AAPI: 2019

DELHI, 20th December 2019

Index of this Newsletter

INDIA

INDIA & THE WORLD

21.1. Fallout of Softbank’s big reality check
21.2. Qatar to invest $450 million in Adani’s Mumbai power business
22.1. PSLV successfully launches RISAT-2BR1 and nine commercial satellites in its. Fiftieth flight
22.2. Citroen set for India entry with digitised sales process
23.1. How English became an Indian language
23.2. Film review: ‘Hotel Mumbai’ is a haunting reminder of sacrifice
24.1. Apollo Tyres enters Saudi Arabia through tie-up with Al Jomaih Tyres
24.2. Innovate & differentiate for true financial inclusion: Sachin Bansal
25.1. Sundar Pichai made CEO in Alphabet’s biggest bet
25.2. Opinion | Asia’s miracle economies have lessons for India’s trade policy

* * *

DELHI, 20th December 2019

NEWSLETTER, 20-XII-2019

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. Justice system lets women down

Livemint, 11 Dec. 2019, Sneha Alexander, Vishnu Padmanabhan

Despite efforts to expedite cases of sexual violence against women, a huge backlog remains which could be eroding trust in the police and the law

Seven years after the crime, the infamous Delhi gangrape case labours on in the Supreme Court with the filing of a new review petition. In the Unnao case, the rape victim was killed before the final verdict. In India, justice, even in high-profile cases of rape, can take time. These delays hurt victims but also affect society by eroding trust in institutions and increasing the clamour for extrajudicial justice.

According to the latest available data from the National Crime Records Bureau (NCRB), cases of rape in India fell in 2017 to 52 incidents per million women (from 63 in 2016). But this figure is likely to be an underestimate: an earlier Plain Facts analysis had estimated that 99% of cases of sexual violence in India go unreported.

And even when rapes are reported, their resolution is delayed. Like with any crime, rape-related crimes are first dealt with by the police and then by the courts. Both processes can be slow. According to NCRB data, 29% of all cases of rape at the end of 2017 were unresolved by police forces across the country. The court backlog is even worse: nearly 88% of all rape cases in Indian courts were pending resolution in 2017. These figures are an improvement from 2016 but significantly worse than the 2001 figures.

This pendency persists even after concerted efforts to expedite rape cases. For instance, the Delhi gangrape in 2012 triggered several initiatives to prioritize resolving rape cases. They may have had an immediate effect with pendency rate for rape cases falling between 2012 and 2013. But the pendency rate on rape cases still remains no better than the pendency for other crimes. Even the fast track courts that were established to expedite cases have a pendency problem. Though the government proposed establishing 1,800 fast-track courts, only 700 are currently operational with the total number of pending cases in these courts standing at around 700,000.

Police and courts take time to process all crimes against women, not just rape cases. And since law enforcement is a state subject, the time taken to process these crimes, which include acid attacks and dowry deaths, can vary significantly across India. For instance, police forces in Rajasthan, Madhya Pradesh and Gujarat seem to be the most efficient at disposing of both crimes against women and general crimes. In contrast, police in Jharkhand, Delhi and Punjab are among the worst at processing crimes against women when compared to other crimes. These differences, though, could reflect levels of reporting in states. Gujarat, for instance, has a minor pendency issue but also the lowest levels of gender crimes reported among Indian states.

In courts, pendency is a big issue in every state but courts in the east of India (such as West Bengal, Assam and Odisha) suffer from bigger backlogs for both crimes against women and other crimes. These courts are also among the most under-staffed in the country.

Regardless of the crime, understaffing is a major driver of pendency in both courts and police forces. But for crimes against women, there could be other factors. The Criminal Law (Amendment) Act in 2013 expanded the definition of sexual violence crimes against women which could have increased the caseload for both police and courts. There may also be differences in how gender crimes are treated. In a 2019 survey of police personnel across India, the Center for the Study of Developing Societies (CSDS) show that around 20% of all police believe that gender-based violence complaints are false and motivated. Little wonder then that women trust the police less than men. In a 2018 survey on police perceptions, CSDS find that 66% of women said they trusted the police compared to 71% of men.

Delays in the system could also be encouraging support for extrajudicial justice. A significant proportion of India’s police force believes that extrajudicial killings and violence towards criminals is justified. The 2019 CSDS survey found that 19% of police personnel believe that killing dangerous criminals is better than a legal trial and 75% feel that violence towards criminals is justified.

As reactions to the Hyderabad encounter demonstrated, this is a view shared by even those outside the police. The 2018 CSDS survey suggested that 50% of all Indians believe there is nothing wrong with violence towards criminals. As India’s police and courts strain under a backlog, and India’s women continue to suffer from savage crimes, the clamour for swifter, extrajudicial justice could get stronger.

1.2. Opinion | A consensus on judicial reform would serve the economy well

Livemint, 26 Nov. 2019, R. Jagannathan

India must sort out the judiciary’s lack of urgency in resolving matters of commercial significance

An unreformed judiciary should now rank as the top threat to economic revival in India. One can navigate global uncertainties, initiate reforms in factor markets, cut taxes and inject money into the system to reverse the slowdown, but all of it will fall flat if the judiciary won’t play ball.

We don’t need to go too far to emphasize this. Senior counsel Harish Salve said a couple of months ago that the Supreme Court was a big contributor to the slowdown. He was talking in the context of the court’s 2G and coal block allocation verdicts, which resulted in scores of licences being cancelled and major commercial decisions getting reversed years after they were taken, causing losses all around.

However, court-induced delays and economic damage go well beyond extreme actions involving specific scams. Two recent court decisions—on the calculation of telecom companies’ adjusted gross revenues (AGR), which form the basis for working out revenues due to the government, and the Essar Steel case—underline the point. In the AGR case, a legal dispute that began in 2003 with an appeal to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) achieved finality only in 2019. During this time, the original dues have bloated more than four-fold due to penalties and the interest payable on the unpaid sums. In the Essar Steel bankruptcy verdict, the court decided that the 330-day statutory time limit hard-coded into the law can be exceeded in exceptional cases. This limit gave a generous 60 days more to resolve cases in which there were legal challenges, thus raising the initial 270-day limit specified in the original Insolvency and Bankruptcy Code (IBC).

Thanks to judicial delays, business failures now end up looking worse than they are because defaults snowball into larger and larger sums with every passing year. Kingfisher went belly-up in 2011 and had ₹6,000-and-odd crore in debts on its books around then. By 2015, this had gone up to over ₹9,000 crore.

The problem begins with the lower courts, appellate tribunals, and high courts. While big-ticket cases tend to get expedited sometimes, thanks to high public interest, the real damage is done in lower courts, where ordinary commercial cases go. According to a study published in the Economic Survey 2018-19, “Delays in contract enforcement and disposal resolution are arguably now the single biggest hurdle to the ease of doing business in India and higher GDP growth…. Around 87.5% of pending cases are in the district and subordinate courts. Therefore, this segment must be the focus of reform."

However, this cannot be done if various Supreme Court judgements allow laxity in enforcing time limits. During the Atal Bihari Vajpayee administration, amendments were introduced to the Code of Civil Procedure in 1999 and 2002 in order to speed up court cases. Before one 1999 amendment, courts could adjourn proceedings any number of times. The amendment limited adjournments of hearings to three. But in a 2005 case, the top court ruled that the amendment limit did not mean a court could not grant more adjournments based on the specific circumstances of each case. This became a free-for-all, and the effort to speed up cases went down the tubes. Similarly, other Code amendments to ensure that summons were served and written statements filed within specified time limits got diluted. Laxity in enforcing time frames in court cases directly flows from verdicts of the top court, clearly.

The Supreme Court’s decision to allow breaches of the 330-day limit for bankruptcy resolutions is risky, for it gives bankruptcy courts the discretion to extend resolution periods.

Worse, thanks to powers under Article 142, the judiciary also occasionally wades into executive and legislative domains, as happened when it ordered a tax on commercial vehicles entering Delhi some years ago in order to reduce pollution. On another occasion, it ordered a ban on vending liquor on the highways, not only causing needless confusion, but directly getting into legislative domain. In the Board of Control for Cricket in India (BCCI) case, the Supreme Court ordered changes in its constitution without directing the Tamil Nadu government to amend the law under which BCCI was governed. This is law-making, not just interpretation of the law.

It is not the judiciary’s fault alone; there is clear political failure in engaging the judiciary in a constructive dialogue on acceptable judicial reforms. Reforms legislated by Parliament alone can thus slowly be undermined by a judiciary that’s not on the same page and tends to wade into law-making every now and then. None of this can be undone without the judiciary and politicians, both in government and Opposition, having a quiet discussion on how to reform the judiciary without threatening its independence.

The Narendra Modi government began with a bang in 2014 by legislating the National Judicial Appointments Commission, which had multi-party support, but the judiciary just junked it.

The moral of that story is this: it is not enough if there is a political consensus. There has to be a judicial-cum-political consensus to move forward on judicial reforms.

R. Jagannathan is editorial director, ‘Swarajya’ magazine

2.1. Over 1.8 million Farmers registered under PM KISAN MAAN DHAN YOJANA: Shri Narendra Singh Tomar

IBEF, Nov. 20, 2019

With a view to provide social security net for the Small and Marginal Farmers (SMF) as they have minimal or no savings to provide for old age and to support them in the event of consequent loss of livelihood, the Government has launched a new Central Sector Scheme, namely, the Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY). Under this Scheme, a minimum fixed pension of Rs 3,000 (US$ 42.9) is provided to the eligible small and marginal farmers, subject to certain exclusion clauses, on attaining the age of 60 years. It is a voluntary and contributory pension scheme, with entry age of 18 to 40 years. The beneficiary can opt to become member of the Scheme by subscribing to a Pension Fund managed by the Life Insurance Corporation of India (LIC). The beneficiary is required to make a monthly contribution of between Rs 55/- to Rs 200/- (US$ 0.78 to 2.8) to the Pension Fund, depending on the age of entry into the Scheme, with provision of equal contribution by the Central Government. Exit from the scheme may be voluntarily or on failure of contribution or on demise. On exit from the scheme, the beneficiary will receive his/her accumulated share and the Government's contribution will be deposited in the LIC Fund. After the subscriber's death, the spouse or heir shall be entitled to receive 50 per cent of the pension as family pension, provided he/she is not already an SMF beneficiary of the Scheme. On the death of the subscriber during the period of contribution, the spouse shall have the option of continuing the Scheme by paying regular contribution.

All Small and Marginal Farmers in the country, who are of the age of 18 years and above and up to the age of 40 years, and who do not fall within the purview of the exclusion criteria, are eligible to avail the benefits of this Scheme.

The Scheme aims to cover around 3 crore beneficiaries. As on 14/11/2019, 18,29,469 farmers in the country have been registered under the Scheme, including 61,496 farmers of Gujarat.

The ratio of contribution to be made by small and marginal farmers and the Union Government under this Yojana is 1:1. Government contribution under the Scheme is equal to the monthly contribution made by the farmer, which varies from Rs 55/- to Rs 200/- (US$ 0.78 to 2.8) depending on the age of entry.

The Life Insurance Corporation of India (LIC) is the Pension Fund Manager for the Scheme.

PM-KMY Scheme aims to cover around 3 crore Small and Marginal Farmers.

A budgetary provision of Rs 900 crore (US$ 128.7 million) has been made for the year 2019-20. There is no State-wise allocation of funds under the Scheme.

Apart from the electronic and print media, wide publicity has been given to the Scheme through social media as well. The implementing agencies, the State / UT Governments and the Common Service Centres (CSCs), have also been roped in for wide publicity through their own resources. The Village Level Entrepreneurs (VLEs) of the CSCs who are field level functionaries, have also been provided incentives for ensuring maximum enrolment of farmers under the Scheme.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Lok Sabha today.

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

2.2. Total value of organic products exported is Rs 5150.99 crore (US$ 737 million) in 2018-19: Shri Narendra Singh Tomar

IBEF, Dec. 04, 2019

Government of India has been promoting Organic farming in the country through dedicated schemes namely Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development North Eastern Region (MOVCDNER) since 2015-16. Both the schemes aim at promotion of cluster/ Farmers Producer Organization (FPO) based chemical free, low input cost sustainable organic farming and support farmers from input procurement to market linkages.

The quantity of organic product produced during 2018-19 under Participatory Guarantee System-(PGS)-India and National Programme on Organic Production (NPOP) of Agriculture Processed Food and Export Development Authority (APEDA) is given at Annexure I. The total value of organic products exported from India is Rs 5150.99 crore (US$ 737 million) (for 614089.614 MT).

Assistance of Rs 50,000 (US$ 715) per hectare/ 3 years is provided, out of which Rs 31,000 (US$ 444) (62 per cent) is directly given to the farmers through DBT for inputs (bio-fertilizers, biopesticides, vermicompost, botanical extracts etc) production/ procurement, post-harvest management etc in PKVY scheme. Farmers adopt low cost Participatory Guarantee System (PGS) of certification for domestic markets.

Assistance of Rs 25000 (US$ 340)/ ha/ 3 years to farmers is provided for both on-farm & off-farm organic inputs, and seeds/ planting material in MOVCDNER and third party certified organic farming is encouraged for export of niche crops.

Organic Farming has also been supported under other schemes viz Rashtriya Krishi Vikas Yojana (RKVY) and Mission for Integrated Development of Horticulture (MIDH), Network Project on Organic Farming under ICAR.

The major thrust of the Government has shifted from production centric to market linked production so that farmers can get better returns for their produce including organic produce. To further boost production of organic produce, a dedicated web portal https://jaivikkheti.in/ has also been created to connect farmers involved in organic farming with consumers directly for better prices.

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

3.1. ‘The fight against air pollution shouldn’t be just Delhi-centric’

Livemint, 15 Nov. 2019, Avantika Bhuyan

Schemes like odd-even are temporary and don’t work so well in the long run, especially when you don’t have an alternative in place
We can’t solely pass on the blame of stubble burning onto the farmers. We need to incentivize the process

In 2014, a survey of 1,600 cities by the World Health Organization found Delhi had the dirtiest air. It’s been five years since the landmark report, but Delhi continues to top the league of dirty cities. A Greenpeace and AirVisual analysis of air pollution readings from 3,000 cities found that 22 of the world’s 30 worst cities in terms of air pollution were in India. Delhi, of course, was high up on the list. This year, between 29 October and 7 November, the dire predictions of all these surveys played out, as most of north India, including Delhi, came under an impenetrable blanket of smog. A public health emergency was declared, as the overall Air Quality Index (AQI) in the capital crossed the severe-plus mark (above 500), with some neighbourhoods even recording an AQI of over 1,000. “We can’t wake up only when the emergency is on our heads. We have to work round the year. The efforts shouldn’t just be Delhi-centric but should be pan-India as pollution is not just one city’s issue," says Sumit Sharma, director, earth science and climate change division, The Energy and Resources Institute (Teri). In 2016, Sharma had led a team of 25 researchers from 17 international institutes to write a report, ‘Breathing Cleaner Air’, which provided 10 scalable solutions for air quality improvement in India. He spoke to Mint about the project and the ways in which the Centre and states can fight air pollution together. Edited excerpts from the interview:

What were the solutions in the 2016 report?

