General Affairs
Why This Dal Producing District Too is feeling the Pinch of Rising Prices
Sena Chief Uddhav Thackeray Slams Ally BJP, But Says Won't Call Off Alliance
President Pranab Mukherjee Once Again Appeals to People to Maintain Unity, Integrity
CBI Examines Former ISRO Chief Radhakrishnan in Antrix Deal
Why This Dal Producing District Too is feeling the Pinch of Rising Prices
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NARSINGHPUR, MADHYA PRADESH: As homemaker Neelam Jain prepares lunch in her kitchen, the irony of soaring prices in Madhya Pradesh's food bowl is not lost on her. Narsinghpur leads the state in production of pulses, and the locally produced Tur dal is much sought after across India.
A month ago, Arhar dal was being sold for Rs 100 a kilogram (kg) in the retail market here, but now it costs nearly double. Urad that was selling at Rs 90/kg is now being sold at Rs 160/kg, while prices of Moong dal have shot up from Rs 80/kg to Rs 160/kg now.
Ms Jain says, "We can only hope that as farmers harvest pulses and fresh stock reaches market prices will come down."
Though the local administration has seized 500 tonnes of pulses as part of its crackdown against hoarders, scarcity still remains in the market.
The other problem in fresh produce of pulses reaching the market has been the state government's decision to limit the stock to 500 quintals for wholesalers and 400 quintals for retailers.
Wholesale trader, Mahesh Malpani told, "We already have 500 quintals in stock, how can we buy more from farmers? This order by the government is not right, the stock limit has to be revised it is not feasible for is traders."
Some farmers are ready with fresh produce of pulses, and would have got a price of Rs 75 to 90 per kg, but the local Gadarwara market is shut due to lack of wholesale buyers.
A farmer, Pramod Singh Rajput says, "There has been a decent harvest of urad and moong, not as good as previous years but if it is not sold in the market prices how the prices will come down."
Though the administration held a meeting with local traders to ensure that prices can be brought down, but it hasn't yielded much.
The Collector of Narsinghpur, Naresh Pal says, "The wholesalers and mill owners have submitted a memorandum. I have informed the state government about it."
NARSINGHPUR, MADHYA PRADESH: As homemaker Neelam Jain prepares lunch in her kitchen, the irony of soaring prices in Madhya Pradesh's food bowl is not lost on her. Narsinghpur leads the state in production of pulses, and the locally produced Tur dal is much sought after across India.A month ago, Arhar dal was being sold for Rs 100 a kilogram (kg) in the retail market here, but now it costs nearly double. Urad that was selling at Rs 90/kg is now being sold at Rs 160/kg, while prices of Moong dal have shot up from Rs 80/kg to Rs 160/kg now.
Though the local administration has seized 500 tonnes of pulses as part of its crackdown against hoarders, scarcity still remains in the market.
The other problem in fresh produce of pulses reaching the market has been the state government's decision to limit the stock to 500 quintals for wholesalers and 400 quintals for retailers.
Wholesale trader, Mahesh Malpani told, "We already have 500 quintals in stock, how can we buy more from farmers? This order by the government is not right, the stock limit has to be revised it is not feasible for is traders."
Some farmers are ready with fresh produce of pulses, and would have got a price of Rs 75 to 90 per kg, but the local Gadarwara market is shut due to lack of wholesale buyers.
A farmer, Pramod Singh Rajput says, "There has been a decent harvest of urad and moong, not as good as previous years but if it is not sold in the market prices how the prices will come down."
Though the administration held a meeting with local traders to ensure that prices can be brought down, but it hasn't yielded much.
The Collector of Narsinghpur, Naresh Pal says, "The wholesalers and mill owners have submitted a memorandum. I have informed the state government about it."
Sena Chief Uddhav Thackeray Slams Ally BJP, But Says Won't Call Off Alliance
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MUMBAI: Shiv Sena Chief Uddhav Thackeray today launched a scathing attack at its ally BJP, hitting out at the party over issues ranging from cow slaughter to rising food prices but refused to call off the uneasy alliance.
"We will not break the alliance but we will not lower our voice. Why are you worried about the alliance?" Mr Thackeray said at the Shiv Sena's annual Dussehra rally in Mumbai's Shivaji Park this evening. The Sena is part of the BJP-led Devendra Fadnavis government in Maharashtra, but ties between the two allies have recently been strained.
Mocking the BJP on the contentious issue of Ram temple in Ayodhya, the Shiv Sena chief said, "Some say they will build a temple in Ayodhya but we will not tell you when."
With the prices of pulses soaring, the Sena chief was quick to remind the BJP that they should not focus on cow, rather on inflation. "Why are we talking about gai (cows)? Let's talk about mehengai (inflation)... The government that cannot stop inflation is useless. It can fall because of price rise, it must remember that," Mr Thackeray said.
Justifying the Shiv Sena's ink attack on veteran journalist and former LK Advani aide, Sudheendra Kulkarni, Mr Thackeray said "Country's image has been maligned because of Dadri lynching and not because of the ink attack on Sudheendra Kulkarni."
Over the last few weeks, tension between the ruling allies had increased after the Sena forced the cancellation of Pakistani ghazal singer, Ghulam Ali's concerts in Mumbai and Pune, despite the BJP's disapproval. The party had even said it would not change its 20-year-old stand to accommodate the BJP's stance.
Shiv Sena activists had also targeted the talks between the cricket boards of India and Pakistan by barging into the office of the Board of Control for Cricket in India or BCCI.
On Tuesday, Finance Minister Arun Jaitley had sounded a veiled warning, saying people should engage in "debate, not vandalism". On the attack on the cricket board, he said, "There can be two legitimate views but they have to be expressed within democratic limits. It can't be done by barging into the BCCI office."
