"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.

GMR Infra bags contract to develop greenfield Bhogapuram airport near Vizag.

GMR Infrastructure Limited has informed Bombay Stock Exchange that its subsidiary GMR Airports Ltd has emerged as the highest bidder for the Development, Operations and Management of Greenfield International Airport at Bhogapuram, Andhra Pradesh (AP) on a PPP basis. The initial investment for Phase-1 to be approx. Rs 2,300 crores.

Andhra Pradesh Airports Development Corporation Limited (APADCL), had initiated the RFP process for a new airport at Bhogapuram in November 2018. The project involves design, build, finance, construction, development, up-gradation, modernization, operation and maintenance of the Bhogapuram airport for a period of 40 years. As part of the qualification process, APADCL had shortlisted seven applicants viz GMR Group, GVK, Dolt Infra, !-Investment, NIIF, Esse! and Reliance Infra. However, only GMR Group, GVK and Dolt Infra submitted their financial bids.

In Calendar Year 2018, the existing civil enclave at Vishakapatnam Naval Airfield has handled 2.33 mn passengers and 5000 Tons cargo. Over the past 4 years, the passenger traffic at the Vizag airport has grown at 14% CAGR while the Airport ranks 5th amongst the custom airports in India in terms of Cargo traffic.

The proposed greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts, and is approximately 45 km from Visakhapatnam through NH-5 and 25 km from Vizianagaram via NH-43. The site is strategically located on the east coast and stands to get benefitted from the vast catchment area surrounding the region. Moreover, the beach corridor development is underway in proximity to the proposed International Airport in Bhogapuram which will provide impetus to retail and hospitality developments in the region.

Mr. GBS Raju, Business Chairman, GMR Group said, "It is a matter of great pride for us as Bhogapuram Airport win will add to the ever-growing portfolio of Airports developed, managed and operated by GMR Airports. We look forward to work on this prestigious airport and will aim to deliver an airport of global standards which would be a matter of pride for the region of Visakhapatnam and provide a further fillip to the economic potential of Andhra Pradesh." 

The company is looking forward to receiving a Letter of Award shortly.

Saab signs MoUs with Indian aerospace firms for Gripen Jet Aerostructures.

As India plans to induct 110 Multi Role Combat jets in its fleet, Sweden's Saab has shown interest in the bid by signing MoUs with Indian aerospace firms as per #MakeInIndia plans. Saab has taken another important step forward to expand its footprint and aerospace ecosystem in India by signing new Memorandums of Understanding (MoUs) with three of the country’s leading aerospace manufacturers; Dynamatic Technologies Limited, CIM Tools Private Limited and Sansera Engineering Limited.

The MoUs with CIM Tools and Sansera expand the existing working relationships with Saab on commercial aerostructures to the Gripen fighter and other defence-related products in the Saab portfolio. The MoU with Dynamatic is a starting point to explore future joint opportunities in commercial and defence-related aerostructures work, including Gripen.

“Saab’s Aerostructures business unit has had a successful relationship with CIM Tools and Sansera for several years. Based on that experience we see these two companies can add great value to our Gripen ‘Make in India’ offer,” says Mats Palmberg, VP Industrial Partnerships and Head of Gripen for India. “The MoU with Dynamatic adds the capabilities of complex airframe assembly to Saab’s ‘Make in India’ offer for Gripen,” continues Palmberg.

“I am pleased that the fruitful co-operation we have established over several years with CIM Tools and Sansera can be further developed for the Gripen fighter. The MoU with Dynamatic has the potential to further develop our ecosystem for commercial aerostructures as well as Gripen,” notes Lars Jensen, Managing Director and Head of Saab Aerostructures.

Collaboration and knowledge-sharing are the keys to success when building a successful indigenous aerospace ecosystem. The new MoUs announced today will enable Saab to work with these Indian companies to establish an indigenous, efficient, tailor-made manufacturing system that will develop, deliver and support state-of-the-art Gripen fighters in India for the Indian Air Force.

Dynamatic Technologies Limited designs and builds highly-engineered products for automotive, aeronautic, hydraulic and security applications at various locations in India and Europe. Dynamatic is firmly established as one of the leading private aerospace companies in India, with a wide range of capabilities including complex structural assembly, detailed parts manufacturing and engineering services.

CIM Tools Private Limited is well-established as one of India’s leading aerospace manufacturing companies, providing components, detailed parts and sub-assemblies for aerospace primes worldwide. CIM Tools has experienced continuous business growth thanks to its dedicated owners and skilled workforce.

Sansera Engineering Limited has its roots in the automotive industry providing highly efficient manufacturing and engineering of forged and machined components to prime global automotive companies. In 2010, using its knowledge of efficient and automated manufacturing, Sansera started production of aerospace components for leading companies in the aerospace sector. With swift skills development and investment in facilities and equipment, Sansera continues to grow as a part of India’s aerospace manufacturing industry.

Source - Press Release.

#IRMA2019: Key insights from ICICI Lombard’s ‘Managing New Age Risks’ survey.

