General Affairs
As Cane Dues Touch 22,000 Crores, Centre Plans 8,000 Crore-Balm: Sources
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Concerned over mounting cane arrears to the tune of Rs. 22,000 crore, the government is expected to announce a bailout package of over Rs. 8,000 crore to clear dues of farmers, sources told.
The amount will include creation of buffer stock of 30 LMT (lakh metric tonne), for which the money will be transferred directly to farmers' bank accounts. The minimum price for sale of sugar will be fixed at around Rs. 20 a kg. The package is also expected to include a scheme worth over Rs. 4,400 crore for increasing the capacity for production of ethanol, one of the by-products of sugarcane.
A final decision is expected to be taken at a cabinet meeting scheduled to be held tomorrow, sources said.
Cane arrears is seen as the central issue that led to the BJP's loss in the recently concluded crucial by-elections in Kairana, Uttar Pradesh - the largest cane producing state in the country. The party, which held the Lok Sabha seat, lost it to Ajit Singh's Rashtriya Lok Dal, which was backed by the Congress, Samajwadi Party and Dalit powerhouse Mayawati.
The election was viewed as a test of unity for the opposition parties aiming at challenging the BJP in the 2019 national polls. That the BJP lost the election in Uttar Pradesh, which sends the largest number of lawmakers to Lok Sabha, was viewed as a matter of concern by a section of the party.
After the results were announced, Samajwadi Party leader Akhilesh Yadav said the Uttar Pradesh government has "repeatedly fooled the people". "Farmers were told that their loans were waived but instead they lost their lives," he said.
Last month, the Centre had announced a Rs. 1,500-crore production-linked subsidy for sugarcane farmers to help millers pay cane payment.
The state's BJP government led by Yogi Adityanath said it was committed to paying cane dues within two weeks of purchase by the state's sugar mills. But ahead of the elections, many sugar mills put up closure notices. The mill association said the bumper crop was steadily eating into their profit margins.
The amount will include creation of buffer stock of 30 LMT (lakh metric tonne), for which the money will be transferred directly to farmers' bank accounts. The minimum price for sale of sugar will be fixed at around Rs. 20 a kg. The package is also expected to include a scheme worth over Rs. 4,400 crore for increasing the capacity for production of ethanol, one of the by-products of sugarcane.
A final decision is expected to be taken at a cabinet meeting scheduled to be held tomorrow, sources said.
Cane arrears is seen as the central issue that led to the BJP's loss in the recently concluded crucial by-elections in Kairana, Uttar Pradesh - the largest cane producing state in the country. The party, which held the Lok Sabha seat, lost it to Ajit Singh's Rashtriya Lok Dal, which was backed by the Congress, Samajwadi Party and Dalit powerhouse Mayawati.
The election was viewed as a test of unity for the opposition parties aiming at challenging the BJP in the 2019 national polls. That the BJP lost the election in Uttar Pradesh, which sends the largest number of lawmakers to Lok Sabha, was viewed as a matter of concern by a section of the party.
After the results were announced, Samajwadi Party leader Akhilesh Yadav said the Uttar Pradesh government has "repeatedly fooled the people". "Farmers were told that their loans were waived but instead they lost their lives," he said.
Last month, the Centre had announced a Rs. 1,500-crore production-linked subsidy for sugarcane farmers to help millers pay cane payment.
The state's BJP government led by Yogi Adityanath said it was committed to paying cane dues within two weeks of purchase by the state's sugar mills. But ahead of the elections, many sugar mills put up closure notices. The mill association said the bumper crop was steadily eating into their profit margins.
Sushma Swaraj Calls For Action Against Money Laundering, Terror Funding at BRICS Meet
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External Affairs Minister Sushma Swaraj today underlined that multilateralism, international trade and rule based world order was facing "strong head-winds" as she called for joint action by the BRICS nations against money laundering, terror financing and de-radicalisation.
Ms Swaraj, who is on a five-day trip to South Africa, attended the BRICS (Brazil, Russia, India, China and South Africa) Foreign Ministers' meeting. It was held with the purpose of laying the foundation for the annual summit of the association in Johannesburg next month, which Prime Minister Narendra Modi is expected to attend.
"Our deliberations here will contribute to enriching intra BRICS-cooperation further," Ms Swaraj said.
"India attaches importance to the role of BRICS in consolidating co-operation", Ms Swaraj was quoted in a statement by the Ministry of External Affairs.
She also called for joint action by all the BRICS nations, for long-term growth challenges.
"Though, the global growth has exhibited signs of recovery, the challenges to long-term growth continue to persist. Ensuring that the benefits of globalisation are shared widely remains a challenge," she added.
"PM Modi had given a call for a BRICS Counter-Terrorism Strategy for joint-action with a focus on money laundering, terror financing, cyber-space and de-radicalization as our priorities," Ms Swaraj said.
"Our leaders have also called for making UN Counter Terrorism framework efficient and effective. We reiterate our commitment to implement our Leaders' mandate on counter terrorism under South Africa's BRICS Chairship," she said.
Addressing a press conference later, Ms Swaraj said the BRICS nations discussed the need to strengthen cooperation in the areas of security and countering terrorism.
"You are all aware of strong statement on counter terrorism which emerged from BRICS Summit in Xiamen. I am sure the deliberations we have had in today's meeting will be taken forward to the BRICS Leaders' Summit in Johannesburg next month," she said.
"We are fully committed to a successful Johannesburg BRICS Summit, which Prime Minister Shri Narendra Modi is looking forward to," Ms Swaraj said.
BRICS brings together almost 42 per cent of global population, with impressive growth, investment and trade share, she added.
"BRICS meetings are keenly watched world over and our decisions have profound impact globally. In today's meeting we exchanged views on current issues of global significance in political, security, and economic spheres," she added.
China's Wang Yi, South Africa's Lindiwe Sisulu, Brazil's Marcos Bezerra Abbott Galvao and Russia's Sergey Lavrov were the leaders attending the meeting.
BRICS Cooperation in strategic areas of security, counter-terrorism, UN reforms, peacekeeping, de-radicalisation, cyber security, energy security, global governance, and international and regional hot-spot issues are deliberated in detail during National Security Advisor's meetings, she said.
"It is imperative now that the common ground reached in our NSAs meeting on setting up a BRICS Security Forum is implemented fully," she said.
Ms Swaraj will also chair a meeting of Foreign Ministers of India, Brazil, South Africa (IBSA ).