MUMBAI: Shiv Sena Chief Uddhav Thackeray today launched a scathing attack at its ally BJP, hitting out at the party over issues ranging from cow slaughter to rising food prices but refused to call off the uneasy alliance."We will not break the alliance but we will not lower our voice. Why are you worried about the alliance?" Mr Thackeray said at the Shiv Sena's annual Dussehra rally in Mumbai's Shivaji Park this evening. The Sena is part of the BJP-led Devendra Fadnavis government in Maharashtra, but ties between the two allies have recently been strained.
Mocking the BJP on the contentious issue of Ram temple in Ayodhya, the Shiv Sena chief said, "Some say they will build a temple in Ayodhya but we will not tell you when."
Justifying the Shiv Sena's ink attack on veteran journalist and former LK Advani aide, Sudheendra Kulkarni, Mr Thackeray said "Country's image has been maligned because of Dadri lynching and not because of the ink attack on Sudheendra Kulkarni."
Over the last few weeks, tension between the ruling allies had increased after the Sena forced the cancellation of Pakistani ghazal singer, Ghulam Ali's concerts in Mumbai and Pune, despite the BJP's disapproval. The party had even said it would not change its 20-year-old stand to accommodate the BJP's stance.
Shiv Sena activists had also targeted the talks between the cricket boards of India and Pakistan by barging into the office of the Board of Control for Cricket in India or BCCI.
On Tuesday, Finance Minister Arun Jaitley had sounded a veiled warning, saying people should engage in "debate, not vandalism". On the attack on the cricket board, he said, "There can be two legitimate views but they have to be expressed within democratic limits. It can't be done by barging into the BCCI office."
President Pranab Mukherjee Once Again Appeals to People to Maintain Unity, Integrity
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NEW DELHI: President Pranab Mukherjee today invoked Dussehra festivities to once again denounce rising incidents of intolerance and appealed to people to maintain India's unity and integrity and focus on nation building, leaving aside their differences.
"Dussehra is a symbol of our ancient culture and we should forget our differences and work towards nation building. That will be our victory. I appeal everyone to maintain unity and integrity of the nation and contribute to the country's development," he said.
The President was speaking at a Dussehra celebration at Parade Ground in Central Delhi where towering effigies of Ravana along with his son Meghnad and brother Kumbhakaran were set afire marking triumph of good over evil.
This is the fifth occasion in the last fortnight that Mr Mukherjee expressed concern over rising incidents of intolerance and appealed to people to maintain unity and integrity.
Earlier in the day, the President posted a number of tweets hoping compassion, love and brotherhood prevail over all forces of "obscurantism and evil that seek to divide us."
"Dussehra reminds us that those who follow the path of virtue, goodness and righteousness will always emerge victorious.
"May this year's Dussehra inspire us to remain steadfast in the pursuit of our principles like Lord Rama. Let us collectively confront all adversities & march forward towards the goal of all-round development of nation," the President said in a series of tweets.
On Monday, Mr Mukherjee had expressed serious apprehensions over whether tolerance and acceptance of dissent are on the wane in the country and said humanism and pluralism should not be abandoned under any circumstance and that India's collective strength must be harnessed to resist evil powers.
Mr Mukherjee made the comments today in presence of Vice President Hamid Ansari, former Prime Minister Manmohan Singh, Congress President Sonia Gandhi, Congress Vice President Rahul Gandhi and BJP chief Amit Shah among others.
Prime Minister Narendra Modi was invited to the celebrations but he could attend as he has travelled to Andhra Pradesh.
Today's burning of Ravana's effigies marks the end of Navratra and the beginning of 20-day-long wait for Diwali, festival of lights, to celebrate the return of Lord Ram to Ayodhya after killing the demon king.
Dressed in their festive best, people attended Ramlilas across city where artistes enacted the final battle episode of Ramayana where Lord Ram kills Ravana and brings back his wife Sita to Ayodhya on 'Vijaydashmi'.
The effigies were set ablaze amid chants in praise of Lord Ram, people witnessed spectacular fireworks which illuminated the sky leaving many in awe.
People also visited friends and relatives and exchanged gifts. A large number of people were seen bursting crackers to mark the festivities while others went to market places on a shopping spree.
Elaborate security arrangements were made to ensure that the festivities go without any untoward incident. Police kept a tight vigil in the city, a senior official said.
NEW DELHI: President Pranab Mukherjee today invoked Dussehra festivities to once again denounce rising incidents of intolerance and appealed to people to maintain India's unity and integrity and focus on nation building, leaving aside their differences."Dussehra is a symbol of our ancient culture and we should forget our differences and work towards nation building. That will be our victory. I appeal everyone to maintain unity and integrity of the nation and contribute to the country's development," he said.
The President was speaking at a Dussehra celebration at Parade Ground in Central Delhi where towering effigies of Ravana along with his son Meghnad and brother Kumbhakaran were set afire marking triumph of good over evil.
Earlier in the day, the President posted a number of tweets hoping compassion, love and brotherhood prevail over all forces of "obscurantism and evil that seek to divide us."
"Dussehra reminds us that those who follow the path of virtue, goodness and righteousness will always emerge victorious.
"May this year's Dussehra inspire us to remain steadfast in the pursuit of our principles like Lord Rama. Let us collectively confront all adversities & march forward towards the goal of all-round development of nation," the President said in a series of tweets.
On Monday, Mr Mukherjee had expressed serious apprehensions over whether tolerance and acceptance of dissent are on the wane in the country and said humanism and pluralism should not be abandoned under any circumstance and that India's collective strength must be harnessed to resist evil powers.
Mr Mukherjee made the comments today in presence of Vice President Hamid Ansari, former Prime Minister Manmohan Singh, Congress President Sonia Gandhi, Congress Vice President Rahul Gandhi and BJP chief Amit Shah among others.
Prime Minister Narendra Modi was invited to the celebrations but he could attend as he has travelled to Andhra Pradesh.
Today's burning of Ravana's effigies marks the end of Navratra and the beginning of 20-day-long wait for Diwali, festival of lights, to celebrate the return of Lord Ram to Ayodhya after killing the demon king.
Dressed in their festive best, people attended Ramlilas across city where artistes enacted the final battle episode of Ramayana where Lord Ram kills Ravana and brings back his wife Sita to Ayodhya on 'Vijaydashmi'.