This project was done at a time when India didn’t have a National Clean Air Programme (NCAP). The idea was not just to highlight the problem, but also to identify solutions that could make a difference to cities across India—not just Delhi or Mumbai. The first primary recommendation was to have a clean air mission for the whole country. This was incorporated by the government with the NCAP having been launched in January 2019. Also, we mentioned that the factors that contribute to pollution lie beyond the cities. For instance, in Delhi, almost 60% of the pollution is attributed to outside sources. Unless you address those, you will never be able to achieve air quality standard within the city. Second, you need to look beyond urban, to rural areas in the Gangetic plains as well, where people are toiling with terrible indoor air quality. And this is why you need a ‘national’ programme. The NCAP has set a target of cutting down air pollution by at least 20-30% by 2024.

According to Anumita Roy Chowdhury of the Centre for Science and Environment, vehicular pollution is 40% of the problem. What was your recommendation to tackle this?

We need to move toward the best of technologies — both in vehicles and in usage of fuels. Thankfully, in India, we are moving to the Euro 6 (or equivalent of Bharat Stage-VI) technology in vehicles after April 2020. India will probably be the first country in the world to be moving directly from Euro 4 to Euro 6, skipping Euro 5 altogether. That will help curb emissions in the long term. Second, since Independence, we have moved toward an inefficient way of travelling, both in passenger and freight modes. Our share of rail has gone down and road has gone up. We have to reverse this trend. There is a need to improve the share of rail-based transport mode by improving infrastructure and rationalization of tariffs. This will not only reduce emissions, but also save fuel.

A major issue is that neither is transportation integrated physically nor is there a uniform fare rationing. How can the public transport system be made more efficient?

Schemes like odd-even are temporary and don’t work so well in the long run, especially when you don’t have an alternative in place. One needs a good, safe, comfortable and economical public transportation system. In a city like Delhi, the required number of buses is as high as 10,000. But we have only 4,000. The infrastructure within the public transport sector needs to grow at a higher rate in order to negate the growth in population. Bus-based transportation system can be made more efficient — involve the private sector in this as well. All these solutions are needed if you want people to lessen the use of private vehicles.

Air pollution in northern India has been portrayed as a seasonal issue. But reports suggest that this is a year-round problem. Is there an integrated approach toward tackling the various sources of pollution?

Very true. We perceive smog as a problem restricted to November and January. But that is not the case. We feel it more in winters due to the meteorological conditions, which become adverse during this season. During summers, the particulate matter gets dispersed quickly. But even then, the AQI is not within the prescribed national limits. Don’t go by the look of the day—whether it seems clear or not. Take today (4 November), for instance: The sky looks blue, but the PM 2.5 levels are still as high as 200 micrograms per cubic metre. The standard is 60. Which means we need to create actual solutions that work throughout the year. When we worked on the source apportionment study for Delhi, we realized that 28% of the PM 2.5 concentrations are contributed by the transport sector (public, private and commercial), 30% by industries and power plants, and 15% by biomass burning throughout the year—both from agricultural fields and rural kitchens. Then 11% comes from other sources such as diesel generator sets, refuse burning, restaurants and crematoria, and about 17% from sources of dust like roads, construction, natural causes, etc, including 10% from international boundaries. But post-harvest season, for about two weeks between October and November, you will see a higher contribution of biomass burning to the emissions total — it goes up to 40%. This means, you need a two-pronged approach — one is to cut down the emission caused by agricultural burning in these two weeks, and the other is to work on the emissions created all-year round. We can’t solely pass on the blame of stubble burning onto the farmers. We need to incentivize the process. Say, the governments buy the stubble at a fair rate, use it to make energy, and then pass on the rewards to farmers, aggregators and others involved.

How can we regulate industrial emissions?

India is a transitioning developing economy. Coal has always been used in power plants and it is difficult to get rid of it immediately due to economic reasons. But one can control the air pollutant emissions from power plants and industries. Today, tail pipe treatment technologies exist. We must push its usage through stringent enforcement of law and enforce penalties for violations. Also, wherever gas is available, the authorities can ask the industries to switch to that. We need to grow as an economy, but we also need to be sustainable in our growth.

Are there lessons from other countries that India could adopt?

So many countries and cities have faced this problem in their “development" phase—London in 1952, Los Angeles in the 1950s, Tokyo in the 1950s and ‘60s. But the authorities in each of these cities realized the health impact and the huge economic cost of air pollution and started putting measures in place. The US took the technological route. So, the economy kept growing but the emissions didn’t. Take California alone, there has been a huge increase in the number of vehicles and diesel consumption, but the emissions have gone down by 80% in spite of that. They have been able to delink their economic growth patterns from the emissions. That is what we need to learn. In Europe, countries have opted for the “management" route. Whenever they identified a pocket in the city showing high pollution levels, they created low emission zones. They introduced congestion pricing—if you add to the pollution, you pay a price for it. In such zones, only electrical or non-motorized transportation is allowed. Coming to Beijing, the government set up air quality control districts—it was not just controlling the levels in the city, but was regulating the air quality in a big region around Beijing in one go. So, if the government wants to control pollution levels in Delhi, try and include the entire NCR and neighbouring cities. Why do we have the odd-even scheme and other fuel control only in Delhi? The minute you extend these to Gurgaon, Faridabad and Ghaziabad, one will see greater benefit to Delhi and other cities.

Is there a model in which the central and state governments can work together?

In China and the US, respective agencies from different states were brought together within an air quality control district (AQCD). So, in our case, a task force can be created, involving high level state governments officials of Delhi, Haryana, Punjab, Uttar Pradesh and Rajasthan. The task force can take a consensus-based decision, which can be implemented across the AQCD.

3.2. 47.86 GW of renewable energy capacity installed in last six years

IBEF, Dec. 13, 2019

A total of 47.86 GW of renewable energy capacity has been installed in the country during the last six years i.e. March 2014 to October 2019.

The source-wise and state-wise details of the generation of electricity through renewable energy sources during the last five years and current year are given in the Annexure.

The initiatives taken by the Government to explore new and renewable energy sources in the country inter-alia, include the Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route, Waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned up to December, 2022, notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates in cost effective manner, declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022, launching of New Schemes, such as, PM-KUSUM, solar rooftop phase II, 12000 MW CPSU scheme Phase II, etc.

The Government has set a target of installing 175 GW of renewable energy capacity by the year 2022 which includes 100 GW from solar, 60 GW from wind, 10 GW from Biomass and 5 GW from Small Hydro.

All the major programmes/schemes being implemented by the Ministry have established mechanisms to monitor the implementation of these schemes. The provision, inter-alia, include:

Physical verification by State implementing agency.

Periodic inspection by the officials of Ministry of New and Renewable Energy (MNRE).

Third party evaluation.

This information was provided by Minister of State (IC) New & Renewable Energy, Power and Skill Development and Entrepreneurship Shri R.K. Singh, in written reply to a question in Lok Sabha today.

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

4.1. More than 180 contracts valued over Rs 1,96,000 crore (US$ 28.04 billion) signed with Indian Defense Industry since 2014

IBEF, Dec. 06, 2019

The Ministry of Defence has signed more than 180 contracts valued at over Rs 1,96,000 crore (US$ 28.04 billion) with the Indian Industry since 2014 while a few are in the pipeline to be signed in near future.

A contract for manufacture of Frigates under Project P 17A was signed in February 2015 with Mazagon Dockyards Limited (MDL), Mumbai valued at Rs 45,000 crore (US$ 6.44 billion) while 02 Frigates under Project P1135.6 are slated to be manufactured by Goa Shipyard Limited (GSL) under a contract signed in Oct 2018 valued at Rs 14,100 crore (US$ 2.02 billion). Further, contracts for manufacture of 41 Advanced Light Helicopters for Indian Air Force (IAF) and 32 ALH for Indian Navy (IN) have been signed with Hindustan Aeronautics Limited (HAL) in March 2017 and Dec 2017 with a combined value of Rs 14,100 crore (US$ 2.02 billion). This is in addition to procurement of 14 Dornier 228 aircrafts from M/s HAL valued at Rs. 1100 crore (US$ 157.39 million) through a contract signed in February 2015.

Seven Squadrons of Akash Missile System are being procured from BEL through a contract of October 2019 valued at Rs 6,300 crore (US$ 901.42 million) as also the Integrated Advanced Command and Control System (IACCS) Nodes valuing Rs 7,900 crore (US$ 1.13 billion). OFB has been tasked to supply 464 T-90S/SK tanks worth Rs 19,100 crore (US$ 2.73 billion) for which indent has been placed on it by the Ministry as recently as November 2019. Also 100 Nos. of 155x52mm cal Self-Propelled Guns are being procured under the 'Make in India' initiative of the government from M/s L&T valued at Rs 4,300 crore (US$ 615.25 million). Also Contract for Modernization of Airfield Infrastructure (MAFI) to be executed through Indian vendors is under final stages of contracting.

Further, Services have also placed a number of contracts on the Private Sector vendors like Titagarh Wagons Ltd, Force Motors Pvt Ltd, Tata Power SED, Tech Mahindra Ltd, Tata Motor Ltd, Ashok Leyland Ltd, Bharat Forge Ltd, MKU Ltd, SMPP Delhi, Alpha Design for items like 1000 Tons Fuel Barges, Light Strike Vehicles, Portable Diver Detection Sonar (PDDS), RFID based SMART Card, 6x6 and 8x8 High Mobility Vehicle with Material Handling Crane, Dual Technology Mine Detector, Ballistic Helmet, Bullet Proof Jacket (BPJ) and Integrated Gunnery.

Three of the cases viz. P-75(I) Submarines, Naval Utility Helicopters (NUH) and 114 Fighter Jets for IAF, shown as stuck in the long-winded procedures are the cases which are being progressed under SP Model (a procurement procedure, which in itself has been promulgated in May 2017 as part of DPP-2016). However, even the cases under SP model have been processed expeditiously as evident from the fact that the responses to EOIs (Expression of Interest) have been received in respect of P-75(I) and NUH cases and are under final stages of selection while SQRs are being finalized in respect of 114 Fighter Aircrafts case.

In addition, under Make-II, 44 projects have been given approval. Under Innovations for Defence Excellence (iDEX). Forty plus startups are working in new technology-related products. Make-II and iDEX reflect new level of active engagement with industry where not only manufacturing but technology development for defence is being taken up.

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

4.2. JSW Cement to invest Rs 2,875 crore (US$ 411.36 million) to add 11 mtpa capacity

IBEF, Nov. 29, 2019

JSW Cement intend to invest Rs 2,875 crore (US$ 411.36 million) to increase the capacity to 25 million tonnes per annum from 14 mtpa by 2023.

The company previously set the target to reach production capacity of 20 mtpa by 2020 with an investment of Rs 2,000 crore (US$ 286.1 million) and list the company on the stock exchange with an initial public offer.

Though, due to liquidity limits and unfavourable market conditions the company has deferred both the expansion and initial public offer plan to 2021.

It will invest Rs 800 crore (US$ 114.47 million) over next four years in Siva Cement, which is a listed entity, to set up 1 mtpa clinker and 1 mtpa grinding unit.

Mr. Parth Jindal, Managing Director, JSW Cement, said that when the expansion projects of the company will be completed, it will enter the position among the top five cement companies.

The demand for cement has already picked up in the last two months and should gather pace by early next year, he said.

JSW Cement plans to raise an amount of Rs 4,000 crore (US$ 572.3 million) through an IPO to fund its next phase of expansion to set up fresh capacity of 10 mtpa after the set expansion is completed, Jindal said.

The company, in southern India intend to add 3.6 mtpa capacity to take its total cement capacity to 11.6 mtpa. The expansion at its unit in Toranagallu, Karnataka comprises of debottlenecking and installation of a new grinding unit to take its capacity to 6 mtpa from 3.2 mtpa. The company also plans to put up a new grinding unit of 0.8 mtpa capacity at Salem in Tamil Nadu.

The company plans to add 2.4 mtpa in West and make its total cement capacity to 4.6 tpa, by debottlenecking and setting up a new grinding unit whereas in the East, it will add the largest chunk of production capacities of over 5 mtpa, bringing its total capacity to 9 mtpa. The capacity will be ramped up at the manufacturing unit at Salboni, West Bengal where the company will add 2.4 mtpa, another 1.80 mtpa at Jajpur in Odisha apart from 1 mtpa at Shiva Cement in Odisha.

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

5.1. India reaches electricity generation capacity of 365 GW: Power Minister

IBEF, Dec. 02, 2019

The installed power generation capacity in India reached 364.9 gigawatts, that is adequate to meet the country's electric demand.

Furthermore, the peak alongside with the energy requirement deficit was less than one per cent during the first seven months of 2019-20, Minister of States for Power and New and Renewable Energy Mr. R K Singh said.

"As on 31.10.2019, the installed generation capacity in the country is around 3,64,960 megawatt (MW), which is sufficient to meet the electricity demand in the country. It may be seen that the gap between demand and supply of power during the current year 2019-20 (up to October 2019) both in terms of energy and peak is less than 1 per cent," he added.

The gap is mainly because of reasons other than the shortage of power availability in the country such as restraints in sub-transmission and distribution network, financial constraints of state power utilities to purchase power, Mr. Singh said.

He added that if there is any shortage in meeting power requirement, distribution companies can also purchase power from power exchanges on a daily basis.

"The government is supporting the states/UTs in augmenting and strengthening the intra-state transmission and distribution network through various schemes including Deen Dayal Upadhyaya Gram Jyoti Yojana and Integrated Power Development Scheme," the minister said.

The coal stock in power plants as on November 21 stood at 23.1 million tonnes (MT) for 14 days as against 12.1 MT for 7 days on the same day last year, the minister said.

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

5.2. India Design Council launches two Initiatives to promote Design Education and Standards

IBEF, Dec. 13, 2019

The India Design Council (IDC) launched the Chartered Designs of India (CDI) and the Design Education Quality Mark (DEQM) in New Delhi today.

