General Awareness

BUSINESS AND ECONOMY - July 2022

Jul 2022

May 02, 2024

Indian Oil Corporation's Investment in Renewable Energy: Rs. 5,215 Crore for 1 GW Capacity

Indian Oil Corporation (IOC) announced a significant investment of Rs. 5,215 crore to develop 1 gigawatt (GW) of renewable energy capacity in India. This strategic move aligns with IOC's broader diversification strategy beyond traditional oil and gas ventures.
The investment plan, approved by the board, focuses on establishing standalone ground-mounted solar, onshore wind, or wind-solar hybrid projects.
IOC will inject Rs. 1,304 crore in equity for this initiative.
The projects will be implemented through a proposed wholly-owned subsidiary dedicated to low-carbon, clean energy ventures.

Uttarakhand Suspends Licences of 14 Patanjali Ayurved Products

The Uttarakhand government has suspended the manufacturing licenses of 14 products from Patanjali Ayurved, founded by Baba Ramdev, citing misleading advertisements about their efficacy. This move comes amid ongoing scrutiny and legal proceedings against Ramdev for non-compliance with directives to cease misleading advertising.
The drug regulator of Uttarakhand has suspended the manufacturing licenses of 14 products made by Patanjali Ayurved due to repeatedly publishing misleading advertisements regarding their effectiveness. The government's order, dated April 24, highlights the company's failure to comply with regulations regarding truthful advertising.

RBI Cancels Acemoney (India) NBFC License for Irregular Lending Practices

The Reserve Bank of India (RBI) cancelled the license of Acemoney (India) Limited, a Delhi-based non-banking financial company (NBFC), citing irregular lending practices. This action stems from the company's violation of RBI guidelines regarding excessive interest charges and inadequate protection of customer information. Specifically, the RBI noted discrepancies in Acemoney's management of risks and code of conduct in its digital lending operations through third-party apps.
The RBI exercised its authority under Section 45-IA (6) of the Reserve Bank of India Act, 1934, to cancel Acemoney India's NBFC license. The company, registered in February 2017, operated loan services through various apps such as AgMoney, NiceCash, Leading Cash, and others. This enforcement action underscores the RBI's commitment to maintaining the integrity and stability of India's financial system.

Jamshyd Godrej and Smita Crishna, Godrej & Boyce's Owner after Split

The 127-year-old business empire of the Godrej Group is all set for a shareholding realignment. In the redistribution, the billion-dollar company will now be split between Adi and Nadir Godrej and their cousins Jamshyd Godrej and Smita Crishna Godrej.
While Adi and Nadir will lead Godrej Industries, Jamshyd and Smita will inherit Godrej & Boyce, along with its affiliates and substantial real estate assets, including prime property in Mumbai.
Jamshyd Godrejis presently the Chairman and Managing Director of Godrej & Boyce, a flagship company within the Godrej Group, known for products ranging from consumer goods to engineering solutions.
He was awarded the Padma Bhushan, the third-highest civilian award in India, in 2003.
Smita Crishna Godrej is India's third-richest woman, according to Forbes, with a substantial net worth of $3.8 billion.
She was honoured with the Extraordinary Leadership Award by Education World at their Education World Grand Jury Awards in 2016.

May 01, 2024

RBI Issues Draft Framework for Electronic Trading Platforms

The Reserve Bank of India proposed a revised regulatory framework for Electronic Trading Platforms (ETPs) in the wake of increased integration of the onshore forex market with offshore markets. Market makers too have been requesting the Reserve Bank to allow access to offshore ETPs offering Indian Rupee (INR) products.
ETP refers to any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments are contracted. Eligible instruments mean securities, money market instruments, foreign exchange instruments, derivatives, or other instruments of like nature.
As per the 'Draft Master Direction - Reserve Bank of India (Electronic Trading Platforms) Directions, 2024' an entity seeking authorisation as an ETP operator should maintain a minimum net-worth of Rs. 5 crore and continue to maintain the minimum net-worth prescribed all times.
Also, the entity should be a company incorporated in India. Further, shareholding by non-residents, if any, in the entity seeking authorisation as an ETP operator should conform to all applicable laws and regulations, including the Foreign Exchange Management Act, 1999.

Telecom Industry Seeks Ban on Illegal WiFi 6E Routers

The Cellular Operators Association of India (COAI), representing major telecom players like Reliance Jio, Airtel, and Vodafone Idea, has urged the government to ban the sale of WiFi 6E routers that utilise the 6 GHz spectrum band for data transmission. The association alleges that these routers are being sold illegally through online platforms such as Amazon, Flipkart, and Moglix, as well as offline traders.
The Department of Telecom (DoT) has not yet decided on the utilisation of the 6 GHz spectrum band.
COAI argues that selling equipment for 6 GHz band utilisation, which has not been assigned or declared as licence-exempt by the government, is illegal.
The sale of such WiFi 6E products results in unauthorised transmissions in the country.

