AAPI: November 2018

DELHI, 20th November 2018

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. WEF launches Centre for Fourth Industrial Revolution in India
22. Airtel Africa raises $1.25 billion from SoftBank, 5 others before IPO
23. India, Bangladesh to start cruise services; Kolaghatin & Chilmari new Ports of Call
24. India's commitment to support Africa has been unequivocally acknowledged by the African leadership: Vice President
25. Retrieving the spoils of colonialism

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DELHI, 20th November 2018

NEWSLETTER, 20-XI-2018

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. Tracking India’s macroeconomic data in run-up to Elections 2019 & Nikita Kwatra

Livemint, 29 Oct. 2018, Tadit Kundu

Mint’s new macroeconomic tracker for the Indian economy looks at all the high-frequency indicators to gauge the country’s economic health

Mumbai: The latest gross domestic product (GDP) numbers show that the Indian economy grew at an impressive rate of 8.2% in the April-June quarter, the fastest quarterly growth in over two years. However, this has not shielded the government from criticism over its handling of the economy. The falling rupee, worsening current account deficit and stress in the banking sector have all raised questions over the sustainability of the recent economic recovery.

As India’s GDP numbers are released with a lag of three months and given the persistent doubts surrounding the calculations of the new GDP series, it becomes important to track other high-frequency indicators to gauge the state of the economy. Starting this month, Mint will track 16 high-frequency indicators to assess the health of the Indian economy in a monthly macroeconomic tracker. The 16 indicators capture trends across four aspects of the economy: consumer spending, industrial activity, external vulnerability and “ease of living” (which measures inflation and the jobs scenario).

How GDP new series changes the picture of Indian economy

In recent months, all four indicators of industrial sector activity—Purchasing Managers’ Index, core infrastructure industries’ growth, bank lending and rail freight volume—have improved. All the four industrial indicators have performed better or in line with the long-term five-year trend. In Mint’s Macro Tracker, performance bettering the five-year trend is highlighted in green, while underperformance is highlighted in red.

However, despite positive signs in industry, indicators of external sector performance and ease of living suggest vulnerabilities in the Indian economy. India’s current account deficit has worsened in recent months while the rupee continues to fall.

At the same time, India’s import cover of foreign exchange reserves has fallen below the five-year trend range in recent months. Import cover of reserves is an indicator of foreign exchange reserve adequacy and measures how long imports can be sustained in the event of a shock.

Meanwhile, the global “trade war” poses further risks to India’s exports. India’s trade deficit, even non-oil, has massively widened in the last couple of years and the share of exports in GDP has declined sharply (read more here).

Along with external challenges, the Indian economy also faces domestic constraints. Three of the consumer economy indicators are in the red (below the five-year average) and investment spending remains muted despite a recent pick up. Gross fixed capital formation (GFCF), a measure of investment in the economy, amounted to 31.6% of GDP in the June quarter, down from 34.3% of GDP in 2012. Looking ahead, the GFCF-to-GDP ratio is unlikely to reach those levels even by 2022-23, by when the investment rate will likely peak at 33%, according to a recent Reserve Bank of India (RBI) research paper.

Data on fresh investment projects from Centre for Monitoring Indian Economy also does not inspire much hope of an investment turnaround in the economy in the coming quarters.

In the coming months, risks are likely to increase. Bank credit growth has been hit owing to the bad debt problem in the banking sector. Credit growth remains slower compared to 2013 levels, despite recent uptick.

The non-banking financial sector is also in crisis, facing a credit crunch following a string of defaults by Infrastructure Leasing and Financial Services Ltd (IL&FS). Such stress in the financial sector can hamper the functioning of rest of the economy.

Meanwhile, the rural economy has continued to underperform. Rural wage growth has remained subdued for much of the tenure of the Narendra Modi government, while other data point towards worsening terms of trade for farmers.

Thus, not surprisingly, the government has had to periodically face farmers’ protests.

Attempts at ameliorating rural distress through increased minimum support prices might lead to higher fiscal deficit and possibly inflation. In fact, the overall benign inflation in recent years —one of the achievements under this government—can be partially attributed to weak rural demand due to low wage growth, according to a recent HDFC report.

Higher MSPs do not truly benefit farmers

Thus, financial market volatility, uncertainties on the global front, and maintaining fiscal discipline in the run up to the elections, are the major challenges facing the Indian economy right now.

In the coming months, as Prime Minister Narendra Modi heads into the final phase of his tenure, his response to these challenges could be critical to his chances for a second tenure. And the Mint Macro Tracker will be here to track his progress.

Black hole of silence on demonetization

1.2. Two years on, why do we still not ask about the people and economic activities that were severely disrupted by this ‘surgical strike’?

Livemint, 6 Nov. 2018, C. Rammamanohar Reddy

There is one “surgical strike” from two years ago that will not be celebrated this year: the 8 November 2016 demonetization of ₹500 and ₹1,000 currency notes. Two years on, the economy and its institutions continue to experience the negative after-effects of the processes and the events surrounding demonetization. For instance, the central government is now brazenly able to put pressure on the Reserve Bank of India (RBI) and its governor, Urjit Patel, to hand over its surpluses only because two years ago the same RBI under the same governor did not demur on the demonetization of 2016.

Since there is always an official fog of rationalisation spread around demonetisation, it is important to remember what the objectives were as laid down in that late evening speech on 8 November 2016 of Prime Minister Narendra Modi and the gazette notification later that same day. The prime minister outlined three sets of objectives, (i) “to break the back” of corruption and black money, (ii) to end the circulation of fake currency and (iii) to end terrorist financing. The gazette notification outlined the same three objectives but did not mention corruption.

Gift wrapping note ban

The BJP-led NDA government, which places so much importance on packaging, had to suitably wrap demonetization in a manner that would sell. It was therefore not surprising that ending fake currency circulation and terrorism financing were tagged along with the main objective of rooting out black money. These two objectives were drawn up at a time when a fervour against “anti-nationals” had been cultivated. By themselves, neither objective made much sense.

There was indeed a spike of fake high denomination notes (HDNs) of ₹500 and ₹1,000 detected during the surrender of notes in late 2016. This was to be expected since ultimately nearly all the HDNs in circulation returned to the banking system and were then processed by the RBI. But since the new series of currency notes did not have any additional unique security features, the counterfeit presses were soon in operation: a small number of fake notes of the new ₹2,000 were detected in the last few months of 2016-17 itself and a much larger number (almost 18,000 pieces) in the next year, 2017-18. So much for demonetization ending the spread of counterfeit currency.

The less said the better about demonetization ending terror financing. As many noted at the time and thereafter, it is in the nature of terrorism that it wreaks a destructive impact with the most limited of financial resources. In any case, disaffection as expressed in terrorism in the two years since November 2016 has been no less than before, giving lie to the strange claim that demonetization would reduce terrorism.

An old man crying for missing his spot in the long queue at a State Bank of India branch during demonetization. Photo: Hindustan Times

That leaves us with the main and perhaps only objective of demonetization of the HDNs of ₹500 and ₹1,000 notes which took out 86% of the currency in the market: ending the scourge of black money. In late 2016, the attorney general told the Supreme Court, which was hearing a petition against demonetization, that the government expected a quarter to a third of the HDNs in circulation not to return to the banking system, i.e., this would be the amount of black money destroyed.

It took almost two years for the actual picture to emerge: The RBI Annual Report for 2017-18 had this bald statement: “The total SBNs [specified bank notes] returned from circulation is ₹15,310.73 billion .” Or as the newspapers put it so well, this was 99.2% of the ₹15,440.5 billion of the HDNs in circulation on 8 November 2016.

It is clear that along with the honest who stood in line and deposited their cash in banks, the dishonest had got the better of the government. They had invented innumerable ways to deposit their illegal holdings of cash in the banks. This should not have surprised the government. The previous governor of the RBI, Raghuram Rajan, had advised the government that demonetization would not achieve its objective of unearthing black money because, among other things, the tax evaders would find ways to launder their holdings.

Yet, such advice was ignored and the Prime Minister’s Office went ahead with a decision that by all accounts, the prime minister himself took the lead on, based on a half-baked set of suggestions from a Pune-based NGO. In the end, far from turning into “worthless pieces of paper” (words used by the prime minister in his 8 November 2016 speech), almost the entire stock of illegal cash holdings had been successfully legalised.

New grand narrative

When, soon after November 2016, the aim of destroying black money looked to fail, the government’s attention shifted to creating new objectives and to then arguing that the deposits of the HDNs in banks was a positive development because this gave the government information that it could use to track down the money-launderers. To take the second first, it is revealing that more than 18 months after the Union finance minister announced in the February 2017 budget speech that his ministry would harness the powers of “data analytics” to track down the crooks, we are yet to see a single press release about the success in even a single case.

The big shift in objectives was of course to talk about digitalisation, better tax compliance, “formalisation” of the economy, the goods and services tax (GST) and demonetization as inter-connected parts of one giant mosaic of a modern and clean economy in which the success of the announcement on 8 November 2016 was crucial. Unfortunately, the reality says otherwise.

The govt is now brazenly able to put pressure on RBI because two years ago the same RBI governor did not demur on demonetization-

To begin with, first, nobody was going to be fooled with this new grand narrative. Everyone knew that this was an ex-post rationalisation as the black money objective began to collapse. Second, demonetization—a surprise decision eight months before the tortuous introduction of GST—was a disruption that did not make the transition to GST easy. Third, digitalisation was not a new initiative; it had been in progress since the early 2000s. Demonetization did compel an acceleration in the process (which subsequently slowed but has since remained at a higher level of adoption), but as many have said we did not need the sledgehammer of demonetization to push digitalisation.

Fourth, this new talk of “formalisation” of the economy driven by digitalisation, demonetization and GST seemed to see the vast informal sector as nothing more than a community involved in regulatory arbitrage and tax evasion. Such talk ignored the fact that while there are indeed arbitrageurs and tax evaders in the informal sector, India’s ocean of informal activity consists of workers involved in low productivity jobs because there is no alternative.

Fifth, credit is claimed for and much is made of the fact that the cash-GDP ratio post demonetization is now about 1.5 to 2 percentage points less than before. It is always assumed that a less cash-intensive economy is a mark of progress. Yet, Japan and Switzerland have much higher cash-GP ratios than India and no one sees them as being backward. True, the use of cash can mask an audit trail and facilitate tax evasion. But we should not be blind to the fact that the larger part of black money generation now takes place inside and not outside the circuits of the banking system. Nirav Modi and Mehsul “Bhai” Choksi looted the banks and transferred wealth through banking channels; they did not do so with suitcases of cash.

Finally, there is the metric of improved tax compliance. Depending on what the data can be made to say, the metric that is used by the government to claim success is either (i) income tax collections, or (ii) number of returns filed, or (iii) the number of assesses or (iv) the income declared. Direct tax collections have indeed gone up. Some of it is to be expected as the money launderers make one-off payment of income tax. Some of it is also because to register under GST you also needed to be filing returns and with a PAN.

After a 6.6% growth in direct tax collections in 2014-15, there was an acceleration to 14.5% in 2016-17 and then to 18% (unaudited) in 2017-18. Yet, it is far too early to claim any transformation in tax revenue collections. Growth of over 15% in a year is not unusual. In 2010-11 as in 2017-18, direct tax collections jumped by 18% before growth fell off thereafter.

Sounds of silence

If the “successes” of demonetization seem hollow, there is a big black hole of silence as well. It is remarkable that while the dislocation of late 2016 and the first half of 2017 is behind us, we do not ask anything about how the people and the economic activities that were severely disrupted emerged from this policy blunder. How many were permanently affected? How many enterprises were compelled to shut down for good? How many temporarily? What survival strategies did they use? Did indebtedness increase? This government did not commission a single survey of a geographical area or economic activity or socio-economic group in order to understand what happened, to separate the permanent from the temporary, and to draw up a package of relief and rehabilitation measures. To do so would have been to acknowledge a mistake, anathema to this government. After all the suffering and all the dislocation, do we have by any reckoning a cleaner economy now? Even if we accept that the return of all black cash into the banking system has now brought it all into the white economy, and has therefore been for the good, is the larger economy less afflicted by black money after November 2016?

Illegal cash flows continue to flood elections like water. We should expect a huge spurt ahead of the 2019 elections in illegal expenses-

Nobody would say so. The central engine of black money generation and use—real estate—has as many anecdotal reports as before of the use of illegal money in transactions. Illegal cash flows continue to flood elections like water. There has been no change in the splurge of money in elections since the Uttar Pradesh elections of 2017. We should expect a huge spurt ahead of the 2019 elections in illegal expenses, which are always made more by the ruling party since it usually has access to more funds. In some respects, a government that said it wanted to root out black money has actually taken steps to facilitate the greater use of black money. Its system of electoral bonds (introduced in 2017 after demonetization) in which the donor is anonymous—and can therefore call in favours after an election—is designed for corruption.

Demonetization was a Himalayan disaster but the voter has not punished the government for this folly. The BJP does not project it as an achievement in its poll campaigns; nor does the Opposition use it as a stick to beat the BJP. A country crushed by corruption, and tired of seeing rivers of black money coursing through society, was successfully sold on the idea that this was a bold measure that would rid society of this ill. People were bewildered, but the honest by and large supported it while the dishonest successfully escaped detection. With time the support has faded and the bewilderment has been replaced by a cynical resignation. There is now fear too. There is a fear that if the State can at one stroke remove 86% of the cash in circulation and thereby dishonour something as basic as legal tender, what could it possibly do next?

