Indian Economy News & Discussion - Nov 27 2017

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
ArjunPandit
BRF Oldie
Posts: 4056
Joined: 29 Mar 2017 06:37

Re: Indian Economy News & Discussion - Nov 27 2017

Post by ArjunPandit »

finally some sanity
retrospective tax requirements before 2012 in some cases done away with a change in IT law

https://www.livemint.com/economy/govt-t ... 22039.html
bharathp
BRFite
Posts: 453
Joined: 24 Jul 2017 03:44

Re: Indian Economy News & Discussion - Nov 27 2017

Post by bharathp »

ArjunPandit wrote:finally some sanity
retrospective tax requirements before 2012 in some cases done away with a change in IT law

https://www.livemint.com/economy/govt-t ... 22039.html
this shuold kick start a lot of stalled private industry investments
Cyrano
BRF Oldie
Posts: 5481
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

From the link posted above:
In 2012, after the Supreme Court ruled that the Vodafone Group’s interpretation of the Income-Tax Act of 1961 was correct and that it did not have to pay any taxes on the stake purchase, then Finance Minister Pranab Mukherjee circumvented the ruling by proposing an amendment to the Finance Act, which gave the I-T Department power to retrospectively tax such deals. The Act was passed by Parliament that year, and the onus of paying the tax fell back on Vodafone
Why was Pranab so keen on this amendement? Was it yet another move to extort industrialists the Congi way?

Anyway, good riddance, right step by NS !
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Cyrano wrote:From the link posted above:
In 2012, after the Supreme Court ruled that the Vodafone Group’s interpretation of the Income-Tax Act of 1961 was correct and that it did not have to pay any taxes on the stake purchase, then Finance Minister Pranab Mukherjee circumvented the ruling by proposing an amendment to the Finance Act, which gave the I-T Department power to retrospectively tax such deals. The Act was passed by Parliament that year, and the onus of paying the tax fell back on Vodafone
Why was Pranab so keen on this amendement? Was it yet another move to extort industrialists the Congi way?

Anyway, good riddance, right step by NS !
100% ... ITALIAN scum dynasty extortion just like CSR
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.livemint.com/news/india/mod ... 62879.html
Modi govt's push for sugar-fueled cars may give tough time to global policymakers
India is pushing for more cars to run on ethanol made from sugar, a move that risks raising the cost of the sweetener globally.

The government will fast-track an ethanol program that will divert as much as 6 million tons of sugar toward fuel production annually by 2025, according to the food ministry. That’s almost the entire amount that India, the world’s second-biggest producer after Brazil, currently exports to the global market.
For the rest of the world, the move may be the biggest change in years for the sugar industry and could drive a bull market, according to Czapp, Czarnikow’s new portal for agri-food analysis. Prices have soared to the highest since 2017 amid a supply crunch, partly due to wild weather in Brazil. A further surge will add to food inflation risks, with global food costs already near a decade high.

It’s “good news for the world if India diverts sugar to produce more ethanol as it will reduce the global surplus," said Rahil Shaikh, managing director of Meir Commodities India Pvt, a trading company. “But eventually if there is higher demand, some countries including India will have to expand cane acreage."
Vadivel
BRFite
Posts: 435
Joined: 07 Feb 2003 12:31
Location: Chennai
Contact:

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vadivel »

vijayk wrote:
Cyrano wrote:From the link posted above:


Why was Pranab so keen on this amendement? Was it yet another move to extort industrialists the Congi way?

Anyway, good riddance, right step by NS !
100% ... ITALIAN scum dynasty extortion just like CSR
As per duppatta, pranab mukerjee did it in spite. He was like we are the gov and we can do what ever we want

Cyrano
BRF Oldie
Posts: 5481
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

Bio ethanol will be unviable without Govt subsidies. Even if it were, the whole process consumes huge amount of arable land, water, fertilisers, pesticides, energy to extract and process to produce ethanol and distribute it to consumer. The net environmental impact will be negative. Brazil experimented few years ago and the results were not great.

India can experiment too to learn the same lessons, but we should not do so on a huge scale that may hurt.
bharathp
BRFite
Posts: 453
Joined: 24 Jul 2017 03:44

Re: Indian Economy News & Discussion - Nov 27 2017

Post by bharathp »

Cyrano wrote:Bio ethanol will be unviable without Govt subsidies. Even if it were, the whole process consumes huge amount of arable land, water, fertilisers, pesticides, energy to extract and process to produce ethanol and distribute it to consumer. The net environmental impact will be negative. Brazil experimented few years ago and the results were not great.

