General Affairs
As Army evaluates foreign missile systems, govt considers building indigenous variant under Make in India
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Even as the army evaluates the missile systems of global vendors for a deal expected to be worth over Rs 12,000 crore, the defence ministry is moving towards indigenous development of similar very short-range air defence systems to promote Make in India.
A discussion took place at a high-level meeting in the defence ministry by top government and military officials where it was proposed that the DRDO (Defence Research and Development Organisation) should go ahead to develop the Very Short Range Air Defence System (VSHORAD) in the country itself, defence sources told Mail Today.
The development is taking place at a time when foreign vendors from three countries - Russia, France and Sweden - have fielded their systems for procurement by the Army to replace their vintage IGLA shoulder-fired air defence systems. The plan to develop the missile system which can strike targets at ranges of six to seven kms indigenously is being considered as the NDA government has come up with a missile policy which states that the country should become self-reliant in fields of missile by the year 2022, the sources said.
In recent times, the NDA government has moved very fast in favour of indigenous missile systems over the ones to be procured from foreign vendors as it decided to go in for home grown Akash air defence missiles over the ones developed by foreign vendors which were being tried by the army.
The government is also thinking of doing away with the plans to build a single-engine fighter aircraft programme in favour of the light combat aircraft Tejas which is still in the evolution stage in terms of technology and capabilities.
The ongoing global tender for the VSHORADS is also moving very slowly as after over five years in trials and re-trials, the defence ministry has reached the general staff evaluation stage and formed a technical oversight committee to look into the procedures followed by the tender procedure.
Under VSHORAD tender, Indian Army and Indian Navy plan to procure 5,175 missiles and 1,276 single and multi-launchers worth over Rs 15,000 crore with the transfer of technology to Indian defence sector partner for local manufacturing in the country.
Sources in the army said even though every contender has been given opportunity to make themselves compliant with the requirements of the tender as some of them were non-compliant in some fields.
The army has been giving chances to the vendors as it does not want to come to a single vendor situation as the defence ministry is strictly against single-vendor cases as they create a monopoly situation.
Even as the army evaluates the missile systems of global vendors for a deal expected to be worth over Rs 12,000 crore, the defence ministry is moving towards indigenous development of similar very short-range air defence systems to promote Make in India.
A discussion took place at a high-level meeting in the defence ministry by top government and military officials where it was proposed that the DRDO (Defence Research and Development Organisation) should go ahead to develop the Very Short Range Air Defence System (VSHORAD) in the country itself, defence sources told Mail Today.
The development is taking place at a time when foreign vendors from three countries - Russia, France and Sweden - have fielded their systems for procurement by the Army to replace their vintage IGLA shoulder-fired air defence systems. The plan to develop the missile system which can strike targets at ranges of six to seven kms indigenously is being considered as the NDA government has come up with a missile policy which states that the country should become self-reliant in fields of missile by the year 2022, the sources said.
In recent times, the NDA government has moved very fast in favour of indigenous missile systems over the ones to be procured from foreign vendors as it decided to go in for home grown Akash air defence missiles over the ones developed by foreign vendors which were being tried by the army.
The government is also thinking of doing away with the plans to build a single-engine fighter aircraft programme in favour of the light combat aircraft Tejas which is still in the evolution stage in terms of technology and capabilities.
The ongoing global tender for the VSHORADS is also moving very slowly as after over five years in trials and re-trials, the defence ministry has reached the general staff evaluation stage and formed a technical oversight committee to look into the procedures followed by the tender procedure.
Under VSHORAD tender, Indian Army and Indian Navy plan to procure 5,175 missiles and 1,276 single and multi-launchers worth over Rs 15,000 crore with the transfer of technology to Indian defence sector partner for local manufacturing in the country.
Sources in the army said even though every contender has been given opportunity to make themselves compliant with the requirements of the tender as some of them were non-compliant in some fields.
The army has been giving chances to the vendors as it does not want to come to a single vendor situation as the defence ministry is strictly against single-vendor cases as they create a monopoly situation.
With eye on China, Pakistan, Indian Army looks to procure 60 surveillance drones
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Seeking to bolster its ability to monitor movements of Chinese and Pakistani troops, the Indian Army is looking to procure 60 Unmanned Aerial Vehicles.
The Army issued a request for information (RFI), which stipulates that the drones should have a range of 200 kilometers and must remain operational at altitudes of 15,000 feet.
The RFI also says taht the drones should be based on proven or matured technologies that do not require further fundamental research. Notbaly, the RFI adds that the drones will be developed and manufactured by an Indian company.
A request for propsal (RFP) is likely to be issued in January 2018.
The development comes around a month after Army chief General Bipin Rawat warned that the Indian military must prepare for a two-front war with India and Pakistan.
Just last week, the Army had accepted tender inquiries for an acquisition of 600 mini-UAVs. The force is looking to spend around Rs 950 crore to procure these mini-UAVs under a "buy Indian" scheme that will work to boost the Modi government's ambitious Make in India project.
The Indian Army already has four Nishant Unmanned Aerial Vehicles, which were procured in 2011 and are tasked with intelligence gathering over enemy territory as well as reconnaissance, surveillance, target designation and artillery fire correction.
Seeking to bolster its ability to monitor movements of Chinese and Pakistani troops, the Indian Army is looking to procure 60 Unmanned Aerial Vehicles.