This is perhaps the true permanent outcome of the demonetization of 8 November 2016—the demonstration of naked State power that now makes people fear that the State can without any thought and discrimination hurt who it wants and where it wants. Perhaps that was the true aim of demonetization.

Looking back, it now all seems unreal. Living a dark fantasy seemed the only way then to make sense of a Tughlaq-like decision. Some TV outlets were convinced that each new currency note would carry a chip that would allow the government to track cash when it was used for illegal transactions. Social media was filled with outlandish news that many counterfeit currency presses that had surrounded India and were ready to flood India with fake currency. And no less a person than the finance minister said demonetization had enfeebled the “stone pelters”.

The only thing that was real at the time was the enormous patience and fortitude with which the citizen accepted the dislocation, pain and suffering that had been inflicted on her.

C. Rammanohar Reddy is the author of Demonetisation and Black Money, Orient BlackSwan, 2018.

2.1. Doing away with visa requirements for India

Livemint, 2 Nov. 2018, Shruti Rajagopalan

To capitalize the tourism sector, India needs to unilaterally eliminate visas for at least the 50 most developed countries, and ideally extend that to most countries in the world, barring very few for security reasons

Having lived outside India for the last decade, I routinely encounter people telling me how much they would love to visit the country the moment they find out I grew up there. The conversation is quite predictable—the Taj Mahal comes up quite quickly, followed by inquiries about the Himalayas from the more adventurous, and the temples of Varanasi and Tamil Nadu from the more spiritual. If I had a dollar for every person who told me they would love to visit India, it would certainly cover my next trip to India. More importantly, if the people who expressed an interest in visiting India actually visited it, Indians would be much richer.

India has captured imaginations the world over as a country and culture, and yet only 10 million international tourists visited it last year. This is low compared to the almost 60 million international tourists who visited China and over 80 million who visited France.

Some of this could be attributed to tourists from developed countries worrying about vaccinations, safety conditions in Indian cities, or the pollution. But these are small factors as such tourists frequently travel to less developed countries to experience new cultures and sights. Both Thailand and Mexico, which recommend vaccinations and other precautions prior to arrival, receive three times the number of international visitors as India. The problem is actual barriers to entry.

Economist Alex Tabarrok has argued (in Pragati) that one of the major reasons for the relatively low share of international tourists in India is the visa requirement for citizens from most countries. Until recently (2014), this was very cumbersome, with long forms and even longer waiting periods to get a tourist visa to India. Anyone who has filled a government form in India knows how difficult they are to navigate—ranging from mild annoyances like requiring parents’ place of birth to more irritating requests like triplicate forms, multiple photographs, inconvenient consular times, and the few acceptable forms of payment. This has thankfully been changed to a simpler visa on arrival and e-visa requirement for visitors from over 160 countries.

The visa requirement for non-citizens (even the simpler version) is the hangover from the closed economy of socialist India. Along with terrible trade and immigration policies from that era, this mindset also meant a high bar for entry for any purpose for citizens of other countries and allowing only a handful of bilateral partners to enter without a visa. And there has been little effort to change this policy; after all, spontaneous tourists from other countries can never form an interest group and coordinate to lobby our government. When lobbied internally, external affairs ministers and bureaucrats routinely give the standard answer that visa restrictions will only ever be lifted bilaterally—i.e. India will only allow visa-less entry for other countries that grant Indian citizens the same privilege. On the face of it, this sounds quite symmetric and fair, mostly affecting foreigners. Yet, the ones who stand to lose the most from the visa requirement are Indians.

Robert Lawson and Sourav Roychoudhary, in their 2016 paper Do travel visa requirements impede tourist travel?, find that “having a travel visa requirement on a particular country is associated with a 70% reduction in inbound travel from that country.” And India has a visa requirement for most countries in the world, except a handful of neighbours. According to the Union ministry of tourism, in 2017, international tourists spent on average $2,700 during their visit. Applied to India, Alex Tabarrok estimates that India’s visa requirements are costing India in the order of $50 billion.

To understand the benefits of visa-less travel, one needs to look no further than the domestic tourism patterns in India. The constitution guarantees Indians free movement within India, and the lack of visa or other restrictions means that there is more travel by Indians within India than by foreigners in India or by Indians to other countries (after obtaining a visa). According to the latest statistics reported by the tourism ministry, all the Indian states and union territories put together had a little over 1.6 billion domestic tourist visits in 2017. Compared to the 1.6 billion domestic tourist visits there are only 26.9 million foreign tourist visits to all the Indian states and union territories put together. Visa-less travel led 60 times more visits than travel by foreigners requiring a visa!

Visa-less domestic tourist visits have increased 7.5-fold in the last two decades. The trend shows that as Indians get richer, they like to take more and shorter vacations, and for most Indians, this means visiting tourist sites within India. Tamil Nadu and Uttar Pradesh lead the list of the most visited states, no doubt due to the Taj Mahal, Varanasi, and the ancient temples of the south. Tourism is typically prone to network effects—the more the people that visit a particular site, the more it is recognized by other tourists as a site of interest, and more people will visit that site in the future.

To capitalize on this kind of network effect, India needs to unilaterally eliminate visas for at least the 50 most developed countries, and ideally extend that to most countries in the world, barring very few for security reasons. Waiting for treaties and bilateral/multilateral lifting of restrictions takes a lot of time, and Indians stand to lose billions of rupees annually from holding on to these relics. It’s not difficult to imagine a world with no visa requirements—it is much richer, happier, and well-travelled.

Shruti Rajagopalan is an assistant professor of economics at Purchase College, State University of New York, and a fellow at the Classical Liberal Institute, New York University School of Law.

2.2. CSIR develops affordable Water Disinfection System "OneerTM"

Press Information Bureau, Oct. 18, 2018

The device will go a long way in meeting the requirements of potable water in rural and urban areas: Dr. Harsh Vardhan

New Delhi: Council of Scientific and Industrial Research ,Indian Institute of Toxicology Research (CSIR-IITR), Lucknow has developed an innovative technology for “Drinking Water Disinfection System” with Trade name “OneerTM” which was transferred to M/s Bluebird Water Purifiers, New Delhi in the presence of Union Minister of Science & Technology and Vice-President, CSIR, Dr. Harsh Vardhan today. It is useful for continuous treatment of water and eliminates all disease causing pathogens such as virus, bacteria, fungi, protozoa and cyst to provide safe drinking water to domestic and communities settings as per National and International standards prescribed for potable water (BIS, WHO etc.).

Speaking on the occasion, Dr. Harsh Vardhan said that it is well known that infection through drinking water results in an increase in morbidity and mortality particularly amongst children and Oneer developed by CSIR-IITR ,will provide access to safe and clean drinking water at a cost of just 2 Paise / Ltr. Dr. Harsh Vardhan further added that the Community level model is of 450 LPH capacity which can be scaled up to 5000 to 1 lakh L/day; and is also maintenance and membrane free. “The technology will be helpful especially for rural people since it can be solar powered and this development is in line with the ‘Make in India’ Mission”, added the Union Minister.

Dr. Shkekar C Mande, Director General, CSIR and Secretary, DSIR lauded the efforts of CSIR-IITR Scientists in developing Oneer-a safe drinking water device especially for rural areas. He said that currently, a large proportion of India's rural community is consuming water that does not meet the WHO drinking water quality standards. According to the World Health Organization, "access to safe drinking-water is essential to health, a basic human right and a component of effective policy for health protection”.

CSIR is continuously focusing on translational research through Mission Projects and Fast Track Translational Research Projects to develop technologies and products focussed at unmet needs. One of the components of the programme is to enhance the quality of life of common people and remove drudgery.

The smaller unit of Oneer is particularly suitable for homes, street food vendors, and small establishments.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

3.1. Adani Gas plans to invest ₹8,000 crore in next 5 years: Pranav Adani

Livemint, 2 Nov. 2018, Maulik Pathak

Adani Gas aims to be the largest city gas distribution company in India in the next five years, says Adani Group managing director Pranav Adani

Ahmedabad: The country’s biggest city gas distribution (CGD) bid round held by Petroleum and Natural Gas Regulatory Board recently saw billionaire Gautam Adani-promoted Adani Gas Ltd (AGL) bagging the maximum number of geographical areas (GA). While the company won 13 GAs as an individual company, its joint venture with Indian Oil Corp. (IOC) has been awarded nine GAs.

AGL, the gas distribution arm of the Adani group, is to be listed as a separate entity in the first week of November, after being spun off from Adani Enterprises earlier this year.

In an interview, Pranav Adani, managing director, agro, oil and gas at Adani Group, talks about how the gas sector will propel the growth of the country in the next few years and how his the company is set to become the country’ largest CGD company in the next few years. AGL has plans to invest ₹8,000 crore in the next five years. Edited excerpts:

In the recently concluded ninth round of bidding for CGD neworks, Adani Gas won the highest number of geographical areas among all other players. Where do you see Adani Gas in the long-term?

We have recently won additional geographical areas in the ninth round of CGD bidding. Adani Gas is now authorized for 17 GAs and our joint venture with Indian Oil is now authorized for 18 GAs for natural gas network development and distribution. We endeavour to utilize our decade-long CGD experience and expertise to expeditiously monetize the new areas and also to expand to new geographies as and when offered by the government.

Adani Gas will continue to be a leader in the city gas distribution sector in India. We, along with our JV partner IOC, are already authorized to distribute gas in 35 geographical areas which have cumulative population of approximately 100 million. With the government planning to offer additional areas for gas distribution next year and rapid urbanization, we expect our reach to increase to 150 million. Assuming 0.2 standard cubic metres per day (scmd) as average per capita gas consumption, we have a potential market of 30 million scmd of gas. Our current gas volume is 1.5 million scmd. Thus, there is a decade of tremendous growth ahead of us. Demerger from Adani Enterprises and listing will allow a more focused approach thereby creating substantial value for stakeholders.

What has been the basis for selection of the geographical areas?

Currently, a CGD operator gets 25 years exclusivity in infrastructure development in the respective geographical area. Accordingly, our strategy is to select areas on the basis of the long-term demand outlook for gas.

Other factors that determine the selection process are the connectivity to the pipeline network, contiguity of GAs, possibility to develop CNG corridors, quantum of fuel usage, etc. Our business strategy will continue to revolve around these factors. If we take the example of areas like Gujarat and NCR, we have matured natural gas ecosystem and there is a huge market waiting for the infrastructure to be built.

How do you see the future of natural gas in India? What are your views on this?

The world is witnessing energy transition. This paradigm shift is being driven on the back of natural gas which is being heralded as the “transition fuel of the future”. Currently, it is the fastest growing energy source, second only to renewable energy. India’s commitment to the world, under the COP23 Paris Agreement, to reduce its carbon footprint, can be achieved through timely adoption of natural gas.

The Indian government has taken exemplary initiatives to support transmission of gas pan-India like expanding pipeline connectivity in southern and eastern India, resolving regulatory ambivalence and allocating newer geographical areas for city gas transmission network.

Soon, around 350 districts are expected to have end-to-end natural gas connectivity to support large-scale adoption of natural gas.

The creation of such a large ecosystem will have the twin effect of increasing gas off-take and optimizing fuel cost for end-consumers.

If I can cite the example of Gujarat, gas penetration in the state is already at about 25% of the state’s energy basket owing to strong gas infrastructure.

A wider adoption of gas can help India fulfil the honourable prime minister’s vision to reduce oil import dependence by 10%. Adoption of gas will also help the country reduce its subsidy burden created by liquefied petroleum gas (LPG) and superior kerosene oil due to its market-linked pricing.

To answer your other question, the government of India has set itself a target to increase the share of natural gas in India’s primary energy mix to 15% till 2022 from the 6.5% in 2015. The focus on environmental health and pressing need for energy security make natural gas a top priority for India. There is, therefore, no doubt that natural gas will play a critical role in India’s energy strategy. Increasing usage of natural gas will also address three critical challenges: widening current account deficit (CAD), burgeoning fiscal deficit and rising air pollution.

Does India have access to adequate supply of gas to fulfil this transition?

Currently CGD consumes about 15-18% of domestic gas production and even at peak demand, consumption will be around 25-30%. The growth trajectory of domestic gas production suggests that there will be adequate supply of natural gas for the CGD segment.

What will be the role of CGD in achieving higher share of natural gas in India’s energy mix?

City Gas Distribution (CGD) distributes natural gas to the end-consumers as fuel to power transport vehicles in form of Compressed Natural Gas or CNG, and domestic usage, primarily for cooking in form of Piped Natural Gas or PNG. CNG is the substitute for conventional transport fuels like petrol and diesel and similarly PNG is for LPG.

CGD is the vehicle to increase reach of natural gas to the widest geography and to the largest populace. Recognizing this, the government has declared CGD as priority sector for allocation of domestically produced gas.

Adani ventured into the CGD sector quite early. Where do you see the company in the next five years or so?

We realized the vast potential of the sector quite early. Accordingly, we have worked our way to becoming the largest private sector CGD company in the country. We supply eco-friendly, cost effective and reliable natural gas for industrial, commercial, domestic and vehicular customers. As on June 2018, our network size stands at 6,000+ km pipeline and 70 CNG stations catering to more than 3.15 lakh households, 1,250 industrial units and 2,400 commercial units. We are currently authorized in 35 geographical areas.