Ms Swaraj, who is on a five-day trip to South Africa, attended the BRICS (Brazil, Russia, India, China and South Africa) Foreign Ministers' meeting. It was held with the purpose of laying the foundation for the annual summit of the association in Johannesburg next month, which Prime Minister Narendra Modi is expected to attend.
"Our deliberations here will contribute to enriching intra BRICS-cooperation further," Ms Swaraj said.
"India attaches importance to the role of BRICS in consolidating co-operation", Ms Swaraj was quoted in a statement by the Ministry of External Affairs.
She also called for joint action by all the BRICS nations, for long-term growth challenges.
"Though, the global growth has exhibited signs of recovery, the challenges to long-term growth continue to persist. Ensuring that the benefits of globalisation are shared widely remains a challenge," she added.
"PM Modi had given a call for a BRICS Counter-Terrorism Strategy for joint-action with a focus on money laundering, terror financing, cyber-space and de-radicalization as our priorities," Ms Swaraj said.
"Our leaders have also called for making UN Counter Terrorism framework efficient and effective. We reiterate our commitment to implement our Leaders' mandate on counter terrorism under South Africa's BRICS Chairship," she said.
Addressing a press conference later, Ms Swaraj said the BRICS nations discussed the need to strengthen cooperation in the areas of security and countering terrorism.
"You are all aware of strong statement on counter terrorism which emerged from BRICS Summit in Xiamen. I am sure the deliberations we have had in today's meeting will be taken forward to the BRICS Leaders' Summit in Johannesburg next month," she said.
"We are fully committed to a successful Johannesburg BRICS Summit, which Prime Minister Shri Narendra Modi is looking forward to," Ms Swaraj said.
BRICS brings together almost 42 per cent of global population, with impressive growth, investment and trade share, she added.
"BRICS meetings are keenly watched world over and our decisions have profound impact globally. In today's meeting we exchanged views on current issues of global significance in political, security, and economic spheres," she added.
China's Wang Yi, South Africa's Lindiwe Sisulu, Brazil's Marcos Bezerra Abbott Galvao and Russia's Sergey Lavrov were the leaders attending the meeting.
BRICS Cooperation in strategic areas of security, counter-terrorism, UN reforms, peacekeeping, de-radicalisation, cyber security, energy security, global governance, and international and regional hot-spot issues are deliberated in detail during National Security Advisor's meetings, she said.
"It is imperative now that the common ground reached in our NSAs meeting on setting up a BRICS Security Forum is implemented fully," she said.
Ms Swaraj will also chair a meeting of Foreign Ministers of India, Brazil, South Africa (IBSA ).
"Act As Change Makers": President Ram Nath Kovind To Governors
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President Ram Nath Kovind today asked the governors of states to act as change makers by improving the lives of marginalised people and enhancing higher education standards.
In his opening address at the two-day conference of governors and Lt governors, which began at the Rashtrapati Bhavan, he said a governor is a mentor and guide for the state government and an important link in the federal structure.
"The people of the state view the office of the governor and the Raj Bhavan as a fount of ideals and values," President Kovind said.
He said there are approximately 100 million people in the country who belong to the Scheduled Tribes.
"As governors you can help in the shaping of a road map for the betterment of lives of our fellow citizens, who have not benefited as much as expected from our development journey," the president said.
He said India is blessed with the largest youth population in the world.
"As governors, you are guardians of our youth - in the sense that you can inspire young people to absorb the right moral values and you can motivate them to both pursue modern education and remain sensitive to our Indian ethos," President Kovind said.
Talking about the higher education scenario in the country, the president said 69 per cent of total universities in India come under the purview of state governments and about 94 per cent of students enrolled for higher education study in these universities.
With governors as chancellors of most of these universities, President Kovind said, they should provide the necessary impetus and inspiration to these institutions and enhance the level of scholarship.
"You can help ensure that admissions of students and appointments of teachers in state universities are completed well in time and in a transparent manner. You can also help ensure that examinations, declaration of results and convocations take place as scheduled. It is for you to inspire state universities to maintain this discipline and integrity," President Kovind said.
The president said it is equally essential to keep the academic curriculum updated to maintain the contemporary relevance of education.
"As governors of your states, it is for you to engage the youth and motivate them to use their academic achievements for the welfare of society and of our country. We need to strive collectively for a better life for our coming generations," he said.
President Kovind also sought suggestions from the governors on celebrations for the 150th birth anniversary of Mahatma Gandhi. "There would be no better way to cherish his memory than to strive for genuine and meaningful social transformation," he said.
The centre has decided to commemorate the 150th birth anniversary of Mahatma Gandhi over a 24-month period commencing October 2, 2018.
"Gandhiji gave us an unfailing talisman. He said that to judge the efficacy of any action we contemplate, we should ask ourselves if it would be of help to the weakest, poorest and most disadvantaged person we know. We must keep this talisman in mind and I would welcome suggestions from all of you to put Gandhiji's ideals and values into practice," the president said.
In his opening address at the two-day conference of governors and Lt governors, which began at the Rashtrapati Bhavan, he said a governor is a mentor and guide for the state government and an important link in the federal structure.
"The people of the state view the office of the governor and the Raj Bhavan as a fount of ideals and values," President Kovind said.
He said there are approximately 100 million people in the country who belong to the Scheduled Tribes.
"As governors you can help in the shaping of a road map for the betterment of lives of our fellow citizens, who have not benefited as much as expected from our development journey," the president said.
He said India is blessed with the largest youth population in the world.
"As governors, you are guardians of our youth - in the sense that you can inspire young people to absorb the right moral values and you can motivate them to both pursue modern education and remain sensitive to our Indian ethos," President Kovind said.
Talking about the higher education scenario in the country, the president said 69 per cent of total universities in India come under the purview of state governments and about 94 per cent of students enrolled for higher education study in these universities.
With governors as chancellors of most of these universities, President Kovind said, they should provide the necessary impetus and inspiration to these institutions and enhance the level of scholarship.
"You can help ensure that admissions of students and appointments of teachers in state universities are completed well in time and in a transparent manner. You can also help ensure that examinations, declaration of results and convocations take place as scheduled. It is for you to inspire state universities to maintain this discipline and integrity," President Kovind said.
The president said it is equally essential to keep the academic curriculum updated to maintain the contemporary relevance of education.
"As governors of your states, it is for you to engage the youth and motivate them to use their academic achievements for the welfare of society and of our country. We need to strive collectively for a better life for our coming generations," he said.