The effigies were set ablaze amid chants in praise of Lord Ram, people witnessed spectacular fireworks which illuminated the sky leaving many in awe.
People also visited friends and relatives and exchanged gifts. A large number of people were seen bursting crackers to mark the festivities while others went to market places on a shopping spree.
Elaborate security arrangements were made to ensure that the festivities go without any untoward incident. Police kept a tight vigil in the city, a senior official said.
CBI Examines Former ISRO Chief Radhakrishnan in Antrix Deal
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NEW DELHI: Former ISRO Chairman K Radhakrishnan has been examined by CBI in connection with the agency's probe into alleged irregularities in an agreement between private multi-media company Devas and Antrix, the commercial arm of Indian Space Research Organisation.
CBI sources said today that Radhakrishnan, who was also the chairman of Antrix, was examined for nearly two hours at Antrix's office in Bengaluru.
The move came at a time when Antrix has been slapped a fine of about Rs 4,400 crore (672 million dollars) by International Arbitration Court for unilaterally terminating the contract with Devas which was planning to use the spectrum to launch satellite-based multimedia services on hand-held devices.
CBI had registered a case and submitted an FIR against the then Executive Director of Antrix KR Sridhara Murthi, MG Chandrasekhar and R Vishwanathan of Forge Advisors, Devas Multi-media Private Limited and unnamed officials of Antrix, ISRO and Department of Space in a designated court in Bengaluru.
The agency has slapped cases under 120-B (criminal conspiracy), 420 (cheating) of Indian Penal Code and relevant sections of Prevention of Corruption Act against them.
The Antrix-Devas deal had seen early exit of G Madhavan Nair as Chairman of ISRO as he was the Chairman of the Governing Council of Antrix when the deal was finalised.
CBI has alleged that the accused people had entered into a criminal conspiracy and the government officials and favoured Devas by giving them rights for delivery of videos, multimedia and information services to mobile phones using S-Band through GSAT-6 and GSAT-6A satellites and terrestrial systems in India.
The CBI alleged that Devas had submitted false, wrong and incorrect information claiming that it had the technology and was fully capable of delivering the S-DMB services to get the rights of delivering same in India through PS1 and PS2 and consequently, Devas allegedly got "wrongful gain of more than Rs 578 crores (approx) from various investors from USA, Mauritius, Singapore etc."
The CBI claimed that Devas, with the intent to siphon off the amount from its bank accounts in India, got a subsidiary in another name incorporated in USA and a substantial part of wrongful gain was remitted to this new company of USA on the pretext of services, salaries, etc, a charge that has been denied by the company.
Devas has taken Antrix and the Government to International Court after its contract was cancelled by the Cabinet Committee on Security in 2011.
NEW DELHI: Former ISRO Chairman K Radhakrishnan has been examined by CBI in connection with the agency's probe into alleged irregularities in an agreement between private multi-media company Devas and Antrix, the commercial arm of Indian Space Research Organisation.CBI sources said today that Radhakrishnan, who was also the chairman of Antrix, was examined for nearly two hours at Antrix's office in Bengaluru.
The move came at a time when Antrix has been slapped a fine of about Rs 4,400 crore (672 million dollars) by International Arbitration Court for unilaterally terminating the contract with Devas which was planning to use the spectrum to launch satellite-based multimedia services on hand-held devices.
The agency has slapped cases under 120-B (criminal conspiracy), 420 (cheating) of Indian Penal Code and relevant sections of Prevention of Corruption Act against them.
The Antrix-Devas deal had seen early exit of G Madhavan Nair as Chairman of ISRO as he was the Chairman of the Governing Council of Antrix when the deal was finalised.
CBI has alleged that the accused people had entered into a criminal conspiracy and the government officials and favoured Devas by giving them rights for delivery of videos, multimedia and information services to mobile phones using S-Band through GSAT-6 and GSAT-6A satellites and terrestrial systems in India.
The CBI alleged that Devas had submitted false, wrong and incorrect information claiming that it had the technology and was fully capable of delivering the S-DMB services to get the rights of delivering same in India through PS1 and PS2 and consequently, Devas allegedly got "wrongful gain of more than Rs 578 crores (approx) from various investors from USA, Mauritius, Singapore etc."
The CBI claimed that Devas, with the intent to siphon off the amount from its bank accounts in India, got a subsidiary in another name incorporated in USA and a substantial part of wrongful gain was remitted to this new company of USA on the pretext of services, salaries, etc, a charge that has been denied by the company.
Devas has taken Antrix and the Government to International Court after its contract was cancelled by the Cabinet Committee on Security in 2011.
Car-Free Day: 60 Per Cent Drop in Delhi's Air Pollution
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NEW DELHI: The first Car-Free Day in the national capital led to a 60 per cent drop in the air pollution on the car-free stretch in comparison to the levels observed on a normal day, a report released by the Centre for Science and Environment (CSE) said today.
"The car-free initiative as well as the low traffic load on the national holiday of Dussehra has helped lower the pollution levels and toxic exposure in the city.
"Today (Thursday), the air particulate matter (PM 2.5) was 265 micrograms per cubic metre (cu m) in comparison to a normal day, when the particulate normally was 689 micrograms per cu m," said the report released today.
Particulate Matter (PM2.5) is an air pollutant that is a concern for people's health when its levels in air are high.
PM2.5 is tiny particles in the air that reduce visibility and cause the air to appear hazy when levels are elevated.
The Delhi Pollution Control Committee too has supported the CSE report and has observed overall drop of 45 per cent in PM2.5 level in the city.
The Car-Free Day in Delhi was observed on the stretch between Red Fort and India Gate with Delhi Chief Minister Arvind Kejriwal leading a cycle rally in the morning.
"This initiative of the Delhi government has only helped to prove how the growing car numbers in the city aggravate toxic pollution. If these numbers are controlled, pollution can be lowered significantly," said Anumita Roychowdhury, executive director (research and advocacy), CSE.