These two initiatives of IDC and National Institute of design, Ahmedabad will help to address the 5 challenges of scale, quality of design, quality of education for design, raising the priority for design in industry and design for public purpose.

As Design Education gains momentum in India, it is necessary that commissioners of Design projects and designers are able to distinguish qualified professional designers as against hobbyists and non-professionals. India has a growing design ecosystem that has resulted in growth both in employment of creative skills and impact in the service sector. Creative manufacturing and design innovation will be the key drivers in the Make in India initiative of 2020 and beyond and further strengthening the brand "designed in India".

India Design Council is an autonomous body of the Government of India established under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry. It is a national strategic body for multi-disciplinary design and is involved in promotion of design to make India a design enabled country.

In 2007, India became one of the few countries to adopt a National Design Policy (NDP) and to enable the policy implementation the Government of India announced establishment of IDC in March 2009. IDC is mandated to implement the NDP and is committed to work towards raising the standards of design education in India and ensure that it meets global benchmarks. IDC is working with other government agencies, the design community, industry and educational institutions to promote design in business, society and public service.

The two initiatives launched today will aid and support the profession of design and help in growing the profession and to establish professional standards. The DEQM will benchmark design education programmes on predetermined standards and will accord Design Education Quality Mark to institutions that meet the provisions of the published standard. The DEQ Mark will be granted to institutions which undergo the review process and meet or exceed the expectations for quality and standards as prescribed in the Quality Code.

The Quality Mark will communicate to everyone that an institution has a guaranteed minimum level of quality and standards and has undergone a third party, neutral review process. The Quality Mark includes a trademark-protected logo, which could be used by the recipient institutions in all forms of internal and external communication.

The Quality Mark will help students to choose the right design programme from a wide choice, help prospective employers understand the standing of the design institute and communicate to the society about the adherence of Quality Code by the design institute.

The second initiative launched today of the CDI is envisaged as an institution that will establish and uphold the professional standards of design practice in India. The focus of CDI is the "Professional Designer" identified by a design qualification and or experience. CDI is a cohesive platform that adheres to the design practice to standards in professional design competence, ethics and service.

The need for a quality code was felt as there has been an exponential growth in the number of institutions providing design qualifications in India necessitating the creation of a guiding framework that represents a common rationale/ philosophy for design curricula and its implementation. The aim is to harmonise the different education systems whilst taking into account their great diversity.

The Quality Code is the means to create this guiding framework. It has been based on the UK Quality Code for Higher Education published by the Quality Assurance Agency for Higher Education, UK (QAA).

The two initiatives were launched in the presence of Chairman IDC Dr. Naushad Forbes, Director NID Ahmedabad and Member Secretary IDC, Praveen Nahar and other members of IDC.

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

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

6.1. India's rural poverty has shot up

Livemint 03 Dec. 2019, Pramit Bhattacharya, Sriharsha Devulapalli

Bihar, Jharkhand and Odisha have seen sharp increases in poverty rates over the past few years, an analysis of the national statistical office data suggests

Ever since India moved to a high growth trajectory in the 1980s, poverty rates have consistently declined over time. Until now.

A Mint analysis of the consumption expenditure numbers reported by the National Statistical Office (NSO) in a hushed-up report suggests that rural poverty rose nearly 4 percentage points between 2011-12 and 2017-18 to 30 percent even as urban poverty fell 5 percentage points over the same period to 9 percent. Given the higher weight of the rural population, the estimated overall poverty rate went up nearly a percentage point to 23 percent in 2017-18. The rise implies that 30 million people fell below India’s official poverty line and joined the ranks of the poor over the past six years.

The analysis is based on a couple of simplifying assumptions (more below) and should only be treated as rough estimates of poverty in India. Yet, the broad conclusions as well as the key trends are unlikely to change regardless of the methodological tweaks used to arrive at the poverty figures.

The analysis shows that the slight rise in overall poverty rates at the national level masks significant inter-state disparities. Several states in the east and north-east have witnessed a sharp rise in poverty over the past few years even as southern states (barring Karnataka) managed to bring down poverty rates.

Among large states, Bihar saw the greatest rise in poverty between 2011-12 and 2017-18, with poverty rate rising by a whopping 17 percentage points to 50.47 percent. Jharkhand (8.6 percentage points or ppts increase) and Odisha (8.1 ppts increase) are the other large states which saw big increases in the poverty rate. The poverty rate refers to the (percentage) share of the population that lies below the poverty line. More than 40 percent of both Jharkhand and Odisha fall below the poverty line.

West Bengal (6 ppts fall), Gujarat (5 ppts fall), and Tamil Nadu (5 ppts fall) saw the biggest declines in poverty among the large states in the period between 2011-12 and 2017-18. Among prosperous states, Maharashtra saw the biggest increase in poverty (roughly 5 ppts) over the same period.

The analysis is based on the inflation-adjusted state-wise poverty lines for rural and urban areas reported by the erstwhile Planning Commission in a 2013 note. The Planning Commission figures were based on the methodology suggested by the Tendulkar committee on poverty in 2009, and remain the last official estimates of poverty in India. Another report by the Rangarajan committee re-estimated poverty and submitted its report in mid-2014 but the report has neither been accepted by the government nor been used for any official allocation of funds.

The precise estimation of poverty ratios requires the raw consumption survey data. Mint has not been able to access the raw data yet. But the ‘key indicators’ report provides enough information to compute rough estimates of the poverty ratios, which this analysis has attempted. The headline numbers from the ‘key indicators’ report were first reported by Business Standard.

The analysis here relies on two key assumptions. Given that the ‘key indicators’ report for the 2017-18 consumption survey only reported state-wise consumption expenditures for 12 key percentiles (5th, 10th, 20th, 30th,..., 90th, 95th percentiles), a simple (linear) interpolation technique was used to derive the figures for the rest of the percentiles. The assumption here is that the distribution of consumption is smooth across the reported percentiles (say between the 10th and 20th percentiles). A percentile refers to each of the 100 equal groups into which a population can be divided according to the distribution of values of a particular variable.

The second assumption relates to the adjustment in the poverty lines based on differences in consumption figures, as reported by the mixed reference period (MRP) and modified mixed reference period (MMRP). The 2011-12 survey featured estimates based on both methods. The MMRP figures were higher across each income class for each state, and were deemed to be more accurate by official statisticians. The 2017-18 survey used only the MMRP method. But given that the Tendulkar poverty line and the Planning Commission estimates were based on the MRP figures, these poverty lines had to be scaled up to reflect the MRP-MMRP differences. This was done using a scaling-up factor based on the ratio between MRP and MMRP figures at the middle of the distribution (50th percentile) for each state, as reported in the 2011-12 report. The assumption here is that the MRP-MMRP ratio at the middle of the distribution broadly mirrors the overall distribution.

Across most states, rural poverty levels rose even as urban poverty levels declined, the analysis shows. A comparison of the decile-wise consumption spend across the country in 2011-12 and 2017-18 shows that the real (inflation-adjusted) consumption expenditure fell across all decile classes in rural India even as it rose across almost all decile classes in urban India.

This suggests that regardless of the precise poverty line one adopts, rural poverty will have gone up between 2011-12 and 2017-18, and urban poverty will have gone down over the same period.

If one were to adopt a higher poverty line (such as the one recommended by Rangarajan committee), the extent of the rise in rural poverty is likely to be higher while the extent of the decline in urban poverty is likely to be lower.

Trends in the real rural wages reported by the labour bureau tend to corroborate the rise in rural distress that the survey findings have highlighted. The labour bureau data show that real rural wages have witnessed a sharp slowdown in the years following 2011-12, after having grown sharply in the period between 2004-05 and 2011-12.

The government has cited an expert panel’s recommendations to justify junking the consumption survey report but that expert panel did not actually ask for the report to be buried. The discomfiting findings of the survey report may be the real reason behind the decision to hurriedly bury the report and discredit the survey, some experts have argued.

The government’s decision has prevented an evidence-based discussion of the problems and challenges facing rural India. Unlike the official growth figures, which fail to capture a large part of rural and informal economic activity, surveys conducted by NSO capture rich details of such activities.

Given the centrality of the consumption figures in the estimation of poverty, the government’s decision also has serious implications for state finances and welfare. If allocation of centrally sponsored schemes and Finance Commission grants continue to be based on outdated poverty rates (of 2011-12), states that have witnessed spikes in poverty rates will end up getting less than they need. And these are precisely the states that need help most.

Given that these issues involve enormous public funds, the raw data collected by the surveyors should be opened up to the public. A large number of independent researchers can then go through the numbers and assess scientifically which of the survey findings we should pay heed to, and which we could ignore.

6.2. 1303 Cold Storages with total capacity of over 4.5 million MT in country since 2015

IBEF, Dec. 05, 2019

1303 cold storages with a total capacity of 45,62,860 Metric Tonnes (MT) have been established in the country under the schemes under Ministry of Food Processing Industries and Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) from 2015-16 to 2019-20 (as on 31.10.2019). This information was given by the Minister of State for Food Processing Industries Sh. Rameswar Teliin in a written reply in the Lok Sabha today.

Ministry of Food Processing Industries (MoFPI) is implementing Pradhan Mantri Kisan Sampada Yojana (PMKSY), which comprises of component schemes namely (i) Integrated Cold Chain and Value Addition Infrastructure, (ii) Mega Food Park, (iii) Creation of Backward & Forward Linkages, (iv)Creation / Expansion of Food Processing and Preservation Capacities (v) Agro processing Cluster and (vi) Operation Greens. Cold storages are established as a part of these schemes. The prospective entrepreneurs may apply against the Expression of Interest as and when floated by this Ministry.

Cold storages are also established through the schemes of Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) namely (i) Mission for Integrated Development of Horticulture (MIDH) for development of Horticulture in the country and (ii) Capital Investment Subsidy for Construction/ Expansion / Modernization of Cold Storages and Storages for Horticulture Products of National Horticulture Board.

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

7.1. IKEA to open three stores in Mumbai, recruit 1,000 people

IBEF, Nov. 27, 2019

IKEA, Swedish home furnishing retailer, intends to open three stores in Mumbai. This would consist of a flagship store in Navi Mumbai along with two smaller outlets. The company plans to recruit around 1,000 people, mainly for the Navi Mumbai store, which is planned to open within a year.

Ms. Jaxa Gohil, Store Manager, IKEA India, said that the company has begun its mass recruitment process, with a couple of hundred people already hired for its Navi Mumbai store.

India is massively significant for IKEA globally, Ms. Gohil said, adding that it is witnessing the company's biggest expansion plans among new markets. IKEA is investing €1.5 billion (Rs 117.96 billion) in India.

The larger stores will be spread over an area of more than 45,000 sq. m, while the small-format ones will span an area of over 6,500 sq. m.

"Mumbai is a significant market for us, one of the top 30 cities globally and our biggest investment in India with warehousing, e-commerce and stores," Ms. Gohil said. The company has set a goal to reach 100 million people in three years.

IKEA has located Mumbai, Delhi and Bengaluru as cities that have potential and opportunities, said Ms. Gohil. Thus, IKEA will be targeting in these cities and setting multiple 'customer meeting points', that will consist a variety of touchpoints such as flagship stores, small stores as well as digital touchpoints.

It also intends to expand through e-commerce channels for Bengaluru and Delhi soon and has started a pilot for e-commerce in Pune.

In August, IKEA started its e-commerce channel for Mumbai and has garnered 2 million visits so far, said Ms. Gohil. E-commerce for Hyderabad was also started, where it opened its only physical store in India in 2018.

IKEA has introduced 500 products for Indian market as localisation forms an important strategy in India, Ms. Gohil said. The 50-50 diversity agenda which ensures that 50 per cent of the employees recruited are women is another focus area for IKEA India, she added.

Accessibility, affordability and sustainability are among its other focus areas in India. There are around 1,000 products available at less than Rs 200 apiece in India currently, she said. As for accessibility, India will have some of IKEA's first small format stores globally, she added.

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

7.2. Crop insurance flaws fuel farm distress

Livemint, 19 Nov. 2019, Sayantan Bera

At a time when rural incomes are sliding, the only existing safety net for the farmer is failing

High costs of reinsurance due to erratic weather, a spike in claims, political interference in crop loss estimation are reasons that forced some insurers to leave the business

NEW DELHI :

Santosh Kumar’s first brush with insurance left a bitter aftertaste. A farmer’s son, 26-year-old Kumar from Bihar’s Araria district felt betrayed when hundreds of farmers from his village, including his own father, were denied what was due to them. In August 2017, Kumar’s village in Palasi block of Araria was flooded by an overflowing Kosi river. Much of the paddy crop got washed away.

Thankfully, for the first time—without even knowing about it—around 250 farmers had gotten themselves covered under the Prime Minister’s flagship crop insurance scheme. Premiums had been automatically deducted from their crop loan accounts held by a public sector bank without their consent. However, after the floods, it seemed like a blessing.

A month after the water receded, the flood-hit farmers visited the bank as the insurer did not have a local office. They were told matter-of-factly: your claims will be settled, but it may take more than a year. “Such delays are normal".

So, they waited. By February 2019, their patience had worn off. They made a list of insured farmers and pressed for a settlement of the claim. The bank advised them to get in touch with the insurer, a private firm. The response of the insurer’s customer service executive came as a rude shock: “You were supposed to intimate us within 48 hours of crop damage, which you didn’t. Besides, according to our records, your crop did not suffer any significant loss."

“We felt cheated. How could we inform the company when our homes were under water?" asks Kumar. “We were living on the highway...on the roofs of concrete houses. During the first 48 hours of the flood, some took shelter on top of trees," added Kumar, who still harbours a faint hope that the money will reach him someday.

Experiences like Kumar’s have become fairly common. And it is starting to make farmers view the flagship central government crop insurance scheme with suspicion. When the Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in June 2016, the idea was fairly simple: any farmer who avails a loan will simultaneously sign up for insurance; any crop damage will be evaluated by state government officials; and the insurer would eventually pay out a compensation amount commensurate to the degree of yield loss. That was the theory.

In practise, few farmers get compensation on time. As on 1 November, insurance companies owe farmers ₹2,511 crore from the kharif 2018 crop season (16% of estimated claims). That amounts to a delay of more than a year from the date of harvest. For winter crops harvested in April-May of 2019, farmers are waiting for another ₹1,269 crore (26% of estimated claims), revealed an agriculture ministry official on condition of anonymity.

With limited use of tech and gaping implementation challenges, crop insurance is on the verge of getting caught up in a web of distrust fuelled by limited evidence

Naturally, farmers are losing interest. Enrolment under PMFBY fell from 40.5 million farmers in kharif 2016 to 34 million in 2018, a 16% drop within two years.