President Kovind also sought suggestions from the governors on celebrations for the 150th birth anniversary of Mahatma Gandhi. "There would be no better way to cherish his memory than to strive for genuine and meaningful social transformation," he said.
The centre has decided to commemorate the 150th birth anniversary of Mahatma Gandhi over a 24-month period commencing October 2, 2018.
"Gandhiji gave us an unfailing talisman. He said that to judge the efficacy of any action we contemplate, we should ask ourselves if it would be of help to the weakest, poorest and most disadvantaged person we know. We must keep this talisman in mind and I would welcome suggestions from all of you to put Gandhiji's ideals and values into practice," the president said.
Plastic Waste Threatens Picturesque And Ecologically Fragile Rohtang Pass
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The ecologically fragile Rohtang Pass in Himachal Pradesh, which is a two-hour drive away from the popular tourist destination, Manali, is being choked with plastic, bottles, beer cans. Local authorities are concerned.
Tourists only travel up to the altitude of 13,050 feet, 52 km from Manali. Rest of the Rohtang Pass has no sign of human habitation. Due to heavy snowfall, it remains cut off for more than five months.
The litter is appalling to the tourists. "It is really shocking to see pet bottles and eatable wrappers lying along rivulets," said Raunaq Bajwa, a tourist from New Delhi.
"Why is the local administration not imposing a blanket ban on carrying these non-biodegradable items to such highly sensitive zones," he asked, pointing to waste dumped haphazardly along the banks of the glacier-fed Beas near Marhi. His friend added that Rohtang was slowly becoming a high-altitude dumping ground.
The picturesque Rohtang Pass is a major attraction for both domestic and foreign tourists.
According to the Himachal Pradesh Tourism Department, 1.1 million people visit Manali every year. Tourism is the major source of income for the locals.
"Cleaning up the hills once in a year is not the solution. The local administration has to find a permanent way of waste management," Lal Chand Thakur, a shopkeeper said.
The NGT has, however adopted one measure to protect the pristine Rohtang, restricting the entry of tourist vehicles to the Pass. It has led to a decrease in the number of tourists.
Only 1,200 taxis or private vehicle permits - 800 petrol and the remaining diesel vehicles - are issued on an everyday basis, for trips to the Rohtang Pass. People feel there must be similar checks on littering.
There are no sewage treatment plants in Marhi, a town situated between Manali and Rohtang. Residents feel that the installation of portable toilets will not help. Waste disposal points have been installed, but the visitors tend to ignore them.
In one of its orders, the green court observed that providing public amenities and ensuring absolute cleanliness at Rohtang Pass and the route leading up to it is essential to environmental conservation.
Authorities must ensure absolute cleanliness and the tourists have to refrain from littering, the order had said.
Ahead of his retirement, green court Chairperson Justice Swatanter Kumar told IANS last year that scientific studies clearly indicated glaciers in the Rohtang Pass catchment were receding at the rate of one metre per year.
"People going for picnics carry cold drinks, snacks and beer bottles with them and then dump them carelessly. Plastic trash adds to bio-waste. Mule dung is polluting water and soil. This is the case before us," he had said.
Environmentalists say the state should also launch a campaign like the Riverfront Cleaning Campaign that was launched on May 18.
The campaign, supported by the Ministry of Environment and Forests and Climate Change and involving school students and a Territorial Army battalion, will cover three districts -- Mandi, Kullu and Bilaspur, through which the Beas flows. It will conclude today, on the occasion World Environment Day.
This year, India will also host the UN Environment-led global event themed “Beat The Plastic Pollution”.
Tourists only travel up to the altitude of 13,050 feet, 52 km from Manali. Rest of the Rohtang Pass has no sign of human habitation. Due to heavy snowfall, it remains cut off for more than five months.
The litter is appalling to the tourists. "It is really shocking to see pet bottles and eatable wrappers lying along rivulets," said Raunaq Bajwa, a tourist from New Delhi.
"Why is the local administration not imposing a blanket ban on carrying these non-biodegradable items to such highly sensitive zones," he asked, pointing to waste dumped haphazardly along the banks of the glacier-fed Beas near Marhi. His friend added that Rohtang was slowly becoming a high-altitude dumping ground.
The picturesque Rohtang Pass is a major attraction for both domestic and foreign tourists.
According to the Himachal Pradesh Tourism Department, 1.1 million people visit Manali every year. Tourism is the major source of income for the locals.
"Cleaning up the hills once in a year is not the solution. The local administration has to find a permanent way of waste management," Lal Chand Thakur, a shopkeeper said.
The NGT has, however adopted one measure to protect the pristine Rohtang, restricting the entry of tourist vehicles to the Pass. It has led to a decrease in the number of tourists.
Only 1,200 taxis or private vehicle permits - 800 petrol and the remaining diesel vehicles - are issued on an everyday basis, for trips to the Rohtang Pass. People feel there must be similar checks on littering.
There are no sewage treatment plants in Marhi, a town situated between Manali and Rohtang. Residents feel that the installation of portable toilets will not help. Waste disposal points have been installed, but the visitors tend to ignore them.
In one of its orders, the green court observed that providing public amenities and ensuring absolute cleanliness at Rohtang Pass and the route leading up to it is essential to environmental conservation.
Authorities must ensure absolute cleanliness and the tourists have to refrain from littering, the order had said.
Ahead of his retirement, green court Chairperson Justice Swatanter Kumar told IANS last year that scientific studies clearly indicated glaciers in the Rohtang Pass catchment were receding at the rate of one metre per year.
"People going for picnics carry cold drinks, snacks and beer bottles with them and then dump them carelessly. Plastic trash adds to bio-waste. Mule dung is polluting water and soil. This is the case before us," he had said.
Environmentalists say the state should also launch a campaign like the Riverfront Cleaning Campaign that was launched on May 18.
The campaign, supported by the Ministry of Environment and Forests and Climate Change and involving school students and a Territorial Army battalion, will cover three districts -- Mandi, Kullu and Bilaspur, through which the Beas flows. It will conclude today, on the occasion World Environment Day.
This year, India will also host the UN Environment-led global event themed “Beat The Plastic Pollution”.
Army To Slash Rifles Order To 250,000, A 3rd Of Its Requirement: Report
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The Indian Army will place an order for only 250,000 modern assault rifles -- just a third of its total requirement -- driven by budgetary constraints and the need to speed up deliveries, a person with knowledge of the matter said.
The 1.3 million-strong military pruned its original requirement for 800,000 rifles, which would have cost $2.5 billion, to prioritize spending and advance the purchase of more up-to-date equipment, the person said, asking not to be identified as the information is not yet public.