The exposure monitoring on the road was carried out by CSE first on October 21 -- a regular day -- and during the car-free event today.
Meanwhile, Delhi Chief Minister Arvind Kejriwal took to social media to share the impact of car free day, saying we need to reduce traffic.
In the series of tweets, he said: "Almost 60 per cent reduction in pollution noted on that road. It means traffic is main culprit. We have to reduce traffic."
"Comfortable, reliable, accessible public transport system and better designed roads is the key. I'll personally work on this," he added.
NEW DELHI: The first Car-Free Day in the national capital led to a 60 per cent drop in the air pollution on the car-free stretch in comparison to the levels observed on a normal day, a report released by the Centre for Science and Environment (CSE) said today."The car-free initiative as well as the low traffic load on the national holiday of Dussehra has helped lower the pollution levels and toxic exposure in the city.
Particulate Matter (PM2.5) is an air pollutant that is a concern for people's health when its levels in air are high.
PM2.5 is tiny particles in the air that reduce visibility and cause the air to appear hazy when levels are elevated.
The Delhi Pollution Control Committee too has supported the CSE report and has observed overall drop of 45 per cent in PM2.5 level in the city.
The Car-Free Day in Delhi was observed on the stretch between Red Fort and India Gate with Delhi Chief Minister Arvind Kejriwal leading a cycle rally in the morning.
"This initiative of the Delhi government has only helped to prove how the growing car numbers in the city aggravate toxic pollution. If these numbers are controlled, pollution can be lowered significantly," said Anumita Roychowdhury, executive director (research and advocacy), CSE.
The exposure monitoring on the road was carried out by CSE first on October 21 -- a regular day -- and during the car-free event today.
Meanwhile, Delhi Chief Minister Arvind Kejriwal took to social media to share the impact of car free day, saying we need to reduce traffic.
In the series of tweets, he said: "Almost 60 per cent reduction in pollution noted on that road. It means traffic is main culprit. We have to reduce traffic."
"Comfortable, reliable, accessible public transport system and better designed roads is the key. I'll personally work on this," he added.
Business Affairs
Stock, bond and currency markets closed today on account of Dussehra
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Stock, bond and currency markets are closed on today on account of Dussehra.
Trading will resume on Friday.
Sensex fell 0.07 per cent to 27,287.66 points on Wednesday, while the broader NSE index lost 0.12 per cent to 8,251.70 points, tracking steep falls in China.
Rupee fell to 65.1225/65.1325 per dollar from its previous close of 65.0550/65.0650.
The 10-year bond yield ended unchanged at 7.58 per cent.
Stock, bond and currency markets are closed on today on account of Dussehra.
Trading will resume on Friday.
Sensex fell 0.07 per cent to 27,287.66 points on Wednesday, while the broader NSE index lost 0.12 per cent to 8,251.70 points, tracking steep falls in China.
Rupee fell to 65.1225/65.1325 per dollar from its previous close of 65.0550/65.0650.
The 10-year bond yield ended unchanged at 7.58 per cent.
Ambani's Big Gamble
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Billionaire Mukesh Ambani, Chairman of Reliance Industries (RIL), is on a spending spree. In the last financial year, RIL had invested over Rs 1,00,000 crore, about 0.8 per cent of India's GDP, in building a digital platform and expanding the petrochemical business. He plans to spend another Rs 1,00,000 crore this financial year - a large chunk of this on the launch of Reliance Jio, the 4G business, in December.
RIL
- RANK 2015: 2
- RANK 2014: 3
- MARKET CAP FY15 APRIL-SEPT: Rs 2,97,742 crore
- TOTAL INCOME: Rs 3,49,535 crore
- NET PROFIT: Rs 22,401 crore
- ROCE: 7.5%
- SO WHAT: Back at No. 2 (from No. 3) but market cap down 8.9%
Source: CMIE Prowess, Standalone data
The heavy capital expenditure has taken a toll on RIL's market value. It slipped 8.9 per cent in this year's BT 500. Still, the company improved its rank by one notch and came second after software behemoth TCS.
The last one year had its fair share of challenges for RIL. Its revenues dipped 14.8 per cent to Rs 3,49,535 crore in 2014/15 because of the sharp fall in crude oil prices during the second half of the year.
Crude oil averaged $85.4 a barrel in the financial year, sliding 21 per cent. The company's exports, too, were lower by 17.1 per cent at Rs 228,651 crore. But sustained weakness in international crude prices has limited effect on earnings from RIL's core business segments - refining and petrochemical. The company can pass on the cost variation as a refinery and petrochemical producer. Indeed, strong operating performance of these two segments helped RIL improve its bottom line by 1.9 per cent to Rs 22,401 crore.
RIL's performance in the first quarter of 2015/16 was a mirror image of the last financial year. A robust performance from refining and petrochemicals businesses ensured that profit was higher by 4.4 per cent at Rs 6,222 crore.
RIL's twin refineries at Jamnagar maintained a high operating rate of 110 per cent, processing 67.9 million tonnes (MT) of crude during the last financial year, compared to average refinery utilisation rates of 86.9 per cent in North America, 80.7 per cent in Europe and 83.5 per cent in Asia. In the first quarter of FY16, the refineries processed 16.6 MT of crude with an average utilisation of 107 per cent.
The expected commencement of ongoing projects (petcoke gasifiers and off-gas crackers) in its refinery and petrochemical businesses will boost the company's core earnings substantially from the next financial year. Indeed, the core segments are expected to remain strong cash generators for RIL. The coke gasification facility at Jamnagar, which is one of the largest initiatives in the world, is expected to be ready for commissioning in phases starting from early 2016.
According to Ambani, Reliance has always believed in India and in businesses of the future. "The global economy in 2014/15 saw a steep decline in oil prices, which had a significant impact on energy businesses. This coupled with slowing growth in some of the leading global economies impacted currencies. But, there was positive news in terms of faster-than-anticipated economic growth recovery in the US, which provided momentum for the global economic recovery," said Ambani in the annual report. Meanwhile, the government's move to deregulate diesel prices last year helped RIL re-enter the domestic retail market. It plans to re-commission its entire network of petroleum retail outlets by the end of FY16. Nearly 400 outlets are operational now. It will open 1,000 more outlets next year.