The Army issued a request for information (RFI), which stipulates that the drones should have a range of 200 kilometers and must remain operational at altitudes of 15,000 feet.
The RFI also says taht the drones should be based on proven or matured technologies that do not require further fundamental research. Notbaly, the RFI adds that the drones will be developed and manufactured by an Indian company.
A request for propsal (RFP) is likely to be issued in January 2018.
The development comes around a month after Army chief General Bipin Rawat warned that the Indian military must prepare for a two-front war with India and Pakistan.
Just last week, the Army had accepted tender inquiries for an acquisition of 600 mini-UAVs. The force is looking to spend around Rs 950 crore to procure these mini-UAVs under a "buy Indian" scheme that will work to boost the Modi government's ambitious Make in India project.
The Indian Army already has four Nishant Unmanned Aerial Vehicles, which were procured in 2011 and are tasked with intelligence gathering over enemy territory as well as reconnaissance, surveillance, target designation and artillery fire correction.
Karnataka HC directs doctors protesting against controversial medical act to call off strike
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A division bench of Karnataka High Court headed by acting chief justice on Friday directed all the protesting private doctors against the controversial Karnataka Private Medical Establishments Act to return to work.
More than 40,000 doctors remained off across the state from November 13 to November 16, thus paralysing the private health care system in the state.
The High Court while hearing a PIL on the matter came down heavily on the doctors for protesting. Acting Chief Justice Ramesh said that doctors have a sense of duty towards the society.
"Doctors cannot protest on streets while patients are suffering. Even if we assume that the state government passes the law, doctors can always challenge it in the court. Doctors should be legally better advised," added Chief Justice Ramesh.
In the order, the court noted that Right to Life is a fundamental right and in turn, right to be treated remains vital.
The damage done to the patients cannot be altered as doctors are protesting.
The court noted that it will hear all the grievances of the doctors, but first they will have to call off the strike and report to work immediately.
S Basavraj, advocate representing The Bangalore Private Hospital Association said that the doctors will now have to call off the stirke. "If doctors don't call of the strike and report to work, it might lead to contempt of court," added Basavaraj.
Meanwhile, Chief Minister Siddaramaih held meeting with all stakeholders on Friday and reached a middle ground.
He tweeted, "I am happy my meeting with the representatives of Doctors was successful. We have succeeded in resolving all issues around KPME Bill."
A division bench of Karnataka High Court headed by acting chief justice on Friday directed all the protesting private doctors against the controversial Karnataka Private Medical Establishments Act to return to work.
More than 40,000 doctors remained off across the state from November 13 to November 16, thus paralysing the private health care system in the state.
The High Court while hearing a PIL on the matter came down heavily on the doctors for protesting. Acting Chief Justice Ramesh said that doctors have a sense of duty towards the society.
"Doctors cannot protest on streets while patients are suffering. Even if we assume that the state government passes the law, doctors can always challenge it in the court. Doctors should be legally better advised," added Chief Justice Ramesh.
In the order, the court noted that Right to Life is a fundamental right and in turn, right to be treated remains vital.
The damage done to the patients cannot be altered as doctors are protesting.
The court noted that it will hear all the grievances of the doctors, but first they will have to call off the strike and report to work immediately.
S Basavraj, advocate representing The Bangalore Private Hospital Association said that the doctors will now have to call off the stirke. "If doctors don't call of the strike and report to work, it might lead to contempt of court," added Basavaraj.
Meanwhile, Chief Minister Siddaramaih held meeting with all stakeholders on Friday and reached a middle ground.
He tweeted, "I am happy my meeting with the representatives of Doctors was successful. We have succeeded in resolving all issues around KPME Bill."
All procedures followed in purchase of Rafale fighter jets: Nirmala Sitharaman
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Senior Ministry of Defence (MoD) officials have said that the cost of 36 Rafale fighter jets bought from France was about 10 million euros (about USD $ 12 million), cheaper than the original contract negotiated by the previous UPA government.
Over the last few days, Congress party has raised serious questionson the Rafale deal and alleged escalation in prices and irregularities in following procedures.
And, in the first rebuttal from the government, Defence Minister Nirmala Sitharaman said "all procedures had been followed".
Sitharaman said that the decision for emergency purchase was taken in the wake of an urgent requirement of the Indian Air Force (IAF). She was speaking to reporters in New Delhi.
"Between 2000-14, the UPA government could not arrive at a decision. Fourteen long years of negotiations and still no decision. That was the situation when our government came to power in 2014. PM Modi understood the loss of time and took the government-to-government route for 36 aircraft. Transfer of technology from France to India made no economic sense", Sitharaman added.
'CONG CAN BE ACCUSED OF ERROR OF OMISSION'
"The Congress can be accused of error of omission", the Defence Minister said, adding that the cost of 36 aircraft was much lesser than the amount under discussion for 126 jets. The Defence Minister, however, refrained from giving out the exact cost of the fighter jets being bought from France.
Sitharaman said that under the Defence Procurement Procedure, it was "allowed to use the government-to-government route to buy the 36 aircraft in fly-away condition at the earliest."
"The procedure was duly followed", she said.
Last September, India had signed a deal worth 7.8 billion euros with France for 36 Rafale jets.
Senior Ministry of Defence (MoD) officials have said that the cost of 36 Rafale fighter jets bought from France was about 10 million euros (about USD $ 12 million), cheaper than the original contract negotiated by the previous UPA government.