The defense force has 450,000 infantry troopers, of whom only half go into ground battle and use the rifle as their primary weapon. The rest are support soldiers, the person said.
The moves are part of Prime Minister Narendra Modi's $250 billion push to modernize India's armed forces, as infantry continue to face the brunt of deadly attacks in disputed border areas such as Kashmir and the north-east. Plans to buy new equipment from overseas, however, have been held back by bureaucratic delays and the military's desire to balance the needs of its troops against efforts to build equipment domestically under Modi's 'Make in India' program, a key plank in his drive to boost local manufacturing.
A scouting team will be leaving later this month to meet with foreign rifle-makers including Colt's Manufacturing Company LLC, Italy's Fabbrica d'Armi Pietro Beretta S.p.A, Swiss Sig Sauer Inc., the Czech Republic's Ceska Zbrojovka and Israel Weapons Industry Ltd. to identify the most suitable weapon, the person said.
To meet the requirement of the rest of the force, the Army intends to make do with a mix of 400,000 Kalashnikov rifles and the India-made INSAS rifles. The Indian Army's shopping spree for small arms was triggered by its decision to phase out the two decade-old INSAS rifle, introduced in the late 1990s and built by the state-owned Ordnance Factory.
The 1.3 million-strong military pruned its original requirement for 800,000 rifles, which would have cost $2.5 billion, to prioritize spending and advance the purchase of more up-to-date equipment, the person said, asking not to be identified as the information is not yet public.
The defense force has 450,000 infantry troopers, of whom only half go into ground battle and use the rifle as their primary weapon. The rest are support soldiers, the person said.
The moves are part of Prime Minister Narendra Modi's $250 billion push to modernize India's armed forces, as infantry continue to face the brunt of deadly attacks in disputed border areas such as Kashmir and the north-east. Plans to buy new equipment from overseas, however, have been held back by bureaucratic delays and the military's desire to balance the needs of its troops against efforts to build equipment domestically under Modi's 'Make in India' program, a key plank in his drive to boost local manufacturing.
A scouting team will be leaving later this month to meet with foreign rifle-makers including Colt's Manufacturing Company LLC, Italy's Fabbrica d'Armi Pietro Beretta S.p.A, Swiss Sig Sauer Inc., the Czech Republic's Ceska Zbrojovka and Israel Weapons Industry Ltd. to identify the most suitable weapon, the person said.
To meet the requirement of the rest of the force, the Army intends to make do with a mix of 400,000 Kalashnikov rifles and the India-made INSAS rifles. The Indian Army's shopping spree for small arms was triggered by its decision to phase out the two decade-old INSAS rifle, introduced in the late 1990s and built by the state-owned Ordnance Factory.
Business Affairs
Sensex tumbles 215 pts, Nifty closes at 10,628 level as banking, consumer durables stocks sink
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The Sensex skidded over 215 points as nervous investors took money off the table amid speculation that the RBI may go for a rate hike this week. Rate sensitives led the decline, with the BSE Realty index emerging as the worst performer among sectoral indices by slumping 3.25 per cent. Banking, financials, consumer durables and capital goods tumbled up to 1.83 per cent. The RBI's Monetary Policy Committee began its three-day meeting today amid speculation that it may hike the key interest rate on June 6 for the first time in over four years due to firming inflation.
The Sensex, which opened on a strong footing amid positive global leads and hit a high of 35,555, soon slipped into the negative zone on massive selling in several heavyweights. It finally ended at 35,011.89, down 215.37 points or 0.61 per cent.
The broader NSE Nifty too ended lower by 67 points, or 0.63 per cent, at 10,628, after hovering between 10,770 and 10,618. Meanwhile, foreign portfolio investors (FPIs) offloaded shares worth a net Rs 202.80 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 337.97 crore on Friday, as per provisional data.
"Market erased early gains despite positive momentum in the global market as investors are gradually factoring a rate hike ahead of RBI's monetary policy. As the result season is over, market participants are keen on macros, the movement of oil price and rupee... On the other hand, the tailwinds caused by prognosis of good monsoon and uptick in economic activity in Q4FY18 will boost consumption led story and rural economy," said Vinod Nair, Head of Research, Geojit Financial Services.
HDFC Bank was the top loser in the Sensex pack, falling 2.99 per cent, followed by Adani Ports at 2.87 per cent.
Other laggards included Bharti Airtel 2.77 per cent, Power Grid 2.06 per cent, HUL 1.73 per cent, ONGC 1.71 per cent, NTPC 1.43 per cent, SBI 1.37 per cent, Asian Paints 1.20 per cent, ICICI Bank 1.14 per cent and Kotak Bank 1.13 per cent.
Bucking the trend, Dr Reddy's topped the gainers list by spurting 2.86 per cent, followed by Infosys, M&M, Tata Steel, RIL, TCS and Yes Bank.
Among the BSE sectoral indices, realty fell 3.25 per cent, power 2.32 per cent, telecom 1.95 per cent, consumer durables,1.83 per cent, utilities 1.66 per cent, finance 1.50 per cent, bankex 1.42 per cent, infrastructure 1.35 per cent, capital goods 1.26, PSU 1.17 per cent, FMCG 1.14 per cent, healthcare 0.46 per cent and auto 0.37 per cent.
IT, teck and metal indices ended higher, rising up to 0.42 per cent.
The broader markets too were under pressure, with the BSE small-cap index losing 2.09 per cent, while the mid-cap index finished 0.82 per cent down.
Globally, other Asian markets ended in a better shape. Japan's Nikkei rose 1.37 per cent higher, Hong Kong's Hang Seng climbed 1.66 per cent and Shanghai Composite Index finished 0.52 per cent higher.
European markets too saw a firm trend. Paris CAC rose 0.36 per cent and Frankfurt's DAX gained 0.24 per cent. London's FTSE too rose 0.73 per cent in late morning deals.
The Sensex, which opened on a strong footing amid positive global leads and hit a high of 35,555, soon slipped into the negative zone on massive selling in several heavyweights. It finally ended at 35,011.89, down 215.37 points or 0.61 per cent.
The broader NSE Nifty too ended lower by 67 points, or 0.63 per cent, at 10,628, after hovering between 10,770 and 10,618. Meanwhile, foreign portfolio investors (FPIs) offloaded shares worth a net Rs 202.80 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 337.97 crore on Friday, as per provisional data.