So, what really came out of the government-led programme to mitigate the risks faced by the farmers which has cost nearly ₹1 trillion in premiums since 2016? What will happen to those who suffered serious crop damage this year due to an erratic monsoon, which has, most visibly, resulted in soaring onion prices?

Inside this esoteric world of premiums and compensation claims and the fates of individual farmers lies a larger economic puzzle: how can there be a revival in rural incomes when the only remaining fallback fails?

Private exit

Farmer distrust regarding the scheme has only gained strength after four private insurers—ICICI Lombard General Insurance Co. Ltd, Tata AIG General Insurance Co. Ltd, Cholamandalam MS General Insurance Co. Ltd, and Shriram General Insurance Co. Ltd—did not bid for insurance clusters in the kharif 2019 crop season.

“After making money for two years, private insurers are running away when adverse weather is hitting us in more and more states," said Raju Shetty, a former member of Parliament and farmer leader from Maharashtra.

Insurance industry insiders point to a slew of problems which forced some to leave the business. High costs of reinsurance due to erratic weather, a spike in claims and political interference in crop loss estimation are significant reasons, they claim.

The decision to stay away is not final and was driven by extreme weather conditions, said S. S. Gopalarathnam, managing director at Cholamandalam MS, which is expecting an adverse 165% loss ratio (claims as a % of premiums) in 2018-19. Both ICICI Lombard and Tata AIG declined to respond to queries from Mint.

However, Bhargav Dasgupta, MD and CEO of ICICI Lombard, in an earnings call in July this year, said: “We don’t believe that the crop business, given the terms, can be viable. At the end of the day, it is social insurance."

Suddenly, three years and seven crop seasons after PMFBY was launched with much fanfare, no one seems to be happy. The farmer is troubled, the insurer is running for cover and state governments, who spend a significant amount of their agriculture budget on the scheme, appear reluctant to pay their share of premium on time (under the scheme, farmers pay only 2% of the premium while the rest is borne equally by the Centre and state governments).

“The claims for kharif 2019 are expected to cross 90% of the premium collected," predicted a senior official at the agriculture ministry who did not want to be named. “With an average 10% in reinsurance costs and 5% in administrative charges, this season is likely to bleed insurers."

To fill the gap left behind by private firms, public sector insurers now account for 65% of the crop insurance market, up from around 50% a year ago. The largest among them, the Agriculture Insurance Company of India Ltd, is now staring at heavy payouts due to erratic rains in at five states—Maharashtra, Madhya Pradesh, Gujarat, Chhattisgarh and West Bengal.

The ministry official cautioned that it should not shock anybody if public insurers, too, express an intent to exit, unless the government makes good their losses.

This wasn’t the case till last year (2018-19). In the six crop seasons between kharif 2016 and rabi (winter harvest) 2019, insurance companies collected a total of ₹76,155 crore in premiums and settled ₹55,618 crore in claims. On balance, that implies decent profit margins, given the unique nature of the scheme—since costs are kept low by selling policies through the banking network and crop loss assessments are mostly carried out by state governments.

“The heavily subsidized scheme unlocked a lot of value for insurers. Now that the market is mature, farmers are aware, and the government is eager to make insurance work for farmers, companies are running away," said an insurance consultant to a state government who did not want to be named.

Insurance companies have used every trick in the book, the consultant said, “from choosing low-risk profitable clusters to forming cartels in order to quote higher premiums during bidding". In the end, when nothing else works, there is always the option of an exit.

“The government needs to go back to the drawing board and fix this," said the state government official. “Insurance companies cannot be entrusted with the scheme where so much public money is flowing (close to ₹1 trillion in seven crop seasons to kharif 2019) and when farmers are running from pillar to post to get claims."

A mess across states

At its heart, a well-functioning insurance is meant to bail out a person when the need is dire. That is why the idea of crop insurance itself has its origins in depression-era 1930s US. But India’s farmers have little hope that PMFBY will come to their aid this year.

In Maharashtra alone, an estimated 10 million farmers are affected. Farmer organizations are now demanding that the state be declared hit by a “wet-drought". Drought, for the lack of rainfall in the early months of monsoon (June-July), and wet since crops like soya bean, cotton and onion were washed away by three weeks of continuous rains in October.

“Poor claim settlement cannot be justified (this year) since the rainfall data is proof of how extreme it was," said Prakash Popre, a farmer and professor of agriculture from Nanded.

If poor compensation payouts was not worrying enough, in July this year, Madhya Pradesh government went a step ahead to limit the maximum payout. To lower its financial outgo due to premiums, the state government reduced the sum assured by 25%. For instance, in Harda district, farmers were entitled to a claim of ₹35,000 for 100% damage to their soya bean crop per hectare in 2018, which has now fallen to ₹26,250 this year.

“Back in 2017, the claim payout was as low as ₹131 in some cases. We are unsure this year," said Ram Inaniya, a farmer from Harda, Madhya Pradesh.

There is an evident conflict of interest, admits the official from the agriculture ministry quoted earlier. “We are running PMFBY as a social sector scheme for farmers. For insurers, it is a business. Still, the beauty of the scheme is that insurance companies cannot decide everything, including the extent of crop loss," said the official.

Saga of distrust

But that element of protection built into the scheme, which mandates state governments to determine the extent of damage, may be one of the main reasons for the long delays in compensation payouts.

In cases where crop damage is reported, state governments usually undertake crop cutting experiments (CCEs) in the presence of officials from insurance firms. The challenge lies in the sheer number of CCEs which needs to be completed within a short window—currently estimated at more than seven million every year. “The possibility of dispute is high since the process is manual and farmers are (often) unhappy about the choice of plots to estimate yields. Moving away from yield-based insurance to a weather-based products could offer a solution," said Yogesh Patil, CEO of Skymet, a private weather services company.

The way ahead could also lie in extensive use of technology, such as satellite imagery and drones to estimate losses—which PMFBY promised but has been slow to implement.

Data on a host of parameters like the groundwater situation, soil moisture, irrigation, weather and remote sensing can be used to estimate yields, said Anuj Kumbhat, director at Weather Risk Management Services. “The idea is to use CCE’s as a corroboration tool and minimize the number of CCEs. But states have been slow to adopt new technology."

With limited use of technology and gaping challenges in implementation, crop insurance seems to be on the verge of getting caught up in a web of distrust fuelled by limited evidence.

Even farmers sometimes exploit these weaknesses, says Siraj Hussain, a former agriculture secretary. That begins with enrolment, which has a cut-off date of end-July, when the actual arrival of the monsoon is in early June.

“Insurance is a cover for uncertainty… one cannot allow enrolment when signs of a drought or flood is evident," said Hussain. “A scheme where so much of public money is involved needs integrity at all levels." He added that by November, more than 2.5 million claim intimations have already been filed by farmers in Maharashtra for post-harvest losses due to excess rains, and some of these may be dubious.

Meanwhile, Suresh Ediga, a volunteer with the non-profit run helpline Kisan Mitra, has been grappling with a spike in distress calls from farmers in several districts of Telangana, who are genuinely in a fix due to irredeemable crop damage. The helpline, originally meant to be a suicide hotline, is quickly learning about the intricacies of insurance.

Most insured farmers, a shocked Ediga found out, had no knowledge about whom to report their losses. They did not have any details about the insurance policy, which crop was insured, or the amount of coverage (sum insured). The helpline of the private insurer did not work most of the time, and when it did, the customer executive could not follow the local language, Telugu.

But the state of India’s response to remedy the risks inherent in farming became most evident, Adiga says, by one instance in which a private bank sold a mortgage insurance to a Telangana farmer who was made to believe it was crop insurance. This year, like many other farmers in India’s hinterland, he will get no relief.

8.1. 2.777 million hectares covered under organic farming in the country: Union Agriculture Minister

IBEF, Nov. 20, 2019

A total area of 27.77 lakh hectares is covered under organic farming in the country under Participatory Guarantee System (PGS) and 3rd party certification.

Government of India has been encouraging organic farming in the country through the dedicated schemes namely Paramparagat Krishi Vikas Yojana (PKVY- Centrally Sponsored scheme, in all states & UTs) and Mission Organic Value Chain Development of North East Region (MOVCDNER -Central Sector scheme for North Eastern Region). Both the schemes aim at promotion of cluster/ Farmers Producer Organization (FPO) based chemical free, low input cost, sustainable organic farming and support farmers from input procurement to market linkages. Organic Farming has also been supported under other schemes viz. Rashtriya Krishi Vikas Yojana (RKVY) and Mission for Integrated Development of Horticulture (MIDH), Network Project on Organic Farming under Indian Council of Agricultural Research (ICAR). Third party certification of organic farming is promoted by Agriculture Processed Food and Export Development Authority (APEDA), Ministry of Commerce.

Management Agricultural National Institute of Extension (MANAGE), Hyderabad conducted impact study for the scheme Paramparagat Krishi Vikas Yojana (PKVY) during 2017. It is reported that there was 10-20 per cent reduction in cost of cultivation (cost saving) and 20-50 per cent increase in net returns to organic farmers. Price premium (up to 30 per cent) was also observed in some clusters, which were nearer to large cities and had good linkages with large markets.

In the last 3 years, 115314 and 2050 number of capacity building trainings/ workshops conducted for the farmers in the country under PKVY and MOVCDNER scheme respectively, while the no. of farmers participated in the workshops are 14.93 lakhs and 82294 respectively. In U.P 2300 workshops were conducted, and 31000 farmers participated. Apart from states, National Centre of Organic Farming (NCOF), Ghaziabad, a subordinate office of Department of Agriculture Cooperation (DAC&FW) also conducts regular certificate course on organic farming (CCOF), trainings to farmers/ extension staff skill development training on Organic Growers & Vermicompost for promotion of organic farming and its techniques.

Under protected cultivation component of MIDH, assistance is also provided for creation of polyhouses which protects the plants from adverse climatic conditions and provides an appropriate amount of light, temperature, humidity, carbon-dioxide etc. to achieve optimum yield with excellent quality. Since inception of MIDH scheme i.e. from 2014-15 to till date an additional area of 2380.49 ha has been brought under Greenhouse structures like polyhouses.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Lok Sabha today.

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

8.2. Walmart Inc launches supplier development programme in India

IBEF, Dec. 11, 2019

Walmart Inc, US-based retail major launched a supplier development programme in India with the goal to train 50,000 small and medium entrepreneurs empowering them to scale up and take part in global supply chains.

The initiative is known as Walmart Vriddhi Supplier Development Program, that will set up around 25 institutes strategically near manufacturing clusters across the country with an aim to train these 50,000 micro, small and medium-sized enterprises (MSME) in the next five years, the company added. The first such institute is likely to be open in March 2020.

India is already among the top five sourcing markets for the retail giant globally, and the new initiative is part of its long-term commitments to the country.

Ms Judith McKenna, President and Chief Executive Officer of Walmart International, said, “Today, our Cash & Carry stores source 95 per cent of what they sell from India...India is a top-five sourcing market for Walmart today, with a global sourcing hub in Bangalore that already sources Indian products for 14 markets around the world. “

“The Walmart Vriddhi Program will connect the network of supplier development communities we have already today in Flipkart and Best Price, using their learnings to help develop powerful curriculum and expand and accelerate the work even further and faster. With training and support, we can provide new and unique opportunities for MSME growth, both domestically and abroad,” she added.

The Walmart Vriddhi institutes would directly provide training to MSME and allow them to become part of the domestic and international supply chains of Walmart and Flipkart as well as other players.

“Uniquely, this is an open platform designed not for Walmart but for the best interests of those the program will serve.,” Ms McKenna pointed out, adding that this will be a pan-India initiative. Although, the company did not provide any specifics on investments being made on setting up these institutes.

Walmart, in 2018, acquired 77 per cent stake in Flipkart, the country’s leading online e-commerce platform, which also operates Myntra, Jabong and PhonePe.

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

9.1. Tech will bring big on par with small: Hari Menon

Livemint, 27 Nov. 2019, Staff Writer

Co-founder of online grocery startup BigBasket shares five ideas that will impact the future of retail in the decade ahead

2020 once seemed futuristic enough for governments and think tanks to set targets for transformation at scale. With the new year now just weeks away, Mint invites entrepreneurs and corporate leaders to share their vision for the next decade. Hari Menon, co-founder of online grocery startup BigBasket, shares five ideas that will impact the future of retail in the decade ahead.

Private vs public

The trade-off between hyper-personalization and privacy will see some resolution. Both offline and online retail will continue their quest to create personalized experiences for customers, who, in turn, would struggle to balance sharing information for the sake of improved personalized experiences with concerns about privacy. Regulations such as GDPR will have to become more common across the world to help governments find this balance on behalf of customers and retailers.

Customers & conscious choice

Sustainability will take a leap. Increasing consumer awareness and regulatory pressure will drive innovation in development of alternatives to plastic and other non-recyclable packaging materials. Consumer choices will drive health, organic, and eco-friendly products.

Finding common ground

By embracing digital, kirana stores will continue to remain relevant to millennials and post-millennials. Many of them will become part of the omni-channel strategy of large-box retailers to help them stay competitive. Kirana stores and big box retailers will develop a strong symbiotic relationship.

Taking human out of retail

We’re likely to see a breakout of human-less retail. It could help offline retail gather more knowledge about customers. It will be interesting to see how regulatory authorities balance this innovation with the exclusion that human-less retail formats would create for those not technologically savvy.

Farmers take control of the way they sell

Technology will drive inclusion. Retail will further disintermediate the supply chain to give the maximum share of the customer’s rupee to farmers and other small suppliers. Technology will strengthen the system of price collection across markets and real-time dissemination online. Trading through online platforms is a real possibility in the not-too-distant future. Discerning farmers can participate in these and take control of their destiny. It would potentially allow farmers from the remotest corners to have access to markets across the country. Mobile apps will allow them to access complex knowledge and information at the press of a but

9.2. Can beer hop from craft to corporate?

Livemint, 29 Nov. 2019, Jahnabee Borah

Two multinationals are stepping into India’s craft beer market with wheat beer variants
Lounge examines the fine difference between craft beers and those that are crafted for this market

The craft beer industry is abuzz with the news of two multinational beverage companies, Anheuser-Busch (AB) InBev and United Breweries, which control three-fourths of India’s beer sales, stepping in with new wheat-based products. While AB InBev, which sells the crowd-pleaser Budweiser, is selling its “crafted wheat beer" through 7 Rivers Brewing Co., United Breweries will introduce its “locally produced wheat beer variants" by the end of the year.