Technology, as we know, has become an integral part of our business enterprises. Industrial Revolution 4.0 which connects physical devices with electronic devices comes with new kind of risks. As the world is getting increasingly interconnected, everyone shares the responsibility of securing our cyberspace. Adopting preventive measures and cyber risk mitigation tools has become the need of the hour.

ICICI Lombard, India’s leading private sector general insurance company has commissioned a PAN India survey titled ‘Managing New Age Risk’ to assess the preparedness of Indian organisations towards new age risks. A detailed feedback of CXOs from 100 companies across various sectors was taken for this research.

Corporate dependence on insurance to cover the risk of cyberattacks is expanding in line with their increasing reliance on tech for everything from invoicing to engaging consumers on social media. Next-gen technologies such as Artificial Intelligence, Robotics, Cloud, Blockchain, IoT etc. are associated with new age risks like cyberattacks, data theft, cloud hacks etc. India was the target of 17% cyberattacks, second only to US (38%) between 2015- 2017 as per report released by Symantec Corp. The Indian Computer Emergency Response Team (CERT-In) reported 53,081 cases of cybercrime in the year 2017. More than 40,000 computers in India were jeopardised by Wannacry ransomware attack. Recently, a Pune-based co-operative bank lost nearly Rs 94 crores when hackers operating from abroad breached bank’s ATM servers.

As cyberattacks become more frequent and severe, the need for solid insurance coverage to plug potential financial losses is in demand.

ICICI Lombard’s ‘Managing New Age Risks’ survey delved into understanding the risks that Indian Inc. perceives as critical for business. It also looked at the role of insurers in managing risks from the lens of Indian firms. The survey findings were unveiled by Mr. Bhargav Dasgupta, MD and CEO, ICICI Lombard in the august presence of Prof. Kenneth Rogoff, Professor of Economics & Public Policy at Harvard University and a former Chief Economist at the International Monetary Fund.

The report highlights that companies still consider traditional risks as extremely crucial for their business. CXOs believed that assets like property, machinery and health & wellness of employees are pivotal risks and are needed to be insured. When asked about which risks have been gaining importance in the last 3 years, the response was clearly for new age risks such as hacking, data theft etc. 67% of India Inc. believes data thefts have increased substantially from the last 3 years, 63% feels that risks from cybercrime have increased substantially in the same period.

In terms of challenges to handle risks, 43% CXOs find new age risk incident to be unique, while 42% found it even difficult to identify the source of an attack, making it a tough task to manage. 21% company executives believed that new age risk incidents spread too fast, making it difficult for firms to handle them.

Lack of internal capabilities was a key takeaway when it came to preparedness of organisations in managing new age risks. 41% respondents believed that their existing systems were not equipped to handle these risks, while 39% respondents felt that there was a shortage of skilled manpower that could address these risks. 71% of respondents said that prevention of new age risks is the best way to deal with e-risks.

On the role of insurers, 81% companies believe that insurers are equipped to a certain extent in managing new age risks. Specifically, companies believe that insurers are better equipped to manage risks such as cloud computing (100%) and cyberattacks (69%). However, a majority of CXOs believe that e-risks like data thefts can be better managed internally.

“New age risks are already a reality today, globally and in India. It is most critical that Indian firms take cognizance of this aspect. As is evident from ‘Managing New Age Risks’ survey, being prepared and having the right risk management framework in place is the need of the hour. ICICI Lombard is partnering with their clients to ensure that they are equipped with appropriate and adequate ‘risk management and mitigation’ solutions to effectively handle any prospective new age risk incidents.” - Mr. Bhargav Dasgupta, MD & CEO, ICICI Lombard.

In the digital age, cyberattacks will face a sharp incline in the years to come. Corporates and Insurance companies will have to combine synergies to fight these new age cyber risks in the interest of customers.

- Chaitanya Kulkarni.

Bamboo to Bio-Fuel: Finland's Fortum to invest Euro 13.5 million in 2nd generation Bio-Refinery at Numaligarh, Assam.

PradhanMantri Modi has laid the foundation stone for Assam Bio-Refinery project. Fortum brings in biggest FDI to the North East, in a single greenfield project.

Fortum 3 BV, 100% subsidiary of Fortum Oyj, Finland with Numaligarh Refinery Limited (NRL), an Indian state-owned oil refinery company, and Chempolis, a Finnish technology company, had signed a joint venture for building and operating a bio-refinery in Assam, India. PM Modi along with key officials from Numaligarh Refinery Ltd, Fortum and Chempolis performed the Bhoomipoojan ceremony for the upcoming bio-refinery. The construction of the refinery is expected to be completed by June 2021. 

As part of this venture, Fortum and Chempolis will invest in 50% equity stake, while Numaligarh Refinery Limited (NRL) holds a majority 50%. The first-of-its-kind bio-refinery will be based on formico-technology developed by Chempolis. The key raw material of the bio-refinery is bamboo. The main product bio-ethanol will be sold to NRL who will blend it to petrol. In addition, bio-refinery produces other biochemical and biocoal. Biocoal will be used in CHP plant to produce heat and power to the bio-refinery. Excess power will be sold to NRL's oil refinery where it will replace fossil electricity production. Fortum commits to invest Euro 13.5 Million in a Project of Euro 160 Million.