But for RIL, major trouble is brewing at KG D6. The block has produced nearly 2.5 TCF of natural gas and about 27 million barrels of crude oil, substituting over $34 billion of energy imports. But RIL, along with partner BP, is struggling to maintain production because of tough geological conditions. Further exploration and production is capital intensive and technically challenging. "RIL's interest in E&P might reduce because of the escalating issues at KG D6," says Ambareesh Baliga, an independent market expert.
The 4G Foray
RIL has big plans for telecom. The company is building a wireless network that will be covering one lakh villages in the country and 80 per cent of the population. Jio has also deployed a network of nearly 250,000 route kilometres of fibre optics. Over the next three years, it plans to double this footprint by deploying fibre optics for the last mile.
S.P. Tulsian, an independent analyst, says that the recovery of the heavy investments in Jio - around Rs 70,000 crore now - will be tough for RIL in the highly competitive Indian telecom market. "However, the company has managed to arrange cheapest loans because of its high credit ratings," he adds.
However, Baliga believes that Jio will be a game changer. "RIL is not bothered about the bottom line of Jio. The other players can't afford doing it. In two to three years Jio will turn around."
RIL's only business delivering positive top line is Retail. Reliance Retail operates 2,747 stores across 210 cities in India. Despite a tough consumer environment, the retail business achieved a compounded annual revenue growth of 31 per cent over the last five years. The company plans to scale up its retail presence across formats from 200 cities to over 900 cities by next year. With the launch of Jio, Reliance Retail will come out with an e-commerce platform.
Clearly, Ambani is going all out to scale up his various businesses. The next one year is crucial for RIL and could well determine the fate of the company's numerous initiatives.
Billionaire Mukesh Ambani, Chairman of Reliance Industries (RIL), is on a spending spree. In the last financial year, RIL had invested over Rs 1,00,000 crore, about 0.8 per cent of India's GDP, in building a digital platform and expanding the petrochemical business. He plans to spend another Rs 1,00,000 crore this financial year - a large chunk of this on the launch of Reliance Jio, the 4G business, in December.
RIL
- RANK 2015: 2
- RANK 2014: 3
- MARKET CAP FY15 APRIL-SEPT: Rs 2,97,742 crore
- TOTAL INCOME: Rs 3,49,535 crore
- NET PROFIT: Rs 22,401 crore
- ROCE: 7.5%
- SO WHAT: Back at No. 2 (from No. 3) but market cap down 8.9%
The heavy capital expenditure has taken a toll on RIL's market value. It slipped 8.9 per cent in this year's BT 500. Still, the company improved its rank by one notch and came second after software behemoth TCS.
The last one year had its fair share of challenges for RIL. Its revenues dipped 14.8 per cent to Rs 3,49,535 crore in 2014/15 because of the sharp fall in crude oil prices during the second half of the year.
Crude oil averaged $85.4 a barrel in the financial year, sliding 21 per cent. The company's exports, too, were lower by 17.1 per cent at Rs 228,651 crore. But sustained weakness in international crude prices has limited effect on earnings from RIL's core business segments - refining and petrochemical. The company can pass on the cost variation as a refinery and petrochemical producer. Indeed, strong operating performance of these two segments helped RIL improve its bottom line by 1.9 per cent to Rs 22,401 crore.
RIL's performance in the first quarter of 2015/16 was a mirror image of the last financial year. A robust performance from refining and petrochemicals businesses ensured that profit was higher by 4.4 per cent at Rs 6,222 crore.
RIL's twin refineries at Jamnagar maintained a high operating rate of 110 per cent, processing 67.9 million tonnes (MT) of crude during the last financial year, compared to average refinery utilisation rates of 86.9 per cent in North America, 80.7 per cent in Europe and 83.5 per cent in Asia. In the first quarter of FY16, the refineries processed 16.6 MT of crude with an average utilisation of 107 per cent.
The expected commencement of ongoing projects (petcoke gasifiers and off-gas crackers) in its refinery and petrochemical businesses will boost the company's core earnings substantially from the next financial year. Indeed, the core segments are expected to remain strong cash generators for RIL. The coke gasification facility at Jamnagar, which is one of the largest initiatives in the world, is expected to be ready for commissioning in phases starting from early 2016.
According to Ambani, Reliance has always believed in India and in businesses of the future. "The global economy in 2014/15 saw a steep decline in oil prices, which had a significant impact on energy businesses. This coupled with slowing growth in some of the leading global economies impacted currencies. But, there was positive news in terms of faster-than-anticipated economic growth recovery in the US, which provided momentum for the global economic recovery," said Ambani in the annual report. Meanwhile, the government's move to deregulate diesel prices last year helped RIL re-enter the domestic retail market. It plans to re-commission its entire network of petroleum retail outlets by the end of FY16. Nearly 400 outlets are operational now. It will open 1,000 more outlets next year.
But for RIL, major trouble is brewing at KG D6. The block has produced nearly 2.5 TCF of natural gas and about 27 million barrels of crude oil, substituting over $34 billion of energy imports. But RIL, along with partner BP, is struggling to maintain production because of tough geological conditions. Further exploration and production is capital intensive and technically challenging. "RIL's interest in E&P might reduce because of the escalating issues at KG D6," says Ambareesh Baliga, an independent market expert.
The 4G Foray
RIL has big plans for telecom. The company is building a wireless network that will be covering one lakh villages in the country and 80 per cent of the population. Jio has also deployed a network of nearly 250,000 route kilometres of fibre optics. Over the next three years, it plans to double this footprint by deploying fibre optics for the last mile.
S.P. Tulsian, an independent analyst, says that the recovery of the heavy investments in Jio - around Rs 70,000 crore now - will be tough for RIL in the highly competitive Indian telecom market. "However, the company has managed to arrange cheapest loans because of its high credit ratings," he adds.