"Market erased early gains despite positive momentum in the global market as investors are gradually factoring a rate hike ahead of RBI's monetary policy. As the result season is over, market participants are keen on macros, the movement of oil price and rupee... On the other hand, the tailwinds caused by prognosis of good monsoon and uptick in economic activity in Q4FY18 will boost consumption led story and rural economy," said Vinod Nair, Head of Research, Geojit Financial Services.
HDFC Bank was the top loser in the Sensex pack, falling 2.99 per cent, followed by Adani Ports at 2.87 per cent.
Other laggards included Bharti Airtel 2.77 per cent, Power Grid 2.06 per cent, HUL 1.73 per cent, ONGC 1.71 per cent, NTPC 1.43 per cent, SBI 1.37 per cent, Asian Paints 1.20 per cent, ICICI Bank 1.14 per cent and Kotak Bank 1.13 per cent.
Bucking the trend, Dr Reddy's topped the gainers list by spurting 2.86 per cent, followed by Infosys, M&M, Tata Steel, RIL, TCS and Yes Bank.
Among the BSE sectoral indices, realty fell 3.25 per cent, power 2.32 per cent, telecom 1.95 per cent, consumer durables,1.83 per cent, utilities 1.66 per cent, finance 1.50 per cent, bankex 1.42 per cent, infrastructure 1.35 per cent, capital goods 1.26, PSU 1.17 per cent, FMCG 1.14 per cent, healthcare 0.46 per cent and auto 0.37 per cent.
IT, teck and metal indices ended higher, rising up to 0.42 per cent.
The broader markets too were under pressure, with the BSE small-cap index losing 2.09 per cent, while the mid-cap index finished 0.82 per cent down.
Globally, other Asian markets ended in a better shape. Japan's Nikkei rose 1.37 per cent higher, Hong Kong's Hang Seng climbed 1.66 per cent and Shanghai Composite Index finished 0.52 per cent higher.
European markets too saw a firm trend. Paris CAC rose 0.36 per cent and Frankfurt's DAX gained 0.24 per cent. London's FTSE too rose 0.73 per cent in late morning deals.
Govt mulls merger of Bank of Baroda, IDBI Bank, Oriental Bank, Central Bank: Report
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The government is considering merging at least four state-run banks as part of a larger consolidation plan - triggered by rising bad loans. The banks that could face the merger are: Bank of Baroda, IDBI Bank Ltd, Oriental Bank of Commerce and Central Bank of India, according to a report in the Mint. These four banks are under pressure with combined loss of Rs 21,646.38 crore in the financial year 2017-18. The merger will allow the weak banks to sell assets, reduce overheads and shut money-losing branches, the report said.
This year on May 25, Bank of Baroda reported a net loss of Rs 3,102.34 crore in the Jan-March quarter due to a jump in provisions for bad loans. The bank's provisions for non-performing assets for the quarter rose by 190 per cent year-on-year to Rs 7,052.53 crore in the last quarter of FY 2017-18.
After BoB, IDBI was the next to report net loss due to bad loans. IDBI Bank posted a net loss of Rs 5,662.76 crore in Q4 with gross NPA rising to 27.95 per cent of its loans at March 2018.
Except Bank of Baroda, all three banks - IDBI Bank Ltd, Oriental Bank of Commerce and Central Bank of India - are under the RBI's Prompt Corrective Action (PCA) framework. The PCA framework is a mechanism to maintain sound financial health of the banks. It facilitates banks - in breach of risk thresholds for identified areas of monitoring such as capital and asset quality - to take corrective measures so that they are protected from going into financial crisis.
Once placed under PCA, the banks are barred from distributing dividends, remitting profits and disbursing fresh loans. Banks are also stopped from expanding their branch networks and need to maintain higher provisions. Recently, IDBI Bank created a special department for managing bad loans and monitoring credit after it was put under watch by the RBI.
According to the report today, the department of financial services is considering a 51 per cent stake sale in IDBI Bank to a strategic partner for Rs 9,000-10,000 crore. "Dilution of (government) stake in IDBI Bank could also be achieved through stake sale to private equity investors," the business daily reported, citing a source.
Last year in August, the Union Cabinet chaired by Prime Minister Modi gave in-principle approval for public sector banks to amalgamate through an alternative mechanism. The government in a statement said that the decision would facilitate consolidation among the nationalised banks to create strong and competitive banks.
Months later, the government constituted the mechanism under the chairmanship of Finance Minister Arun Jaitley. In a press statement issued then, the government said: "The decision is expected to facilitate the creation of strong and competitive banks in public sector space to meet the credit needs of a growing economy, absorb shocks and have the capacity to raise resources without depending unduly on the state exchequer."
The mechanism will oversee the proposals coming from boards of PSBs for consolidation.
This year on May 25, Bank of Baroda reported a net loss of Rs 3,102.34 crore in the Jan-March quarter due to a jump in provisions for bad loans. The bank's provisions for non-performing assets for the quarter rose by 190 per cent year-on-year to Rs 7,052.53 crore in the last quarter of FY 2017-18.
After BoB, IDBI was the next to report net loss due to bad loans. IDBI Bank posted a net loss of Rs 5,662.76 crore in Q4 with gross NPA rising to 27.95 per cent of its loans at March 2018.
Except Bank of Baroda, all three banks - IDBI Bank Ltd, Oriental Bank of Commerce and Central Bank of India - are under the RBI's Prompt Corrective Action (PCA) framework. The PCA framework is a mechanism to maintain sound financial health of the banks. It facilitates banks - in breach of risk thresholds for identified areas of monitoring such as capital and asset quality - to take corrective measures so that they are protected from going into financial crisis.
Once placed under PCA, the banks are barred from distributing dividends, remitting profits and disbursing fresh loans. Banks are also stopped from expanding their branch networks and need to maintain higher provisions. Recently, IDBI Bank created a special department for managing bad loans and monitoring credit after it was put under watch by the RBI.
According to the report today, the department of financial services is considering a 51 per cent stake sale in IDBI Bank to a strategic partner for Rs 9,000-10,000 crore. "Dilution of (government) stake in IDBI Bank could also be achieved through stake sale to private equity investors," the business daily reported, citing a source.
Last year in August, the Union Cabinet chaired by Prime Minister Modi gave in-principle approval for public sector banks to amalgamate through an alternative mechanism. The government in a statement said that the decision would facilitate consolidation among the nationalised banks to create strong and competitive banks.