India can experiment too to learn the same lessons, but we should not do so on a huge scale that may hurt.
I believe this will ease the buden on sugar farmers due to reduction of sugar prices (world over)
however, the electric vehicles gaining momentum will shift the entire industry frther away from ICEs.
Suraj
Forum Moderator
Posts: 15043
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

India's forex reserves surge by $9.42 billion to all-time high of $620.57 billion
The country's foreign exchange reserves surged by USD 9.427 billion to record high of USD 620.576 billion in the week ended July 30, according to the latest RBI data.

In the previous week ended July 23, the reserves had declined by USD 1.581 billion to USD 611.149 billion.

In the reporting week ended July 30, the rise in the reserves was on the back of an increase in foreign currency assets (FCAs), a major component of the overall reserves, the Reserve Bank of India's (RBI) weekly data released on Friday showed.

FCA increased by USD 8.596 billion to USD 576.224 billion in the reporting week.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves were up by USD 760 million to USD 37.644 billion in the reporting week, the data showed.

The special drawing rights (SDRs) with the International Monetary Fund (IMF) rose by USD 6 million at USD 1.552 billion.
Manish_P
BRF Oldie
Posts: 5414
Joined: 25 Mar 2010 17:34

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Manish_P »

Our exports in July 2021 have also beaten the previous all time record isn't it so?

Edit - just saw the post on the previous Page confirming it
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Manish_P wrote:Our exports in July 2021 have also beaten the previous all time record isn't it so?

Edit - just saw the post on the previous Page confirming it
Is this going to sustain?
nash
BRFite
Posts: 946
Joined: 08 Aug 2008 16:48

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nash »

In case of Bio-Ethanol production, focus should be on converting agriculture waste like straw of paddy,wheat and maize to ethanol.
It requires large scale construction of 2G refinery.it is capital intensive but will greatly benefit the agriculture, transport and energy sector.
We should also not forget the SATAT program of CBG, set target is meaningful and we should achieve it.

IMO we should also do plan and research about farming of jatrupha , mohua and some specific algae in waste land.
kit
BRF Oldie
Posts: 6278
Joined: 13 Jul 2006 18:16

Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

Suraj wrote:India's forex reserves surge by $9.42 billion to all-time high of $620.57 billion

The special drawing rights (SDRs) with the International Monetary Fund (IMF) rose by USD 6 million at USD 1.552 billion.
By RBI estimates the reserve is still low., they are looking at a few trillions (only a few..for start)
A Nandy
BR Mainsite Crew
Posts: 502
Joined: 06 Sep 2009 23:39

Re: Indian Economy News & Discussion - Nov 27 2017

Post by A Nandy »

https://www.reuters.com/world/india/ind ... 2021-08-06
Indian PM Modi pushes for higher exports in post-pandemic world

For expanding share of its exports in global trade, India needs to have "seamless and high-quality supply chain" and low-cost logistics, he said.

"This is the time for us to establish a new identity of quality and reliability. We have to try that there is a natural demand for high value-added products of India in every nook and corner of the world," he said.

He said India needs to have a roadmap for the next 25 years.

"This is not only the time to celebrate the 75th year of India's independence, but also an opportunity to build a clear vision and roadmap for future India," Modi said in Hindi.

Refererring to India's decision to end the controversial retrospective tax, Modi said the move shows the nation's "commitment and consistency in policies".
Vamsee
BRFite
Posts: 685
Joined: 16 Mar 2001 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vamsee »

India Goods Exports Jul 2021 : $35.43 B
India Services Exports Jul 2021: $19.52 B
Total Exports Jul 2021 : $54.95 B

India Goods Imports Jul 2021 : $46.40 B
India Services Imports Jul 2021: $18.89 B
Total Imports Jul 2021 : $57.29 B

Trade Balance Jul 2021 : -2.34 B

===========================================

India Goods Exports Apr-Jul 2021 : $130.82 B
India Services Exports Apr-Jul 2021: $74.15 B
Total Exports Apr-Jul 2021 : $204.97 B

