General Awareness

BUSINESS AND ECONOMY - October 2018

Oct 2018

Apr 15, 2019

Decline in India's Steel Export to US

As per the independent Congressional Research Service's latest report, India's steel export to the US in 2018 declined by 49 per cent to USD 372 million, while that of aluminum increased by 58 per cent to USD 221 million.
In 2018, the US imports of steel and aluminum products totalled USD 29.5 billion and USD 17.6 billion respectively.
Over the past decade steel imports have fluctuated significantly by value and quantity, while imports of aluminum have generally increased.

UPI Sets Searing Pace

While digital payments overall have been growing strongly, people are changing the way they transact, choosing bank-to-bank methods such as the Unified Payments Interface (UPI) over other instruments such as e-wallets.
As per an analysis of data from the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI) and some industry players from April 2018 to March 2019 shows that not only is the UPI platform outperforming e-wallets in terms of the value of transactions done, but it is also eating away at e-wallets' market share in specific areas such as person-to-merchant (P2M) transactions.
Payments made on the UPI platform saw a remarkable growth of over 400% in the April to March period, from a little more than Rs. 27,000 crore in April 2018 to Rs. 1.35 lakh crore in March 2019.

Apr 13, 2019

SC Rejects Sterlite's Plea

The Supreme Court refused to entertain a petition filed by Vedanta Group company Sterlite Copper for access to its closed smelter in Thoothukudi, Tamil Nadu, for carrying out maintenance.
The company also challenged the Madras High Court's order, declining an early hearing of its interim application as well as the main petitions, which relate to the Tamil Nadu State Pollution Control Board's order shutting down the plant.

Higher Tariff for Adani's Mundra Plant

The Central Electricity Regulatory Commission (CERC) approved higher tariff for Adani Power's 2,000 megawatt (MW) capacities at its Mundra power plant.
The plant was facing hardships after compensatory tariff was disallowed by the Supreme Court in April 2017.
Adani Power has been seeking to pass through higher cost of imported coal to run this plant.
The cost of fuel rose after Indonesia changed its regulations. The Mundra plant is an imported coal-based plant.
In 2018, power distribution firm Gujarat Urja Vikas Nigam Ltd. (GUVNL) had sought CERC approval to amend terms of the power purchase agreements for 2,000 MW capacities with Adani's 4,620-MW Mundra power plant.
In its plea to the CERC in 2018, GUVNL had proposed amendments to the two PPAs signed on February 6, 2007, and February 2, 2007, with Adani Power (Mundra) Ltd., for the supply of contracted capacity of 1,000 MW each from units 1 to 4 and units 5 and 6 of Mundra plant respectively.

Malaysia Approves Chinese Project

China agreed to cut by a-third the cost of a rail project in Malaysia, a move that seemed to acknowledge mounting international scepticism about its continent-spanning infrastructure programme.
Malaysian officials announced a new agreement with China Communications Construction Co. a state-owned company that would allow the rail project to go forward, nearly a year after the Malaysian government suspended it.
The project, meant to connect ports on Malaysia's east and west coasts, is now expected to cost $11 billion, roughly two-thirds of the most recent projected price tag of $16 billion. The earlier estimates had caused consternation within Prime Minister Mahathir Mohamad's administration.
This reduction will surely benefit Malaysia and lighten the burden on the country's financial position. The project, known as the East Coast Rail Link, became a political lightning rod after Mr. Mahathir used its cost as an issue on his way to winning the election in 2018.

TCS Sees Highest Revenue Growth

Tata Consultancy Services (TCS), has reported a 17.7% increase in its fourth quarter consolidated net profit to Rs. 8,126 crore, riding on an 18.5% increase in revenue to Rs. 38,010 crore.
Digital services contributed 31% to revenue, growing at 46.4% over the same period in 2018.
According to Rajesh Gopinathan, MD & CEO, TCS, this is the strongest revenue growth that TCS had in the last 15 quarters.
The company closed FY19 with 22% growth in yearly profit to Rs. 31,472 crore and a 19% jump in annual revenues to Rs. 1,46,463 crore.

Axiata Group Renounces Share Entitlement

Malaysia-based Axiata Group has renounced its right to entitlement of Vodafone Idea shares under the Rs. 25,000-crore rights issue.
Axiata Group, which held 8.1% (valued at Rs. 3,771 crore) stake in the telecom major, was entitled to receive 87 equity shares for every 38 shares held by eligible shareholders of the company on the record date, April 2, 2019.
The rights issue was opened on April 10.

Industrial Growth at 20-month Low

According to latest official data, industrial growth slowed in February to 0.1%, driven by an across-the-board slowdown, especially in key sectors like manufacturing, mining, capital goods, and infrastructure.
Separate data showed that retail inflation quickened in March to 2.86% from 2.57% in February, driven in large part by the food and fuel sectors.
Growth in the Index of Industrial Production (IIP) slowed in February from 1.44% in January.

Apr 12, 2019

Commercial Credit Rises Strongly

As per a report by TransUnion CIBIL and SIDBI, total bank credit exposure stood at Rs. 111.1 lakh crore as of December 2018 with the mid and large corporate segment accounting for the largest share of 43% and an exposure of Rs. 47.5 lakh crore.
Consumer lending (retail, agriculture and priority sector lending) is the second biggest segment with a share of 35% and exposure of Rs. 38.4 lakh crore.
The MSME segment (business lending to both corporate entities and individuals) stands third with a share of 23% of the aggregate pie.
The year-on-year commercial credit growth continues to rise, clocking 14.4% in the December 2018 quarter.