To put it simply, these firms are creating a craft beer variation they hope will help them enter this growing market. Speaking to Lounge over the phone from Bengaluru, Debabrata Mukherjee, chief marketing officer of United Breweries, says, “It is an offering for a set of consumers who are looking for a differentiated product with a crafted set of ingredients."The differentiating aspect can vary from malt to hops, he adds. AB InBev’s canned beers, Veere and Machaa, were introduced across 300 outlets in Pune and Mumbai mid-November. They are priced at ₹140 for a 330ml can.

But can these qualify as “craft beer", which implies an essentially artisanal quality, or do they fall short?

According to the Craft Brewers Association of India (Cbai), there are approximately 200 craft breweries, which make a variety of speciality handcrafted beers in small batches with premium ingredients like barley, wheat, rice, fruits and herbs, often directly sourced from farmers or cottage industry suppliers.

“As a thumb rule, Cbai says a brewery must produce up to 250,000 hectolitres per year to qualify as craft. They must be independently owned and not more than 25% owned by big breweries or private equities," explains Gaurav Sikka, managing director, Arbor Brewing Company, and a Cbai office-bearer. In the US, craft breweries are certified by a seal of differentiation. Sikka says Cbai may introduce a similar marker to ensure proper representation for craft as lines blur.

Cold chain for the fresh brew

Craft brewers and drinkers swear by freshness, therefore proximity to the brewery and storage is imperative. Can big-brand manufacturers replicate these processes and flavours?

Fresh Brews

But can these qualify as “craft beer", which implies an essentially artisanal quality, or do they fall short?

Cold chain for fresh brew

Craft brewers and drinkers swear by freshness, therefore proximity to the brewery and storage is imperative. Can big-brand manufacturers replicate these processes and flavours?

“Craft beer is not just beer on tap. It can be packaged and the shelf life is about six-nine months," says Sikka. They have an iconic brewery in Bengaluru but they also sell canned craft beer like Indian pale ale and a honey-with-lavender flavoured strong version in Karnataka and Goa.

When craft beer is transported over long distances, a superior standard of cold chain is needed to maintain freshness and quality. But there’s no cold chain infrastructure for craft beer distribution in India. It’s a big challenge, adds Sikka.

Over the last five years, the Indian craft beer market—developed by microbreweries as well as brands like Bira, Simba and White Rhino—has found ways to trendily package beer in kegs, bottles and cans. It has drawn in younger beer enthusiasts and created cult followings, even if total sales—approximately 2-3%—are a tiny percentage of the overall beer market.

Bigger companies now want a piece of the pie. AB InBev is also setting up premium microbreweries in partnership with Taj Hotels, with the first one coming up at a Taj property in Bengaluru next spring. Meanwhile, BrewDog, the Scotland-based independent brewery, plans to start retailing in India in a few weeks. Their superior cold chain will maintain the quality of beer from the plant to retail outlets in India, they claim.

Will the big daddies of beer be able to appeal to craft beer lovers? That remains to be seen, but craft beer in India is certainly poised for interesting times.

10.1.1. 500 Bee Boxes, 500 Pottery Wheels and 200 Leather Kits Distributed in Boondi District by KVIC

IBEF, Dec. 10, 2019

To commemorate 150th Birth Anniversary of Mahatma Gandhi and to support the weaker section of the society in Boondi District, Rajasthan, Khadi and Village Industries Commission (KVIC) organized an event yesterday, in which Shri Om Birla, the Speaker of Lok Sabha distributed 500 Bee Boxes, 500 Electric Pottery Wheels and 200 Leather Tool Kits in presence of Shri V. K. Saxena, Chairman, KVIC and MLA Shri Ashok Dogra.

Complementing the efforts of KVIC, Shri Om Birla said, "Bapu had always dreamed of encouraging the rural talents and providing livelihood opportunities at their doorsteps. KVIC is fulfilling Bapu's dream in its true sense. KVIC's initiative of reviving the bee keeping, pottery and leather industry would go a long way, in helping the rural youth earn their respect and dignity."

Quite noticeably, KVIC has been spear heading a mass campaign for the revival of bee keeping, pottery and leather industry since last 2 years under Honey Mission, Kumhar Sashaktikaran Mission and Leather Mission respectively. KVIC has distributed around 1.15 Lakh Bee boxes, 13000 Electric Pottery Wheel, 2500 Leather Kits across India so far, thus generating a livelihood for 17,000 beekeepers, 52,000 potters and 2500 Leather artisans so far.

Shri V K Saxena, Chairman KVIC said, "The objective of this event is to empower the rural artisans and help them gain confidence in bee keeping, pottery and leather artistry. Aligned with the vision of Prime Minister, our endeavour is to provide livelihood opportunities as well as alternate source of income to the rural farmers who otherwise adopt to menial labor or migrate to big towns or cities for daily wage jobs."

The event witnessed a huge turnout of artisans from Jhalawad, Kota and Boondi Districts of Rajasthan. Beneficiaries thanked Om Birla Ji and VK Saxena Ji for coming all the way from Delhi to distribute electric pottery wheels in the village. The new wheel is less effort consuming and will yield high quality products while reducing the number of man hours quite considerably.

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

10.1.2. CSIR signs MoU with KVIC on promotion of honey production Khadi outlets to also display CSIR products

IBEF, Dec. 06, 2019

The Council of Scientific & Industrial Research (CSIR) has entered into a Memorandum of Understanding (MoU) with the Khadi and Village Industries Commission (KVIC) to leverage the expertise available in CSIR with the effort of KVIC for promotion of honey production and also to enable wider outreach of the CSIR technologies and products. The MoU will help formalize the working relationship between the two organizations in areas such as honey testing, promotion of Honey Mission alongside the CSIR Aroma Mission and the proposed CSIR Floriculture Mission. It will also explore enlisting of CSIR licensees in the KVIC network, display of CSIR technology products at important KVIC outlets such that CSIR products can reach to wider audience.

The MoU was signed by Dr. Shekhar C. Mande, Secretary, Department for Scientific & Industrial Research and Director General, CSIR and Shri Vinai Kumar Saxena, Chairman, KVIC here yesterday.

CSIR has over the years, been pursuing R&D in various sectors and has developed a portfolio of processes, technologies and products in these sectors. In the agriculture and nutrition sector, the focus has been in development of technologies and products pertaining to medicinal and aromatic plants, floriculture and food processing.

Amongst its various activities aimed at the development of Khadi and other village industries in rural areas, the KVIC is implementing Honey Mission for introducing and popularizing modern beekeeping in the rural areas.

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

10.2. ITC bets big on frozen food segment, eyes 20 per cent market share in 3 years

IBEF, Dec. 12, 2019

ITC, a diversified conglomerate is targeting up to 20 per cent of the Rs 7,400 crore (US$ 1.06 billion) frozen food market in India in next three years with the company increasing its offering in the category, as per a senior company official.

Recently, the firm has ventured into the frozen food segment under ITC Master Chef brand aiming both retail and food services players. The company also plan to expand its reach to over 30 cities in the retail segment and 100 cities in food services segment during the period.

"Currently, the frozen foods market in India is about Rs 7,400 crore (US$ 1.06 billion) and it is growing at about 17 per cent annually...Our intention is to explode the category. We are doubling our volumes. Our growth rate is about 6-7 times the industry growth," said ITC Chief Executive - Frozen Snacks, Fruits and Vegetables Mr Sachid Madan.

He added that the expansion of the product range will aid in company's progress in the category along with the reason that it is offering freshly frozen food with no added preservatives and can be cooked in multiple ways.

"We are in both (vegetarian and non-vegetarian) segments and we are beyond even chicken. In the categories in the market that we are present, we are aiming at 15-20 per cent share over the next three-odd years as we establish our distribution," Mr Madan said.

ITC will become the third major organised player in the frozen food segment after McCain, which mainly offers in the vegetarian segment and Venky's, which offers in non-vegetarian, he further added. Presently, ITC's market share ranges from 5-15 per cent in the segment depending on outlets and range.

"The market is very small compared to its potential. The idea is if it is growing at 17 per cent how can we accelerate it? When we are growing at 100 per cent, it will definitely grow," he said.

Around 50 different frozen food products were introduced under ITC Master Chef brand by the company consisting of a variety of Indian flavours such as 'Mumbai Vada Pops', 'Rajmah ki Galauti', 'Chicken Galauti', 'Falafel Kebab', 'Achari Beetroot Kebab', among others.

Mr Madan said, "These items are now available in 60 cities under the food service portfolio and 11 cities in retail outlets. In the next three years 60 will go to 100 and beyond and 11 will go to about 30." The focus is on expanding penetration of the category and dispel the myth about frozen foods not being healthy in consumers' mind, he said.

The company is first planning to expand in metros and urban areas for these products and will also made widely available to consumers and food services segment, including restaurants, cafes and pubs across India, including tier II and III cities, he added.

In order to produce these products, ITC has partnered with American firm OSI and is utilising the latter's manufacturing facilities in India. "We are manufacturing in Punjab, Andhra Pradesh and Maharashtra. We are kind of covering most of the places where the markets are," Mr Madan said.

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

- INDUSTRY, MANUFACTURE

11.1. MG Motor to roll out affordable EV in 3-4 years, to set up battery unit here

IBEF, Nov. 14, 2019

MG Motor India plans to bring an affordable electric vehicle in next three to four years in order to gain the leadership in the country's EV market space, a top official said. The company is ready to launch MG ZS EV electric SUV early next year and will also set up a battery assembly unit for electric vehicles sold in the local market within two years.

"We want to be the leading player in the EV space, and we have the technology…(and) products," MG Motor India managing director Mr. Rajeev Chaba said. The company, which is owned by SAIC Motor, a Chinese firm, will start assembling ZS EV in the country. "Then we will (start) battery assembly operations in India, and that should happen hopefully in one to two years’ timeframe," said Mr. Chaba. The company plans to invest over and above Rs 5,000 crore (US$ 715.4 million) in the battery assembly unit by 2025.

MG ZS EV is likely to be priced at around Rs 25 lakh (US$ 0.04 million) and will be on the roads in Delhi-NCR, Mumbai, Bengaluru, Ahmedabad and Hyderabad. The SUV comes with a 44.5 KWh battery that delivers 325 km on single charge. MG Motor aims to produce 100 units of the vehicle every month, which can be increased to 200-300 vehicles per month depending on demand.

The company has also partnered with Fortum, Delta Electronics India and eChargeBays in order to meet the charging infrastructure demand and will set charging points across customers' residences, dealerships and some public places. It also plans to introduce a more affordable product which is expected to hit the road in next 3-4 years ad will help he company to enter in mainstream market.

"To get into the mainstream, you need to bring the cost of EV on to the lower side", he said. Mr. Chaba also added "It is too early for me to say but definitely to democratise electric vehicles and give a taste to most of the car consuming population, you need to go to Rs 15 lakh (US$ 0.02 million) and Rs 10 lakh (US$ 0.01 million) and below as you go forward. So, definitely, we would like to be a part of that pie as and when the time is ready." MG Motor India aims to bank on the technology to attain leadership position in the electric vehicle segment.

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

11.2. Tata Motors to supply 500 EVs to Lithium Urban Tech

IBEF, Nov. 19, 2019

Tata Motors has entered into partnership with Lithium Urban Technology, a commercial electric vehicle (EV) fleet provider, getting an order to supply 500 EVs to Lithium Urban Technologies.

The contract was signed by Tata Motors and Lithium for 400 newly launched Tigor Sedan EV, with an increased range of 213 km, to be supplied by FY20 and deployed across India, according to Tata Motors press release. The idea is to additionally introduce 100 EVs, including the cars to be launched soon, like Nexon EV.

"This is a big turning point in the EV market, which is now likely to see fleets electrify faster than ever before. We are committed to nurturing this valued partnership as we address the evolving mobility needs of our customers through various disruptive business models," said Mr. Shailesh Chandra, President-Electric Mobility Business & Corporate Strategy, Tata Motors Ltd.

In order to expand its present fleet of 1,000 EVs and to further strengthen its leadership position as the largest EV-based mobility service provider, these steps are important for Lithium, Tata Motors said in a release.

It stated, "Both companies will explore bespoke models to address requirements of customers who are increasingly looking for tailor-made mobility solutions in the market across passenger, mass transit and freight segments."

"The induction of new extended range Tigor EVs and future EVs into our portfolio will add further differentiation to our service offerings for the passenger services. This partnership with Tata Motors will ensure availability of new form factors and enable viability of new market segments across passenger, mass transit and freight," said Mr. Sanjay Krishnan, founder, Lithium Urban Technologies.

The new Tigor Electric Sedan, which was certified by ARAI, is available for both fleet and personal segment customers. This vehicle is eligible for a FAME II incentive for eligible commercial customers, the company said.

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

12.1. MELPL- Visionary Indo - French Collaboration (Largest FDI Project of Railways)

IBEF, Nov. 15, 2019

Indian Railways has entered into Procurement cum Maintenance Agreement with Madhepura Electric Locomotive Pvt. Ltd. (MELPL), a joint venture of Indian Railways and M/s Alstom. As part of largest Foreign Direct Investment project of Indian Railways, Ministry of Railways and Alstom came together in 2015 to transform the heavy freight transportation landscape of the country. A landmark agreement worth 3.5 billion Euro was signed to manufacture 800 electric locomotives for freight service and its associated maintenance.

M/s Alstom has delivered prototype locomotive in March 2018. Based on the test results, Alstom has redesigned the complete locomotive including bogies. The new design of locomotive has been inspected by RDSO at Madhepura factory and cleared for dispatch from factory. After test and trials M/s Alstom will accelerate the delivery schedule and supply 10 locomotives in FY 2019-20 and 90 locomotives in FY 2020-21 and 100 locomotives per year beyond March 2021 as per their recovery plan. This is the first time such High Horsepower locomotive is being tested on Broad Gauge network in the World by any Railways.

As part of the project, factory along with township has been set up in Madhepura, Bihar with capacity to manufacture 120 locomotives per year. The project will create more than 10,000 direct and indirect jobs in the country. More than Rs 2000 crore (US$ 286 million) invested in the project already by the company. One Maintenance Depot already established in Saharanpur. Work starting on the second Depot at Nagpur. More than 300 Engineers from India and France are working in Bangalore, Madhepura and France on the Project. This is a truly « Make in India » project and even the first loco has been assembled in Madhepura factory. In two years', time, more than 90 per cent parts will be manufactured in India.

Along with the factory, socio-economic development in Madhepura is being driven by this project. As part of CSR initiative skill centres are being set up in Madhepura to impart training to local people. More than 50 per cent local people have been hired in the factory. A fully functional mobile health clinic is being operated in the villages around Madhepura.