India Goods Imports Apr-Jul 2021 : $172.55 B
India Services Imports Apr-Jul 2021: $42.16 B
Total Imports Apr-Jul 2021 : $214.71 B

Trade Balance Apr-Jul 2021 : -9.74 B
===========================================

Our overall trade deficit is going down dramatically compared to pre-covid period.
Link
rsingh
BRF Oldie
Posts: 4451
Joined: 19 Jan 2005 01:05
Location: Pindi
Contact:

Re: Indian Economy News & Discussion - Nov 27 2017

Post by rsingh »

kit wrote:
By RBI estimates the reserve is still low., they are looking at a few trillions (only a few..for start)
Oh this most common disease of Central Banks. Reserve is never enough. Dekho dibba Khali hei. Reserve banks have to control ruling parties who tend to spend money as of it is their own.
M_Joshi
BRFite
Posts: 221
Joined: 15 Aug 2016 00:06

Re: Indian Economy News & Discussion - Nov 27 2017

Post by M_Joshi »

Vamsee wrote:India Goods Exports Jul 2021 : $35.43 B
India Services Exports Jul 2021: $19.52 B
Total Exports Jul 2021 : $54.95 B

India Goods Imports Jul 2021 : $46.40 B
India Services Imports Jul 2021: $18.89 B
Total Imports Jul 2021 : $57.29 B

Trade Balance Jul 2021 : -2.34 B

===========================================

India Goods Exports Apr-Jul 2021 : $130.82 B
India Services Exports Apr-Jul 2021: $74.15 B
Total Exports Apr-Jul 2021 : $204.97 B

India Goods Imports Apr-Jul 2021 : $172.55 B
India Services Imports Apr-Jul 2021: $42.16 B
Total Imports Apr-Jul 2021 : $214.71 B

Trade Balance Apr-Jul 2021 : -9.74 B
===========================================

Our overall trade deficit is going down dramatically compared to pre-covid period.
Link
Another important tidbit form the link you posted.
Services + Merchandise Total Imports Apr - Jul 2019 : 214 B USD
Services + Merchandise Total Imports Apr - Jul 2021 : 214 B USD
-----------------------------------------------------------------
Net Increase : 0 B USD

Services + Merchandise Total Exports Apr - Jul 2019 : 178 B USD
Services + Merchandise Total Exports Apr - Jul 2019 : 205 B USD
----------------------------------------------------------------
Net Increase : 27 B USD

So our Imports are stable at pre-covid levels but exports have jumped, especially in the Merchandise sector. This year's Commerce Ministry target of 400 B USD seems doable.
Suraj
Forum Moderator
Posts: 15043
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

Fascinating data parsing folks. This is what this thread is about.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://energy.economictimes.indiatimes ... n/85347976
PM Modi says India will soon unveil $1.35 trillion infrastructure plan
The infrastructure programme, called "Gati Shakti", will help boost productivity of industries and boost the economy, Modi said during his speech at the Independence Day celebrations in New Delhi.
India will launch a 100 trillion rupee ($1.35 trillion) national infrastructure plan that will help generate jobs and expand use of cleaner fuels to achieve the country's climate goals, Prime Minister Narendra Modi said on Sunday.

The infrastructure programme, called "Gati Shakti", will help boost productivity of industries and boost the economy, Modi said during his speech at the Independence Day celebrations in New Delhi.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://swarajyamag.com/economy/why-rev ... to-sustain
India’s private investment cycle has revived, with the optimists narrowly exceeding the pessimists. It is possible, for example, to take a dim view by pointing to the negative growth in bank credit, which fell 0.4 per cent in the financial year so far (as on 30 July, according to Reserve Bank of India figures), while deposits grew 2.9 per cent.
As I wrote in The Times of India last week, new money is pouring into new companies, and not quite the old economy warhorses who drove the economy forward in the past. In the calendar year so far, “India has created more than 20 unicorns, startups that are valued by investors at more than $1 billion, and the chances are another 20 may be created before the calendar year is out.”