Ratan Tata-led Committee to Pick CEO for Tata Trusts

Twenty professionals, both from within the country and abroad, are in the race for the position of chief executive officer (CEO) of Tata Trusts, which own 66% of $110.7 billion salt-to-software Tata Group.
A committee headed by Ratan Tata will be in discussions with the identified individuals, over the next fortnight, to identify the right candidate for the post of Tata Trusts CEO.
The committee of trustees comprising Mr. Tata, chairman of the trusts, and Vijay Singh and Venu Srinivasan, vice-chairmen of the trusts, has been overseeing the operations after R. Venkataramanan relinquished responsibility as the managing trustee of the Tata Trusts on March 31, 2019.

Google Pay Launches Gold Buying

Google has partnered with bullion refiner MMTC — PAMP India to allow Google Pay users to buy and sell gold through the app, a service that is already offered by the likes of Paytm, Mobikwik and PhonePe.
Through this partnership with India's only LBMA-accredited gold refinery, Google Pay users will be able to buy 99.99% 24-karat gold.

Vedanta Moves SC

Vedanta Ltd. has moved the Supreme Court with a special leave petition (SLP) seeking interim access to undertake maintenance activities at its plant in Thoothukudi.
The SLP also urged the apex court to grant all approvals, permits, licences, certificates etc. that stood withdrawn or cancelled by the various statutory authorities.
Vedanta, which runs Sterlite Copper, has sought the Supreme Court to "issue an interim direction permitting it to complete its turnaround shut-down activities that it was conducting and which were stopped abruptly as a result of the illegal closing/sealing of the plant."
The Supreme Court had earlier ruled that the NGT (National Green Tribunal) had lacked jurisdiction in the matter (i.e. ordering the reopening of the Sterlite unit) and asked Vedanta to seek remedy from the High Court.
Vedanta could not get any interim relief from the Madras High Court, which adjourned the case to April 23.

Airtel-Tata Tele Merger

The Department of Telecom has given an approval for the merger of Tata Teleservices (TTSL) with Bharti Airtel, subject to the condition that the Sunil Bharti Mittal-led firm furnishes Rs. 7,200 crore worth bank guarantee.
Both companies also need to submit undertaking on matters related to court cases before the merger is taken on record.
The merger will be taken on record after Airtel submits bank guarantee of about Rs. 6,000 crore for one-time spectrum charges and another Rs. 1,200 crore for the spectrum that would be acquired from TTSL.

Apr 11, 2019

GPF Interest Retained at 8%

The government has retained the interest rate for General Provident Fund (GPF) and other related schemes at 8% for the April-June quarter.
The rate is in line with that of Public Provident Fund.
The interest rate will be applicable on provident funds of central government employees, railways and defence forces.

Anchor Takes a New Identity

Anchor Electricals Private Limited has been renamed as Panasonic Life Solutions India Private Limited (PLSIPL) with effect from April 1, 2019.
With this, the brand has also changed its corporate identity from 'Anchor by Panasonic' to 'Panasonic'.
The positioning for the two core brands, however, remains the same with Anchor targeting the value-for-money segment and Panasonic catering to the premium end of the market.

Jet Lenders Extend EoI Date

The debt resolution process of Jet Airways suffered a setback with many prospective investors staying away from submitting expression of interest (EoI) before the deadline.
SBI Capital Markets Ltd. (SBI Caps), acting on behalf of the lenders, extended the deadline to April 12.
The last date for receipt of EoI was April 10, 2019.
Etihad Airways, which was keen to participate in the bidding process, had sought more clarification and time to secure board approval.

Apr 10, 2019

YouTube's Largest and Fastest Growing Market

With substantial growth in India's internet coverage and data growth, India has become YouTube's largest and fastest growing market with 265 million Indians watching the video-sharing website every month.

TechM to Buy Stake in lnfotek and Vitaran

Tech Mahindra will acquire 18.1% stake each in Infotek Software and Systems (ISS) and Vitaran Electronics for a consideration of up to Rs. 13 crore.
Tech Mahindra intends to leverage the presence of the firms in the radio-frequency identification (RFID) space in building a strong footprint in the asset monitoring, tracking and automated billing solutions space.
The investment will also help expand Tech Mahindra's solution portfolio to cater to the smart city projects.

Tata Sponge Iron Ltd. Completes Acquisition

Tata Sponge Iron Ltd. (TSIL), a Tata Steel subsidiary, has announced the completion of its acquisition of the steel business of Usha Martin Ltd.
TSIL said that it completed the acquisition, which included UML's steel business undertaking along with captive power plants.
The acquired business comprises a one million tonne per annum (mtpa) alloy-based long products making facility in Jamshedpur, an operational iron ore mine, a coal mine under development, and captive power plants.

Adani Closer to Mine Construction

Adani Enterprises has taken a step closer to the construction of its coal mine in Australia after the Federal government gave a green light to the multi-billion dollar project's groundwater management plans.
Adani Group entered Australia in 2010 with the purchase of the greenfield Carmichael coal mine in the Galilee Basin and the Abbot Point Port, near Bowen.
The mine had been a controversial topic with the project expected to produce 2.3 billion tonnes of low-quality coal.

Lending Rates Being Slashed

Equated monthly instalments (EMIs) are set to fall with banks announcing a cut in their lending rates.
The country's largest lender, State Bank of India (SBI) led the way cutting the interest rate on its loans by 5 basis points (bps).
As a result, the one year marginal cost of funds based lending rate (MCLR) of SBI, to which most loans are linked, will now drop to 8.5%.

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