Apr 30, 2024

Sri Lanka Lifts Import Restrictions on Trucks and Heavy Vehicles

In a notable development, Sri Lanka has decided to lift the ban on imports of trucks and heavy vehicles, marking the first rollback of such restrictions since March 2020. The decision, outlined in a gazette notification, signifies a shift towards economic recovery under President Ranil Wickremesinghe's leadership.
Sri Lanka, amidst a financial crisis stemming from a severe shortage of dollars, has taken a significant step by partially lifting import restrictions. This move aims to rejuvenate the economy, which has been struggling since March 2020.

IREDA Granted Prestigious 'Navratna' Status by Government

The Indian Renewable Energy Development Agency (IREDA), a public sector enterprise, was granted the coveted 'Navratna' status by the government. This prestigious designation takes the total number of Navratna PSEs (Public Sector Enterprises) in India to 17.
With the Navratna status, IREDA gains significant autonomy and financial flexibility. The company now has the authority to invest up to Rs. 1,000 crore without seeking prior approval from the government, allowing for faster decision-making and project execution.
The Navratna designation is awarded to public sector undertakings in India that have demonstrated exceptional financial performance, operational efficiency, and global competitiveness. These companies are granted enhanced autonomy in areas such as capital expenditure, investment in joint ventures or subsidiaries, and human resources management.
Established in March 1987 and headquartered in New Delhi, IREDA is an Indian public sector enterprise that offers financial assistance to projects that produce electricity using fresh and sustainable sources. With the government holding a 75% ownership stake, IREDA has been at the forefront of promoting renewable energy projects across the country.

Apr 29, 2024

Arun Alagappan is Executive Chairman of Coromandel International

Coromandel International Ltd. (CIL), a leading provider of agri-solutions, announced a significant leadership transition. Arun Alagappan, the former Executive Vice Chairman, was appointed and re-designated as the Executive Chairman of the company.
The appointment of Arun Alagappan follows the retirement of A. Vellayan, the outgoing Chairman and Non-Executive Director of CIL. The board accepted Vellayan's retirement and honoured his contributions by appointing him as Chairman Emeritus.
Along with the leadership transition, the board also announced the retirement of M.M. Venkatachalam from his position as Non-Executive Director.

Adani's Vizhinjam Port Approved as India's First Transshipment Hub

Adani Group's Vizhinjam Port in Kerala received approval from the government to operate as India's inaugural transshipment port. This designation is significant as it allows cargo to be transferred from large vessels to smaller ones, contributing to India's goal of becoming a manufacturing hub. Presently, a substantial portion of India's transshipment cargo is handled by ports abroad, such as those in Colombo and Singapore.
Vizhinjam Port boasts advanced automation and infrastructure capable of accommodating Megamax containerships, the largest vessels worldwide.
Its initial phase is designed to handle one million TEUs, with provisions for expansion up to 6.2 million TEUs in subsequent phases.

IndusInd Bank's Pilot Program with RBI's Programmable CBDC: Revolutionising Agricultural Finance

IndusInd Bank, in collaboration with Circularity Innovation Hub India Private Limited (CIH), has achieved a significant milestone by successfully executing the Reserve Bank of India's pilot program on programmable Central Bank Digital Currency (CBDC). This pioneering initiative aims to revolutionise agricultural finance by targeting farmers for carbon credit generation.
In this pilot project, IndusInd Bank programmed the CBDC to facilitate fund disbursement with a specific focus on aiding farmers in Ratnagiri district, Maharashtra. The bank initiated disbursements to 50 farmers initially, with plans to extend the program to cover approximately 1,000 farmers. Notably, this program marks the first-of-its-kind initiative where CBDC funds are directed towards promoting sustainable practices in agriculture, particularly in carbon credit generation.

Tata Motors Partners with South Indian Bank for Commercial Vehicle Finance

Tata Motors on Monday said it has tied up with South Indian Bank to offer financing solutions to its commercial vehicle customers and dealerships.
As part of the Memorandum of Understanding (MoU), South Indian Bank will offer financing solutions across the auto major's entire commercial vehicle portfolio, Tata Motors said in a statement.
"For our customers, easy access to financing solutions for their commercial vehicles is one of the key priorities for their operations. Our alliance aims to empower fleet owners and dealerships to achieve their business goals," Rajesh Kaul, Tata Motors Commercial Vehicles Vice President & Business Head Trucks, said.

Chamber for Commerce and Industries Kashmir Gives Platform to 46 Women-led Start-ups to Show thei...

In order to boost the talent of young entrepreneurs of the Kashmir valley, the Chamber for Commerce and Industries Kashmir (CCIK) provided an offline exhibition for the budding start-ups in the valley.
Around fifty start-ups were chosen by CCIK for the exhibition. Among them forty-six were businesses run by women. From calligraphy art, resin art, handmade soaps, perfumes, spices and sanitary pads, clothing labels, bags, pashmina, and home decor, it was creativity on display.
"These start-ups are mostly online and most of them have not had any exposure to the offline retail marketing concept. We also picked up 46 women out of a total 50 stalls to give the women entrepreneurs an edge to showcase their talents. Some of these start-ups are doing well online and for some of them, it's time to shift to offline as well. At Chamber we always strive to help these budding entrepreneurs," Shah further said.