Initial public offerings (IPOs) by Zomato and other companies have had a great listing on the bourses, indicating that risk-appetite among both global and domestic investors is back. The investment cycle is being led by equity not debt, and that is a huge advantage this time. It can sustain.
First, there is simply a “reversal to the mean”. After nearly a decade of private investment drought, when most corporates were busy de-leveraging and cutting down on investments, this time they have to play catch up.
Second, a revival of the global commodity cycle is aiding this investor sentiment, with industries like steel, cement and petroleum products reporting a surge in profits. As a major importer of crude and exporter of petro-goods, India’s trade numbers clearly follow the commodity cycle.
Third, the Covid pandemic has boosted demand for digital services and healthcare.
Software services, digital startups, e-commerce and logistics are leading the boom in investment. Real estate, construction, infrastructure and other sectors will follow after a lag.
In July, India’s merchandise exports soared to $35 billion, and this could continue in the foreseeable future unless Covid throws up more unpleasant surprises. The fact that many countries are rebalancing their China exposure by sourcing from other countries is helping this boost.
Fifth, corporate profits have zoomed, hitting a four-year high of 2.6 per cent of gross domestic product (GDP) last year (fiscal 2020-21). A Business Standard research study covering around 1,000-and-odd companies says profits as a share of GDP for this group are at a 10-year high. This money will, sooner than later, be invested or paid out to shareholders, boosting investment and consumption.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.hindustantimes.com/india-ne ... 17172.html
Jal Jeevan Mission: 10 million homes in encephalitis hot spots get tap water access
The country’s flagship programme to provide rural households with piped drinking water, Jal Jeevan Mission, has expanded rapidly to cover more than 10 million homes in 61 districts notorious for Japanese Encephalitis-Acute Encephalitis Syndrome, a brain fever in children that needs a multi-pronged approach for treatment, according to health experts.
The figure of households provided tap water in these districts is a milestone, an official of the Jal Shakti ministry said, requesting anonymity. “This represents a 32% increase in household tap water connections in the 61 priority districts, about 12% higher than the national average increase of 23.43% in providing tap water connections in the country during the past 22 months,” the official added.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.downtoearth.org.in/news/rur ... hs-5-74739
Access to drinking water, sanitation improve across states, urban-rural divide remains: NFHS-5
Despite progress on sanitation front, several states reported every third or fourth person having no access to improved facilities
Access to drinking water sources and sanitation facility across most Indian states improved in the past half-a-decade, according to the latest National Family Health Survey (NFHS).

A majority of states were on the way to achieving universal access to clean drinking water, the first phase of NFHS-5, 2019-20 stated. But despite progress on the sanitation front, several states reported every third or fourth person having no access to improved facilities.

The survey covered 17 states and five Union territories (UT).

Access to improved drinking water

Access to improved drinking water sources increased across all states and UTs except Sikkim, which registered a five per cent fall in the population living in households with an improved drinking-water source in last half-a-decade.

Manipur, Meghalaya and Nagaland witnessed significant improvement among the 22 surveyed states in last five years. Bihar topped the list with 99 per cent population having access to improved drinking water sources.

Except Manipur, Meghalaya, Assam, Tripura and Ladakh, all other 17 states and UTs recorded above 90 per cent population having access to improved sources of drinking water.
Image
chetak
BRF Oldie
Posts: 32283
Joined: 16 May 2008 12:00

Re: Indian Economy News & Discussion - Nov 27 2017

Post by chetak »

Modi govt has paid over 70,195.72 Cr in interest in last 5 years on oil bonds issued by UPA.

Of the 1.34 lakh crore of oil bonds, only 3,500 Cr of principle amount has been paid and the remaining 1.3 lakh Cr is due for repayment between this fiscal and 2025-26. @nsitharaman



Image
nam
BRF Oldie
Posts: 4712
Joined: 05 Jan 2017 20:48

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nam »

https://economictimes.indiatimes.com/ne ... s?from=mdr

We are on the second spot on manufacturing attractive index now, right after the Chinis.

Wish the no-brainier PLI was instituted 5 years back. Anyways dher aya, dhurusht aye.

Now need to do whatever it takes to bring those Taiwanese, SK, Japanese companies here from the Chini land. Specially in the area of electronics.
Ambar
BRF Oldie
Posts: 3173
Joined: 12 Jun 2010 09:56
Location: Weak meek unkil Sam!

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Ambar »

Don't know if it goes here or the IT thread but looks like after successfully mucking up the GST launch, Infy has now managed to take the updated IT portal out of service.
CHENNAI, Aug 22 (Reuters) - India's Finance Minister Nirmala Sitharaman has summoned Infosys Ltd (INFY.NS) Chief Executive Salil Parekh to explain tech glitches in an online tax portal developed by the company, the country's income tax department said on Sunday.