Indian Railways have taken decision to have 12000 horsepower twin Bo-Bo design Locomotive with 22.5 T (Tonnes) axle load upgradable to 25Tonnes with design speed of 120 kmph. This locomotive will be game changer for further movement of coal trains for Dedicated Freight Corridor. With the success of this project it will boost the "Make in India" programme of the Government of India. This will further develop ancillary units for locomotive components.

The project will allow faster and safer movement of heavier freight trains. It will haul 6000T trains at maximum speed of 100 kmph. With 100 per cent electrification, the new locomotive will not only bring down operational cost for Railways, the locomotive will also reduce the congestion faced by Indian Railways. This will be used to haul heavier trains such as coal and iron ore.

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

12.2. Skyworth to hire 5,000 employees for its India plant

IBEF, Dec. 11, 2019

Skyworth, the Hong Kong-based group intends to hire about 5,000 employees for its manufacturing facility in India. The company, earlier, announced an investment of around US$ 100 million in the next 3-5 years for the facility that will have a capacity to produce 40 lakh TVs a year when it is fully operational.

“We have sold about 4.8 lakh TVs in 2019, almost doubling the number in 2018. We are planning to produce 20 lakhs from next year,” said Mr Criver Lu, Managing Director (India) of Skyworth.

The company entered in a joint venture with a local company to establish the manufacturing facility to manufacture TVs, fridges, washing machines, air-conditioners and set-top boxes.

Though, the firm will first manufacture TVs, then followed by washing machines. It already has a manufacturing unit for TVs in Hyderabad, will consolidate its production at the new facility near the International airport.

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

13.1. LIC Housing eyes to disburse Rs 55,000 crore (US$ 7.87 bn) in FY20

IBEF, Nov. 19, 2019

LIC Housing Financial Ltd has set a target of disbursing Rs 55,000 crore (US$ 7.87 billion) worth loans during the current financial year, according to a top official.

LIC Housing Finance Ltd., Managing Director and CEO Mr. Siddhartha Mohanty said that the loans disbursed during the last financial years was worth Rs 48,000 crore (US$ 6.8 billion).

He added, "We propose to achieve a target of Rs 55,000 crore (US$ 7.87 billion) disbursement. Last year it was Rs 48,000 crore (US$ 6.8 billion)".

The company has so far disbursed Rs 26,000 crore (US$ 3.72 billion) worth loans till date. The company is also planning to bring down the Gross NPA below the level it stood last year.

"Currently, it is at 2.38 per cent. We are very much careful and paying attention to the recovery of loans. Compared to last year we want it to be less. Last year, the (Gross NPA) level was at 1.54 per cent," he said.

As the real state sector is seeing gradual development as affordable housing segment has also shown positive growth, he said, "the PMAY (Pradhan Mantri Awas Yojana) scheme constitutes 26 per cent of the company's portfolio. We are concentrating more and more on that segment." Moreover, he said there was demand for office space, logistics go-downs. "commercial space portfolio constitutes about 7 per cent (for LIC Housing Finance)" he said. According to Mr. Mohanty, there is strong demand to own a house, from people between the age group of 25 and 35 years.

"The age of Home buyers has gone down. Earlier, before retirement one plans to have a house. Before that (retirement) he fulfils educational needs of children, daughter's marriage. But now home incentives are there, government is also promoting this industry," he said.

"Younger people are taking the decision. It is showing an increasing trend. We are also providing loan tenure of 30 years. Normally, the longest home loan term is 20 years, but we are giving 30 year’s term so that the EMI gets less. Particularly in big cities like Bengaluru and Chennai, people are looking to own a house," he said.

He while attending the Mega Property Fair, said that there are more than 40 builders showcasing over 100 projects ranging from low budget to luxury category.

Customers that are moving forward for housing loans from LIC Housing Finance can gain the full refund of processing fee provided the loan was applied before November 30 and disbursement before December 31, 2019, he said.

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

13.2. Center approves 3.31 lakh more houses under PMAY(U) Cumulative number of houses sanctioned now stands at 9.65 million

IBEF, Nov. 28, 2019

The 49th Meeting of the Central Sanctioning and Monitoring Committee (CSMC) under Pradhan Mantri Awas Yojana (Urban), held here today, approved 606 proposals from participating States for the construction of 3,31,075 houses with an overall investment of Rs 15,125 crore (US$ 2.16 billion) involving central assistance of Rs 5,092 crore (US$ 728.57 million). This includes six Light Houses Projects (LHPs) for construction of 6368 houses to be built across 6 States namely Gujarat (1,144), Jharkhand (1,008), Madhya Pradesh (1,024), Tamil Nadu (1,152), Tripura (1,000) and Uttar Pradesh (1040).

The number of houses approved by the CSMC are in Andhra Pradesh (2,58,648), Karnataka (30,777), Madhya Pradesh (15,245), Gujarat (13,805), Maharashtra (4,691) & Uttarakhand (1,541). The State of Andhra Pradesh has proposed the largest number of new houses and is now the leading State with the highest ever cumulative sanctions for 16,34,748 houses followed by Uttar Pradesh with 14,53,989 houses under the PMAY(U) Mission.

The proposal received are under Beneficiary Led Construction or Enhancement (BLC) and Affordable Housing Project (AHP) verticals of the scheme. The houses proposed under Light Houses Projects (LHPs) will be constructed by using new and innovative technologies and will serve as live laboratories for research, testing, technology transfer, increasing mass awareness and for mainstreaming them in the country.

As on date, PMAY(U) Mission has sanctioned more than 96.50 Lakh houses under PMAY(U) against the validated demand of 1.12 crore houses. A total of 56 Lakh houses are grounded for construction of which 28.4 Lakh have been completed.

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

14.1. Setting up of Jute Manufacturing Unit to promote Jute

IBEF, Dec. 06, 2019

The government is trying to promote jute manufacturing units by 100% mandatory packaging of food grains procured by State Procurement Agencies/FCI in jute bags.

The production of jute goods over the last few years by the jute mills has remained consistent. During the year 2017-18 and 2018-19, approximately 1,200 Thousand MT of raw jute per year was consumed by the mills to meet the demand of jute products, the details of which are as under:

(Qty: In: '000' MT)

number of measures have been taken by the Government to modernise the jute mills established in the country, the details of which are as follows:

I. The Government has implemented Incentive Scheme for Acquisition of Plants and Machinery (ISAPM) to facilitate modernization in existing and new jute mills and for up-gradation of technology in existing jute mills. An incentive of 20% of the cost of machinery for jute mill and 30% for Jute Diversified Products (JDP) - MSME units is considered for reimbursement under the scheme, subject to a maximum of Rs 2.50 crore (US$ 0.36 million) per unit. Under this scheme, a subsidy amounting to Rs 49.71 crore (US$ 7.11 million) has been disbursed to Jute mills and JDP units during the period 2014-15 to 2018-19.

II. A Scheme for Research and Development for the textile industry including jute with a total outlay of Rs 80.00 crore (US$ 11.45 million) has been launched in 2015 by the Government for promotion of Research & Development, technology transfer and dissemination activities in textile sector including jute.

This information was given by the Union Minister of Textiles, Ms Smriti Zubin Irani, in written reply in the Rajya Sabha on 5th December.

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

14.2. MTPL to set up off-highway tyre facility in Gujarat, invest $107 million

IBEF, Dec. 09, 2019

Backed by International Finance Corporation (IFC) through equity and loan, Mahansaria Tyres Private Limited (MTPL) to set up a US$ 107 million facility to manufacture off-highway tyres in Gujarat.

IFC will provide a loan of up to US$ 30 million and it will buy a stake in MTPL for up to US$ 7.74 million.

MTPL is owned by Ashok Mahansaria, Yogesh Mahansaria and Yogesh Investments Private Ltd. (YAIPL), erstwhile sponsors of Balkrishna Industries and Alliance Tyre Group, and it has over 25 years of experience in off-highway tyres used in agriculture and construction industry.

Cost for phase 1 is US$ 107 million, which will involve setting up 40,000 MT capacity. This will be funded by debt of up to US$ 54 million, including IFC's loan, which will have a tenure of 10 years.

Another loan of up to US$ 24 million will be mobilised by IFC on similar terms. This gives the company access to a different fundraising channel including institutional financiers and help it develop a more diversified investor base.

"IFC's investment will provide validation of a greenfield business plan and the growth prospect of the sector. This will send a positive signalling effect to other investors on the soundness of the project and help attract investors for the current and future financing stages," said IFC.

It is estimated by MTPL that exports will account for 70-80 per cent of sales and contribute to India's forex earnings. The project will support value-addition in the domestic rubber production industry and is expected to create 1,500 jobs in the first phase.

As compared to developed markets such as EU and North America, OHT has a small presence India. The size of OHT segment globally is still relatively small as it accounts for only about 10 per cent of the overall tyre industry. At present, value brands have around 30 per cent share in the global market. Half of this market share is held by Indian players.

The Indian OHT market is price sensitive due to low farm income. As a result, the product range in India is not as specialized as in the EU and North America, where more application specific solutions are available.

Indian players such as MTPL stand to gain by producing more products in the value brand segment of OHT tyres, given that conversion costs in India are lower than in any other manufacturing bases. This project will demonstrate the competitiveness of Indian players in the global market and increase the overall share of Indian value brands, said IFC.

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

15.1. Godrej Appliances to invest Rs 700 crore (US$ 100.16 million) for capacity expansion

IBEF, Nov. 26, 2019

Godrej Appliances will invest Rs 700 crore (US$ 100.16 million) by 2022, in order to increase its annual appliance production capacity by 19 lakh units to 65 lakh units per annum. This investment takes the tally of Godrej Appliances' investment in capacity and technology expansion to Rs 1100 crore (US$ 157.39 million) over a period of six years.

The plan is not to just increase capacity but to also add new technologies and carry out backward integration, according to the company.

"This investment broadens Godrej Appliances' capability and reflects our commitment to providing customers with exceptional products, while attesting our alignment towards 'Make in India'. Through this expansion, we aim to take brand Godrej to even greater heights utilizing our strength of manufacturing expertise. The proposed expansion once complete will allow us to meet the increasing demand for premium products from Indian customers better," said Mr. Kamal Nandi, Business Head & EVP, Godrej Appliances.

The company intends to increase the presently available capacity for both fully automatic top load washing machines and semi-automatic washing machines, at its Shirwal and Mohali plant respectively. A new product line will be introduced for fully automatic front load washing machines with 4 lakh annual capacity.

The brand plans to expand the production capacity for its refrigerator category of both premium range and mass range by 33 per cent.

This investment is focused towards manufacturing of power efficient chest freezers and 30 lakh units of compressors utilizing newer technology in the product and processes. Some part of the investment will be used for backward integration of air conditioners at the Shirwal factory.

This capacity enhancement plan for both its manufacturing units is also in line with Godrej Appliances' ongoing premiumisation focus, it said.

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

15.2. Kohler India to double retail network in next three years

IBEF, Dec. 09, 2019

For Kohler Co, the US-based premium sanitary ware brand, India remains one of its three most strategic markets, despite the slowdown, said Mr David Kohler, President and CEO, Kohler Co.

"India have very strong, long term potential and it's demonstrating that year-by-year with one of the highest GDP growth rates in the world. And the country is making progress. So, to me this is a very different market than other markets in the world... So, there's a there's a positive dynamic here," David said in an interview.

Kohler India is planning to double its retail presence in the next three years, with a focus on the top cities. "We have a network of about 500 showrooms in the country today, and we’re interested in really continuing to rapidly expand that, in tier one and tier two cities," David said.

For Kohler, across the Globe, India is among one of the most interesting and creative markets it serves anywhere, and the company is focussed on the long-term potential here. It launched its second Kohler Experience Centre (KEC) in the country in Mumbai on Friday and is planning to open one more in Bengaluru soon. The first KEC is opened in Delhi. With only around ten KECs globally, India will be the first to have three KECs, he said, emphasising the importance of the Indian market.

Unlike other regular outlets, KECs are "inspiration zones" sprawled over 16,000 sq. ft., meant more for customer engagement than sales, and are not designed like display centres or showrooms.

Kohler has also launched several new product categories in the country like grooming solutions inside bathrooms, water filtration and bathroom furniture and mirrors.

When asked about the consumption slowdown in India, David said "We think, in kind of every major market or in India, there will be ups and downs and in a high growth market like this, you are going to have some volatility here and there and you’ll go through shorter term cycles, but that really doesn't make a difference to us, because we're focussed on the long-term".

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.)

16.1. Ministry of Tourism is promoting Buddhist Circuit to increase India's share in global tourism market - Tourism Minister

IBEF, Nov. 20, 2019

With a view to showcase and project the Buddhist Heritage in India and boost tourism to the Buddhist destinations in the country, Ministry of Tourism organises the International Buddhist Conclave biennially with participation of tour operators, Media, opinion makers etc. from overseas as well as Indian stakeholders.

MoT has also produced two films viz. 'India - The Land of Buddha' and 'Following the path of the Buddha' which have been promoted on electronic and digital media, and at Road Shows and Know India Seminars etc. organised by the India Tourism Offices overseas. MoT also has a dedicated section for the promotion of Buddhist heritage and destinations on its promotional website.

MoT has identified the Buddhist Circuit as one of the fifteen thematic circuits for development under the Swadesh Darshan Scheme. MoT has sanctioned five projects for Rs. 355.26 Crore under the Buddhist Circuit theme covering the States of Uttar Pradesh, Bihar, Madhya Pradesh, Gujarat and Andhra Pradesh and work on all the projects is under implementation.

Financial support is also extended under the Marketing Development Assistance Scheme to approved service providers and State Governments/Union Territory Administrations for promotional activities undertaken by them in the overseas markets such as Sales Tours, Participation in Travel Fairs/ Exhibitions and Road Shows.

Ministry of Tourism (MoT) promotes India as a holistic destination in the tourism generating markets to promote various Indian tourism products and tourism destinations of the country including the Buddhist Circuit to increase India's share of the global tourism market.

The above objectives are met through an integrated marketing and promotional strategy, and a synergized campaign in association with the Travel Trade, State Governments/Union Territory Administrations and Indian Missions. The specific elements of promotional efforts undertaken overseas include advertising in Print, Electronic, Online, Outdoor and Social Media, participation in international Fairs & Exhibitions, organising Know India Seminars, Workshops, Road Shows and India Evenings, Brochure Support, Joint Advertising with Travel Agents / Tour Operators, organising and supporting Indian Food and cultural festivals, publication of brochures and inviting tour operators, media personalities, opinion makers etc. to visit the country under the Hospitality Programme of the Ministry.