In FY 2017-18, Adani Gas reported turnover of ₹1,395 crore and Ebitda of ₹280 crore. Our volumes increased by 17% to 479 mmscm (million metric standard cubic metres) y-o-y. We have achieved a y-o-y volume growth of 12% in CNG segment and 23% in PNG segment which also shows the kind of growth that will drive CGD business in the future.

We have partnered with IOCL, one India’s largest PSUs and a Maharatna company, for expanding our CGD footprint. The JV is authorized to develop infrastructure and distribute gas in 18 Geographical Areas (GA) and Adani Gas, unilaterally, is authorized to operate in 17 GAs. Together, we are covering approximately 7.5% of India’s population.

Do you see Adani Gas among the top few CGD players in the country in near future?

We already are the largest today in terms of authorizations. All the projects, once commissioned, will make us the largest in terms of infrastructure, customers and throughput. We aim to be the largest CGD company in the country in next five years.

What kind of investments do you plan to make in the next five years?

Adani Gas and IOAGPL, which is the JV between Adani Gas and IOCL, have already made total investment to the tune of approximately ₹2,000 crore in CGD business. We have efficiently utilized the investment to become the largest private sector city gas distributor in the country. We have recently won 22 new GAs in the 9th round of CGD bidding by PNGRB which takes the total count to 35.

We plan to invest about ₹8,000 crore in the next four to five years.

3.2. Rs 65,000cr set aside for Mumbai suburban rail revamp: Goyal

PTI, Nov. 12, 2018

Mumbai: Up to Rs 65,000 crore has been approved for a host of rail infrastructure projects on the suburban network in Mumbai and its surrounding areas, said Railway Minister Piyush Goyal Sunday.

These projects, investment for which were proposed in this year's Union budget, include new works and upgradation of existing facilities on the busy network, which serves as the transport lifeline of the metropolis, he said.

Goyal said the Maharashtra government has been actively supporting these infrastructure projects, which seek to improve transportation and passenger amenities.

"With the blessings of our visionary Prime Minister Narendra Modi and with active support of Maharashtra Chief Minister Devendra Fadnavis, the decision of having an investment of a whopping Rs 60,000 to Rs 65,000 crore in the last proposed budget has been approved.

"This will ensure upgradation of the suburban railway system of Mumbai and its adjacent areas," he said.

"Given the pace at which the infrastructure and public amenity works are being executed by the Railways, I believe that in the next four to four-and-a-half years, the suburban rail network of Mumbai, Navi Mumbai or Mahamumbai will see a complete metamorphosis," Goyal said.

He was speaking after commissioning of the new Nerul- Seawoods Darave-Belapur-Kharkopar suburban rail corridor in Navi Mumbai. This is the first phase of the 27km Nerul-Belapur -Uran corridor on the Harbour route of the Central Railway.

Goyal along with Fadnavis commissioned the first phase of the corridor, that comprised 12km out of the 27km rail line, at the Kharpokar railway station.

Regular services on the new corridor will start from Monday and link Ulwe node in Navi Mumbai with Chhatrapati Shivaji Maharaj Terminus and Panvel on the Harbour route besides Thane on the Trans-Harbour corridor.

Addressing the gathering, Goyal said Fadnavis has set a target of Maharashtra becoming a trillion-dollar economy by 2025.

The Indian Railway will play a crucial role in achieving this target, he said.

"Be it the leaders of my own party (the BJP) or from the Shiv Sena, or public and passengers representatives, they keep following rail projects regularly with me which sometimes annoys me also.

"Nevertheless, it gives me pleasure, too, as they are doing their job for improving amenities," Goyal said.

He also inaugurated induction of eight MEMU services between Vasai Road-Diva-Panvel-Pen and other passenger amenities.

These amenities included six FOBs (foot over bridges), 41 escalators at 23 stations, 10 lifts at six stations, half a dozen toilets at as many stations, 318 new ATVMs (Automatic Ticket Vending Machines) at 77 suburban stations.

Other amenities were IP-based suburban train indicators at 10 stations, 206 additional CCTV cameras at six stations, two booking offices at Bhiwandi Road and Navde Road stations, raising of platform height to 900 mm at 273 platforms of suburban stations as well as one megawatt solar power plant at EMU Carshed in Sanpada.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

4.1. What India can do to better its ease of doing business rank

Livemint, 2 Nov. 2018, Asit Ranjan Mishra

An analysis of what India did right and where it needs to do better to improve its ease of doing business rank in future World Bank Doing Business reports

India has jumped 23 places to rank 77 in the World Bank’s Doing Business 2019 report. While improvement on quite a few parameters has pushed up its overall ranking, there are some in which it is lagging. Mintanalyses what India did right and where it needs to do better to improve its ease of doing business rank.

What led to the jump in India’s ease of doing business ranking?

While India’s score on all 10 parameters except “paying taxes” improved, its ranking went up only in six. The jump in overall ranking was driven by the “dealing with construction permits” (from 181 to 52) and “trading across borders” (from 146 to 80) parameters. Enforcement of the single-window clearance system in Delhi and the online building permit approval system in Mumbai helped streamline and centralize the construction-permitting process. Letting exporters seal their containers electronically at their own facilities, limiting physical inspections to 5% of shipments helped in trade facilitation.

Did GST and IBC have any role in this?

The World Bank could not fully account for GST implementation in its ranking for this year as its deadline for tax-related reforms was 31 December 2017 and GST was only six months old then. Glitches in GST filing may have led to a rise in the number of hours taken in a year to file taxes to 275.4 this year from 214 last year. India’s “paying taxes” ranking declined to 121 from 119 last year. IBC is taken into account under the parameter “resolving insolvency” where India’s rank dropped to 108 from 103 last year, though its score was almost unchanged. This could be due to other nations undertaking more reforms in this segment.

How will the ranking help?

As the World Bank ranks 190 countries, investors have a comparable template to make cross-border investment decisions. The ranking provides a significant input to their decision-making process.

India needs to improve on which parameters?

India’s rank is below 100 on five parameters: “starting a business” (137), “enforcing contracts” (163), “registering property” (166), “paying taxes” (121) and “resolving insolvency” (108). By amending the Commercial Courts Act, the government facilitated the establishment of commercial courts in 250 districts. If these courts dispose of cases faster, India may rank higher on this parameter next year. To improve on the other parameters, ownership and titles need to be online. This comes under the local government.

Why does India rank low on “starting a business”?

India did make starting a business easier by integrating multiple application forms into a general incorporation form. It enforced GST, for which the registration process is faster. As many nations have cut down on procedures to improve their rankings, India needs to make drastic changes to rank higher. World Bank factors in cost of starting a business as a percentage of income per capita. India’s low income per capita makes the cost look higher.

4.2. Cairn India to invest US$ 4 bn in Rajasthan's Barmer oil block

Livemint, Oct. 31, 2018

Mumbai: Cairn Oil and Gas, a unit of Vedanta Ltd, will invest $4 billion in its flagship Barmer oil block in Rajasthan, Cairn said on Tuesday. The Delhi high court on Monday allowed a 10-year extension to the block on the condition that it pays a higher share of profit to the government. The extension results in an overall increase of oil and gas reserves of 400 billion barrels and a production of 125,000 barrels, said Sudhir Mathur, chief executive officer of Cairn India.

“The extension also increases our reserves by 250 million barrels. That is quite a big booster to our overall reserve position,” said Mathur. “Cairn has driven up its share of India’s oil output by 3.5 times in the last nine years, significantly from the Rajasthan block and the extension is a great acknowledgement of our performance.”

The extension also paves the way for further investments. “We are spending $4 billion, out of which we have already signed contracts worth $2.3 billion and the work has started in a big way. There are already 13 rigs operating in the Rajasthan block,” said the CEO.

State-run Oil and Natural Gas Corp. (ONGC) is a 30% partner in the Barmer oil block.

“The government of India, acting through the directorate general of hydrocarbons, ministry of petroleum and natural gas, has granted its approval for a 10-year extension of the PSC for the Rajasthan Block, RJ-ON-90/1,” Vedanta Ltd said in an exchange filing on Monday.

The 25-year contract for exploration and production of oil and gas from Barmer block RJ-ON-90/1 was due for renewal on 14 May 2020.

In April 2017, the government had approved a new policy for extension of PSCs, which would provide for a contract extension only if companies operating the fields agree to increase the state’s share of profit by 10%.

However, Vedanta felt that the May 1995 PSC for the block provided for an automatic 10-year extension on same commercial terms if there are hydrocarbons left to be produced. Vedanta thus challenged the April 2017 policy and the matter is sub judice.

“The applicability of the pre-NELP Extension Policy to the Rajasthan Block PSC is currently sub judice,” Vedanta said in the filing. Its partner ONGC was also of the opinion that PSC provides for an extension on same terms.

“Let the legal process take its own course. Whatever the verdict of the court, we will accept that,” Anil Agarwal, chairman of Vedanta Resources, had said earlier this month.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

5.1. A Statue of Unity in a Gujarat deeply divided

Livemint, 30 Oct. 2018, Maulik Pathak

From migrant workers’ distress to farmer protests, the voices of unhappiness over the cost of the Sardar Patel statue—the ‘Statue of Unity’—have found new company in Gujarat

A few weeks ago, as streams of migrants began fleeing Gujarat, engineers at the site of the towering 182-feet tall Statue of Unity of Sardar Patel had to make some quick decisions. Nearly half of the 4,500 workers on site, labouring away to meet a tight deadline, were migrants. They were electricians and fitters and masons. But, in that moment, what mattered was that they happened to be Hindi-speaking men, largely from Uttar Pradesh and Bihar.

“There were concerns about their safety,” said an official in-charge of the project on condition of anonymity. In the shadow of the world’s tallest statue coming up to symbolize unity—which the Prime Minister Narendra Modi will inaugurate tomorrow—rumour and fear spread due to an atmosphere of disunity.

Work stalled temporarily and a one-day awareness program was hurriedly held. “We visited the labour camps and assured them of safety,” the official quoted above said. Since the prime minister was slated to visit soon, local police stepped in and offered all possible support.

Other migrants in other parts of the state weren’t so lucky. An estimated 80,000 of them fled the state in early October, following the rape of a 14-month-old girl on 28 September, allegedly by a migrant worker. Hate messages urging attacks on migrants went viral on social media. The BJP and Congress blamed each other for fanning the fire. Some of the online messages made no mention of the rape, focusing instead on how migrant workers were taking away job opportunities meant for locals. Companies of special reserve police mobilized around the auto and industrial hub in Sanand-Hansalpur area, a cluster seen as a showcase of the Gujarat development model. About 200km away, in one of the few patches of land in Gujarat where migrants went about their work in relative calm, finishing touches were being done on the Sardar’s face.

Atmosphere of fear

For Sardar Vallabhbhai Patel, who placed a premium on national unity, and whose call for “common endeavour” prominently adorns the government website about the project, the atmosphere was less than ideal to soar into the skies in statue form.

There had already been enough murmurs of unhappiness due to the price tag on this bronze-sculpted piece of Gujarati pride, an estimated ₹2,900 crore ($430 million)—a large portion of which came from the government and public sector firms which doled out large sums from their CSR budget. The Statue of Liberty in New York, on the other hand, was funded largely through private contributions.

Now, with the date of inauguration looming into view in the very month in which large numbers of fellow Indians fled the state; amidst a farming season that has seen acute water stress in the Narmada catchment, where the statue is also located; and with agitators from Sardar Patel’s own community persisting with a quota protest—the voices of unhappiness about the cost have found new company. A number of tribal villages in the immediate vicinity of the Sardar Patel statue have also called for a bandh on 31 October to protest the lack of adequate rehabilitation efforts.

“At a time when Gujarat is facing a water crisis due to lower availability in the Narmada dam, I think the statue project could have been postponed by a year,” said Ghanshyam Shah, a leading political expert based in Gujarat and author of Social Movements in India. “The statue is nothing but somebody’s whim to create the tallest one in the world so that the name of the person who built it will automatically be attached to it. If the statue does not please the Patels or the tribals, whom does it please?” Shah asked.

If the state government is indeed aware of the many ironies that have come to cast a cloud over the statue’s inauguration, then there has not been much public acknowledgment—a fact which is borne out even by the television ad campaign meant to bring attention to the Statue of Unity project.

In the ad, a youth is shown travelling by train while reading a book titled Patel. It has a picture of India’s first home minister on the cover. He turns to his co-passengers and inquiries about their identities, asking even for their passports.

When the co-passengers ask him to prove his identity first, the youth shows them the book he is carrying and explains how people in India would have needed a passport to travel to different parts of the country had it not been for the efforts of Sardar Patel in creating an undivided India that we see today.

The ads were aired as out-of-state workers were boarding similar looking trains heading out of the state.

The impact on business

“The threat to north Indian migrant workers has affected many projects in the state. Most of the large construction projects depend heavily on migrant workers,” said a leading Gujarat- based industrialist who did not wish to be named.

“Many of them working in our under-construction projects have fled and are likely to return only after Diwali. Such incidents may have happened in Maharashtra or elsewhere, but have never happened in Gujarat. It reflects the failure of the government to take necessary steps to curb violence,” the industrialist added.