The Income Tax department, an arm of India's Ministry of Finance, said in a tweet Parekh would be asked to explain why after 2-1/2 months since the launch of the new e-filing portal, glitches have not been resolved.

https://www.reuters.com/world/india/ind ... n%20Sunday.
nachiket
Forum Moderator
Posts: 9102
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nachiket »

The L1 system biting us in the backside again. Infy needs to be excluded from any further government IT tenders as punishment....after they fix the current mess.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

nam wrote:https://economictimes.indiatimes.com/ne ... s?from=mdr

We are on the second spot on manufacturing attractive index now, right after the Chinis.

Wish the no-brainier PLI was instituted 5 years back. Anyways dher aya, dhurusht aye.

Now need to do whatever it takes to bring those Taiwanese, SK, Japanese companies here from the Chini land. Specially in the area of electronics.
https://www.universalpersonality.com/in ... t/economy/
India has emerged because the second most wanted manufacturing vacation spot the world over indicating the rising curiosity proven by producers in India as a most well-liked manufacturing hub over different nations, together with the U.S and people within the Asia-Pacific area, confirmed Cushman & Wakefield’s 2021 World Manufacturing Danger Index.

This yr, India and the US switched places–second and third—taking India one rank above from the rankings launched final yr, when India stood on the third place.
India had moved as much as the third place from the fourth spot final yr and now has gained yet one more spot upward to rank after China.
Indian manufacturing has additionally proven nice resilience throughout and publish the second wave of COVID-19. However to have larger investor confidence and unleash the Make In India agenda, we should handle land and labour reforms and in addition improve infrastructure throughout sectors,” stated Anshul Jain, Managing Director – India and South East Asia.
Cyrano
BRF Oldie
Posts: 5481
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

Indian manufacturing has additionally proven nice resilience throughout and publish the second wave of COVID-19. However to have larger investor confidence and unleash the Make In India agenda, we should handle land and labour reforms and in addition improve infrastructure throughout sectors,
My general sense is that the only workers who enjoy a significant degree of protection are Central & State Govt employees and those in PSU/institutes etc.

By protection I mean employee favouring (since employee's power is no match to employer's) rules and procedures for firing, work place hazard HSE protection, health and retirement contributions, unemployment contribution, special dispute resolution courts - pretty much standard stuff in Europe and companies here crib a bit, but by and large accept it and this is not seen as "a" or "the" roadblock. Unionisation is anyway weaker and weaker these days.

In comparison, I'd tend to think the organised labour (green or white collar) in India is less protected, contract labour in India is poorly protected, and the whole unorganised sector which is a huge component of the country's workforce has no protection whatsoever.

So what labour reforms are these entrepreneurs/investors asking for and claim its stifling investments? Could someone please throw some light on this?
Cyrano
BRF Oldie
Posts: 5481
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

On the same labour reforms topic:
https://www.isas.nus.edu.sg/papers/rece ... vestments/

The new legislations, if anything will put clearer responsibilities on employers in the future, ie they're getting away by doing (a lot) less now. So why the cribbing ?!
Cyrano
BRF Oldie
Posts: 5481
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

This is a big move: Needs discussion here on BRF.

Govt to monetize ₹6 lakh cr worth of assets over next 4 yrs: 10 things to know
The Indian government plans to monetise ₹6 lakh crore worth of state-owned assets over the next four years under its asset monetisation pipeline, announced Finance Minister Nirmala Sitharaman on Monday. The privatisation plans previously announced in the 2021/2022 budget to boost public finances.
Moreover, through the National Monetisatoion pipeline (NMP), the Centre aims to sell off gas pipelines, roads, railway assets and warehousing facilities among a host of other assets, NITI Aayog's Chief Executive Amitabh Kant said.