Apr 28, 2024

Aramco and FIFA Forge Global Partnership

In a groundbreaking announcement, Saudi Arabia's oil behemoth, Aramco, and the international football governing body, FIFA, have joined forces in a strategic global partnership. The deal, spanning until 2027, designates Aramco as FIFA's Major Worldwide Partner exclusively in the energy sector, encompassing sponsorship rights for marquee events including the FIFA World Cup 2026 and the FIFA Women's World Cup 2027.
Aramco's President & CEO, Amin Nasser, emphasised the company's commitment to leveraging sports, particularly football, as a vehicle for societal impact and community development. This collaboration underscores Aramco's broader investment in sports, exemplified by their ownership of Al-Qadsiah football team and endeavors in women's golf and Formula 1 initiatives.
Gianni Infantino, FIFA President, hailed the partnership with Aramco, citing its potential to bolster FIFA's flagship tournaments and support member associations worldwide. Notably, Infantino lauded Aramco's dedication to grassroots sports development, hinting at future collaborative endeavors.
In addition to the potential partnership with Hengli Group, Aramco's investment horizon extends to collaborations with key players in the petrochemical sector, such as Jiangsu Eastern Shenghong and Shandong Yulong Petrochemical. Noteworthy is Aramco's recent minority stake acquisition in MidOcean Energy, indicative of its sustained efforts to diversify and solidify its global presence.

SEBI Approval for CRISIL's ESG Ratings Unit

SEBI granted approval to CRISIL ESG Ratings & Analytics as a Category 1 provider of ESG ratings, marking a significant development in the realm of environmental, social, and governance (ESG) assessments in India. This accreditation underscores the growing importance of independent ESG ratings in financial markets, particularly in guiding decision-making for issuers and investors towards sustainable practices.
Crisil's foray into ESG ratings began in 2021, and since then, it has monitored over 1,000 companies across 65 sectors. With the establishment of Crisil ESG Ratings as a subsidiary, the focus on ESG scoring intensifies, aligning with global best practices while considering India's unique sectoral nuances.
SEBI's regulatory framework requires certified ESG rating providers to adhere to transparent methodologies. This includes the publication of evaluation criteria, proportional weights assigned to environmental, social, and governance factors, and the retention of a minimum ownership interest of 26% by the principal shareholder for at least five years post-regulatory approval.

U.S. Places India on Priority Watch List for IP Protection

In the recently released 2024 Special 301 Report by the U.S. Trade Representatives (USTR), India finds itself on the Priority Watch List for intellectual property (IP) protection and enforcement. This decision comes amidst ongoing concerns regarding India's handling of IP security issues.
India faces significant challenges in its patent system, with applicants encountering lengthy waiting periods and excessive reporting requirements. Moreover, there are concerns regarding the potential threat of patent revocations, lack of presumption of patent validity, and narrow patentability criteria under the Indian Patents Act, which pose burdens across various sectors.
While some progress has been noted, particularly in raising public awareness and engaging with the United States on IP matters, USTR emphasises that India remains inconsistent in its overall progress on IP protection and enforcement. Despite gradual improvements in online IP enforcement, tangible benefits for innovators and creators are lacking, undermining their efforts.

Government Approves One-year Extension to RBI Deputy Governor Rabi Sankar

The government extended the term of RBI Deputy Governor T. Rabi Sankar for a period of one year. The Appointments Committee of the Cabinet approved the re-appointment of T. Rabi Sankar, Deputy Governor Reserve Bank of India, for a period of one year with effect from May 3, 2024.
As Deputy Governor, Sankar oversees crucial departments including currency management, government and bank accounts, information technology, external investments and operations, payment and settlement systems, fintech, foreign exchange, and internal debt management.
With an academic background in economics, holding an M.Phil from Jawaharlal Nehru University, Sankar brings extensive expertise to his role. Having joined the RBI in 1990, he has held various positions, accumulating vast experience in payments and settlement, financial markets, and public debt management.

Gem and Jewellery Sector Granted AEO Status by Indian Government

The Gem & Jewellery Export Promotion Council (GJEPC) announces a significant milestone for India's Gem and Jewellery (GJ) industry as it receives Authorised Economic Operator (AEO) status from the Ministry of Finance. This status, previously denied, now facilitates smoother export-import processes, reduces cargo release times, and lowers bank guarantees by 50%, aiming to enhance ease of doing business.
Background: Initially excluded from the AEO program, the GJEPC's persistent engagement with relevant Ministries successfully advocates for the gem and jewellery industry's inclusion. The Ministry of Finance now extends eligibility for AEO participation to units within the sector, enabling them to capitalise on associated benefits.
Industry Engagement: In response to the new opportunity, the GJEPC conducts an informative Outreach Program focused on obtaining AEO status. This event, held on March 18, 2024, sees active participation from stakeholders eager to enhance international trade operations, strengthen supply chain security, and improve global competitiveness.
Application Surge: Encouragingly, 20 companies swiftly apply for AEO status following the Outreach Program. Asian Star emerges as the pioneer, being granted AEO Status, thereby becoming the first in the Indian gem and jewellery industry to receive the certificate.

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