Even as chief minister Vijay Rupani appealed for peace, the government has also moved to enact a new law which will mandate industrial units to allocate 80% of the jobs to those domiciled in Gujarat. While Gujarat has an existing industrial policy that reserves 85% of jobs for locals, implementation has been lax. The new law is expected to include more stringent provisions in case of non-compliance. A state government official, when asked if the Statue of Unity adheres to the policy of giving 80% employment to locals, refused to comment on the matter, saying only that the issue would be examined.

While there is no official data on migrant workers, estimate pegs their number at 4-8 million, making them integral to state’s economy, said Indira Hirway, director and professor of economics at the Centre for Development Alternatives (CFDA) in Ahmedabad. “The state has the lowest minimum wages in the country and this helps maximise the profits of organizations and factories,” she said. “Luxurious projects like the Statue of Unity should ideally come up in times of prosperity and not when there is such high level of inequality in society,” she added.

The other prominent group for whom the statue has come to represent a litany of pre-existing grievances is the string of tribal villages in the immediate vicinity of the project site. Govindbhai Tadvi, village head of Wagadia, says that about 1,500 people in his village have lost their land and are yet to be rehabilitated. Tadvi, who works as a supervisor at site, says that the locals have not really benefited. The state government has pinned its hopes on the employment which will be created if the expected 14,000 tourists visit the area each day.

Statue of Unity should come up in times of prosperity and not when there is such high level of inequality in society- Indira Hirway, director, Centre for Development Alternatives in Ahmedabad

But the tribals aren’t buying such long-term promises built on hopes and estimates. About 75,000 people belonging to 70 villages have expressed their intention to oppose the unveiling of the statue by PM Modi by observing a fast today.“No food will be cooked in all these 70 villages and we will put black flags on our houses as a sign of protest,” said Lakhanbhai Musafir, a resident of Mathawadi village that lies about 5 km from the Sardar Patel statue. “We are not against the BJP or Sardar Patel. In fact, we have a lot of respect for Sardar Patel who led a very simple life and I am not sure if he would himself approve of such a grand project,” he added.

Musafir added that the people living near the Sardar Sarovar dam, which is a few kilometres away, are not getting Narmada waters despite the canal passing nearby as the government is yet to finish work on its canal network. According to RTI activist Rohit Prajapati, the government should have spent the money on the welfare of the tribals and in completing the canal network instead of building the statue.

We have a lot of respect for Sardar Patel who led a very simple life and I am not sure if he would himself approve of such a grand project- Lakhanbhai Musafir, a resident of Mathawadi village, about 5km from the Sardar Patel statue

Statue of ironies

“It is a statue of ironies and you can take your pick. They do not want Patel of unity but Patel of uniformity,” said noted sociologist Shiv Visvanathan. “The bigger the statue, the bigger the lie, and that’s how I see it. Given the displacement of tribals in the area, it is more of a displacer than a unifier. Appropriating history in the age of propaganda is not new, but our memories go far back and cannot be displaced so quickly,” he added.

Sardar Patel was a member of the Congress, but is a new-found hero for the BJP, which contrasts his iron man qualities with the perceived weaknesses of Jawaharlal Nehru, India’s first prime minister. Modi has, on several occasions, said how Patel had repeatedly been ignored by the Congress and was not allowed to become India’s first prime minister. But the attempts to own or re-own the legacy of one of India’s most-noted leaders from the Patel community have to also grapple with the present-day ongoing agitations for a quota in higher education and government jobs. The movement’s spearhead Hardik Patel has been at loggerheads with ruling BJP governments in both the state and the centre.

With the government in no mood to accede to their demands, the Patels have also threatened an agitation on 31 October, the birth anniversary of Sardar Patel. Hardik Patel is expected to address a rally in Junagadh district, which is likely to feature former finance minister Yashwant Sinha and BJP MP Shatrughan Sinha.

It is a statue of ironies and you can take your pick. They do not want Patel of unity but Patel of uniformity- Shiv Viswanathan, sociologist

In the face of this unending fight for a piece of Sardar Patel’s legacy by a variety of groups—ranging from castes and states to political parties—noted historian and biographer Ramchandra Guha, said: “All I would like to say is that in the words of Gopalkrishna Gandhi, the Congress ‘disowned’ Patel, whereupon the BJP ‘misowned’ him.”

Meanwhile, work at the Statue of Unity itself has progressed almost in a vacuum, unaffected by the many agitations. After all, it was conceived, in part, to symbolize the development vision and speed of execution of the ‘Gujarat model’ of development which Modi popularized.

Work at the Statue of Unity itself has progressed almost in a vacuum, unaffected by the many agitations.

For Mohammad Miyan, a 25-year-old electrician from Bihar who has been working on the Sardar Patel statue and the associated museum, the “stories of how people like me were treated” was just stories.

“Our contractor assured our safety. There are about 25 other workers from my village alone here,” he said. Miyan’s worksite colleague, Sandeep Kumar Gord, who is also from Bihar, was taking measurements, checking whether the statue was balanced. “I have only heard that PM Narendra Modi is making this statue. I do not know anything beyond that,” he said.

5.2. SoftBank arm, Essel group to jointly develop 500-mw solar park

PTI, Nov. 01, 2018

Mumbai: SB Energy, a domestic arm of the Japanese investment powerhouse Softbank Group, has signed up with the Essel group to jointly develop a 500-mw solar park in the country, according to sources.

The agreement will enable the Masayoshi Son-run Softbank Group to expand its portfolio further in country and is part of aggressive growth strategy adopted here, a source close to the Subash Chandra-run company said.

"It has won multiple tenders in the recent past and with this agreement it can further accelerate the development of its solar assets," the source said without disclosing the financial and other details like timeline and the place where the proposed park will come up.

Essel Infraprojects, which is part of the Essel group, is into developing large infrastructure projects across multiple sectors and has been focusing on development of solar assets and enabling infrastructure and has planned multiple similar solar assets across the country.

"With this announcement the Essel group has further committed itself to development of renewable sector, the source added.

In May this year, SoftBank Group had partnered with the now crippled infrastructure conglomerate IL&FS to develop over 20 gw solar capacity in the country by 2025.

SB Energy has already won bids for setting up 1400 mw of projects in the country, including 300 mw in the Bhadla III Solar Park being developed by Saurya Urja Company of Rajasthan, a joint venture of IL&FS Energy and Rajasthan.

The Japanese group had earlier this year tied-up with China's GCL System Integration Technology in a 60:40 joint venture for an Indian solar power venture worth USD 930 million, that would work on loping photovoltaic technology used in solar panels.

SoftBank had in 2015 made a commitment to invest up to USD 20 billion along with Foxconn Technology and Bharti Enterprises in solar projects in the country. The government had set a goal of generating 100 gw solar power by 2022.

As per reports, SB has made an initial investment of Rs 4,000 crore for these projects.

However, as per reports, the partnership with IL&FS fell through as SB Energy is facing hurdles in acquiring land, clearances and transmission facility.

SB Energy was scouting for domestic partners for executing upcoming solar power projects with capacity of 1 gw.

Reportedly, SoftBank intends to invest USD 1 trillion by 2030 in renewable energy sector in the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

6. 326 products registered as geographical indication so far

PTI, Oct. 24, 2018

New Delhi: As many as 326 products such as Kancheepuram silk saree, Alphonso Mango, Nagpur Orange and Kolhapuri Chappal have been registered as geographical indications (GI) so far, according to government data.

"The GI Registry hits a new milestone with the registration of 326 Geographical Indications classified into different categories. This also includes 14 foreign GIs," the Cell for IPR Promotions & Management (CIPAM) said in a tweet.

CIPAM is an arm of the department of industrial policy and promotion (DIPP).

A GI is primarily an agricultural, natural or a manufactured product (handicrafts and industrial goods) originating from a definite geographical territory.

Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin.

Once a product gets this tag, any person or company can not sell a similar item under that name. This tag is valid for a period of 10 years following which it can be renewed.

The other benefits of registration of GI include legal protection to that item, prevention against unauthorised use by others, and promoting exports.

Any association of persons, producers, organisation or authority established by or under the law can apply. The applicant must represent the interest of the producers.

It is a legal right under which the GI holder can prohibit others from using the same name.

The famous goods which carry this tag include Basmati rice, Darjeeling Tea, Chanderi Fabric, Mysore Silk, Kullu Shawl, Kangra Tea, Thanjavur Paintings, Allahabad Surkha, Farrukhabad Prints, Lucknow Zardozi and Kashmir Walnut Wood Carving.

Such a name conveys an assurance of quality and distinctiveness which is essentially attributed to its origin in a defined geographical locality, region or country.

Under the Paris Convention for the Protection of Industrial Property, geographical indications are covered as an element of intellectual property rights (IPRs).

They are also covered under the WTOs Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement.

India's Geographical Indications of Goods (Registration & Protection) Act 1999, has come into force with effect from September 15, 2003.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

7. Reliance, BP to jointly set up 2,000 petrol pumps in India

Livemint, Oct. 23, 2018

Mumbai: British oil major BP Plc and Reliance Industries Ltd (RIL) are planning to jointly set up as many as 2,000 petrol pumps in India over the next three years, according to two people aware of the development. The exact arrangement of the venture is being worked out and would be decided in a few months, a Reliance executive, one of the two people cited above, said on condition of anonymity.

While Reliance already independently runs 1,343 petrol pumps, BP received a licence to set up 3,500 fuel retail outlets in India in October 2016.

India is one of the few major global markets where fuel demand is growing and has attracted attention from foreign fuel retailers seeking to gain a toehold in a country where fuel retailing is dominated by state-run companies.

BP is RIL’s partner in its exploration and production ventures in the country. In February 2011, London-based BP bought a 30% stake in 21 oil and gas production-sharing contracts operated by RIL for $7.2 billion. The two are also partners in India Gas Solutions Pvt. Ltd, an equal joint venture for sourcing and marketing of gas in the country.

“We had a memorandum of association signed with BP but there was no definitive agreement. However, we will continue to expand our retail footprint and the marketing. It is in line with what we had planned to do,” V. Srikanth, joint chief financial officer of RIL, said after the company reported its second-quarter earnings on 17 October.

On his visit to India last week, Bob Dudley, BP’s group chief executive, said “Our partnership with Reliance is great, we just got to get the right sort of terms here with retailing.”

To get a licence to retail auto fuel in India, a company should invest a minimum of ₹2,000 crore in exploration or production, refining, gas or product pipeline, or terminals. RIL has licences to open 5,000 petrol pumps in India and plans to double its market share in the fuel retail segment. It currently has a 6% share in India’s fuel retail market.

RIL and BP are planning to set up their retail outlets on the national highways. “Looking at the fuel demand scenario in the country, RIL is optimistic about the retail business. Presence on the highways will be attractive for RIL as it is an underserved segment in the country,” said the first person cited earlier.

During the September quarter, RIL reported 10% and 19% year-on-year volume growth in diesel and petrol sales, respectively.

RIL, which had a 12% market share in fuel retailing in 2005, saw its market share slip to less than 0.5% in 2014, by when it had shut most of its petrol pumps after sales plunged as it could not match the subsidized price offered by state-run fuel retailers. RIL had spent ₹5,000 crore in setting up 1,470 retail outlets between 2004 and 2006.

State-owned Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL), managed to sell fuel below production cost due to government subsidies.

But after the government deregulated petrol prices and diesel prices in June 2010 and October 2014, respectively, RIL began reopening its retail outlets in phases, gradually raising its market share to about 5%. At present, Reliance, Essar Oil and Shell India together have a 10% share of the fuel retail market, according to analysts.

However, the government’s recent move to cut prices of petrol and diesel by ₹2.50 a litre each, part of it as an excise duty reduction of ₹1.50 per litre and the remaining ₹1 per litre to be absorbed by state-run fuel retailers, could prove to be a dampener for the private sector.

As Dudley added, “I think that price controls are a kind of thing that will not be good for the sector in the longer term.”

India has 57,312 petrol pumps, and Indian Oil, BPCL and HPCL are set to expand their network after a gap of nearly four years, by adding nearly 50,000 fuel outlets over the next three years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

8. IFFCO biggest cooperative in the world: Report

PTI, Oct. 25, 2018

New Delhi: Fertiliser major IFFCO Wednesday said it has been ranked as the biggest cooperative in the world by 'Word Cooperative Monitor' report 2018.

The International Cooperative Alliance (ICA) and the European Research Institute on Cooperative and Social Enterprises (Euricse) publish the world cooperative monitor report.

"The 7th edition of the report titled 'World Cooperative Monitor 2018' has named IFFCO as the number one co-operative in the world based on the ratio of turnover over gross domestic product (GDP) per capita," IFFCO said in a statement.

The rankings by turnover based on the ratio to Gross Domestic Product (GDP) per capita relates the turnover of the co-operative to the purchasing power of the country in which it operates.

IFFCO has nearly 36,000 member co-operatives and a turnover of nearly USD 3 billion (FY 2017-18). It has retained this position from 2016.

The report also ranked IFFCO at the pole position among the top 20 co-operatives in the world in the agriculture and food industries sector.

Reacting on the development, IFFCO's MD U S Awasthi said: "At IFFCO, we are always dedicated & committed for the growth of Indian Cooperative movement and seamlessly taking it to global level."