Over the last few days, Congress party has raised serious questionson the Rafale deal and alleged escalation in prices and irregularities in following procedures.
And, in the first rebuttal from the government, Defence Minister Nirmala Sitharaman said "all procedures had been followed".
Sitharaman said that the decision for emergency purchase was taken in the wake of an urgent requirement of the Indian Air Force (IAF). She was speaking to reporters in New Delhi.
"Between 2000-14, the UPA government could not arrive at a decision. Fourteen long years of negotiations and still no decision. That was the situation when our government came to power in 2014. PM Modi understood the loss of time and took the government-to-government route for 36 aircraft. Transfer of technology from France to India made no economic sense", Sitharaman added.
'CONG CAN BE ACCUSED OF ERROR OF OMISSION'
"The Congress can be accused of error of omission", the Defence Minister said, adding that the cost of 36 aircraft was much lesser than the amount under discussion for 126 jets. The Defence Minister, however, refrained from giving out the exact cost of the fighter jets being bought from France.
Sitharaman said that under the Defence Procurement Procedure, it was "allowed to use the government-to-government route to buy the 36 aircraft in fly-away condition at the earliest."
"The procedure was duly followed", she said.
Last September, India had signed a deal worth 7.8 billion euros with France for 36 Rafale jets.
Bill Gates meets CMs Yogi Adityanath and Chandrababu Naidu, offers help for development
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Microsoft co-founder and philanthropist Bill Gates on Friday met Yogi Adityanath and Chandrababu Naidu, the chief ministers of Uttar Pradesh and Andhra Pradesh, respectively.
In Lucknow, Yogi Adityanath told Gates about his administration's efforts to eradicate Japanese Encephalitis (JE), Acute Encephalitis Syndrome (AES) and other vector-borne diseases, the Chief Minister's Office said on Twitter.
Adityanath said eliminating JE/AES was one of his government's top priorities, and that Gorakhpur's BRD medical college was "at the forefront of this mission."
Bill Gates said his organisation, the Gates Foundation, wanted to help Uttar Pradesh treat municipal waste, clean rivers, carry out soil mapping using the latest techniques, and teach farmers to use better seeds.
Microsoft co-founder and philanthropist Bill Gates on Friday met Yogi Adityanath and Chandrababu Naidu, the chief ministers of Uttar Pradesh and Andhra Pradesh, respectively.
In Lucknow, Yogi Adityanath told Gates about his administration's efforts to eradicate Japanese Encephalitis (JE), Acute Encephalitis Syndrome (AES) and other vector-borne diseases, the Chief Minister's Office said on Twitter.
Adityanath said eliminating JE/AES was one of his government's top priorities, and that Gorakhpur's BRD medical college was "at the forefront of this mission."
Bill Gates said his organisation, the Gates Foundation, wanted to help Uttar Pradesh treat municipal waste, clean rivers, carry out soil mapping using the latest techniques, and teach farmers to use better seeds.
Business Affairs
Moody's explains in 4 points why it upgraded India's credit ratings after 13 years
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Moody's on Friday upgraded the government's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive after a gap of 13 years. The decision to upgrade the ratings is underpinned by agency's expectation that continued progress on economic and institutional reforms will enhance India's high growth potential and will contribute to a decline in the government debt. Here are four main points based on which Moody's upgraded India's credit ratings .
REFORMS IMPROVING BUSINESS CLIMATE
The agency said the reforms initiated by the Indian government could improve the business climate, productivity, stimulating foreign and domestic investment, and hence fostering strong and sustainable growth. The report talks India's economic moves, including GST, demonetisation, Aadhaar and the Direct Benefit Transfer, and said these initiatives would reduce informality in the economy. "Most of these measures will take time for their impact to be seen, and some, such as the GST and demonetisation, have undermined growth over the near term. Moody's expects real GDP growth to moderate to 6.7% in the fiscal year ending in March 2018 (FY2017)," the agency said.
STABLE PUBLIC INDEBTEDNESS
Moody's report says the recent reforms offer greater confidence that the high level of public indebtedness, which is India's principal credit weakness, will remain stable even in the event of shocks, and will ultimately decline. The report said: "Measures (GST, DBT and Demonetisation)will increase the degree of formality in the economy, broaden the tax base, and promote expenditure efficiency through rationalisation of government schemes and better-targeted delivery will support the expected, though very gradual, improvement in India's fiscal metrics over time."
STRUCTURAL REFORMS STRENGTHENING INSTITUTIONS
The report says the government efforts to reduce corruption, formalise economic activity and improve tax collection and administration, should contribute to the further strengthening of India's institutions. "On the fiscal front, efforts to improve transparency and accountability, including through adoption of a new Fiscal Responsibility and Budget Management (FRBM) Act, are expected to enhance India's fiscal policy framework and strengthen policy credibility," the agency said. It also said that the formation of a Monetary Policy Committee (MPC) has already enhanced the transparency and efficiency in India.
GOVT SUPPORT TO BANKS REDUCING RISK
Moody's said that the recent announcements of a comprehensive recapitalisation of Public Sector Banks (PSBs) and signs of proactive steps towards a resolution of high NPLs through use of the Bankruptcy and Insolvency Act 2016 are beginning to address a key weakness in India's sovereign credit profile. "While the capital injection will modestly increase the government's debt burden in the near term (by about 0.8% of GDP over two years), it should enable banks to move forward with the resolution of NPLs through comprehensive write-downs of impaired loans and increase lending gradually," it said.