Bio fuel generated from biomass will save approximately 60 Million US Dollars annually.

The usage of bio fuels aims to solve many critical issues like saving foreign exchange, waste management and providing domestic & clean energy sources. We are living in a world with diminishing natural resources, and we aspire to be one of the forerunners in resource efficiency. For the world's future, biomass is a valuable raw material that can be used to produce many more products of value than today. India has decided to set-up 12 bio-refineries across India which will produce ethanol from bamboo, sugarcane and rice bran. The move towards sustainable development will also help farmers to increase their income. Years to come, the farmer of this country will become an oil producer.

Fortum's Bio2X programme investigates new business opportunities with fractioning-based technologies and end-products of the process. Fortum is currently testing several different fractioning methods. The company has also co-operation projects with different companies to test the end products of different methods.

- Chaitanya Kulkarni.

Saab and Airport Authority of India sign MoU for improved air traffic management system for airports under UDAN scheme

Saab and the Airports Authority of India (AAI) have signed a Memorandum of Understanding (MoU) to research a pan-Indian Air Traffic Management Automation System for airports under the UDAN Regional Connectivity Scheme.

The MoU was signed by Vineet Gulati, Member (ANS) from AAI and Peter Engberg, Head of Traffic Management, Saab Business Area Industrial Products and Services.

Saab’s Digital Air Traffic Management Solutions has a robust portfolio ranging from Advanced-Surface Movement Guidance & Control System (A-SMGCS) and Surface Movement Radar (SR- 3), to Remote Towers which can be deployed at all types of airports. ATM solutions from Saab can support both single and multiple runway airfields, as well as remote operations and deployable systems.

The MoU with Saab will support AAI’s need for ATM solutions and training of its personnel in ATM services. The MoU highlights the efforts of AAI to build infrastructure for the Indian government’s UDAN-RCS regional airport development and regional connectivity plan, helping to make air travel more affordable and widespread.

Saab’s Head of Traffic Management, Peter Engberg says, “India has an ambitious target to develop and operate regular scheduled flights from over 100 airports. We look forward to working with AAI to enable the creation of a nationwide airport infrastructure using Saab’s robust portfolio of ATM services. Through this new agreement, we bring together the strengths of AAI and Saab. The implementation of safe, leading-edge and cost-efficient technologies will bring the benefits of ‘flying for all’ to Indian travellers all across the nation.”

Over the last 10 years, Saab has been addressing the need for robust, modern ATM and supplying crucial equipment to the Airports Authority of India. Saab is present today at 11 airports in India and Saab wants to partner with India to build a pan-India A-SMGCS network.

Saab ATM solutions are now deployed in Ahmedabad, Amritsar, Guwahati, Jaipur, Lucknow, Chennai, Kolkata, Mumbai, New Delhi, Cochin and Bhubaneshwar. All of these airports have Saab’s A-SMGCS software and a combination of other products such as SR-3 and our Multilateration (MLATS) solutions.

In addition, Saab is offering its Remote Tower technology to provide Air Traffic Management solutions in far-flung areas. The Remote Tower product suite includes high-definition and pan-tilt-zoom cameras, surveillance and meteorological sensors, microphones, signal lights and other devices for the safe and efficient management of airport operations.

Source - Press Release.

ICICI Bank: Hard Lined Corporate governance yields positive results in third quarter.

There is increasing awareness among Indian investors to invest in companies that follow practices of good corporate governance. And so, the fact that leading private sector bank like ICICI Bank had the fortitude to appoint someone of Justice Srikrishna’s stature to given an unbiased decision speaks volumes about the credibility of its Board.

ICICI Bank Board took a bold decision not only to dismiss her but also clawback of all her bonuses paid from April 2009 until March 2018 - a first in Corporate India and the Bank is showing the way to other boards/corporate Inc. The ICICI Bank has shown great composure following results of the Srikrishna panel and is once again taking the lead in setting a fine example for good corporate governance and safeguarding its investors. Perhaps, Investors have held on the right reasons and their faith has paid dividends considering the positive outcome of the Q3 results.

Some of the highlights from ICICI Bank’s third quarter results are that its Net interest income has increased by 21% year-on-year and its core operating profit has grown by 14% year-on-year to ₹ 5,667 crore. With a banking network of 4867 branches, Current Account and Saving Account (CASA) deposits increased by 15% year-on-year to ₹ 2,99,374 crores. In addition to this, retail loans have grown by 22% year-on-year and the Bank's total income rose to ₹ 20,163.25 crore over the third quarter as compared to ₹ 16,832.22 crore in the same period a year ago, ICICI Bank said in a statement.

Future forecast for ICICI Bank also looks bright according to multinational financial services company Morgan Stanley that sees ongoing improvement in ICICI Bank’s asset quality trends over the next few quarters and expects stronger performance from the bank’s stock in 2019.

Looks like the ICICI Bank has moved on and whatever has happened is good for the shareholders as it has bought renewed optimism within the institution.