This achievement was made possible due to the inclusive business model of IFFCO, its transparent and democratic decision making processes, the support of board of directors, co-operators, employees and moreover, the faith of millions of the Indian farmers in the organisation and in its products & services," he added.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

9. Cotton textile exports grew 26 pc in April-Sept 2018

PTI, Nov. 08, 2018

Mumbai: India's cotton textile exports grew by 26 per cent at USD 6,235 million in the first six months ended September 2018 and the on-going trade war between US and China will open up new export opportunities, the Cotton Textiles Export Promotion Council (Texprocil) said here.

The country had exported cotton textiles (raw cotton, yarn, fabrics and made-ups) worth USD 4,917 million in April-September 2017-18, the association said in a statement.

However, exports of textiles and clothing declined by 3 per cent with exports of readymade garments registering a steep decline of 16 per cent during H1FY19.

India held a special place in global textile trade as the second largest textile exporter in the world. Today, cotton yarn & fabric exports account for over 23 per cent of India's total textiles and apparel exports.

Ujwal Lahoti, chairman of Texprocil, stated that the ongoing trade war between the US and China would possibly open up new opportunities for cotton textile exports from India and we should be ready to explore them.

The government was also in the process of putting in place alternative schemes to promote exports which would improve competitiveness, he said.

Lahoti welcomed the package for the MSME sector announced by the government. Interest subvention on pre-shipment and post-shipment finance for exports by MSMEs has been increased from 3 per cent to 5 per cent.

These measures would provide much needed support and encouragement to the MSME sector, which contributed significantly to the textiles exports. Under the package, GST- registered MSMEs would get 2 per cent interest rebate on incremental loan up to Rs 1 crore, he added.

He also noted that the jump in India's ranking in the World Bank's Ease of Doing Business will help boost exports.

Lahoti acknowledged that for textiles exporters, remarkable improvements are visible at the ports, customs and regional offices of DGFT EDI systems.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

10. Organic food product exports up 39% at $515 million in 2017-18

BusinessLine, 26 Oct. 2018

The demand for organic agri products is on a constant increase worldwide. - Business Line

India negotiating with Canada, South Korea, Taiwan and Japan for equivalency with NPOP

The country had exported organic food products worth $515 million in 2017-18, about 39 per cent more than the products worth $370 million exported in the previous year, a top Apeda official said here on Tuesday.

The total volume of exports was 4.58 lakh tonnes and it primarily included oilseeds, cereals & millets, sugar, fruit juice concentrates, tea, spices, pulses, dry fruits, and medicinal plant products, Apeda General Manager Tarun Bajaj said while speaking at a 3-day organic trade fair.

Even though the US, European Union member countries and Canada were the biggest buyers, many new countries like Israel, Vietnam, Mexico have of late evinced interest in Indian organic products, he said.

“The equivalency granted by the European Commission and Switzerland for unprocessed plant products and the conformity assessment granted by the USDA (US Department of Agriculture) have played a pivotal role in increased export to these countries,” Bajaj said in a statement.

He also said that India is negotiating with Canada, South Korea, Taiwan and Japan for equivalency with NPOP (National Programme for Organic Production). Besides, the traceability system, Tracenet, established by Apeda for certification and export of organic products has also helped India in aintaining the credibility and traceability of certified products.

The demand for organic agri products is on a constant increase worldwide. Under NPOP, the area under organic certification during 2017-18 was 3.56 million hectare (mha). This includes 1.78 mha

cultivated area and another 1.78 mha for wild harvest collection.

“Among all States, Madhya Pradesh has largest area under organic certification followed by Rajasthan, Maharashtra and Uttar Pradesh. During 2016, Sikkim had achieved a remarkable distinction of converting its entire cultivable land (more than 76000 ha) under organic certification” he said.

- INDUSTRY, MANUFACTURE

11. India 'very promising market'; to deliver 1,000 engines in coming years: CFM International

PTI, Oct. 12, 2018

New Delhi: Describing India as a "very promising market", aircraft engine maker CFM International Thursday said it plans to deliver 1,000 engines in the country in the coming years as airlines expand their fleet.

The company, an equal joint venture between General Electric and Safran Aircraft Engines, would asses the needs and capacity addition, among other aspects, before deciding on whether to make engines in India, a senior official said.

Currently, four domestic airlines operate planes with CFM's LEAP engines, including Air India's 21 A320 neo aircraft. These engines power nine A320 neos of Vistara.

Jet Airways and SpiceJet operate five and one Boeing 737 MAX planes that run on LEAP engines. These figures are as on September 30, according to CFM International.

LEAP started commercial operations with A320 neo aircraft in 2016.

"It (India) is a very promising market," CFM International's Executive Vice President Sales and Marketing Philippe Couteaux said at a media briefing here.

According to the CFM International, 1,000 engines are to be delivered in India in the coming years.

As many as 500 CFM 56 engines are in service with 11 operators in India. LEAP is the successor to the CFM 56 engines.

Earlier this year, SpiceJet inked a pact with CFM International for "engine/ service contract supporting 300 plus LEAP-1B", as per the company. Vistara has signed a Letter of Intent for 50 additional "A320/321 neo powered by LEAP-1A".

About its engines, CFM International's President and CEO Gael Meheust said "we are meeting the performance" and it has a backlog of around 16,000 engines.

"As much as we are accumulating hours and cycles, we had 2.3 million hours already on the LEAP... This is sustainable in time and that has a value of course for any customers who are thinking of renewing their current generation fleet or adding capacity. There is a power of attraction of course with incredible results we are seeing in the LEAP now," he said.

In response to questions about competition in the market, he said some airlines are willing to order additional aircraft to meet the demand. "Before making the choice of going with the same incumbent, they always think what could be the alternatives. That is a natural process... there is an opportunity," he noted.

Competitor Pratt & Whitney is facing issues with its engines that power A320 neos, including many in India. IndiGo and GoAir have A320 neos that are powered by P&W engines.

These two airlines also have A320 planes that run on CFM engines.

"IndiGo, GoAir ... they know CFM. They know how the LEAP behaves... we have that relationship... All the topics are on the table," Meheust said.

Responding to queries on whether the company would look at manufacturing engines in the country, Couteaux said General Electric and Safran are already present in India through different means.

"Given the market that exists in India, there is always a consideration that if you need additional footprints... We need to assess the need and the capacity, then we will take the decisions on whether it is relevant to do it in India or somewhere else. It is an assessment that needs to be done," he said.

India is one of the fastest growing domestic aviation markets in the world and local carriers have placed large orders for aircraft as they expand their fleet to meet the rising demand.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

12. IKEA plans to invest Rs 3,000 cr for three new centres

PTI, 17 Oct. 2018

Swedish furniture and home accessories company IKEA plans to invest nearly Rs 3,000 crore in the next three years to open three fulfilment centres (packing warehouses) in Mumbai, Bengaluru and Delhi.

The company would open the centres as an omni-channelling brand with large IKEA stores, city centre stores and online presence, Deputy Country Manager (Management) of IKEA India Patrik Antony told PTI here Friday.

IKEA is set to open its second store in Mumbai later this year, and would hold a ground-breaking ceremony on October 11 in Bengaluru, he said. The next store would be in Delhi, he pointed out.

By 2025, there would be over 25 stores across cities such as Ahmedabad, Surat, Pune, Chennai and Kolkata with both online and offline approaches, he said.

On purchasing strategy of IKEA India, Patrik said there were over 50 suppliers in the country.

13. India pips US to become 2nd largest smartphone market in Q3: Canalys

PTI, Nov. 09, 2018

New Delhi: India has overtaken the US to become the second largest smartphone market in the July-September 2018 quarter, according to a report by research firm Canalys.

India -- which saw a shipment of 40.4 million units during the third quarter -- was second to China where 100.6 million smartphones were shipped, the data showed.

Smartphone shipment in the US was at 40 million units in the July-September 2018 period.

"India overtook the US this quarter to be the second largest market, though both countries were hit by weaker seasonal performance compared with last year," it said.

Worldwide smartphone shipments fell by 7.2 per cent year-on-year to 348.9 million units during July-September 2018, a fourth consecutive quarter of decline, Canalys said.

"This was also the worst third quarter performance since 2015...Seven of the top 10 markets recorded year-on-year declines, caused by lengthening smartphone replacement cycles, worsening international trading conditions and competition from major Chinese vendors," it added.

The three markets (among the top 10) that registered growth were Indonesia (13.2 per cent increase y-o-y to 8.9 million units), Russia (11.5 per cent jump y-o-y to 8.8 million units), and Germany (2.4 per cent rise y-o-y to 5.5 million units).

China's smartphone shipment declined 15.2 per cent y-o-y, India by 1.1 per cent and the US by 0.4 per cent in the September 2018 quarter.

Samsung led the vendor tally with 20.4 per cent share in the said quarter, followed by Huawei (14.9 per cent), Apple (13.4 per cent), Xiaomi (9.6 per cent), and Oppo (8.9 per cent).

"The worldwide smartphone market faces an unprecedented challenge, while its dynamics are changing rapidly at both the vendor and country level. This is providing growth opportunities for aggressive vendors with the speed to respond quickly to market changes," Canalys Research Manager Rushabh Doshi said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

14. Odisha receives investment commitments worth over Rs 1.38 lakh crore

PTI, Nov. 13, 2018

Bhubaneswar: Odisha on Monday received investment commitments totalling over Rs 1,38,000 crore as RIL chairman Mukesh Ambani, Aditya Birla Group chairman Kumar Mangalam Birla and other industry captains pledged to pump in additional funds into existing projects in the state.

At the first day of the 'Make in Odisha Conclave' here, Ambani said he would make a fresh investment of Rs 3,000 crore.

"I announce an additional investment of Rs 3,000 crore in Odisha from Reliance Jio. We are on a mission to transform Odisha and we have created employment opportunities for 30,000 people in the last two years in Odisha," Ambani said.

Tata Sons chairman N Chandrasekharan announced Rs 25,000 crore investment on capacity expansion of Tata Steel's Kalinga Nagar plant from 3 million tonnes per annum (mtpa) to 8 mtpa.

JSPL chairman Naveen Jindal said his company would invest Rs 55,000 crore to augment capacity of Angul steel plant from 6 mtpa to 20 mtpa by 2030. Vedanta chairman Anil Agarwal said his company will spend Rs 15,000 crore for its alumina refinery expansion to 6 mtpa from 3 mtpa.

The second edition of the conclave would conclude on November 15.

Joining the investment bandwagon, Birla said his company would invest about Rs 14,500 crore in the state, while SAIL chairman Anil Kumar said the CPSU would pump in Rs 41,000 crore to ramp up its Rourkela Steel Plant (RSP) from 4.5 mtpa to 10 mtpa in the next three years.

The ITC Group has pledged an additional investment of Rs 550 crore for its food processing unit in Kurda in the next three-five years.

"Odisha has already become a vibrant state and a preferred investment destination... ITC is committed to working together with Odisha in the socioeconomic development of the state," ITC MD Sanjiv Puri said.

Britannia Industries announced an investment of Rs 60 crore over the next two-three years for its bakery plant in the state.

Adani Group's Dhamra Port Company Ltd signed an MoU with the Odisha government for construction of an air strip at Dhamra in Bhadrak district at an investment of Rs 500 crore in one-and-a-half years.

A pact was also signed between ITEES Singapore and the Odisha Skills Development Authority to build upon the existing partnerships between both entities for skills development.

In his speech, Chief Minister Naveen Patnaik urged the industry bigwigs to plan a long-term strategy for investment in Odisha to help it develop as a manufacturing hub of South Asia.

"I propose that each of the industry captains present here today, plan a long-term strategy for investment in the state over the next 10 years. Dedicated teams will be appointed by my government to handhold the implementation of your long-term plans. I assure you of unmatched facilitation support from my government," Patnaik said.

He also said Odisha has formulated a new Biotechnology Policy to build an optimal biotech ecosystem.

The CM added that the first edition of Make in Odisha conclave held in 2016 was a "huge success" with 124 investment intents worth more than Rs 2 lakh crore, and employment opportunities for over one lakh people.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

15. Lenovo to raise mobile production capacity in India by up to 10 fold in 2019

PTI, Oct. 17, 2018

New Delhi: PC and mobile maker Lenovo plans to ramp up its smartphone production capacity up to 1 million units per month in 2019, a top official of the company said Tuesday.

"We make mobile phones in India at our partners factory. At present we have production capacity of 100,000 per month which we plan to increase in the range of 500,000 to 1 million units per month by the end of 2019," Lenovo Group Vice President Edward Chang told PTI.

The capacity expansion does not include volume of Motorola phones -- a brand which is owned by Lenovo.

The company has entered into an exclusive partnership with e-commerce platform Flipkart to sell its phone in India.

The company launched three smartphones in sub-Rs 10,000 price segment -Lenovo K9 for 8,999 and two model of Lenovo A5 for 5,999 and Rs 6,999 a unit at an event today.

"We have partnered exclusively with Flipkart because the share of online and offline market will be equal in India by 2020. This means it is 60-70 million units business opportunity every year," Chang said.

Lenovo with its another brand Motorola was once among the top three smartphone sellers in India. Its share, however, slipped to 6 per cent in the last quarter of 2017 from 9 per cent in the first quarter of 2017.

Chang said that the company now wants to focus on brand experience rather than market share.

"We are now looking to move towards Smart Internet-of-things. Lenovo will combine PC portfolio with smartphone and some wearable for smart IoT. In the first quarter of 2019 we will bring our flagship phone in India. We are in discussion with Flipkart to customise it for Indian market," he said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

- SERVICES (Education, Healthcare, IT, R&D, Tourism, etc.)