Moody's on Friday upgraded the government's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive after a gap of 13 years. The decision to upgrade the ratings is underpinned by agency's expectation that continued progress on economic and institutional reforms will enhance India's high growth potential and will contribute to a decline in the government debt. Here are four main points based on which Moody's upgraded India's credit ratings .
REFORMS IMPROVING BUSINESS CLIMATE
The agency said the reforms initiated by the Indian government could improve the business climate, productivity, stimulating foreign and domestic investment, and hence fostering strong and sustainable growth. The report talks India's economic moves, including GST, demonetisation, Aadhaar and the Direct Benefit Transfer, and said these initiatives would reduce informality in the economy. "Most of these measures will take time for their impact to be seen, and some, such as the GST and demonetisation, have undermined growth over the near term. Moody's expects real GDP growth to moderate to 6.7% in the fiscal year ending in March 2018 (FY2017)," the agency said.
STABLE PUBLIC INDEBTEDNESS
Moody's report says the recent reforms offer greater confidence that the high level of public indebtedness, which is India's principal credit weakness, will remain stable even in the event of shocks, and will ultimately decline. The report said: "Measures (GST, DBT and Demonetisation)will increase the degree of formality in the economy, broaden the tax base, and promote expenditure efficiency through rationalisation of government schemes and better-targeted delivery will support the expected, though very gradual, improvement in India's fiscal metrics over time."
STRUCTURAL REFORMS STRENGTHENING INSTITUTIONS
The report says the government efforts to reduce corruption, formalise economic activity and improve tax collection and administration, should contribute to the further strengthening of India's institutions. "On the fiscal front, efforts to improve transparency and accountability, including through adoption of a new Fiscal Responsibility and Budget Management (FRBM) Act, are expected to enhance India's fiscal policy framework and strengthen policy credibility," the agency said. It also said that the formation of a Monetary Policy Committee (MPC) has already enhanced the transparency and efficiency in India.
GOVT SUPPORT TO BANKS REDUCING RISK
Moody's said that the recent announcements of a comprehensive recapitalisation of Public Sector Banks (PSBs) and signs of proactive steps towards a resolution of high NPLs through use of the Bankruptcy and Insolvency Act 2016 are beginning to address a key weakness in India's sovereign credit profile. "While the capital injection will modestly increase the government's debt burden in the near term (by about 0.8% of GDP over two years), it should enable banks to move forward with the resolution of NPLs through comprehensive write-downs of impaired loans and increase lending gradually," it said.
Arun Jaitley tells critics to introspect after Moody's thumbs up to India credit ratings
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A day after international agency Moody's upgraded India's credit ratings, Finance Minister Arun Jaitley today hit out at the critics and said those who have doubted India's economic reform process should seriously introspect their own position. The Finance Minister said that the upgrade is belated recognition of the steps that have been taken in the last few years. "Moody's have rightly recognised the structural reforms undertaken - GST, sound monetary policy framework, addressing PSB recapitalization issue, measures taken to bring formalization & digitalization in the economy," Jaitley said. He further said India continues to follow a path of fiscal prudence that has put a broad stability in Indian economy.
The government is banking on demonetisation and GST. The Finance Minister today reiterated that a series of steps including demonetisation is in fact formalising and digitalising the Indian economy. "Demonetisation has now got universal acceptance," Jaitley said. He also said that India is one of the few large countries which has taken structural reforms. "The GST is now universally regarded as a landmark reforms in the Indian tax structure," Jaitley said after Moody's in its report called the new tax regime as a landmark step that has removed the barriers to interstate trade.
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Moody's upgraded India's ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive after a gap of 13 years. India's sovereign credit rating was last upgraded in January 2004 to Baa3 (from Ba1). In its report, Moody's said that continued progress on economic and institutional reforms will, over time, enhance India's high growth potential. It said: "While India's high debt burden remains a constraint on the country's credit profile, Moody's believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios."
The Finance Ministry has also issued a press statement, saying that Moody's has recognized the government's commitment to macro stability which has led to low inflation, declining deficit and prudent external balance and government's fiscal consolidation programme which has resulted in a reduction of fiscal deficits from 4.5 per cent of GDP in 2013-14 to 3.5 per cent in 2016-17 and its consequential sobering impact on general government debt. "Government intends to stay the course on fiscal consolidation in the medium term," the statement said.
A day after international agency Moody's upgraded India's credit ratings, Finance Minister Arun Jaitley today hit out at the critics and said those who have doubted India's economic reform process should seriously introspect their own position. The Finance Minister said that the upgrade is belated recognition of the steps that have been taken in the last few years. "Moody's have rightly recognised the structural reforms undertaken - GST, sound monetary policy framework, addressing PSB recapitalization issue, measures taken to bring formalization & digitalization in the economy," Jaitley said. He further said India continues to follow a path of fiscal prudence that has put a broad stability in Indian economy.
The government is banking on demonetisation and GST. The Finance Minister today reiterated that a series of steps including demonetisation is in fact formalising and digitalising the Indian economy. "Demonetisation has now got universal acceptance," Jaitley said. He also said that India is one of the few large countries which has taken structural reforms. "The GST is now universally regarded as a landmark reforms in the Indian tax structure," Jaitley said after Moody's in its report called the new tax regime as a landmark step that has removed the barriers to interstate trade.