Months later, the government constituted the mechanism under the chairmanship of Finance Minister Arun Jaitley. In a press statement issued then, the government said: "The decision is expected to facilitate the creation of strong and competitive banks in public sector space to meet the credit needs of a growing economy, absorb shocks and have the capacity to raise resources without depending unduly on the state exchequer."
The mechanism will oversee the proposals coming from boards of PSBs for consolidation.
Bullet train on Mumbai-Nagpur route? Govt plans high-speed railway network
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In what is a first-of-its-kind coordinated project, Indian Railways and Ministry of Road Transport and Highways have joined forces to build a twin rail line alongside the proposed Mumbai-Nagpur Expressway. Both railways and transport ministry will work together and put the ambitious project on fast track. This new project is expected to cut the travel time for both train and road travellers on this route. The expressway is likely to be fully access-controlled while the rail line will see high-speed uninterrupted trains. Helping the railway and transport ministry is Spanish consultant Ineco that has already conducted a study on the feasibility of constructing a bullet train track along with an expressway. The results are positive, as told by a railway officer to agencies.
A feasibility report stated that the rail line could be built in the middle of the 800-km expressway or if it would run along the road as well. Construction of twin tunnels and bridges to cross rivers and negotiate hilly areas is also a possibility. The report is currently being examined by railway officials.
Ineco is set to make a detailed presentation to the public transporter in order to take the project ahead.
Meanwhile, the Ministry of Road Transport and Highways has already started acquiring land for the proposed expressway. However, land acquisition is a serious issue and many projects in the past, including the ambitious Dedicated Freight Corridor have faced land acquisition problems. The Mumbai-Ahmedabad high-speed rail corridor is also facing the same problem.
To add to its woes, as road networks are getting improved, it has taken a toll on the Indian Railways' business on shorter routes. In return, the railways is trying to take away goods and passenger traffic off the roads and add to its share.
Talking about the coordinated efforts an official said, "It's a new way of executing the project faster, as the combined efforts to acquire land will ease a major burden for both ministries and pave the way for speedy execution."
The Mumbai-Nagpur Expressway is part of the Diamond Quadrilateral rail project that will connect Delhi, Mumbai, Kolkata and Chennai through a high-speed rail network. The Mumbai-Ahmedabad high-speed corridor will be the first to be implemented of this ambitious project.
A feasibility report stated that the rail line could be built in the middle of the 800-km expressway or if it would run along the road as well. Construction of twin tunnels and bridges to cross rivers and negotiate hilly areas is also a possibility. The report is currently being examined by railway officials.
Ineco is set to make a detailed presentation to the public transporter in order to take the project ahead.
Meanwhile, the Ministry of Road Transport and Highways has already started acquiring land for the proposed expressway. However, land acquisition is a serious issue and many projects in the past, including the ambitious Dedicated Freight Corridor have faced land acquisition problems. The Mumbai-Ahmedabad high-speed rail corridor is also facing the same problem.
To add to its woes, as road networks are getting improved, it has taken a toll on the Indian Railways' business on shorter routes. In return, the railways is trying to take away goods and passenger traffic off the roads and add to its share.
Talking about the coordinated efforts an official said, "It's a new way of executing the project faster, as the combined efforts to acquire land will ease a major burden for both ministries and pave the way for speedy execution."
The Mumbai-Nagpur Expressway is part of the Diamond Quadrilateral rail project that will connect Delhi, Mumbai, Kolkata and Chennai through a high-speed rail network. The Mumbai-Ahmedabad high-speed corridor will be the first to be implemented of this ambitious project.
RBI to decide on rate hike; inflation may influence decision
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The MPC (Monetary Policy Committee) of RBI is holding a meeting to decide its policy on key rates. Instead of the usual two day affair, this time the MPC headed by the RBI governor Urijit Patel is meeting for three days (June 4-6). The RBI has cited "administrative exigencies" as the reason for the longer meeting. According to the official economic data released on May 31, the Indian economy grew at 6.7 per cent in the fiscal year 2017-18. The Indian economy has shown consistent growth in each of the constituent quarters - 5.6 per cent in Q1, 6.3 per cent in Q2, 7 per cent in Q3 and 7.7 per cent in Q4.
Meanwhile, consumer price inflation was 4.6 per cent in April 2018. Inflation has remained higher than RBI's 4 per cent target since November 2017, but it is well within the upper band of 6 per cent. In its Monetary Policy Report last April, RBI had expected inflation to pencil 5.1 per cent in the first quarter of 2018-19.
State Bank of India, ICICI Bank and Punjab National Bank have already increased their lending rates due to weak deposit growth, even before RBI could take a call on rate hike.
Economists forecasted the RBI to raise rate by 25 bps in August followed by another hike in October. However, looking at the economic rebound the hike is expected to be announced after the MPC meeting on June 6.
Investors have been pulling money out of the Indian market amid sky-rocketing NPAs and banking frauds and a rate hike would strengthen investor's confidence. Indonesia and Philippines recently hiked their rates and India is expected to follow.
If the RBI increases the rate then loans would become costlier decreasing the liquidity in the markets and ultimately reducing the spending power. Keeping in mind the high inflation, RBI would have to be very cautious while increasing the rates. Rise in crude oil prices is also contributing to the high inflation.
If Rates remain unchanged then RBI would have to adopt a hawkish approach and would have to let the crude oil price stabilize before taking a call in the next MPC meeting. If Rates are decreased further this would lead to more money supply in the economy as loans would be cheaper, directly benefiting the loan seekers. The consumers would have more money in their hand to spend providing a boost to the economic growth.
Meanwhile, consumer price inflation was 4.6 per cent in April 2018. Inflation has remained higher than RBI's 4 per cent target since November 2017, but it is well within the upper band of 6 per cent. In its Monetary Policy Report last April, RBI had expected inflation to pencil 5.1 per cent in the first quarter of 2018-19.
State Bank of India, ICICI Bank and Punjab National Bank have already increased their lending rates due to weak deposit growth, even before RBI could take a call on rate hike.
Economists forecasted the RBI to raise rate by 25 bps in August followed by another hike in October. However, looking at the economic rebound the hike is expected to be announced after the MPC meeting on June 6.
Investors have been pulling money out of the Indian market amid sky-rocketing NPAs and banking frauds and a rate hike would strengthen investor's confidence. Indonesia and Philippines recently hiked their rates and India is expected to follow.
If the RBI increases the rate then loans would become costlier decreasing the liquidity in the markets and ultimately reducing the spending power. Keeping in mind the high inflation, RBI would have to be very cautious while increasing the rates. Rise in crude oil prices is also contributing to the high inflation.