16. Challenges persist for Wipro despite healthy Q2 results

Livemint, 25 Oct. 2018, R.Sree Ram

The near-term challenges shouldn’t blind investors to medium-term prospects, as analysts see a strong deal pipeline helping Wipro match or exceed average peer growth rate in 2019.

Notwithstanding a subdued financial performance, Wipro shares gained 9% after the first quarter results were announced in July. The Sensex and the BSE IT index during the time were down 5-7%. The gains, which came after a period of underperformance, were driven by positive management commentary and a large order win. The September quarter (Q2) results should reaffirm the investor’s faith.

Even excluding the large order, Q2 has seen one of the highest order bookings in recent times. The management claims a robust order pipeline. Constant currency revenues are up 5.1% from a year ago, significantly higher than the growth rates it reported in recent quarters (see chart). On a sequential basis, revenues were up 2.8%, higher than Street estimates and the company’s guidance.

Better execution and revenue accretion from a large deal win helped the company. Reported margins were hit by a loss emanating from a settlement with one of its customers, but net utilization levels perked up to 85.5% yielding higher efficiencies.

In the business segments, revenue growth rates in banking, financial services and insurance, which generates over a quarter of Wipro’s revenues, improved to 16% from 14.4% in Q1. Revenue deceleration at the troubled healthcare, manufacturing and utilities segments eased.

The performance should aid the stock, which is trading at a considerable discount to its larger peers TCS Ltd and Infosys Ltd. But much depends on how the company navigates near-term headwinds. The revenue guidance for the quarter ending 31 December translates to a sequential growth of 1-3%. Business in technology is expected to be weighed down by furloughs. Momentum in healthcare, too, depends on enrolments in US healthcare policies.

But the near-term pain should not blind investors to medium-term prospects, argue analysts at Elara Securities (India) Pvt. Ltd. They expect the strong deal pipeline to help Wipro match or exceed average peer growth rate next year. “Our recent interaction with Wipro chief operating officer and industry sources suggest a strong pipeline for Wipro, and we expect this to lead to growth as good or better than peers in FY20,” it said in a note.

17.1. India's Internet services may reach USD 124 bn by 2022, create 1.2 cr net jobs: Report

PTI, Oct. 24, 2018

New Delhi: The Internet services sector in India has potential to grow over three-folds to USD 124 billion with the help of favourable government policies and infrastructure improvement, a report by industry body IMAI said Tuesday.

"The Internet services sector in India is currently valued at USD 33.8 billion (about Rs 2.46 lakh crore) and by the year 2022, it is expected to reach USD 76.4 billion (about Rs 5.57 lakh crore) in conservative estimates...However, the sector has the potential to reach a value of USD 124 billion by 2022 if certain recommendations made in the study fructify," the Internet and Mobile Association of India (IMAI) report said.

Besides, the report estimates that the Internet sector is estimated to employ around 10 lakh employees presently, and is estimated to create 1.2 crore net jobs by 2022.

The IAMAI report 'Economic Impact of Internet Services in India' suggests that the sector can reach its potential USD 124 billion (around Rs 9 lakh crore) if certain critical factors such as forward looking and supportive government policies, better infrastructure for widespread internet connectivity, adoption of digital and advanced technologies across the ecosystem and offline sectors, etc, are realised.

It expects India to become a country of 1.4 billion people by 2022 and the number of internet users in the country is projected to increase 1.6 times from 481 million to reach 762 million in 2022.

Along with increased availability of Internet connectivity, the number of smartphone users in India too is estimated to grow at 1.75 times to reach 526 million in 2022, the report estimates.

"On the technology and business side of the Internet services, Internet will fundamentally change the way the needs, aspirations and demands of the consumers will be addressed. Pivoting on that, the Internet services sector is expected to witness plethora of changes in the future," the report said.

The report includes estimates from e-commerce, online classified, digital advertising, edu-tech (education technologies), Food-tech, health-tech, digital entertainment (including online gaming), fintech and digital payments etc segments.

It mapped digital payments as a sector but not included in the total estimate given the challenge of double counting.

The report excluded several sectors like agritech, artificial intelligence, internet of things, machine-to-machine communications etc have not been included in the study because these sectors are yet to gain any critical mass that could be used as benchmark for future projections.

The study concludes that employment generation from the proliferation of Internet services will be at three levels- primary levels like direct employment generation in fields of Product Design and Development, sales and marketing teams etc.

The secondary level employment will be created in the forms of self-employment generation for sellers, cab drivers, utility service providers, content creators and the third or tertiary level of employment generation will be by allied industries in the ecosystem providing on-ground field support to the internet service providers, according to the report.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

17.2. Telecom industry to rollout one million WiFi hotspots in the country by December 2019, says Manoj Sinha

Press Information Bureau, Oct. 26, 2018

National Frequency Allocation Plan 2018 (NFAP) was unveiled presenting a pioneering roadmap for the Indian digital communications industry. 3-Day India Mobile Congress with the theme, “New Digital Horizons – Connect. Create. Innovate.” began on a grand note in Delhi

New Delhi: India Mobile Congress (IMC) is one of the biggest marquee Mobile, Internet, and Technology event for South and South-East Asia, with the theme, “New Digital Horizons – Connect. Create. Innovate.”,

IMC 2018 began on a grand-scale at Aero City, New Delhi with over 300 companies, 20 countries participating in this prestigious event in the Asia Pacific region. Shri Manoj Sinha, Minister of State (Independent Charge) for Communications and Minister of State for Railways, accompanied by Shri Ravi Shankar Prasad, Union Minister of Electronics and Information Technology and Law & Justice, Shri Suresh Prabhu, Union Minister of Commerce & Industry and Civil Aviation, Shri Hardeep Singh Puri, Union Minister of State (Independent Charge) for Housing & Urban Affairs, Ministers and dignitaries from Cambodia, European Union, Lao-PDR, Myanmar, Mauritius, Nepal, South Africa inaugurated and participated in this 2nd edition of the epoch marking event, which began in 2017 to build a collaboration platform for technologies and services in next generation mobile communications. The inauguration ceremony was attended by over 5000 people from 10 partner countries, and included policy makers, ambassadors, opinion makers, change agents, bureaucrats and investors.

Shri Manoj Sinha, announced that the Indian telecom industry will rollout one million WiFi hotspots in the country by December 2019, which is another step towards the digital empowerment of the nation. Bharat Wi-Fi, a country-wide common inter-operable platform of one million Wi-Fi Hotspots, owned and operated by Telecom Service Providers, Internet Service Providers and Virtual Network Operators will be rolled out across the country. This initiative allows consumers to access Wi-Fi Hotspots of any of the partnering operators.

The National Frequency Allocation Plan 2018 (NFAP) was unveiled during the inauguration presenting a pioneering roadmap for the Indian digital communications industry. The NFAP released a quantum of 605 MHz license exempt spectrum in 5GHz band for Wireless Access Services and Radio Local Area Networks in outdoor, to meet the ever-growing appetite for data (from a current figure of 50 MHz since 2007). The NFAP also offered over 30 license exempt bands for Short Range Devices (SRDs), Ultra-Wideband Devices (UWDs) and additional spectrum for M2M services, creating opportunities for the public to enjoy benefits from technologies and enabling the industry to build domestic manufacturing ecosystem.

India signalled its spectrum plans for 5G services aspiring to adopt the next generation technology as a leading market.

In a major policy initiative, which will give impetus to small and medium entrepreneurship in Telecom Sector, DoT decided to deduct payments for resources taken by Virtual Network Operators (VNOs) from telecom service providers, thereby reducing levies payable by VNOs. This avoids double taxation at various stages.

A concrete plan is in making by the DoT to enable homegrown technologies for trials in the field on a large scale to enable the development and the scaling up of the products and services.

The day 1 has witnessed many rousing announcements by the industry and demos of the state of the art 5G applications by global OEMs. Investments of approximately over INR 2000 crores and over 3 lakh jobs are expected to be created.

Speaking at the inauguration, Shri Manoj Sinha, Hon’ble Minister of State (Independent Charge) for Communications and Minister of State for Railways, said, “Introducing the second edition of the India Mobile Congress is a proud moment for us. Last year, we witnessed an overwhelming response from everyone and we are confident that IMC 2018 will reach to the next level of success. The country is at the cusp of a digital revolution, with disruptions happening in each and every sector and industry. With growing smartphone and internet penetration and with the finalisation of National Digital Communication Policy 2018, these are exciting times for the telecom sector, and the society at large. We are elated to have the support of the Ministry of Electronics and Information Technology (MeitY) and Skill Development and Entrepreneurship in addition to such enthusiastic participation from who’s who of the industry. IMC 2018, will not only attract investors, it will also witness the launch of several innovative products, encourage emerging startups, and promote futuristic technologies, thereby, paving the path to accomplishing Hon’ble Prime Minister’s vision of a Digitally connected India.”

This edition of India Mobile Congress will comprise of ASEAN and BIMSTEC Ministerial Conclave, Partner Programs in Digital India, Smart Cities, Emerging Technologies, Make in India projects, Skill Harmonisation, Business Innovation and Knowledge Sharing. There will be a technology exhibition, offering a peek into connected villages, virtual and augmented reality, connected cars, m-health, smart wearables, smart home, artificial intelligence, robotics, smart energy, internet of things, block chain, and machine learning among other things. IMC 2018 will also hold a special plenary session on upcoming network technologies such as 5G.

IMC 2018 will also host a Global CEO’s Conclave where stalwarts from the global technology arena will come together and deliberate on the future of technology and how it will bring about paradigm shifts in the way we go about our daily lives. Discussions will revolve around the power of content, networks of the future, open source technology and emerging technologies.

The event will showcase a Digital Village, complete with live experience zones, exhibits on interactive technology, and live demonstration booths on a variety of interesting concepts, hinged around the Internet of Things, Augmented and Virtual Reality, Artificial Intelligence, Robotics, Smart City Solutions, Fintech, Health-tech, Autonomous Cars, and Cyber Security, amongst others.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

18. Startups in India see 108% growth in funding in 2018: NASSCOM

PTI, Oct. 26, 2018

Bengaluru: The startups in India saw a 108 per cent growth in total funding from USD two billion in 2017 to USD 4.2 billion this year, National Association of Software and Services Companies said Thursday.

The worrying factor, however, was the decline in funding for companies at the seed stage, NASSCOM said.

"India is becoming a startup hub. Opportunity for growth is enormous, which we had never seen in our lifetime.

Challenge is how fast a company wants to transform," NASSCOM president Debjani Ghosh said.

She was speaking to reporters at the launch of NASSCOM report on the 'Indian start-up ecosystem - approaching escapevelocity' on the sidelines of the 15th anniversary edition ofNASSCOM's Product Enclave-2018 in the city.

More than 1,200 startups came up in 2018, including eight unicorns, taking the total number to 7,200 startups, NASSCOM reported.

However, the seed stage funding of Indian startups has declined from USD 191 million in 2017 to USD 151 million in 2018.

"In terms of overall funding, it is a good story.

However, we are seeing a continuous decline in seed stage funding of startup companies. If you fall at the seed stage, innovation is hit. It is the area, which needs protection," Ghosh said.

The report said there was a 50 per cent increase in number of advanced tech startups since 2017.

According to it, startup ecosystem has regained momentum after the slowdown in 2016-17.

These companies created 40,000 new direct jobs while there was three fold increase in indirect jobs.

"Post 2017, investment into startups has increased by over 100 per cent, from USD 2.03 billion in 2017 to USD 4.2 billion in 2018.

The total number of startup funding deals, especially inthe late stages, witnessed a massive growth of around 250 per cent from USD 847 million in 2017 to USD 3 billion in 2018,"the report said.

The key growth drivers were enterprise software, fintech, healthtech marketplace and edtech. Data analytics, artificialintelligence and IoT startups have been witnessing fastest adoption across industry verticals.

There was 120 per cent funding growth for AI startups with USD 150 million investments made in this field in 2018.

The report said more than 400 plus startups expandedglobally including travel and hospitality company Oyo, cabaggregator Ola, edutech Byju's, Zomato and Wittyfeed.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

Cabinet gives nod to private management of six more airports

19. Public-private partnership in airport management has helped raise sizable revenue, the government said

Livemint, 8 Nov. 2018, Prashant K. Nanda; Jyotika Sood Giresh; Chandra Prasad

New Delhi: The Union cabinet on Thursday gave its approval for privatization of the management of six airports, including those in Jaipur and Ahmedabad.

The government’s experience of managing five airports in Delhi, Mumbai, Bengaluru, Kochi and Hyderabad through private participation has been encouraging and has led it to adopt a similar method in managing six more airports, law minister Ravi Shankar Prasad said.

The Union cabinet has given... “in-principle approval for leasing out six airports of AAI (Airports Authority of India) viz. Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru for operation, management and development under public-private partnership (PPP) through (the) Public Private Partnership Appraisal Committee,” he said.

Private participation in infrastructure projects brings efficiency in service delivery, expertise, enterprise and professionalism, apart from harnessing the investments in the public sector, according to a cabinet statement.

PPP in airport management has helped the government raise sizeable revenue and utilize the model for better air connectivity elsewhere in the country, the government said. It hopes the move will bring more foreign investment into airport infrastructure. However, it is not immediately clear whether the private players in the six airports that are to be jointly managed will get land parcels for real estate development beyond aviation requirements. The government also set up an empowered committee of secretaries to oversee the process.