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Moody's upgraded India's ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive after a gap of 13 years. India's sovereign credit rating was last upgraded in January 2004 to Baa3 (from Ba1). In its report, Moody's said that continued progress on economic and institutional reforms will, over time, enhance India's high growth potential. It said: "While India's high debt burden remains a constraint on the country's credit profile, Moody's believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios."
The Finance Ministry has also issued a press statement, saying that Moody's has recognized the government's commitment to macro stability which has led to low inflation, declining deficit and prudent external balance and government's fiscal consolidation programme which has resulted in a reduction of fiscal deficits from 4.5 per cent of GDP in 2013-14 to 3.5 per cent in 2016-17 and its consequential sobering impact on general government debt. "Government intends to stay the course on fiscal consolidation in the medium term," the statement said.
Bharat 22 ETF vs CPSE ETF: A sneak peek into the two funds
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The subscription for Bharat 22 ETF closes today. The PSU exchange traded fund (ETF) has been in news since it was launched as a part of the Narendra Modi government's divestment drive on August 10, 2017. The government had earlier approved the alternative mechanism through the ETF route to divest its stake in CPSEs. This is the second ETF after CPSE ETF was launched by the government in March 2014.
The CPSE ETF was launched in March 2014 for raising funds through disinvestment of government's share in public sector undertakings. We compare the two ETFs and find out the better option among the two.
1. CPSE ETF has 10 stocks of Maharatna and Navaratna firms which are as follows.
ONGC, Coal India, Indian Oil , GAIL India, Power Finance Corp, Rural Electrification Corporation, Container Corporation of India, BHEL, Oil India and Engineers India.
The Bharat 22 ETF comprises 22 stocks. It has leading blue-chips such as ITC (through SUUTI) with 15.2 percent weightage, State Bank of India with 8.6 percent weightage, and Axis Bank (through SUUTI) with 7.7 percent weightage. Bank of Baroda, Bharat Electronics, Bharat Petroleum Corp, Coal India, Engineers India, Gail India, Indian Bank, Indian Oil Corp, Larsen & Toubro, National Aluminium Co, NBCC (India), NHPC, NLC India, NTPC, Oil & Natural Gas Corp, Power Finance Corp, Power Grid Corp of India, Rural Electrification Corp and SJVN are the other constituents of the fund. The fund consists of stocks from six sectors such as capital goods, finance, oil & gas, power, FMCG and metal, metal products and mining.
Hence, Bharat 22 ETF is more diversified than CPSE ETF.
2. The government gave a five per cent discount at the launch of CPSE ETF to retail investors and again those who held the ETF for at least a year got one fifth loyalty bonus.
A discount of 3 per cent has been offered to all categories of investors in Bharat 22 ETF.
3. The CPSE ETF has clocked 4.56 percent returns till date. In terms of returns till November 15, the constituents of the two funds are given below. An ETF is a traded security that tracks an underlying asset like a group of companies or commodity.
The subscription for Bharat 22 ETF closes today. The PSU exchange traded fund (ETF) has been in news since it was launched as a part of the Narendra Modi government's divestment drive on August 10, 2017. The government had earlier approved the alternative mechanism through the ETF route to divest its stake in CPSEs. This is the second ETF after CPSE ETF was launched by the government in March 2014.
The CPSE ETF was launched in March 2014 for raising funds through disinvestment of government's share in public sector undertakings. We compare the two ETFs and find out the better option among the two.
1. CPSE ETF has 10 stocks of Maharatna and Navaratna firms which are as follows.
ONGC, Coal India, Indian Oil , GAIL India, Power Finance Corp, Rural Electrification Corporation, Container Corporation of India, BHEL, Oil India and Engineers India.
The Bharat 22 ETF comprises 22 stocks. It has leading blue-chips such as ITC (through SUUTI) with 15.2 percent weightage, State Bank of India with 8.6 percent weightage, and Axis Bank (through SUUTI) with 7.7 percent weightage. Bank of Baroda, Bharat Electronics, Bharat Petroleum Corp, Coal India, Engineers India, Gail India, Indian Bank, Indian Oil Corp, Larsen & Toubro, National Aluminium Co, NBCC (India), NHPC, NLC India, NTPC, Oil & Natural Gas Corp, Power Finance Corp, Power Grid Corp of India, Rural Electrification Corp and SJVN are the other constituents of the fund. The fund consists of stocks from six sectors such as capital goods, finance, oil & gas, power, FMCG and metal, metal products and mining.
Hence, Bharat 22 ETF is more diversified than CPSE ETF.
2. The government gave a five per cent discount at the launch of CPSE ETF to retail investors and again those who held the ETF for at least a year got one fifth loyalty bonus.
A discount of 3 per cent has been offered to all categories of investors in Bharat 22 ETF.
3. The CPSE ETF has clocked 4.56 percent returns till date. In terms of returns till November 15, the constituents of the two funds are given below. An ETF is a traded security that tracks an underlying asset like a group of companies or commodity.
HDFC Standard Life Insurance closes 18.71% higher on stock market debut
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HDFC Standard Life Insurance Company, a subsidiary of mortgage lender HDFC, on Friday made its stock market debut on BSE and NSE.