Here are 10 things to know about govt's asset monetisation plan:
1) The infrastructure line ministries included under the pipeline—Roads, Transport and Highways, Railways, Power, Pipeline and Natural Gas, Civil Aviation, Shipping Ports and Waterways, Telecommunications, Food and Public Distribution, Mining, Coal and Housing and Urban Affairs—along with Secretary (Department of Economic Affairs) and Secretary (Department of Investment and Public Asset Management).
2) Asset monetisation does not involve selling of land and it is about monetising brownfield assets.
3) “Ownership of assets will remain with the government and there will be a mandatory hand-back," said Finance Minister Nirmala Sitharaman.
4) The estimated value corresponds to 14 per cent of the proposed outlay for Centre under the National Infrastructure Pipeline ( ₹43 lakh crore).
5) Sitharaman, while launching the pipeline, said, “Asset monetisation, based on the philosophy of Creation through Monetisation, is aimed at tapping private sector investment for new infrastructure creation."
6) She also added, "This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare."
7) The top 5 sectors (by estimated value) capture ~83% of the aggregate pipeline value. These top 5 sectors include: Roads (27%) followed by Railways (25%), Power (15%), oil & gas pipelines (8%) and Telecom (6%).
8) In terms of annual phasing by value, 15% of assets with an indicative value of ₹0.88 lakh crore are envisaged to be rolled out in the current financial year (FY 2021-22). However, the aggregate, as well as year on year value under NMP, is only an indicative value with the actual realization for public assets depending on the timing, transaction structuring, investor interest etc.
9) The assets and transactions identified under the NMP are expected to be rolled out through a range of instruments. These include direct contractual instruments such as public private partnership concessions and capital market instruments such as Infrastructure Investment Trusts (InvIT) among others.
10) Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.


I'm struggling to understand this, is it some kind of BOT model without the build part? Whats in it for pvt companies? How is NPV of the monetised asset calculated ? Based on current interest rates? What service level engagements will they be held to? What if they don't deliver on commitments? Or go belly up?

But fundamentally, why is Govt taking this route? Is it a clever balance sheet trick? Examples of where this has been done elsewhere? How did it work out? Questions abound.

Given this Govt's poor track on communicating effectively to people and getting its narrative to prevail on issues like CAA, Farm Laws etc, I'm afraid even if this Monetisation is a great idea and is implemented well, they are handing a big stick to the opposition parties to accuse them to high heavens of "selling out to private interests / Ambanis and Adanis etc etc".

Given the massive scale of this scheme, some erroneous evaluations or corruption will inevitably creep in somewhere - and the Govt will face huge criticism - the opposition has so far failed to implicate the Govt in any scam (even though they tried very hard with Rafale) but this scheme opens up so many disinformation possibilities - seems a very risky move wrt 2024.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Is this AWS style of cloud infra monetization?
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Alok Bhatt
@alok_bhatt

Something similar to -in terms of an overall concept -is the concept of InvIT-
infrastructure investment trusts. Just like REITs they are also regulated by SEBI and India didn’t have to wait as long as it had to wait for its first REIT- IRB was first co to start a InvIT in Jan18
Alok Bhatt @alok_bhatt

The reason behind writing this thread is to actually make it simple for non finance people to understand as to why National Monetisation Pipeline launched by FM @nsitharaman is a brilliant move to unlock thr value of infra assets by way of InvITs


https://swarajyamag.com/analysis/fm-to- ... illion-nip
FM To Launch National Monetisation Pipeline On Aug 23, ₹6 Trillion Worth Infrastructure Assets To Be Sold Over Next 4 Years To Fund ₹100 Trillion NIP
Alok Bhatt @alok_bhatt

InvITs are set up by Infra cos - SPONORS- to raise money from investors in lieu of units for funding infrastructure proj. This money is then invested in income-generating infra proj by an INVESTMENT MANAGER -whose responsibility is to manage investment & activities of InvIT.
Alok Bhatt @alok_bhatt

Other 2 players in an InvIT are -
- TRUSTEE: whose role is to ensure that money raised is invested in infra assets and as per the set up terms of the InvIT
- PROJECT MAANGER -who executes project


90% of free cashflow is distributed amongst unit holders-also listed in exchanges
Alok Bhatt @alok_bhatt

The projects that sponsors of InvITs can monetise by this route can be those already generating income or under development. Generally,sponsors use money to retire their debts or to invest it further into newer assets or to fund expansion. 80% of funds must go back into infra!
Alok Bhatt @alok_bhatt
As against REIT - where property ownership also gets transferred to the REIT, in case of InvITs, ownership of assets remain with the sponsors. This is an important point as cunning politicians like Rahul Gandhi etc will make it sound like a sale of assets by @narendramodi Govt!
srin
BRF Oldie
Posts: 2509
Joined: 11 Aug 2016 06:13