This information was given by the Minister of State (I/c) of Culture and Tourism, Shri Prahlad Singh Patel in a written reply in the Rajya Sabha today.

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

16.2. Ministry of Tourism has sanctioned 18 projects covering all the North Eastern States for Rs 1456 crore for development and promotion of tourism: Shri Prahlad Singh Patel

IBEF, Dec. 04, 2019

The Ministry of Tourism is focussing on development and promotion of tourism in the North Eastern Region. For development Ministry under the Swadesh Drashan and PRASHAD Schemes has sanctioned 18 projects covering all the North Eastern States for Rs 1456 crore (US$ 208.3 million).

The Ministry of Tourism undertakes various activities for the promotion of North Eastern region of the country as a tourist destination. These activities include:

(i) Release of television campaigns on Doordarshan and private channels in the country.

(ii) Production of publicity material, creatives and television commercials/promotional films on the region.

(iii) The North East region is the theme of the India Pavilion set up by the Ministry at the South Asia Travel and Tourism Exchange (SATTE) in which the Ministry participates annually.

(iv) Complimentary space is provided to the North Eastern States for their participation in the India Pavilion set up by the Ministry at major international travel fairs and exhibitions.

(v) The Ministry organizes an annual International Tourism Mart in the North Eastern region with the objective of highlighting the tourism potential of the region.

The projects under the Swadesh Darshan and PRASHAD schemes are identified for development in consultation with the State Governments / Union Territory Administrations and are sanctioned subject to availability of funds, submission of suitable detailed project reports, adherence to scheme guidelines and utilization of funds released earlier. Submission of project proposals by the State Governments and its sanctioning is a continuous process.

Ministry has also identified Kaziranga as one of the 17 sites for development in the country under the

Development of Iconic Tourist site scheme.

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

17.1. How Bollywood is rewriting history

Livemint, 01 Dec. 2019, Uday Bhatia

The return of the historical epic to Hindi cinema has brought with it questions about accuracy and intent.
With ‘Panipat’ and ‘Tanhaji’ set for release, we look at the ways in which history is being reimagined

In 1953, Sohrab Modi made Jhansi Ki Rani, a Hindi film about Lakshmibai, one of the leaders of the 1857 rebellion. As the British forces start bombarding her fort, the queen asks her general, Ghaus Khan, why Jhansi’s cannons aren’t returning fire. He replies that the British guns are positioned behind a Hindu temple and that he doesn’t want to risk destroying it. Lakshmibai orders him to fire back, then starts to pray. The temple survives the bombardment.

The same incident is restaged in Kangana Ranaut and Radha Krishna Jagarlamudi’s Manikarnika, another film about Lakshmibai, with Ranaut in the lead. The 2019 film has the queen riding out with a few men, somehow not getting shot by an entire standing army, and personally destroying the cannons. This sequence, though ridiculous, is in keeping with the genre’s recent muscular stance—the temple must be protected at all costs.

There has been an explosion of Hindi historical films in the last couple of years. Some are set in the distant past, others in relatively recent times of turmoil. Most of them place on the nation’s screens, and in the public’s imagination, a version of the past that’s obscured by legend and skewed towards certain narratives.

The blockbuster success of Baahubali (2015), a lavish Telugu action film set in unspecified ancient times, sent the Hindi film industry scurrying for similar epic material. Though the film was not a historical, it would, along with its 2017 sequel (which grossed over ₹1,700 crore worldwide), have a huge influence on the genre, which adopted its grandiose production values and overtly Hindu iconography. However, instead of inventing its own legends, Hindi cinema turned to history.

Bajirao Mastani arrived at the end of 2015, Raag Desh in 2017. In 2018, Padmaavat brought controversy—and box-office credibility—to the genre; it was followed later that year by Gold and Manto. This year, there’s been Manikarnika and Kesari. Two films about the Marathas are coming up: Ashutosh Gowariker’s Panipat releases next weekend, and Om Raut’s Tanhaji: The Unsung Warrior in January. There have also been several works of historical fiction in the last couple of years, with invented characters but based on real events: Begum Jaan, Rangoon and Firangi in 2017, Thugs Of Hindostan in 2018, and Kalank and Laal Kaptaan in 2019. (For the purposes of this piece, 1947 is the broad cut-off point for what qualifies as historical.)

When past is present

Why is the historical—a genre out of favour for years—suddenly back in Hindi cinema? It may have something to do with the box-office success of Sanjay Leela Bhansali’s Padmaavat, a flamboyant look at the 13th century Delhi Sultunate ruler Alauddin Khilji and his obsession with (the possibly fictional) Rani Padmavati, wife of the Rajput king of Mewar. With Hollywood making alarming inroads into the Indian market and streaming platforms drawing audiences away from theatres, Hindi cinema now needs its own big-budget offerings—and history is a ready source. Despite the controversies before its release—or because of them—Padmaavat earned ₹572 crore worldwide, making it one of the highest-grossing Indian films ever. Kesari, about an 1897 battle between Sikhs in the British Indian army and Pashtun tribesmen, also earned an impressive ₹207 crore.

There’s another reason. Historical films allow directors to play up present-day beliefs while evoking past legends. On email, Katherine Schofield, senior lecturer in South Asian music and history at King’s College London, says these films are useful for understanding modern values. “Film scholars talk about the historical film as providing a ‘heterotopia’—literally ‘another place’—in which to play out the political and social issues of the present day. We should be reading these films not for what they tell us about the past—even the most factually accurate films have to make enormous concessions to telling an entertaining story—but what they tell us about us, now, in the present day."

Take Panipat, a reimagining of the storied 1761 battle—regarded as one the biggest clashes of two armies in the 18th century—between Afghan ruler Ahmad Shah Abdali (Sanjay Dutt) and the Marathas under Sadashiv Rao (Arjun Kapoor). The trailer, released on 4 November, comes with an intriguing tag line: “The great betrayal". A clue might lie in historian T.S. Shejwalkar’s 1946 monograph on the battle, which Gowariker has confirmed is the source material for his film. His study says that although the Marathas lost, “on the moral side their record is very clean", and that the “ultimate result of Panipat was to make the way smooth and clear for the English". It seems likely that the “betrayal" will be of India itself—possibly the decision by ex-Mughal serviceman Najib-ud-Daulah to side with Abdali. It’s also a good bet that the Marathas will come out looking saintly, defeat conferring martyrdom on them as it did on the Rajputs in Padmaavat, the Sikhs in Kesari and the rebels in Manikarnika.

What does a battle fought over 250 years ago have to do with the present day? More than you might expect. In January, Amit Shah, Union home minister and president of the Bharatiya Janata Party (BJP), declared that the forthcoming general election would be “a decisive contest, like the third battle of Panipat". “The Marathas had won 131 battles," he said, “but lost one decisive battle, which led to 200 years of colonial slavery." While referencing one of the greatest “Hindu" defeats, Shah also spoke of the BJP’s commitment to building a Ram temple in Ayodhya. Less than a year later, with the road to the temple’s construction now clear after the Supreme Court verdict, Panipat is set to release on 6 December, the day of the Babri Masjid’s destruction in 1992.

Every generation makes historical films in its own image. In the years before independence, stories about Indian kings (mostly Hindu) fighting foreign powers (mostly Muslim) were seen as an allegory for protest against British rule. Today, in a time of similarly heightened nationalism but no occupying force or officially declared wars, the same stories take on a more troubling patina. Earlier this month, The Caravan quoted Rashtriya Swayamsevak Sangh joint general secretary Krishna Gopal as telling an audience of Muslim professionals a day before the Ayodhya verdict: “There came a phase in our history when outsiders destroyed this country’s temples." Fuelling the idea of Muslims as historic outsiders on the big screen may just strengthen this narrative.

Nationalism sells

Padmaavat and Kesari are set several centuries apart, but in each the protagonists are brave patriots, and the antagonists barbaric Muslims. It remains to be seen how Abdali and his people are portrayed in Panipat but the Afghanistan embassy to India has already expressed concerns about “insensitive/distorted depiction of (Abdali’s) character". The trailer shows the Afghan king with a blood-streaked face, ranting about conquering Hindustan, while Arjun Kapoor’s smooth-cheeked Maratha general talks about defending his land—a juxtaposition reminiscent of Padmaavat, in which Ranveer Singh’s psychotic sultan faced off against Shahid Kapoor’s bland patriot.

Panipat director Gowariker has suggested that the “Indian" army in the film would be an inclusive force. “By the time (the Maratha army) reached Panipat, there were 50,000 soldiers," he said at a press conference earlier this month. “There were Hindus and Muslims. It was a cooperative kind of army, I felt it was important to bring that to the screen." It should be intriguing to see how the Lagaan director’s pet theme of different clans and creeds coming together in the service of the nation plays out.

“Movies are made for the market," says Rana Safvi, an author and historian documenting India’s syncretic culture. “You are catering to what you think is going to sell." What is being sold, by nearly every Hindi film in 2019, is national pride. So much so that patriotism has become just another ingredient, to be inserted at regular intervals like one would a fight sequence or a comic track.

Patriotism is especially prominent in recent historical films. From Padmaavat to Tanhaji, nothing is more important than protecting the motherland. In Manikarnika, the queen’s all-consuming love for her country gives rise to a slur that’s common today, points out historian and Lounge columnist Manu S. Pillai. “There’s a scene where she calls Scindia deshdrohi (traitor to the nation). This is not the kind of vocabulary that existed in that time."

The weight of nation-love has hobbled otherwise sensible films, like Reema Kagti’s Gold, about the building of independent India’s first hockey team. It stars, as the team’s architect, Akshay Kumar, Hindi cinema’s patriot-in-chief in the last couple of years (Hum India ko dekhega—I will look out for India—he says at one point). If you ignore the flag-waving and anthem-playing and assertions that winning the 1948 Olympic hockey final against England would be “revenge for 200 years of slavery", Gold is a good test case for debating what bits of history can and cannot be altered. Is it all right, for instance, to show the score in the final as 4-3 in India’s favour, when in reality it was a one-sided, cinematically unappetizing 4-0?

I ask Rajesh Devraj, credited with the film’s story, about the rules he set for historical invention. Devraj, who stresses he isn’t responsible for the final screenplay, says he wouldn’t have changed the final scoreline. As an example of the sort of thing he would change, he pointed to the scene where the Indian players take off their shoes to counter wet conditions. This might well have taken place; 1948 star Balbir Singh recalls it happening, though other accounts are silent. Even if it didn’t, Devraj says, there’s enough historical precedent for barefoot Indian athletes for this to work as a narrative device. “It’s really a metaphor. When they take off the shoes, they are rejecting colonialism. It’s them saying, this is how I played back in my village, I need to feel that contact with the soil."

Gold offers up a soft vision of Indian glory, achieved by a mix of classes and creeds. Other historical films, however, are dialling up patriotism into a clash-of-civilizations rhetoric.

Deepening Divide

In the trailer for Om Raut’s Tanhaji, Ajay Devgn’s titular Maratha general tells a young boy they will defeat the Mughals just as the Pandavas won against the Kauravas (a similar comparison is made in Padmaavat). It goes on to describe the 1670 Battle of Sinhagad as “the surgical strike that shook the Mughal empire". The term “surgical strike" entered the public lexicon after Indian military action against Pakistan in 2016, and was cemented by the success of the film Uri this January (several BJP leaders adopted its famous line, “How’s the josh?"). That a film promo would associate the Mughals with the uber-villains of Indian mythology and then with Pakistan tells you a lot about the nation and its cinema in 2019.

“You can see a change," Safvi says about the Panipat and Tanhaji trailers. “It’s becoming slightly more Islamophobic. It’s a more aggressive tone."

In recent historical films, Hindus are more visibly Hindu. The Tanhaji trailer shows Devgn sitting beside a fluttering bhagwa dhwaja—the saffron standard of the Marathas. But there’s an addition: the Om symbol. This is almost certainly a leap of imagination; the Maratha flag had nothing printed on it. Muslims have also seemed more Muslim on screens in 2019: Kohl-lined eyes followed viewers from Gully Boy to Uri to Kalank to Panipat.

The most partisan contrast was in Anurag Singh’s Kesari, a violent war film in which Akshay Kumar plays the leader of 21 Sikh soldiers who died fighting an army of thousands of Afridi and Orakzai Pashtun tribesmen. The battle took place in 1897 in Sarhagarhi, in the North-West Frontier Province, then part of India. As soldiers in the British Indian army, the Sikhs were fighting other Indians for the British. The film, though, deliberately paints the tribesmen as marauders and the Sikhs as patriots fighting only in name for the British. In one particularly insidious scene, the film’s chief antagonist, a fanatical religious leader named Khan Masud, orders the beheading of a woman who tries to run from her abusive husband. As the execution is about to be carried out, he recites surah Al-Fatiha—a common prayer in praise of Allah. At the last moment, Kumar saves her.

Singh isn’t done labouring the point. He has Masud call for jihad (holy war) and repeatedly take Allah’s name while discussing battle plans. Then he restages the beheading with the same woman, and again the prayer is recited—only this time she’s killed. One of the last scenes, as the last of the Sikhs are dying, is of the tribesmen looting their supplies.

Throughout Padmaavat, we are told of the amazing things Rajputs can do, from walking on burning embers to sacrificing their life to uphold truth and freedom. There are no songs of praise for the Khiljis, even though Amir Khusro, the pre-eminent poet of his age, is in their ranks. They have a reputation for pillaging and raping; they are wild and dusty and dressed in dirty robes, while the Rajputs are perfectly attired. It’s unfortunate that Ranveer Singh’s turn as Khilji is the one spark in a dull film, for his unhinged performance only draws attention to a characterization that leans far too heavily on Muslim invader tropes. The real Alauddin was certainly a tyrant, but the Alauddin of Padmaavat is a sadist, a psychopath and a rapist who stages an eight-month-long siege so he can enslave one woman. The image that seems to have stuck with everyone most is of him biting into hunks of meat (“It seemed very barbaric," Safvi says).

The one thing that Bhansali doesn’t do is link Khilji with any personal religiosity—though in the world of this film, a person who doesn’t believe in God is to be suspected. Alauddin’s object of desire, though, is compared to a goddess several times in the film. By the end, she’s a literal deity; “Today, she’s worshipped as a goddess, destroyer of evil," read the credits. This is similar to Manikarnika, which also elevates its Hindu queen to divine status. As she slashes through British soldiers on the battlefield, her face smeared with blood, she is Durga’s wrath incarnate—which is why we hear a few lines from Aigiri Nandini, a Sanskrit song in praise of Durga, being chanted.