If Rates remain unchanged then RBI would have to adopt a hawkish approach and would have to let the crude oil price stabilize before taking a call in the next MPC meeting. If Rates are decreased further this would lead to more money supply in the economy as loans would be cheaper, directly benefiting the loan seekers. The consumers would have more money in their hand to spend providing a boost to the economic growth.
SC restrains finalisation of Binani Cement asset sale till further orders
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The Supreme Court today restrained finalisation of sale of assets of Binani Cement Ltd without its prior approval but allowed the debt resolution process to go on. The apex court also said that further proceedings will be subject to its orders.
A vacation bench of Justices Adarsh Goel and Ashok Bhushan issued notice on a petition filed by Rajputana Properties Ltd and restrained the Committee of Creditors from taking any final decision.
"Issue notice returnable on July 2, 2018. In the meantime, no final order may be passed. This order will not debar further proceedings subject to orders of this Court," the bench said.
Rajputana Properties Pvt Ltd, a subsidiary of Dalmia Bharat Ltd, had moved the apex court against a May 15 order of the National Company Law Appellate Tribunal (NCLAT), which had asked Interim Resolution Professionals (IRP) to consider the revised proposals made by Ultratech Ltd for assets of Binani Cement.
Dalmia Bharat had emerged as the top bidder for acquisition of assets of Binani Cement, but subsequently Ultratech Cement, which was the second highest bidder, came back with a revised higher offer, backed by original promoters of Binani Cement.
At the outset during today's hearing, senior advocate Gopal Subramanium appearing for Rajputana Properties, said the court should restrain Committee of Creditors from taking any decision on the finalisation of bids.
"We want that no final decision is taken on the bids till the top court takes up the matter on July 2," he said.
Senior advocate A M Singhvi, appearing for UltraTech Cement Ltd, said they have offered Rs 1,000 crore more than Dalmia Bharat's offer.
The bench said, "We have said that proceedings will continue but no final decision will be taken."
Dalmia Bharat in its bid had offered to pay around Rs 6,930 crore for Binani Cement whereas UltraTech has raised its bid to around Rs 7,960 crore.
Rajputana Properties Ltd had sought a stay on NCLAT's May 15 order by which it had directed the IRPs and CoC to consider the resolution plans as per its order saying that the appellate tribunal had wrongly laid down a procedure unknown to the statutory framework.
Binani Cement owes over Rs 6,500 crore to a consortium of lenders led by Bank of Baroda.
A vacation bench of Justices Adarsh Goel and Ashok Bhushan issued notice on a petition filed by Rajputana Properties Ltd and restrained the Committee of Creditors from taking any final decision.
"Issue notice returnable on July 2, 2018. In the meantime, no final order may be passed. This order will not debar further proceedings subject to orders of this Court," the bench said.
Rajputana Properties Pvt Ltd, a subsidiary of Dalmia Bharat Ltd, had moved the apex court against a May 15 order of the National Company Law Appellate Tribunal (NCLAT), which had asked Interim Resolution Professionals (IRP) to consider the revised proposals made by Ultratech Ltd for assets of Binani Cement.
Dalmia Bharat had emerged as the top bidder for acquisition of assets of Binani Cement, but subsequently Ultratech Cement, which was the second highest bidder, came back with a revised higher offer, backed by original promoters of Binani Cement.
At the outset during today's hearing, senior advocate Gopal Subramanium appearing for Rajputana Properties, said the court should restrain Committee of Creditors from taking any decision on the finalisation of bids.
"We want that no final decision is taken on the bids till the top court takes up the matter on July 2," he said.
Senior advocate A M Singhvi, appearing for UltraTech Cement Ltd, said they have offered Rs 1,000 crore more than Dalmia Bharat's offer.
The bench said, "We have said that proceedings will continue but no final decision will be taken."
Dalmia Bharat in its bid had offered to pay around Rs 6,930 crore for Binani Cement whereas UltraTech has raised its bid to around Rs 7,960 crore.
Rajputana Properties Ltd had sought a stay on NCLAT's May 15 order by which it had directed the IRPs and CoC to consider the resolution plans as per its order saying that the appellate tribunal had wrongly laid down a procedure unknown to the statutory framework.
Binani Cement owes over Rs 6,500 crore to a consortium of lenders led by Bank of Baroda.
General Awareness
Cauvery Management Authority
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Context: Acting on the Supreme Court’s direction, the Centre recently constituted a Cauvery Water Management Authority (CMA) to address the dispute over sharing of river water among Tamil Nadu, Karnataka, Kerala and Puducherry.
About the Cauvery Management Authority:
Composition: The authority would comprise a chairman, eight members besides a secretary. Out of eight members, two each will be full-time and part-time members, while the rest four would be part-time members from states.
Powers: The authority will exercise power and discharge such duty for “sufficient and expedient for securing compliance and implementation” of the Supreme Court order in relation to “storage, apportionment, regulation and control of Cauvery waters”. It can also seek the help of the central government for implementation of the award and take appropriate action.
Other functions:
The authority will supervise operation of reservoirs and with regulation of water releases therefrom with the assistance of regulation committee.
The authority will also look at regulated release of water by Karnataka, at the inter-state contact point presently identified as Billigundulu gauge and discharge station, located on the common border of Karnataka and Tamil Nadu.
The authority at the beginning of the water year (June 1 each year) would determine the total residual storage in the specified reservoirs.
The authority has also been tasked to advise the states to take suitable measures to improve water use efficiency, by way of promoting micro-irrigation (drip and sprinkler), change in cropping pattern, improved agronomic practices, system deficiency correction and command area development.
It has to also prepare an annual report covering the activities of the authority for the preceding year. The Centre will initially contribute a sum of Rs 2 crore for the functioning of the authority.
Background:
The apex court, in its verdict delivered on February 16, had asked the Centre to frame the Cauvery management scheme, including creation of the Cauvery Managament Board, for release of water from Karnataka to Tamil Nadu, Kerala and Puducherry.
Modifications made by the Court:
The top court had modified the Cauvery Water Disputes Tribunal (CWDT) award of 2007 and made it clear that it will not be extending the time for this on any ground.
It had raised the 270 tmcft share of Cauvery water for Karnataka by 14.75 tmcft and reduced Tamil Nadu’s share, while compensating it by allowing extraction of 10 tmcft groundwater from the river basin, saying the issue of drinking water has to be placed on a “higher pedestal”.