The firm listed with an over 7 per cent premium against its issue price of Rs 290. The stock debuted at Rs 311, up 7.24 per cent from the issue price on the BSE.
At 12:25 pm, the stock was trading 17.83 percent or 51.70 points higher at 341 level on the BSE.
The life insurance firm's stock price later soared 27.24 per cent to Rs 369. On the NSE, it listed at Rs 310, reflecting a gain of 6.89 per cent.
It closed at Rs 344, up 18.71 percent over its issue price and 10.69 percent over its opening price.
The company's market valuation stood at Rs 69,671.19 crore. The Rs 8,695-crore IPO of the company was oversubscribed 4.90 times during November 7-9. The qualified institutional buyers (QIBs) portion was oversubscribed 16.60 times, non-institutional investors 2.29 times and retail investors 94 per cent, data available with the NSE showed. Price band for the offer was fixed at Rs 275-290 per share.
The IPO comprised sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius.
HDFC Standard Life was established as a joint venture between HDFC and Standard Life Aberdeen plc (global investment company), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life Mauritius.
The company has a pan-India presence, comprising 414 branches across India as of September 30, supported by a workforce of 16,544 full-time employees. The global coordinators and book running lead managers of the IPO are Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India).
The book running lead managers are Edelweiss Financial Services, Haitong Securities India, IDFC Bank, IIFL Holdings and UBS Securities India.
The insurer's solvency ratio as at March 31, 2015, March 31, 2016, March 31, 2017 and June 30, 2017 was 196.1%, 198.4%, 191.6% and 197.5%, respectively. IRDAI has prescribed a minimum 150% solvency ratio limit.
The solvency ratio is derived out of the solvency margin (available solvency margin to required solvency margin) which denotes the amount by which the assets of the insurer exceed its liabilities.
The insurer had a balance sheet with total net worth of Rs 4,150 crore. The life insurer generated profit after tax of Rs 886.92 crore and delivered a return on equity of 25.6%, return on invested capital of 40.7% and operating return on embedded value of 21.7% during fiscal 2017.
As at June 30, 2017, the firm had total assets under management (AUMs) of Rs 94,750 crore and Indian Embedded Value of Rs 13,220 crore.
HDFC Standard Life Insurance Company, a subsidiary of mortgage lender HDFC, on Friday made its stock market debut on BSE and NSE.
The firm listed with an over 7 per cent premium against its issue price of Rs 290. The stock debuted at Rs 311, up 7.24 per cent from the issue price on the BSE.
At 12:25 pm, the stock was trading 17.83 percent or 51.70 points higher at 341 level on the BSE.
The life insurance firm's stock price later soared 27.24 per cent to Rs 369. On the NSE, it listed at Rs 310, reflecting a gain of 6.89 per cent.
It closed at Rs 344, up 18.71 percent over its issue price and 10.69 percent over its opening price.
The company's market valuation stood at Rs 69,671.19 crore. The Rs 8,695-crore IPO of the company was oversubscribed 4.90 times during November 7-9. The qualified institutional buyers (QIBs) portion was oversubscribed 16.60 times, non-institutional investors 2.29 times and retail investors 94 per cent, data available with the NSE showed. Price band for the offer was fixed at Rs 275-290 per share.
The IPO comprised sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius.
HDFC Standard Life was established as a joint venture between HDFC and Standard Life Aberdeen plc (global investment company), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life Mauritius.
The company has a pan-India presence, comprising 414 branches across India as of September 30, supported by a workforce of 16,544 full-time employees. The global coordinators and book running lead managers of the IPO are Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India).
The book running lead managers are Edelweiss Financial Services, Haitong Securities India, IDFC Bank, IIFL Holdings and UBS Securities India.
The insurer's solvency ratio as at March 31, 2015, March 31, 2016, March 31, 2017 and June 30, 2017 was 196.1%, 198.4%, 191.6% and 197.5%, respectively. IRDAI has prescribed a minimum 150% solvency ratio limit.
The solvency ratio is derived out of the solvency margin (available solvency margin to required solvency margin) which denotes the amount by which the assets of the insurer exceed its liabilities.
The insurer had a balance sheet with total net worth of Rs 4,150 crore. The life insurer generated profit after tax of Rs 886.92 crore and delivered a return on equity of 25.6%, return on invested capital of 40.7% and operating return on embedded value of 21.7% during fiscal 2017.
As at June 30, 2017, the firm had total assets under management (AUMs) of Rs 94,750 crore and Indian Embedded Value of Rs 13,220 crore.
Moody's hails PM Modi's policies by raising India's sovereign bond rating
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Moody's Investors Service upgraded its ratings on India's sovereign bonds for the first time in nearly 14 years on Friday, saying continued progress on economic and institutional reform will boost the country's growth potential.
The agency said it was lifting India's rating to Baa2 from Baa3 and changed its rating outlook to stable from positive as risks to India's credit profile were broadly balanced.
Moody's upgrade, its first since January 2004, moves India's rating to the second lowest level of investment grade. Standard & Poor's has kept India at the lowest investment grade just above junk status for a decade and Fitch Ratings for one year longer.
The decision by Moody's is a shot in the arm for Prime Minister Narendra Modi's government and the reforms it has pushed through, and comes just weeks after the World Bank moved India up 30 places in its annual ease of doing business rankings.
