMC Standards.

A new era of Smart Transportation

Public Transport is extensively used across India as the economical and convenient mode of commuting for all classes of society. Cash continues to be the most preferred mode of fare payments across the public transport. However, there are multiple challenges associated with the cash payment e.g. cash handling, revenue leakages, cash reconciliation etc. Various initiatives have been taken by transit operators to automate & digitize the fare collection using Automatic Fare Collection System (AFC). The introduction of closed loop cards issued by these operators helped to digitize the fare collection to a significant extent. However, the restricted usability of these payment instruments limits the digital adoption by customers.

AFC System (gates, readers/validators, backend infrastructure etc.) is the core of any transit operator to automate the fare collection process. The major challenge associated with AFC system implementation in India till now is the lack of indigenous solution provider. Till now, AFC systems deployed at various Metros are from foreign players. In order to avoid the vendor lock-in and create an interoperable system, there was a need to develop indigenous standards and AFC system under Make in India initiative.

In order to ensure a seamless travel across metros and other transport systems in addition to retail shopping and purchases, the Ministry of Housing & Urban Affairs (MoHUA) came out with the National Common Mobility Card (NCMC) Program. 

A committee was formed with representatives from National Informatics Centre (NIC), Centre for Development of Advance Computing (C-DAC), Bureau of Indian Standards (BIS), National Payment Corporation of India (NPCI) and the Ministry of Finance with an objective to develop the vendor agnostic interoperable ecosystem for NCMC including indigenous AFC System and banking interface. 

NPCI was given the mandate to develop the specifications for card & terminal to support the NCMC ecosystem. Based on the best global practices and dynamics of Indian market, the committee recommended EMV based Open Loop Card with stored value as NCMC

CDAC has entrusted the task of finalization of NCMC specification for AFC system including the interface with Bank server. CDAC worked in collaboration with NPCI to complete this activity. Thereafter, BEL was roped in for making Gates & Reader.

The Gate & Reader prototype has been made by BEL. This is the first gate and the reader which has been manufactured by an Indian company. This is also the first indigenous payment reader which has been certified as per International standards. India joins the very few elite nations who have indigenous capacity on gate and reader production.

NCMC Ecosystem offers the value proposition for customers as they need not to carry multiple cards for different usage. Further, the super quick contactless transactions will improve the seamless experience. For operators, NCMC ecosystem brings common standards for implementation without vendor lock-in.

This will also help in higher digital payments penetration, savings on closed loop card lifecycle management cost and reduced operating cost. The rich data insights may be used by operators for business intelligence leading to efficient operation. 

With the NCMC Ecosystem, banks will get an access to segments which are highly driven by cash but stickiness in nature. NCMC Ecosystem will further help the government in digitization of low-value payments and reduced cost for the entire ecosystem. 

In order to showcase the entire NCMC ecosystem for digital fare collection, the complete AFC system has been deployed in Delhi Metro Rail Corporation (DMRC) across few stations for field trial purpose. Under this pilot, NCMC compliant gates have been deployed at various stations of DMRC and cards have been issued by multiple banks to the users.

The pilot at DMRC was inaugurated by MoHUA on Jan 31st, 2019. This pilot will help to improve hardware reliability and fine tuning of the software. This will also facilitate large scale indigenous production and deployment in the Indian transit system. The first level trails has been successfully completed in collaboration with CDAC, BEL, NPCI and SBI.

'One Nation One Card'

Public Sector Banks like SBI will issue Debit/Credit/Prepaid cards and the customer may use this single card for payments across all segments including metro, bus, suburban railways, toll, parking, smart city and retail. The stored value on card supports offline transaction across all travel needs with minimal financial risk to involved stakeholders. The service area feature of this card supports operator specific applications e.g. monthly passes, season tickets etc.

The National Common Mobility Card (NCMC) to enable seamless travel by different metros and other transport systems across the country besides retail shopping and purchases is an initiative of the Ministry of Housing & Urban Affairs. The card will address the challenges associated with the cash payment e.g. cash handling, revenue leakages, cash reconciliation etc. Various initiatives have been taken by transit operators to automate & digitize the fare collection using Automatic Fare Collection System (AFC). The introduction of closed loop cards issued by these operators helped to digitize the fare collection to a significant extent. However, the restricted usability of these payment instruments limits the digital adoption by customers. 

The customers need not carry multiple cards for different usage. Further, the super quick contactless transactions will improve the seamless experience. This will also help in higher digital payments penetration, savings on closed loop card lifecycle management cost and reduced operating cost. The rich data insights may be used by operators for business intelligence leading to efficient operation.

Source - Press Information Bureau.