Re: Indian Economy News & Discussion - Nov 27 2017

Post by srin »

I know this is Coupta, but this was a good primer ...

vimal
BRFite
Posts: 1904
Joined: 27 Jul 2017 10:32

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vimal »

FDI in India (1990 - 2020)
* I do not vouch for the accuracy of the content and not sure why pigs are there.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://m.republicworld.com/business-ne ... -data.html

20.1 GDP growth April to June 2021


Exports grew 39 per cent compared to the same quarter last year, contributing 23.7 per cent of the period's GDP, indicating strong global demand for Indian goods.
India poised for stronger growth from structural reforms, government capex push and rapid inoculation.

Chief economic advisor KV Subramanian
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

PM asked all details regarding stalled projects and who filed law suits in courts and NGT.

Here is the summary of scums led by INC and BIF to stall development projects

https://mobile.twitter.com/alok_bhatt/s ... 2511079424
shravanp
BRF Oldie
Posts: 2551
Joined: 11 Aug 2016 06:14

Re: Indian Economy News & Discussion - Nov 27 2017

Post by shravanp »

vijayk wrote:PM asked all details regarding stalled projects and who filed law suits in courts and NGT.

Here is the summary of scums led by INC and BIF to stall development projects

https://mobile.twitter.com/alok_bhatt/s ... 2511079424

link
"18. PIL against renovation of Everest House
19. PIL against mining policy or mining projects- the number must be in double digits. This is done to stop mining so that they can rake in moolah from illegal miners. This is result of huge nexus between illegal miners and activists


Infact PIL against mining projects is basically to stop the mining and make all development project suffer for want of RBM or sand/ concrete etc. Imagine a state rich in natural resources is suffering for want of RBM just because courts won’t allow mining following such PILs
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://swarajyamag.com/insta/indias-ex ... -in-august
India's Exports Rise By 45.17 Per Cent To $33.14 Billion In August
In a positive development for Indian economy, the month of August saw the exports jump 45.17 per cent to $33.14 billion on account of healthy growth in segments like engineering, petroleum, gems and jewellery and chemicals, reports Economic Times.

Exports of engineering, petroleum products, gems and jewellery and chemicals rose by about 59 per cent to $9.63 billion, 140 per cent to $4.55 billion, 88 per cent to $3.43 billion, and 35.75 per cent to $2.23 billion, respectively.

In total, from April-August, the exports have zoomed up by 66.92 per cent to $163.97 billion.
vijayk
BRF Oldie
Posts: 8785
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://swarajyamag.com/news-brief/amba ... ght-it-out
Ambani Versus Adani: From Super-Apps To Energy, Two Titans Fight It Out
Reliance Industries is looking to acquire REC Group, Europe’s largest solar panel manufacturer, according to reports. It is currently owned by China National Chemical Corporation.

Entering The Rival’s Turf

The move comes months after Mukesh Ambani announced the group’s plan to foray into the green energy sector during the Annual General Meeting (AGM) with shareholders in June. The group already operates in the energy sector through its core petrochemicals business. However, it now wants a pie of the growing renewable energy business in India.

Just a month later, the Adani Group, which runs one of the largest renewable energy companies in India, announced its plans to step into the petrochemicals business, where Reliance is a major player.
Digital Foray

But the story doesn’t end there. Just a fortnight after announcing its petrochemicals plans, Adani Group announced its plans to enter the digital space with a super-app. According to Gautam Adani, the digital business has the potential to become the best and the largest performer in the group and drive it closer to the group’s trillion dollar valuation target.

Jio Platforms also has its own digital super-app named ‘My Jio’ through which users can pay bills, access news, watch television, listen to music and perform several other actions. With the high number of use cases, super-apps hope to become a one-stop-shop for all of the customer’s needs. The Tata Group has also been looking to launch it super-app.

The Adani Digital Lab aims to on-board every Adani customer on the super-app. It already has a strong existing retail consumer base through its gas distribution and electricity businesses. His son Jeet Adani and nephew Sagar Adani will be looking after the digital businesses. The group already operated multiple apps for its different businesses. A super-app could consolidate these apps under a single umbrella. But well-funded competitors like Jio will certainly challenge Adani’s dream.
Post Reply