Facts for Prelims:
Cauvery River rises on Brahmagiri Hill of the Western Ghats in south-western Karnataka state. It flows in a south-easterly direction for 475 miles through the states of Karnataka and Tamil Nadu.
Before emptying into the Bay of Bengal south of Cuddalore, Tamil Nadu, the river breaks into a large number of distributaries forming a wide delta called the “garden of southern India.” The river is important for its irrigation canal projects.
In the upper course, at the Krishnaraja Sagara, the Kaveri is joined by two tributaries, the Hemavati and Lakshmantirtha, where a dam was constructed for irrigation.
Upon entering Tamil Nadu, the Kaveri continues through a series of twisted wild gorges until it reaches Hogenakal Falls. There the Mettur Dam was construted for irrigation and hydel power.
It’s main tributaries are the Kabani (Kabbani), Amaravati, Noyil, and Bhavani rivers.
Context: Acting on the Supreme Court’s direction, the Centre recently constituted a Cauvery Water Management Authority (CMA) to address the dispute over sharing of river water among Tamil Nadu, Karnataka, Kerala and Puducherry.
About the Cauvery Management Authority:
Composition: The authority would comprise a chairman, eight members besides a secretary. Out of eight members, two each will be full-time and part-time members, while the rest four would be part-time members from states.
Powers: The authority will exercise power and discharge such duty for “sufficient and expedient for securing compliance and implementation” of the Supreme Court order in relation to “storage, apportionment, regulation and control of Cauvery waters”. It can also seek the help of the central government for implementation of the award and take appropriate action.
Other functions:
The authority will supervise operation of reservoirs and with regulation of water releases therefrom with the assistance of regulation committee.
The authority will also look at regulated release of water by Karnataka, at the inter-state contact point presently identified as Billigundulu gauge and discharge station, located on the common border of Karnataka and Tamil Nadu.
The authority at the beginning of the water year (June 1 each year) would determine the total residual storage in the specified reservoirs.
The authority has also been tasked to advise the states to take suitable measures to improve water use efficiency, by way of promoting micro-irrigation (drip and sprinkler), change in cropping pattern, improved agronomic practices, system deficiency correction and command area development.
It has to also prepare an annual report covering the activities of the authority for the preceding year. The Centre will initially contribute a sum of Rs 2 crore for the functioning of the authority.
Background:
The apex court, in its verdict delivered on February 16, had asked the Centre to frame the Cauvery management scheme, including creation of the Cauvery Managament Board, for release of water from Karnataka to Tamil Nadu, Kerala and Puducherry.
Modifications made by the Court:
The top court had modified the Cauvery Water Disputes Tribunal (CWDT) award of 2007 and made it clear that it will not be extending the time for this on any ground.
It had raised the 270 tmcft share of Cauvery water for Karnataka by 14.75 tmcft and reduced Tamil Nadu’s share, while compensating it by allowing extraction of 10 tmcft groundwater from the river basin, saying the issue of drinking water has to be placed on a “higher pedestal”.
Facts for Prelims:
Cauvery River rises on Brahmagiri Hill of the Western Ghats in south-western Karnataka state. It flows in a south-easterly direction for 475 miles through the states of Karnataka and Tamil Nadu.
Before emptying into the Bay of Bengal south of Cuddalore, Tamil Nadu, the river breaks into a large number of distributaries forming a wide delta called the “garden of southern India.” The river is important for its irrigation canal projects.
In the upper course, at the Krishnaraja Sagara, the Kaveri is joined by two tributaries, the Hemavati and Lakshmantirtha, where a dam was constructed for irrigation.
Upon entering Tamil Nadu, the Kaveri continues through a series of twisted wild gorges until it reaches Hogenakal Falls. There the Mettur Dam was construted for irrigation and hydel power.
It’s main tributaries are the Kabani (Kabbani), Amaravati, Noyil, and Bhavani rivers.
About the Cauvery Management Authority:
Composition: The authority would comprise a chairman, eight members besides a secretary. Out of eight members, two each will be full-time and part-time members, while the rest four would be part-time members from states.
Powers: The authority will exercise power and discharge such duty for “sufficient and expedient for securing compliance and implementation” of the Supreme Court order in relation to “storage, apportionment, regulation and control of Cauvery waters”. It can also seek the help of the central government for implementation of the award and take appropriate action.
Other functions:
The authority will supervise operation of reservoirs and with regulation of water releases therefrom with the assistance of regulation committee.
The authority will also look at regulated release of water by Karnataka, at the inter-state contact point presently identified as Billigundulu gauge and discharge station, located on the common border of Karnataka and Tamil Nadu.
The authority at the beginning of the water year (June 1 each year) would determine the total residual storage in the specified reservoirs.
The authority has also been tasked to advise the states to take suitable measures to improve water use efficiency, by way of promoting micro-irrigation (drip and sprinkler), change in cropping pattern, improved agronomic practices, system deficiency correction and command area development.
It has to also prepare an annual report covering the activities of the authority for the preceding year. The Centre will initially contribute a sum of Rs 2 crore for the functioning of the authority.
Background:
The apex court, in its verdict delivered on February 16, had asked the Centre to frame the Cauvery management scheme, including creation of the Cauvery Managament Board, for release of water from Karnataka to Tamil Nadu, Kerala and Puducherry.
Modifications made by the Court:
The top court had modified the Cauvery Water Disputes Tribunal (CWDT) award of 2007 and made it clear that it will not be extending the time for this on any ground.
It had raised the 270 tmcft share of Cauvery water for Karnataka by 14.75 tmcft and reduced Tamil Nadu’s share, while compensating it by allowing extraction of 10 tmcft groundwater from the river basin, saying the issue of drinking water has to be placed on a “higher pedestal”.
Facts for Prelims:
Cauvery River rises on Brahmagiri Hill of the Western Ghats in south-western Karnataka state. It flows in a south-easterly direction for 475 miles through the states of Karnataka and Tamil Nadu.
Before emptying into the Bay of Bengal south of Cuddalore, Tamil Nadu, the river breaks into a large number of distributaries forming a wide delta called the “garden of southern India.” The river is important for its irrigation canal projects.
In the upper course, at the Krishnaraja Sagara, the Kaveri is joined by two tributaries, the Hemavati and Lakshmantirtha, where a dam was constructed for irrigation.
Upon entering Tamil Nadu, the Kaveri continues through a series of twisted wild gorges until it reaches Hogenakal Falls. There the Mettur Dam was construted for irrigation and hydel power.
It’s main tributaries are the Kabani (Kabbani), Amaravati, Noyil, and Bhavani rivers.
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