However, Baliga believes that Jio will be a game changer. "RIL is not bothered about the bottom line of Jio. The other players can't afford doing it. In two to three years Jio will turn around."
RIL's only business delivering positive top line is Retail. Reliance Retail operates 2,747 stores across 210 cities in India. Despite a tough consumer environment, the retail business achieved a compounded annual revenue growth of 31 per cent over the last five years. The company plans to scale up its retail presence across formats from 200 cities to over 900 cities by next year. With the launch of Jio, Reliance Retail will come out with an e-commerce platform.
Clearly, Ambani is going all out to scale up his various businesses. The next one year is crucial for RIL and could well determine the fate of the company's numerous initiatives.
Equity mutual fund folio count up by 21 lakh in April-September
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Equity mutual funds witnessed an addition of over 21 lakh investor accounts or folios in the first six months of the current fiscal (2015-16), primarily because of strong retail participation.
This follows an addition of 25 lakh folios for the entire last fiscal, 2014-15.
Folios are numbers designated for individual investor accounts, though one investor can have multiple ones.
According to the Securities and Exchange Board of India (Sebi) data on investor accounts with 44 fund houses, the number of equity folios jumped to 3,38,40,981 last month from 31,691,619 at March-end, a gain of 21.5 lakh.
April last year saw the first rise in more than four years. Prior to 2014-15, the equity MF sector had seen a continuous closure of folios since March 2009, following the global financial crisis in late 2008. Since March 2009, as many as 1.5 crore folios were closed.
The investor base reached its peak of 4.11 crore in March 2009, while it stood at 3.77 crore in March 2008.
Before 2014-15, there was a complete lull in equity inflows as well as generation of new folios, but in the past one year, equity markets have come back to life and yielded solid returns.
Industry experts said heightened investor interest has led to a sharp increase in retail folios.
"It is the optimism of investors because of which the folios in equity segment have increased. Besides, increased participation by retail investors in equities has led to an increase in folio numbers," an expert said.
Mutual funds have reported net inflows of Rs 53,666 crore in equity schemes in the first six months of 2015-16, helping the industry grow the folio count.
Besides, addition in equity folios helped increase overall base to 4.44 crore in September from 4.17 crore at the end of March.
Equity mutual funds witnessed an addition of over 21 lakh investor accounts or folios in the first six months of the current fiscal (2015-16), primarily because of strong retail participation.
This follows an addition of 25 lakh folios for the entire last fiscal, 2014-15.
Folios are numbers designated for individual investor accounts, though one investor can have multiple ones.
According to the Securities and Exchange Board of India (Sebi) data on investor accounts with 44 fund houses, the number of equity folios jumped to 3,38,40,981 last month from 31,691,619 at March-end, a gain of 21.5 lakh.
April last year saw the first rise in more than four years. Prior to 2014-15, the equity MF sector had seen a continuous closure of folios since March 2009, following the global financial crisis in late 2008. Since March 2009, as many as 1.5 crore folios were closed.
The investor base reached its peak of 4.11 crore in March 2009, while it stood at 3.77 crore in March 2008.
Before 2014-15, there was a complete lull in equity inflows as well as generation of new folios, but in the past one year, equity markets have come back to life and yielded solid returns.
Industry experts said heightened investor interest has led to a sharp increase in retail folios.
"It is the optimism of investors because of which the folios in equity segment have increased. Besides, increased participation by retail investors in equities has led to an increase in folio numbers," an expert said.
Mutual funds have reported net inflows of Rs 53,666 crore in equity schemes in the first six months of 2015-16, helping the industry grow the folio count.
Besides, addition in equity folios helped increase overall base to 4.44 crore in September from 4.17 crore at the end of March.
India remains less exposed to external risks, says Moody's
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Forecasting that India will clock the highest growth rate of 7-7.5 per cent among G20 economies in 2015 and 2016,Moody's Investors Service on Thursday said the country is less exposed to external shocks, and the positive rating outlook reflects resilient growth and reforms momentum.
"India is less exposed to global risks because of its more resilient economic growth and the impact of positive policy reforms momentum," the rating agency said.
Emerging market sovereigns have diverging shock-absorption capabilities to withstand the risks that will continue to impact global credit quality in 2015-16, says Moody's in a report published on Thursday.
The report focuses on five Baa-rated sovereigns - Turkey, Brazil, South Africa, India and Indonesia.
"India is less exposed to external shocks than the other sovereigns discussed here. The positive outlook on its Baa3 rating reflects our view that the relatively resilient growth and the policy reform momentum will slowly stabilise inflation, improve the regulatory environment, increase infrastructure investment and lower government debt ratios," it said.
In the report titled 'Baa-rated Sovereigns: Diverging Resilience to Developing Global Risks', Moody's believes the main external risk facing EMs is the potential for a prolonged risk aversion, prompted by hopes of normalisation of US monetary policy and possibility of a sharper-than-expected China slowdown .
It also talks of country-specific challenges exacerbating this external risk.
"In contrast, we forecast strong growth in India of around 7-7.5 per cent per year in 2015-16, the highest among the G20 economies, which is supported by lower oil prices that will reinforce gradual growth-enhancing reforms," it said.
Moody's said although India, South Africa and Brazil have weaker fiscal positions than Turkey and Indonesia, these governments are less reliant on foreign currency and non-resident funding (government external debt).
The rating agency made a special mention of India's significant monetary tightening in 2013, coupled with some fiscal consolidation, which is "an example of effective macroeconomic management that restored macroeconomic stability, albeit at the expense of near-term growth".
"However, coupled with structural reforms to address regulatory and infrastructure weaknesses, lower inflation and current account deficit outcomes have set the pace for monetary loosening which commenced in 2015. This active policy response to counter emerging risks contributed to the positive outlook," it said.
Acknowledging that foreign participation in the domestic debt market provides additional source of financing and reduces sovereign yields, Moody's said it may at the same time transmit global financial shocks to local-currency sovereign bond markets and increase yield volatility.