All Indian markets including stocks, bonds and rupee rallied on the ratings upgrade.
"It seems like Santa Claus has already opened his bag of goodies," said Lakshmi Iyer, head of fixed income at Kotak Mutual Fund said.
"The move is overall positive for bonds which were caught in a negative spiral. This is a structural positive which would lead to easing in yields across tenors," she said.
Last year, India lobbied hard with Moody's for an upgrade, but failed. The agency raised doubts about the country's debt levels and fragile banks, and declined to budge despite the government's criticism of its rating methodology.
Finance Minister Arun Jaitley told reporters Moody's decision was a "belated recognition" of the steps the government has taken to fix India's $2 trillion economy.
Modi's top colleagues portrayed it as a further victory for the prime minister after U.S.-based research agency Pew released a survey this week that showed nearly nine out of 10 Indians held a favourable opinion of him.
OTHER UPGRADES DOUBTED
But some economists said an upgrade from the other big rating agencies soon seemed unlikely.
Radhika Rao, an economist at DBS, said implementation of reforms, a subdued rural sector and weak investment have slowed economic growth while rising oil prices have raised the risks.
"We don't think the other two global rating agencies - Fitch and S&P - will follow-up in a hurry, based on their cautious rhetoric," she said, noting their concerns on "weak" state and central government finances.
Jaitley said the government will stick to the path of fiscal consolidation. It has targeted keeping the fiscal deficit to 3.2 percent of gross domestic product for the year ending in March 2018 and to reach 3 percent in 2018/19.
"We will maintain the fiscal discipline," he said, expressing confidence existing policies will let India "glide" to a stronger financial position.
Moody's separately raised the ratings of top Indian lender State Bank of India , HDFC Bank as well as state-run energy firms, NTPC, NHPC , GAIL India Limited and the National Highways Authority of India, potentially lowering their borrowing costs.
MARKETS SURGE
At 0800 GMT, the benchmark 10-year bond yield was down 9 basis points at 6.97 percent, the rupee was trading stronger at 64.91 per dollar versus the previous close of 65.3250, while the NSE share index was 1 percent higher.
But debt traders said the rally was unlikely to last beyond a few days, as the coming heavy bond supply and hawkish inflation outlook were unlikely to change soon.
"Who has the guts to continue buying in this market?" said a bond trader at a private bank.
Moody's said the recently-introduced goods and services tax (GST), a landmark reform that turned India's 29 states into a single customs union for the first time, will boost productivity by removing barriers to inter-state trade.
"In the meantime, while India's high debt burden remains a constraint on the country's credit profile, Moody's believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios," the ratings agency said.
Still, some market participants questioned the timing of the move.
"The timing is little dicey for the upgrade given that there are lot of concerns over the government's fiscal discipline," said a foreign bank dealer.
Moody's said it expects India's real GDP growth to moderate to 6.7 percent in the fiscal year ending in March 2018 from 7.1 percent a year earlier.
The agency also raised India's local currency senior unsecured debt rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3.
Moody's noted that while a number of key reforms remain at the design phase, it believes those already implemented will advance the government's objective of improving the business climate, enhancing productivity and stimulating investment.
"Longer term, India's growth potential is significantly higher than most other Baa-rated sovereigns," said Moody's.
Moody's Investors Service upgraded its ratings on India's sovereign bonds for the first time in nearly 14 years on Friday, saying continued progress on economic and institutional reform will boost the country's growth potential.
The agency said it was lifting India's rating to Baa2 from Baa3 and changed its rating outlook to stable from positive as risks to India's credit profile were broadly balanced.
Moody's upgrade, its first since January 2004, moves India's rating to the second lowest level of investment grade. Standard & Poor's has kept India at the lowest investment grade just above junk status for a decade and Fitch Ratings for one year longer.
The decision by Moody's is a shot in the arm for Prime Minister Narendra Modi's government and the reforms it has pushed through, and comes just weeks after the World Bank moved India up 30 places in its annual ease of doing business rankings.
All Indian markets including stocks, bonds and rupee rallied on the ratings upgrade.
"It seems like Santa Claus has already opened his bag of goodies," said Lakshmi Iyer, head of fixed income at Kotak Mutual Fund said.
"The move is overall positive for bonds which were caught in a negative spiral. This is a structural positive which would lead to easing in yields across tenors," she said.
Last year, India lobbied hard with Moody's for an upgrade, but failed. The agency raised doubts about the country's debt levels and fragile banks, and declined to budge despite the government's criticism of its rating methodology.
Finance Minister Arun Jaitley told reporters Moody's decision was a "belated recognition" of the steps the government has taken to fix India's $2 trillion economy.
Modi's top colleagues portrayed it as a further victory for the prime minister after U.S.-based research agency Pew released a survey this week that showed nearly nine out of 10 Indians held a favourable opinion of him.
OTHER UPGRADES DOUBTED
But some economists said an upgrade from the other big rating agencies soon seemed unlikely.
Radhika Rao, an economist at DBS, said implementation of reforms, a subdued rural sector and weak investment have slowed economic growth while rising oil prices have raised the risks.
"We don't think the other two global rating agencies - Fitch and S&P - will follow-up in a hurry, based on their cautious rhetoric," she said, noting their concerns on "weak" state and central government finances.