“Roping in a private player for developing airport infrastructure will certainly bring more efficiency in managing the needs of a fast expanding aviation market,” said Kinjal Shah, vice president, corporate ratings, at rating agency Icra Ltd.

India’s civil aviation market has been growing at 19% over the last four years and is projected to be the third largest in the world by 2025, after the US and China. The government is targeting an increase in the number of air passengers from 265 million in 2017 to about one billion in 10-15 years, as more people are travelling by air. This calls for massive investments in airports and greater productivity.

The cabinet also decided to sell 65 million “enemy shares” in 996 companies. These are shares held by people who have migrated to Pakistan post partition. These shares were held by 20,323 shareholders and are under the custody of the ministry of home affairs. The government assumes the total value of these shares to be ₹3,000 crore in terms of current valuation, Prasad said. Of the 996 firms, only 588 are functional, with 139 of them being listed.

The cabinet also approved the filling of Padur strategic petroleum reserves in Karnataka through the PPP route, which will help the government save ₹10,000 crore, the minister said. Bids to fill Padur strategic petroleum reserves with 19 million barrels of oil will be invited over the next few months. Such reserves will help India manage supply and price risks, at a time of growing uncertainty in global oil markets, as part of its evolving energy security architecture. Abu Dhabi National Oil Co., the state-run oil company of the United Arab Emirates, is the only one to commit to India’s crude oil reserve programme.

The cabinet gave in-principle approval for strategic disinvestment of all government shares in the Dredging Corp. of India Ltd to a consortium of four ports that includes Visakhapatnam Port Trust, Paradip Port Trust, Jawaharlal Nehru Port Trust and Kandla Port Trust. The government holds 73.44% shares and the evaluation of the company would be done by appointing bankers, the law minister said.

Utpal Bhaskar contributed to this story.

20.1. From TCS to Tech Mahindra, record deals cheer IT firms in Sept quarter

Business Standard, Nov. 09, 2018

Mumbai: The September quarter’s financial results of information technology (IT) majors have delivered festive cheer, at least on the deals front.

Most of the majors saw impressive order booking, reporting deals with a record amount in total contract value (TCV). Tech Mahindra, for example, reported an all-time high in net new deal wins, with a TCV of $550 million. Infosys recorded its best-ever large deal wins in a quarter, with a TCV of $2 billion (the previous highest was $1.2 billion), almost 63 per cent of which were new deals. Tata Consultancy Services (TCS) reported quarterly large deals (new deals and renewals) with $4.9 billion in TCV (compared to $4.8 billion in the June quarter).

Wipro did not disclose this number, but indicated a good quarter of order booking. “A stronger demand environment was helped by continued increase in digital sizes, aided by a shift in spending to core transformation and integrated digital deals, as opposed to a consulting-heavy phase earlier.

Also, continuing momentum of deals signed that will flow into revenues in the early part of the year,” said Kanwaljeet Saluja, analyst, Kotak Institutional Equities.

Tech Mahindra (fifth-largest among IT service companies) said it was seeing very interesting deal wins, with clients embarking on transformation plans.

“We are winning synergy deals which balance out the revenue streams on a quarter-on-quarter basis. Looking at the deal win composition, on the enterprise side, the whole customer experience management and integration of some of our platforms to deliver solutions in the customer experience area has been a big component,” said Manoj Bhatt, its financial head, during a post-earnings meet.

Nirmal Bang analyst Girish Pai says the deal wins posted by Infosys were helped by an excellent demand environment and aggressive bidding. With the $700-million Verizon deal, Infosys, which does not have a a strong communications portfolio, has managed to enter a space occupied largely by TCS and Tech Mahindra, he added. “Clearly, the market is in good shape. As we shared earlier, our view is the demand environment is quite strong across many of our large sectors. We see good demand across all the geographies; we see stable demand,” said Salil Parekh, chief executive at Infosys.

TCS, the largest, attributed differentiated capabilities for its $4.9-billion deal TCV, of which $1.5 billion came from banking, financial services and insurance (BFSI) and $0.7 billion from retail. Half of all deals it signed by value terms came from North America.

Pune-based Persistent Systems, despite negligible revenue growth in the quarter, said the demand pipeline looked very robust and was confident of a bounce-back, with very strong growth in the second half of 2018-19. It is seeing strong demand on the digital side, it says, especially in the health care vertical, with bigger deal sizes, compared with the earlier period.

Zensar reported bookings with TCV of $290 million in the first half of 2018-19, of which $120 million was in the September quarter. Among the other mid-size IT firms, Hexaware ,and Mindtree said they expected a softness in new deal closure.

Mindtree won deals worth $271 million, of which $225 million were renewals and $49 million in new deals. The company indicated some delay in new deals from the US and Europe had affected its revenues, though it was expecting to see this recovering in the December quarter, despite seasonal weakness.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

20.2. Broad-based growth for TCS, yet again

BusinessLine, 14th Oct. 2018, K. VenkataSubramanian

TCS carried the momentum of its strong show in the first quarter into the September period numbers as well, with the company delivering ahead of market expectations on its financials as well as key operational parameters.

Growth was well-rounded across geographies and verticals, large-sized client additions were healthy and digital revenues growth was solid during the second quarter.

During the September period, the company’s revenues grew by 3.2 per cent in dollar terms(3.7 per cent in constant currency) sequentially. The operating margin was robust and expanded by 150 basis points sequentially to 26.5 per cent – among the highest in the industry.

All-round growth

All large verticals − BFSI(banking financial services and insurance), retail & CPG and regional markets − grew for TCS during the September quarter, by 3.4-7.3 per cent sequentially in constant currency terms.

The digital business increased at a scorching pace of 16.5 per cent sequentially and now accounts for 28.2 per cent of the overall revenues.

Revenues from key geographies, including the Americas(north and south) and Europe increased at a healthy pace. The latter region expanded at a faster pace than the overall company’s revenue rate.

The growth across verticals and geographies suggests that there has been broad-based client traction for TCS.

In an environment where large deals are rare, the company has managed to add four customers in the $100 million category and one in the $50 million bucket. In the $10 million and $20 million buckets, TCS has added 10 and seven customers, respectively.

Attrition was stable at a reasonable rate of 10.9 per cent.

Motoring along

TCS continues to justify the premium valuations – 26 times trailing 12-months earnings – that it commands in the markets vis-à-vis peers such as Infosys, Wipro and HCL Technologies that trade at 16-18 times. The company has made the most of the seasonally strong June and September quarters and looks all set to record double-digit revenue growth in dollar terms on a YoY basis in FY19.

This growth would be higher than the revenue growth that trade body Nasscom has projected for the industry (7-9 per cent) in FY19.

It remains to be seen if any other top-tier peer would match up to TCS’ growth figures.

INDIA AND THE WORLD

21. WEF launches Centre for Fourth Industrial Revolution in India

PTI, Oct. 12, 2018

New Delhi: The World Economic Forum on Thursday announced its new Centre for the Fourth Industrial Revolution in India, which would aim to bring together the government and business leaders to pilot emerging technology policies.

The centre, which was launched by Prime Minister Narendra Modi at a function here, would be based in Maharashtra and it has selected drones, artificial intelligence and blockchain as the first three project areas, the World Economic Forum (WEF) said.

Geneva-based WEF, which describes itself as an international organisation for public-private cooperation, said the new centre will work in collaboration with the government on a national level to co-design new policy frameworks and protocols for emerging technology alongside leaders from business, academia, start-ups and international organizations.

NITI Aayog will coordinate the partnership on behalf of the government and the work of the centre among multiple ministries.

The WEF has also entered into partnerships with the Maharashtra and Andhra Pradesh governments for the new initiative and more states would be roped in going forward.

"The Fourth Industrial Revolution will change how we produce, how we consume, how we communicate and even how we live," WEF Founder and Executive Chairman Klaus Schwab said.

"To make the technological progress human centred, we must pro-actively work together and create the necessary essential principles and policy standards to ensure that we use the full potential for better lives.

"India is becoming a big technological global force and that is why I am especially proud to announce the Centre for the Fourth Industrial Revolution India," he said.

The WEF said initial efforts at the national level are focused on two emerging technology areas -- artificial intelligence and machine learning; and blockchain and distributed ledger technology.

The first project will focus on expanding access to data to accelerate the adoption of artificial intelligence in socio-economic areas like education, healthcare and agriculture. The second will focus on the application of smart contracts to boost productivity and transparency while reducing inefficiency, the WEF said.

At state level, the Government of Maharashtra in collaboration with the Centre is planning to undertake a drone mapping operation in the agriculture sector.

The WEF said projects will be scaled across India and globally. As part of the WEF's global network, the new centre in India will work closely with project teams in San Francisco, Tokyo and Beijing, where such Centres are already present.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

22. Airtel Africa raises $1.25 billion from SoftBank, 5 others before IPO

Livemint, 25 Oct. 2018, Navadha Pandey

Bharti Airtel will use the money from the fundraising to trim Airtel Africa’s debt of $5 billion and expand operations in that continent

New Delhi: Half a dozen marque investors, including Warburg Pincus LLC, Temasek Holdings, Singapore Telecommunications Ltd and SoftBank Group Corp, will invest a combined $1.25 billion in Bharti Airtel Ltd’s unit in Africa ahead of a potential initial public offering (IPO). India’s second-largest mobile operator by users will use the funds to trim Airtel Africa Ltd’s debt of $5 billion and expand operations in that continent, Bharti Airtel said in a statement on Wednesday.

The six companies will make the investment by subscribing to new shares, it said.

Bharti Airtel did not identify two of the remaining investors. It also did not give any timeline for the investment.

The move kickstarts the process to monetise Airtel Africa in line with the strategy of Bharti Airtel to cut debt by monetising its assets.

Bharti Airtel wants to also boost its cash pile as it faces a brutal tariff war in India intensified with the entry of Reliance Jio Infocomm Ltd in September 2016.

As part of its steps to cut debt and monetise assets, Bharti Airtel in August sold a 20% stake in its satellite television arm, Bharti Telemedia Ltd, to private equity firm Warburg Pincus for $350 million.

The latest transaction will not involve any sale of existing shares, Bharti Airtel said.

It did not offer more details on the transaction.

ICICI Securities, in a research note on Wednesday, said Bharti Airtel has agreed to sell a 28.4% stake in the Africa unit to the six firms for $1.25 billion.

Bharti Airtel said its Africa unit is subsequently intending an IPO.

“The valuation is likely to set the floor for a potential IPO of the African operations,” Deutsche Bank said in a note, adding the latest investment will narrow Bharti Airtel’s net debt to Ebitda ratio from 3.6 to 3.3.

Bharti Airtel had on 14 February announced its plan to list its African arm.

“We believe Bharti will also monetise it fibre network in the mid term,” Deutsche Bank said in the note.

Bharti Airtel’s Africa venture started in 2010 when it bought Kuwait-based telecom operator Zain Telecom’s Africa operations for $10.7 billion.

Over the past few years, it has been trying to capture the African market through local deals.

It has so far made three small acquisitions in Uganda, Congo Brazzaville and Kenya.

In October 2017, Airtel inked a deal with Millicom, which owns the brand Tigo, to combine their operations in Ghana. In December, Airtel’s unit in Rwanda announced the acquisition of Tigo Rwanda Ltd, making Airtel, the second-largest telecom operator in the African nation.

Airtel’s Africa business has seen a turnaround of its business in recent years.

Data customers in Africa surged 45% to 26.4 million in April-June this year, from 18.2 million a year earlier. Revenue grew 14% to $794 million.

Back home in India, too, Bharti Airtel is taking steps to reduce debt. The company announced on 5 February that Singapore Telecommunications (Singtel) would indirectly raise its stake in Bharti Airtel by investing ₹2,649 crore in Bharti Telecom Ltd, the promoter company of Airtel, through a preferential allotment of shares and the funds will be used to reduce debt.

23. India, Bangladesh to start cruise services; Kolaghatin & Chilmari new Ports of Call

PTI, Oct. 25, 2018

New Delhi: To augment water transport, India and Bangladesh Wednesday agreed to consider inclusion of Rupnarayan river in the protocol route besides declaring Kolaghatin in West Bengal and Chilmari in Bangladesh as new Ports of Call.

The decision was taken in a meeting pertaining to protocol arrangements and improvement of Inland Water Transportation here.

India and Bangladesh discussed various issues pertaining to the protocol arrangements and improvement of inland water transportation between the two countries in the 19th Standing Committee meeting under 'Protocol on Inland Water Transit and Trade' (PIWTT)," Ministry of Shipping said in a statement.

"The two sides agreed to consider inclusion of Rupnarayan river (National Waterway-86) from Geonkhali to Kolaghatin West Bengal in the protocol route. They also agreed to declare Kolaghatin West Bengal and Chilmari in Bangladesh as new Ports of Call," the statement said.

Ports of call are places where ships make a stop during a journey.

The new arrangement will facilitate movement of flyash, cement, construction materials etc from India to Bangladesh through IWT on Rupnarayan river. Further, both sides agreed to declare Badarpur on river Barak (NW 16) as an Extended Port of Call of Karimganjin Assam and Ghorasal of Ashuganj in Bangladesh on reciprocal basis. The Indian side proposed for extension of the protocol routes from Kolkata up to Silchar in Assam.