"Credible and effective macroeconomic management can stabilise capital flows... If macroeconomic repair is coupled with longer-term structural reforms such as improved regulation and governance, the sovereign credit profile benefits from the ensuing competitiveness gains," the rater said.
Turkey and Indonesia have fiscal profiles that compare favourably to the Baa median and are stronger than those of India, Brazil and South Africa.
According to the report, the trends in global capital flows have caused Brazil and Turkey to register the sharpest exchange rate depreciation and loss of reserves in the first half of 2015 while India proved comparatively resilient to these market developments.
Overall, Turkey stands out as most vulnerable to external risks because of its high reliance on external capital and large stock of external debt due annually combined with heightened political risks.
While Brazil is less reliant on external capital, it has already experienced significant financial market turbulence because of the country's weak growth outlook, ongoing deterioration of its fiscal metrics and challenging political landscape.
South Africa and Indonesia are primarily exposed to financial market turbulence through their trade links with China and a period of low commodity prices.
"If Chinese growth is slower than expected, this could delay both countries' cyclical economic recoveries and affect capital flows," Moody's said although both countries have adequate resources to meet their needs in periods of adverse market conditions.
Forecasting that India will clock the highest growth rate of 7-7.5 per cent among G20 economies in 2015 and 2016,Moody's Investors Service on Thursday said the country is less exposed to external shocks, and the positive rating outlook reflects resilient growth and reforms momentum.
"India is less exposed to global risks because of its more resilient economic growth and the impact of positive policy reforms momentum," the rating agency said.
Emerging market sovereigns have diverging shock-absorption capabilities to withstand the risks that will continue to impact global credit quality in 2015-16, says Moody's in a report published on Thursday.
The report focuses on five Baa-rated sovereigns - Turkey, Brazil, South Africa, India and Indonesia.
"India is less exposed to external shocks than the other sovereigns discussed here. The positive outlook on its Baa3 rating reflects our view that the relatively resilient growth and the policy reform momentum will slowly stabilise inflation, improve the regulatory environment, increase infrastructure investment and lower government debt ratios," it said.
In the report titled 'Baa-rated Sovereigns: Diverging Resilience to Developing Global Risks', Moody's believes the main external risk facing EMs is the potential for a prolonged risk aversion, prompted by hopes of normalisation of US monetary policy and possibility of a sharper-than-expected China slowdown .
It also talks of country-specific challenges exacerbating this external risk.
"In contrast, we forecast strong growth in India of around 7-7.5 per cent per year in 2015-16, the highest among the G20 economies, which is supported by lower oil prices that will reinforce gradual growth-enhancing reforms," it said.
Moody's said although India, South Africa and Brazil have weaker fiscal positions than Turkey and Indonesia, these governments are less reliant on foreign currency and non-resident funding (government external debt).
The rating agency made a special mention of India's significant monetary tightening in 2013, coupled with some fiscal consolidation, which is "an example of effective macroeconomic management that restored macroeconomic stability, albeit at the expense of near-term growth".
"However, coupled with structural reforms to address regulatory and infrastructure weaknesses, lower inflation and current account deficit outcomes have set the pace for monetary loosening which commenced in 2015. This active policy response to counter emerging risks contributed to the positive outlook," it said.
Acknowledging that foreign participation in the domestic debt market provides additional source of financing and reduces sovereign yields, Moody's said it may at the same time transmit global financial shocks to local-currency sovereign bond markets and increase yield volatility.
"Credible and effective macroeconomic management can stabilise capital flows... If macroeconomic repair is coupled with longer-term structural reforms such as improved regulation and governance, the sovereign credit profile benefits from the ensuing competitiveness gains," the rater said.
Turkey and Indonesia have fiscal profiles that compare favourably to the Baa median and are stronger than those of India, Brazil and South Africa.
According to the report, the trends in global capital flows have caused Brazil and Turkey to register the sharpest exchange rate depreciation and loss of reserves in the first half of 2015 while India proved comparatively resilient to these market developments.
Overall, Turkey stands out as most vulnerable to external risks because of its high reliance on external capital and large stock of external debt due annually combined with heightened political risks.
While Brazil is less reliant on external capital, it has already experienced significant financial market turbulence because of the country's weak growth outlook, ongoing deterioration of its fiscal metrics and challenging political landscape.
South Africa and Indonesia are primarily exposed to financial market turbulence through their trade links with China and a period of low commodity prices.
"If Chinese growth is slower than expected, this could delay both countries' cyclical economic recoveries and affect capital flows," Moody's said although both countries have adequate resources to meet their needs in periods of adverse market conditions.
Finmin eases rules for foreign trips for MD of PSU banks
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Managing directors and other executive board members of state-owned banks as well as financial institutions will not be required to take permission of the Finance Ministry for undertaking foreign tours.
"Henceforth, foreign visits (by whole time director) with the permissible limit would be undertaken only with the prior approval of the board. The government would need to be informed prior to commencement of the visit which within the prescribed limit except where government's permission is required," a Finance Ministry circular said.
Earlier, the permission of Finance Ministry was required for going on overseas trip.
It said foreign visits should be planned in such a manner that there is a uniform spread of visit to overseas offices during the year and more than one director is generally not required to visit the same destination within a short period.
Besides, foreign visits must be meticulously planned taking into account the business needs and the level of representation required, it said.
It is expected that whole time director would undertake foreign visits only when their personal presence is required, it added.
Directors, however, will have to necessarily take permission if they have to travel during the time when Parliament is in session.
Managing directors and other executive board members of state-owned banks as well as financial institutions will not be required to take permission of the Finance Ministry for undertaking foreign tours.
"Henceforth, foreign visits (by whole time director) with the permissible limit would be undertaken only with the prior approval of the board. The government would need to be informed prior to commencement of the visit which within the prescribed limit except where government's permission is required," a Finance Ministry circular said.
Earlier, the permission of Finance Ministry was required for going on overseas trip.