Jaitley said the government will stick to the path of fiscal consolidation. It has targeted keeping the fiscal deficit to 3.2 percent of gross domestic product for the year ending in March 2018 and to reach 3 percent in 2018/19.
"We will maintain the fiscal discipline," he said, expressing confidence existing policies will let India "glide" to a stronger financial position.
Moody's separately raised the ratings of top Indian lender State Bank of India , HDFC Bank as well as state-run energy firms, NTPC, NHPC , GAIL India Limited and the National Highways Authority of India, potentially lowering their borrowing costs.
MARKETS SURGE
At 0800 GMT, the benchmark 10-year bond yield was down 9 basis points at 6.97 percent, the rupee was trading stronger at 64.91 per dollar versus the previous close of 65.3250, while the NSE share index was 1 percent higher.
But debt traders said the rally was unlikely to last beyond a few days, as the coming heavy bond supply and hawkish inflation outlook were unlikely to change soon.
"Who has the guts to continue buying in this market?" said a bond trader at a private bank.
Moody's said the recently-introduced goods and services tax (GST), a landmark reform that turned India's 29 states into a single customs union for the first time, will boost productivity by removing barriers to inter-state trade.
"In the meantime, while India's high debt burden remains a constraint on the country's credit profile, Moody's believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios," the ratings agency said.
Still, some market participants questioned the timing of the move.
"The timing is little dicey for the upgrade given that there are lot of concerns over the government's fiscal discipline," said a foreign bank dealer.
Moody's said it expects India's real GDP growth to moderate to 6.7 percent in the fiscal year ending in March 2018 from 7.1 percent a year earlier.
The agency also raised India's local currency senior unsecured debt rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3.
Moody's noted that while a number of key reforms remain at the design phase, it believes those already implemented will advance the government's objective of improving the business climate, enhancing productivity and stimulating investment.
"Longer term, India's growth potential is significantly higher than most other Baa-rated sovereigns," said Moody's.
General Awareness
India’s first mega Coastal Economic Zone to come up at JNPT in Maharashtra
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Central Government has given approval for setting up India’s first mega coastal economic zone (CEZ) at the Jawaharlal Nehru Port in Maharashtra.
What is Coastal Economic Zone (CEZ)?
- CEZ is an economic region comprising several coastal districts or districts that are well connected to the ports in the region and have strong industrial infrastructure (which has most likely been developed with Government support).
- These zones have business-friendly environment that offer enhanced ease of doing business, ease of exporting and importing, quicker environmental clearances and easy availability of water and electricity connections.
Central Government’s Plan to set up 14 mega CEZs:
In 2016, Union Cabinet came up with National Perspective Plan of the Sagarmala Programme under which it approved setting up of 14 mega CEZs.
- Objective of this programme is to promote development of industrial clusters around ports, reduce logistics cost, reduce cargo movement time and create hubs of job creation around the ports.
- This concept was the brainchild of erstwhile NITI Aayog vice-chairman Arvind Panagariya.
- The entire programme envisages investment of about Rs 6.5 lakh crore for creating world class industrial infrastructure which will trigger port-led economic growth by leveraging India’s 7500 km long coastline.
More Information about first mega Coastal Economic Zone at JNPT:
India’s first mega CEZ will stretch along north Konkan region spread across Nashik, Thane, Mumbai, Pune and Raigarh.
- Despite of JNPT being one of the busiest cargo ports, it has been chosen for this project due to availability of sufficient land.
- 45 companies across various business sectors including telecom, auto and Information Technology (IT) will soon bid for 200 hectares of land to set up their manufacturing units in this CEZ.
- The first phase of development will require an investment of Rs 15000 crore and is expected to create more than 1.5 lakh jobs.
Central Government has given approval for setting up India’s first mega coastal economic zone (CEZ) at the Jawaharlal Nehru Port in Maharashtra.
What is Coastal Economic Zone (CEZ)?
- CEZ is an economic region comprising several coastal districts or districts that are well connected to the ports in the region and have strong industrial infrastructure (which has most likely been developed with Government support).
- These zones have business-friendly environment that offer enhanced ease of doing business, ease of exporting and importing, quicker environmental clearances and easy availability of water and electricity connections.
Central Government’s Plan to set up 14 mega CEZs:
In 2016, Union Cabinet came up with National Perspective Plan of the Sagarmala Programme under which it approved setting up of 14 mega CEZs.
- Objective of this programme is to promote development of industrial clusters around ports, reduce logistics cost, reduce cargo movement time and create hubs of job creation around the ports.
- This concept was the brainchild of erstwhile NITI Aayog vice-chairman Arvind Panagariya.
- The entire programme envisages investment of about Rs 6.5 lakh crore for creating world class industrial infrastructure which will trigger port-led economic growth by leveraging India’s 7500 km long coastline.
More Information about first mega Coastal Economic Zone at JNPT:
India’s first mega CEZ will stretch along north Konkan region spread across Nashik, Thane, Mumbai, Pune and Raigarh.
- Despite of JNPT being one of the busiest cargo ports, it has been chosen for this project due to availability of sufficient land.
- 45 companies across various business sectors including telecom, auto and Information Technology (IT) will soon bid for 200 hectares of land to set up their manufacturing units in this CEZ.
- The first phase of development will require an investment of Rs 15000 crore and is expected to create more than 1.5 lakh jobs.
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