The statement said in another critical understanding reached at between the two countries, the Standard Operating Procedure (SOP) for movement of passengers and cruise vessels on Inland Protocol route and coastal shipping routes have been finalised.

These river cruise services are likely to commence between Kolkata - Dhaka and Guwahati - Jorhat and back.

It was also agreed that a Joint Technical Committee will explore the technical feasibility of operationalisation of Dhulian-Rajshahi protocol route up to Aricha and the reconstruction and opening up of Jangipur navigational lock on river Bhagirathi subject to the provisions of the Treaty between India and Bangladesh on sharing of Ganga waters at Farakka, the statement said.

This move has the potential to reduce the distance to Assam by more than 450 kms on the protocol routes, it said.

It was also decided that a Project Management Consultant for supervision and monitoring of dredging of Ashuganj-Zakiganj and Sirajganj-Daikhowa stretches of Indo-Bangladesh Protocol Route in Bangladesh will be engaged with 80 per cent financial contribution from India and rest by Bangladesh.

A Joint Monitoring Committee has also been constituted for overall monitoring of the dredging works.

To bring about significant reduction in logistics cost and faster delivery of Bangladesh export cargo , Indian side raised the point regarding permitting 'Third country' EXIM Tradeunder Coastal Shipping Agreementand by allowing Transhipment through Ports on the East Cost of India, the statement said adding, Bangladesh agreed to hold stakeholder consultations and revert on the matter.

"Both sides agreed for development of Jogighopa as a hub/trans-shipment terminal for movement of cargo to Assam, Arunachal Pradesh, Nagaland and Bhutan and notifying Munsiganj River terminal by Bangladesh Customs for routing third party Exim cargo through Kolkata Port," it said.

The meeting was attended by high level delegations that included representatives of Ministries of Shipping, External Affairs, Home, Finance, DONER and Inland Waterways Authority of India (IWAI) and officials from Bangladesh belonging to Ministry of Shipping, Board of Revenue, DG (Shipping) and Bangladesh Inland Water Transport Authority (BIWTA).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

24. India's commitment to support Africa has been unequivocally acknowledged by the African leadership: Vice President

PTI, Nov. 08, 2018

Inaugurates 'India for Humanity' meant to commemorate the 150 birth anniversary of Mahatma Gandhi in Malawi;

Launches the very first Jaipur Foot Camp in this series;

Vice President successfully completes 3-nation Africa Visit

New Delhi: Extending India’s continuous engagement with Africa, the Vice President of India, Shri M. Venkaiah Naidu has successfully completed the three nations visit to Botswana, Zimbabwe and Malawi, today. During his weeklong visit, he held wide range discussions with the President of Botswana, Mr. Mokgweetsi Masisi, the President of Zimbabwe, Mr. Emmerson Mnangagwa and the President of Malawi, Mr. Peter Mutharika and other leaders in line with Prime Minister, Shri Narendra Modi had recently set out 10 guiding principles to enhance our engagement with Africa.

The Vice President was received with great warmth and affection in all the three nations. The President of Botswana broke protocol and flew back from his visit to Mozambique to meet the Vice President when he was leaving for Zimbabwe at the airport.

The President of Zimbabwe, Mr. Emmerson Mnangagwa spent more than an hour with Shri Naidu to discuss various issues of mutual interest and in Malawi, the President hosted luncheon in the honour of the Vice President where the first lady was also present.

The Vice President’s visit was very significant as this was the first high level visit after a significant gap to these three countries. In fact, in Zimbabwe, it was after 21 years.

Speaking to media onboard Air India One, the Vice President said that with the high level visit of the Vice President, India has been able to make 29 visits to Africa at the level President, Vice President and Prime Minister and called it an unprecedented feat. He further said that his visit would help to build on strong foundations and take relations to next level by reinforcing existing ties and forging relationship in new areas. The outcome of my visit clearly indicates that this has been achieved, he added.

India’s commitment to support Africa in its developmental process and its efforts in improving diplomatic, bilateral and people-to-people contacts have been unequivocally acknowledged by all the three Presidents, he said.

The Vice President said that Zimbabwe President openly thanking India for standing by the country during their period of isolation was recognition to India’s commitment. He said the leadership of the all three nations thanked India for a sustained development assistance extended through Lines of Credit and grants for various projects.

During his visit, India made substantial commitment to Botswana, Zimbabwe and Malawi on development partnership and assistance. US$ 350 million for projects in Zimbabwe, US $ 220 million of Lines of Credit for water supply projects in Malawi as well as setting up of Mahatma Gandhi Convention Centre in Zimbabwe and Malawi as grant assistance were among those.

The Vice President said that capacity building was of special interest to all three countries and they were uniformly appreciative of India's ITEC programme and the generous slots we give for training of their nationals in a variety of fields. With Botswana, the Vice President offered to increase the slots from the current 140 per year. India also agreed to depute experts for training of their junior diplomats. We are also deputing 5 experts in various fields to assist Zimbabwe under ITEC, he added.

During his interactions with the Vice President and the leadership of three African Nations crucial issues including capacity building, technological knowledge sharing through ITEC programmes, opportunities in trading Minerals including uranium, copper, nickel and railways and infrastructure, logistics etc topped the list. India’s support in providing Skill Development, tele-education and tele-medicine in African region was appreciated by the leadership.

The Vice President’s visit also witnessed signing of Memorandum of Understandings with all the three nations. MoU with Malawi on providing capacity building in nuclear energy regulatory framework, and its protection, MoU on geology, mining and minerals was signed with Zimbabwe apart from exploring options to have direct trading in raw diamonds with Botswana and Zimbabwe. India signed an MoU on Traditional Medicine with Zimbabwe too.

Other important Agreements included Extradition treaty with Malawi and an agreement in Broadcasting by Prasar Bharati, another one in Arts, Culture, Heritage and an Action Plan on ICT with Zimbabwe.

In the area of health, all three countries were deeply appreciative of medical services in India as well as the services being rendered by our private sector hospitals in their respective countries and the ever-increasing need for Indian pharmaceuticals products. The Vice President also announced the gifting of Bhabhatron Cancer machine in Malawi and ambulances and life saving drugs in all three countries.

The Vice President informed them about Indian traditional medicine, particularly ayurveda and yoga, and the leadership was in agreement of the fact that there was considerable scope in these areas since all three countries have their own traditional medicine as well.

Agriculture being a crucial area of interest for Africa, All three leaders welcomed the possibility of greater involvement of India in their agriculture sector. The Vice President promised to explore the possibility of greater involvement from our side particularly for value addition and food processing.

The leadership on both sides recognised the need to have greater cooperation in defence sector. Sending Indian Army Training team to Botswana, extending training slots in defence to Zimbabwe and Malawi were among those discussed during Shri Naidu’s interactions. All three leaders agreed with the Vice President that security cooperation, particularly in counter-terrorism needs to be strengthened.

In all the three countries, the Vice President interacted with the local and Indian businessman operating there. He was also given the rare honour of inaugurating their prestigious annual Global Expo 2018 where India was represented by 28 companies making it the largest contingent in the event.

Amidst the hectic schedule of bilateral meetings, the Vice President also took time to visit the Diamond Trading Center in Botswana. He also unveiled the plaque to inaugurate the Business Incubation Centre in Malawi built with Indian grant assistance.

The Vice President addressed Indian communities in all the three nations and addressed them during community receptions hosted by respective Ambassadors. During his interactions, he highlighted the transformative reforms undertaken by the Narendra Modi government and informed the audience the growth story of India that is inching closer to become third largest economy in the world.

The Vice President had expressed his happiness for the contribution of the Diaspora in India and their present place of stay. He said that it was heartening to hear about the Diaspora’s contribution in the economic development of the three nations.

The Vice President thanked the leadership for supporting India at various international fora including the United Nations. All three leaders expressed their desire to work with India on Solar energy and deeply appreciated India’s initiative on the International Solar Alliance.

While Malawi had already signed and ratified the framework agreement on International Solar Alliance, Zimbabwe has signed ISA and, during the Vice President’s visit Botswana, they conveyed to him of their decision to sign it shortly.

The Vice President inaugurated the unique event “India for Humanity” meant to commemorate the 150 birth anniversary of Mahatma Gandhi in Malawi. India would be organising camps of the well known Jaipur Foot in all parts of the world and serve the needy with necessary support.

The Government is partnering Bhagwan Mahavir Viklang Sahayata Samiti in this “India for Humanity” initiative.

The Vice President was given the honour of launching the very first Jaipur Foot Camp in this series in Malawi in Africa as Mahatma Gandhi spent more than two decades and eventually led a non-violent movement that liberated India from colonialism and inspired African leaders to free their countries as well.

The Vice President was accompanied by a high level delegation comprising of the Minister of State for Social Justice and Empowerment, Shri Krishan Pal Gurjar and two members of Parliament namely Shri K. Suresh and Shri V. Muraleedharan, in addition to senior officials.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

25. Retrieving the spoils of colonialism

Livemint, 25 Oct. 2018

India should take advantage of the turn in public opinion in Europe to work for the return of artifacts looted in the colonial period

The Kohinoor has become in the lapse of ages a sort of historical emblem of the conquest of India. It has now found its proper resting place.” James Broun-Ramsay, the earl of Dalhousie and governor general of India, had reason to be pleased when he wrote this. The Second Anglo-Sikh War had ended in all but name less than a month previously on 12 March 1849. The Sikh empire had been dismantled within a decade of its creator Ranjit Singh’s death. At the end of March, his 10-year-old son and nominal ruler of the empire, Duleep Singh, had signed the Treaty of Lahore with the victors, the British East India Co. He had ceded all claim to Punjab—and surrendered the Kohinoor to the queen of England.

Was this a “gift” to the Company by Duleep Singh as the Centre submitted to the Supreme Court in 2016? Legally, yes; as part of the terms of the treaty, it “cannot be said to be forcibly taken or stolen.” Or do the circumstances warrant a different reading? Duleep Singh, after all, was a 10-year-old ruler whose court and power base had been subverted by the Company after the First Anglo-Sikh War. The Company had then forcibly separated him from his prime backer, his mother, and presented him with terms he was in no condition to refuse. The Archaeological Survey of India seems to think so. In response to a right to information request, it noted earlier this month that the Kohinoor was “surrendered” and not “handed over”.

National and cultural pride and the ambiguities of history are a tricky combination. Little wonder the question of whether treasures and artifacts taken by colonial and conquering powers should be restored to their countries of origin raises hackles. The issue has gained in prominence over the past few years. This is not surprising. With the economic rise of erstwhile subjects has come assertion. Redressing historical humiliation is a means of such assertion. Thus, even as the Narendra Modi government argued that the Kohinoor could not be reclaimed from the UK, it noted that it would make “all possible efforts” to bring the diamond back in an amicable manner.

China has gone considerably further. The stronger its growth has been, the more the Century of Humiliation has rankled. Since the turn of the millennium, Chinese billionaires have been on a spree of acquiring China’s plundered artifacts. The state has grown increasingly involved as well. The state-run conglomerate, the China Poly Group, has kicked off a programme aimed at reacquiring lost art. And in 2009, Beijing made the vague announcement that it would send a “treasure-hunting team” to institutions in the US and Europe. It has strong-armed auctioneers like Christie’s and institutions into repatriating artifacts since.

This is not a new issue. Greece has battled for decades for the return of the Parthenon frieze from the British museum—part of the Parthenon Marbles taken from Greece at the beginning of the 19th century by Thomas Bruce, the earl of Elgin. The Elgins had a fine line in looting; Thomas’ son, James, later to be viceroy of India, led the sack and plunder of the Old Summer Palace in Beijing in 1860. Likewise, Egypt has pushed for the return of Nefertiti’s bust, and Nigeria for the Benin bronzes.

The difference is that now, European governments are more receptive, and not just to China. Earlier this year, French President Emmanuel Macron stated his wish to return looted treasures to former French colonies in Africa. And Germany has come up with a code of conduct for museums that includes how to deal with restitution claims.

There are plenty of grey areas when it comes to such claims; the Kohinoor is a good example. Judging historical events by modern legal and ethical standards is an easy trap to fall into. And there are cases where artifacts would be in danger when returned to unstable countries. But there are also many cases where the evidence is clear. Museums are feeling the heat. For instance, earlier this month, the British Museum kicked off an initiative to counter criticisms about its colonial collections. “Not everything here was acquired by Europeans by looting”, as the curator of the South Asia collection put it, however, is not a particularly strong defence.

New Delhi and Indian museums should take advantage of the turn in public opinion to work with European institutions for repatriation in cases where the evidence is clear. However, there is a caveat. Defenders of European museums who claim that those institutions are often better able to care for and present the artifacts than their counterparts in former colonies are shouted down as the inheritors of colonialism. But thin skins are of no use here. The argument often holds. Museums in the US and, increasingly, Europe have grown with public-private partnerships. Endowments can be in the hundreds of millions of dollars; with this comes the brand-building of, say, a Metropolitan Museum of Modern Art and public awareness. This model is needed in India. Bringing back the spoils of colonialism would be of little use if they are to moulder in museum storerooms.

Should the Indian government push to have the Kohinoor returned? Tell us at views@livemint.com

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Sunday 18 November 2018

NEWSLETTER, 20-XI-2018

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

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NEWSLETTER, 20-XI-2018

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

- INDUSTRY, MANUFACTURE