It said foreign visits should be planned in such a manner that there is a uniform spread of visit to overseas offices during the year and more than one director is generally not required to visit the same destination within a short period.
Besides, foreign visits must be meticulously planned taking into account the business needs and the level of representation required, it said.
It is expected that whole time director would undertake foreign visits only when their personal presence is required, it added.
Directors, however, will have to necessarily take permission if they have to travel during the time when Parliament is in session.
General Awareness
PM Modi in Andhra Pradesh for inaugurations
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Foundation stone lays for AP’s new capital city
Prime Minister Narendra Modi laid the foundation stone ofAndhra Pradesh’s capital city Amaravati atUddandarayunipalem village in Guntur district on the occasion of Dussehra. Event will be held on the banks of River Krishna.
(Andhra Pradesh CM – N Chandrababu Naidu)
Event was attended by
Telangana CM – K Chandrasekhar Rao
Punjab CM – Parkash Singh Badal
Tamil Nadu Governor – Rosaiah
Andhra Pradesh Governor – ESL Narasimhan
Assam and Nagaland Governor – Padmanabha Acharya
Along with political leaders around 5 lakh people are expected to attend the function.
About Amaravati
The Master plan has been prepared by the Singapore government agencies for the three-layered capital – seed capital, capital city and capital region.
- The name Amaravati reflects the historical and mythological significance as it was once the seat of power of Satavahana rulers.
- It will be built on 217.23 square kilometres (83.87 sq. mi) of land.
- It will be administered by Andhra Pradesh Capital Region Development Authority (APCRDA).
- The centre would provide funds for construction of legislature buildings as per the Andhra Pradesh Re-organisation Act.
Inauguration of New Integrated Terminal Building in Tirupati
Prime Minister Narendra Modi inaugurated the “New Integrated Terminal Building”aka “Garuda Terminal” at the Tirupati International Airport that will enhance the connectivity to the famous temple town in Andhra Pradesh.
(Union Minister for Civil Aviation – P Ashok Gajapathi Raju)
- The Airports Authority of India (AAI) has spent Rs. 191 crores to build the new terminal.
Features
- The steel and glass integrated terminal built over an area of 16,500 sq. m plus 5,500 sq. m of basement and is equipped with state-of-art modern passenger friendly facilities.
- It can handle 500 domestic and 200 international passengers at a time and has a peak-hour handling capacity of 700 passengers.
- The new terminal can handle code ‘D’ and code ‘C’ types of aircraft with link taxi, apron and associated infrastructure.
- It has 18 check-in-counters, 4 immigration counters, 4 baggage conveyors for arrival and 1 for departure, 3 baggage claim carousels, 2 VIP lounges and parking for 250 cars.
Foundation stone lays for Mobile Manufacturing Hub in Tirupati
Prime Minister Modi also laid foundation stone of Shri Venkateswara Mobile and Electronics Manufacturing Hub, the country’s first mobile manufacturing electronics cluster which will create more than 10,000 jobs within a year. The hub is expected to contribute at least 5 percent of all-India target of 15 lakh jobs by 2019.
- Foxconn has already started operations in Andhra Pradesh for manufacturing brands such as Xiomi and Gionee. Other like Micromax, UTL (Karbonn) andCelkon are also in line of starting their manufacturing operations soon.
- Foundation stone lays for AP’s new capital cityPrime Minister Narendra Modi laid the foundation stone ofAndhra Pradesh’s capital city Amaravati atUddandarayunipalem village in Guntur district on the occasion of Dussehra. Event will be held on the banks of River Krishna.
(Andhra Pradesh CM – N Chandrababu Naidu)Event was attended by
Telangana CM – K Chandrasekhar Rao
Punjab CM – Parkash Singh Badal
Tamil Nadu Governor – Rosaiah
Andhra Pradesh Governor – ESL Narasimhan
Assam and Nagaland Governor – Padmanabha Acharya
Along with political leaders around 5 lakh people are expected to attend the function.About Amaravati
The Master plan has been prepared by the Singapore government agencies for the three-layered capital – seed capital, capital city and capital region.- The name Amaravati reflects the historical and mythological significance as it was once the seat of power of Satavahana rulers.
- It will be built on 217.23 square kilometres (83.87 sq. mi) of land.
- It will be administered by Andhra Pradesh Capital Region Development Authority (APCRDA).
- The centre would provide funds for construction of legislature buildings as per the Andhra Pradesh Re-organisation Act.
Inauguration of New Integrated Terminal Building in TirupatiPrime Minister Narendra Modi inaugurated the “New Integrated Terminal Building”aka “Garuda Terminal” at the Tirupati International Airport that will enhance the connectivity to the famous temple town in Andhra Pradesh.
(Union Minister for Civil Aviation – P Ashok Gajapathi Raju)- The Airports Authority of India (AAI) has spent Rs. 191 crores to build the new terminal.
Features- The steel and glass integrated terminal built over an area of 16,500 sq. m plus 5,500 sq. m of basement and is equipped with state-of-art modern passenger friendly facilities.
- It can handle 500 domestic and 200 international passengers at a time and has a peak-hour handling capacity of 700 passengers.
- The new terminal can handle code ‘D’ and code ‘C’ types of aircraft with link taxi, apron and associated infrastructure.
- It has 18 check-in-counters, 4 immigration counters, 4 baggage conveyors for arrival and 1 for departure, 3 baggage claim carousels, 2 VIP lounges and parking for 250 cars.
Foundation stone lays for Mobile Manufacturing Hub in TirupatiPrime Minister Modi also laid foundation stone of Shri Venkateswara Mobile and Electronics Manufacturing Hub, the country’s first mobile manufacturing electronics cluster which will create more than 10,000 jobs within a year. The hub is expected to contribute at least 5 percent of all-India target of 15 lakh jobs by 2019.- Foxconn has already started operations in Andhra Pradesh for manufacturing brands such as Xiomi and Gionee. Other like Micromax, UTL (Karbonn) andCelkon are also in line of starting their manufacturing operations soon.
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