Tied to tradition

Padmaavat’s fraught production is an extreme example of the kind of problems that can accompany the making of historical films in India today. During the film’s shooting in 2017, the Karni Sena, a fringe group in Rajasthan, alleged that the director was shooting a dream sequence with Khilji and Padmavati. They vandalized the sets and later threatened to cut off actor Deepika Padukone’s nose. Release dates were announced and deferred. The Central Board of Film Certification showed the film to a panel of historians, who passed it. The final film was as deferential to Rajput pride as the Karni Sena could have hoped for, but the threat lingered on. Every historical film since has inspired claims of “hurt sentiments".

One can only speculate if the attacks had a role in moving Bhansali towards safe, “respectful" ground, and whether the film might have ended up differently if there weren’t any threats. Between 2015’s Bajirao Mastani and 2018’s Padmaavat, you can feel the genre ossify. The earlier Bhansali film seemed open to possibilities—of poetry; of a certain syncretic tradition of cinema; of love between a Hindu king and a Muslim queen; even the idea that king, queen and new queen might coexist in a respectful, impossibly good-looking triangular relationship. Padmaavat, on the other hand, seems stifled by tradition, dulled by duty, with nothing more to offer than centuries-old ideas of honour and sacrifice.

If service of the nation is the top priority of the modern Hindi historical, upholding traditional values comes a close second. The Tanhaji trailer has an unusually specific shout-out, with actor Kajol saying, “When Shivaji wields his sword, the honour of women and janeu (sacred thread) of Brahmins remain intact." It’s curious that a film about Shivaji’s general (of Koli caste) would make this pointed a reference to Brahmin dignity—and deem it important enough to include in the trailer.

An earlier evocation of the caste system was in Baahubali 2 (2017)—not a historical, but a template in many ways for the genre—when prince Amarendra Baahubali says: “God creates life, the Vaidya (physician) saves it, and the Kshatriya (warrior) protects it." “Kshatriya" turns up twice in Manikarnika, both times to specify that the future Rani of Jhansi, though not herself of the warrior caste, possesses its best qualities. Padmaavat treated jauhar—ritual self-immolation by women so they wouldn’t be captured by the enemy—with reverence. The climactic scenes, with hundreds of stoic women led by Padmavati running towards the fire, are drawn-out and disturbingly triumphant.

Conservative ideas of sexuality hold sway. In both Padmaavat and Kesari, the top soldier in the Muslim army is gay. The sniper in Kesari has long nails with red polish and rouge on his cheeks. In Padmaavat, the character is a historical figure—Malik Kafur, a eunuch presented to Alauddin as a slave, who, incredibly, rose from there to attain the rank of general. Several accounts of the time suggest that Alauddin and Kafur were lovers. In the film, Kafur dresses his king (as Padmavati dresses hers), rubs his feet in a bathtub. The Binte Dil song sequence, where Kafur serenades Alauddin and his female companion for the night, might be the first openly bisexual love ballad in Hindi cinema.

Normally, queer texts turning up in historical dramas would be welcome. But by ascribing feminine traits to the deadliest solider in the enemy camp, the films seem to be inviting a contrast to the manly Rajputs and Sikhs on the opposing side. Moreover, the three queer characters (if you include Alauddin) are shown as sadists and betrayers—a worrying conflation of deviation from the sexual majority with moral deviance. The sniper gleefully shoots a fallen Sikh soldier in the leg. Alauddin stabs his king in the back; Kafur shoots Ratan Singh in the back. “Alauddin’s implied relationship with Kafur is portrayed as yet another sign of his untrustworthiness—a stigma many bisexual men have to contend with in modern life," Schofield says. “In their own time, close romantic, erotic, and even sexual relationships between men of different social statuses were not only commonplace, but often held up as the ideal, as in the beautiful poetry written about the relationship between Mahmud of Ghazni and his slave Ayaz."

Future histories

Though it’s beyond the ambit of this piece, Hindi cinema has also been scanning recent history for source material. The subjects chosen are, unsurprisingly, either concerned with national pride (Mission Mangal, Pad Man—both with Akshay Kumar) or focused on events that show the present administration in a good light (PM Narendra Modi) or the opposition in a bad one (Indu Sarkar, about the Emergency; The Accidental Prime Minister, about the UPA government). Or the military: After Uri’s success, two period war films are in the works—Bhuj: The Pride Of India, about the 1971 war with Pakistan, and a Sam Manekshaw biopic starring Vicky Kaushal as the Field Marshal.

History is amended all the time. This is a necessary churn, allowing suppressed voices to enter the conversation, but it can also give rise to exclusionary narratives. If Karnataka chief minister B.S. Yediyurappa has his way, a key figure like Tipu Sultan might not appear at all in school textbooks. In October, speaking at a seminar at Banaras Hindu University, Amit Shah said: “There is a need to rewrite the Indian history from India’s point of view, but without blaming anyone." His 30-minute talk presents India’s ancient history as a long string of Hindu achievements, with a stray mention of Sikh gurus and mentions of “hundreds of years of slavery".

This particular vision of history may well match what we see on our screens in the immediate future. Next year there’s Tanhaji, and a Marathi film about Tanaji Malusare’s king, Chhatrapati Shivaji, starring Riteish Deshmukh. There’s a biopic on Prithviraj Chauhan, another Hindu king who fought Muslim invaders, with Akshay Kumar in the lead. Few of these are likely to treat their subjects like flesh-and-blood humans. “Deification clouds a mature historical understanding of these real figures," Pillai says, “but there’s this trend in India that promotes them to divine status because otherwise our confidence will suffer."

There’s a scene in Padmaavat where Ratan Singh tells Khilji: “History isn’t just written on paper which you can burn." For a film whose titular character might be drawn from a poem written two centuries after the events in it took place, this is a bold statement. It seems to suggest that what we think of as history could also include legends passed down from generation to generation, not just words on paper. This gives the film-maker a wide range of crowd-pleasing material to draw on, but what of the impressionable viewer who ends up believing that Manikarnika rode a horse off the edge of a fortress and survived what appears to be a 30ft fall? Perhaps future films could carry, in the style of tobacco warnings, little fact-checks in a corner of the screen, informing us when history is being rewritten.

17.2. MSMEs contribute 29.7 per cent of GDP and 49.66 per cent of Indian exports

IBEF, Dec. 03, 2019

MSMEs contribute 29.7 per cent of GDP and 49.66 per cent of Indian Exports. Government has taken various initiatives to enhance the competitiveness of Micro, Small and Medium Enterprises (MSMEs) through schemes such as Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS), Micro and Small Enterprises - Cluster Development Programme, Procurement and Marketing Support and support for MSMEs to participate in international exhibitions / trade fairs, conferences / summits/ workshops.

This information was given by Shri Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises in written reply to a question in Rajya Sabha today.

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

18.1. We're innovating, now we need to monetize: Kiran Mazumdar-Shaw

Livemint, 24 Nov. 2019, Shrija Agrawal

Biocon chairperson shares her five ideas to take India to a leadership position in life sciences technology in the next decade

2020 once seemed futuristic, a year by when our world would be transformed. As it nears, Mint invites thought leaders to share their vision for India for the next decade. We start with Biocon chairperson Kiran Mazumdar-Shaw, who tells Mint her five ideas to take India to a leadership position in life sciences technology.

Gene therapy for all

India could become a global hub for affordable, high-end therapies if we invest in gene and cell therapy and gene editing technology. Gene editing technology has helped accelerate innovation not just in life sciences, but across industries such as food, agriculture, energy and defence.

Focus on patenting

India needs to focus more on patenting and intellectual property protection. Awareness and legal support are key to enhancing the number of patents.We need patenting laws in line with global ones to derive value from our innovations, and monetize our innovations at a global level.

Data for mass change

Digital technologies are transforming businesses and India needs more of these to transform its life sciences and biotechnology businesses. Technology and big data analytics can make research and development more efficient by analysing billions of data sets, accelerate the discovery process and reduce error rates. They can reduce the cost of expensive diagnostics for Indians. They can bring a tectonic shift in the biotechnology and life sciences landscape.

Invest more in R&D

To take a lead in cutting-edge technologies, India needs to increase investment in research and development (R&D). India has to invest in creating world-class research institutions and infrastructure, high-end technical skills, and incentivize private investments in R&D.

Get regulation right

India needs to articulate regulations in new areas such as diagnostics. Liberal regulations with the right degree of control will signal government’s “positive intent" to stakeholders. This will draw investment, spur R&D and remove hurdles in development of new technologies.

18.2. Pharma pulse improves in Q2, but challenges remain heading into Q3

Livemint, 24 Nov. 2019, Clifford Alvares

Domestic formulations saw a healthy growth of about 13.5% YoY in the second quarter, an encouraging outcome

Indian companies have seen a rise in competitive intensity in the US market in some recent launches

MUMBAI: Indian pharmaceutical companies reported improved numbers for the second quarter, but the sector may not be out of the woods just yet. Revenue growth in the September quarter was helped by improvements in the domestic pharma market. Reflecting the improvement, the Nifty Pharma index gained 4.3% in the past one month compared to the 3.7% rise in the Nifty 500.

Domestic formulations saw healthy growth of about 13.5% year-on-year in the second quarter. An extended monsoon led to an increase in growth of health issues in monsoon related diseases. Volume growth was also upbeat, with some new launches bolstering the domestic formulations business.

However, volume growth may taper off after the seasonal “acute season" ends. “Domestic formulations recovered on the strong acute season but volume growth challenges remain given supply channel disruption. Industry players believe 3-4% volume growth versus 4-5% in the past and 8-10% Indian pharma market growth against 12-13% in the past as the new normal," brokerage firm Axis Capital Ltd said in a note to its clients.

On the other hand, the US market continues to weigh on Indian pharma companies. Thankfully, the price erosion in the generics segment has whittled down to single digits. Besides, revenue growth declined on a sequential basis and may remain muted on slower new launches.

Competitive intensity has increased in the US market. A few Indian pharma companies have managed to weather the market forces due to new launches and product-specific opportunities. But, by and large, the American market continues to remain a challenge for the Indian pharma industry.

Further, growth in the US largely depends on new drug launches. But given the spate of increase in the warnings from the US Food and Drug Administration (US FDA), the number of new launches going forward is a concern and may slow down. “Intensity of the USFDA’s (Food and Drug Administration) regulatory actions remained high with 15 warning letters issued to Indian pharma YTD, and seven since end-Q1FY20" said a report from Edelweiss Securities Ltd.

Nevertheless, cost-efficiency measures, and lower research and development spending supported Ebitda (earnings before, interest, tax depreciation and amortization) margins to a large extent.

For Indian pharma companies, gains in earnings, though, would be selective and driven by better product mix and new launches, particularly in the US.

19.1. Why India needs more mohalla clinics

Livemint, 09 Dec. 2019, Rukmini S

Spending on everyday health treatments can add up to become catastrophic over time, and push people into poverty

Both rural and urban households spend twice as much on outpatient or non-hospitalisation healthcare costs as they do on hospitalisations, data from a new National Sample Survey report shows.

India has one of the world’s highest proportions of out-of-pocket health expenditure, and the expense per hospitalisation can be catastrophically high, especially for the poor. One case of hospitalisation alone can on average cost roughly the same as the average Indian’s consumption expenditure for the year.

However, with the rate of hospitalisation in India currently at 2.9% (meaning that around 3 out of every 100 people need hospitalisation, excluding childbirth, during a calendar year) these spending shocks are rarer compared to routine ailments. In the case of medical care that doesn’t require hospitalisation the expense recurs frequently. In the 15 days preceding the survey, 8% of people reported having had an ailment.

Medicines contribute the highest share of medical expenditure for out-patient treatment, as well as for in-patient treatment in public hospitals and rural private hospitals. In urban private hospitals, the cost is frequently designated as an overall “package component" which cannot be split into individual components, and this now accounts for the highest share of inpatient expenses in private urban hospitals. The package component typically involves the cost of a set of procedures (including some medicines and surgical costs) for a specific illness.

Although successive governments have announced schemes for free medicines, there is no national scheme for free medicines yet. Only guidelines for states to set up their own schemes have been announced.

The high burden of outpatient health expenditure hits the poorest hard in both rural and urban areas. In rural India, the share of outpatient expenses in total medical expenditure has been falling since 2004-05, but it has risen since 2009-10 in urban India.

While these trends hold true across the country, there is wide variation among states in the degree of dependence on private versus public healthcare, and the relative share of non-hospitalisation costs in the total basket of expenditure. In general poorer people report lower levels of ailments and hospitalisations, implying that India’s most marginalised groups are still far from accessing required levels of healthcare, and skewing the numbers downwards. But despite consuming less healthcare, those in the poorest states don’t get cheaper healthcare; treatment costs are higher in many poorer states than in richer states.

The Ayushman Bharat scheme of the central government has so far been focused on expanding insurance coverage to help tackle health shocks. Evidence from a study prior to the scheme’s launch led by Shamika Ravi, director of research at Brookings India showed that the availability of public health insurance has not had a significant impact on out of pocket expenditure in India. However, it has significantly raised probability of people seeking hospital care, says Ravi, a former member of the PM’s Economic Advisory Council, who has advised the government on healthcare.

But even for hospitalisations, the Ayushman Bharat scheme is not all-encompassing. For one, the insurance element is means-tested (applicable only to the poor). This is not the case in several other states, including Delhi, where any Delhi resident who cannot get a procedure done within 30 days at a government hospital can get cashless treatment for over 1100 procedures at an empanelled private hospital with no insurance intermediary.

And then there is the heavy burden of illness that does not require hospitalisation. In Delhi, this has been the much more public face of its health reforms. “For medical treatment that does not require hospitalisation, we have set up over 300 mohalla clinics where 212 lab tests, diagnostics and medicines are all provided free of cost," says Jasmine Shah, vice-chairperson of the Delhi Dialogue and Development Commission, a think-tank that helps the Delhi government frame policies.

For Ayushman Bharat, the insurance scheme has received the most attention, but “the second component of it (much slower and low profile, and arguably more challenging to implement) is the creation of 150,000 Health and Wellness Centres across the country," says Ravi. The union health ministry claims that 1.7 crore people received free diagnostics and medicines in these centres over the last year. This is four times as many people claimed benefits under the insurance portion.

The national conversation on health spending in the last year has largely focused on insurance against catastrophic illness. But it appears that less discussed small illnesses are adding up to catastrophic costs for most Indians, and this needs urgent attention.

Rukmini S. is a Chennai-based journalist.

19.2. CSIR Developed Anti-Diabetes Medicine

IBEF, Dec. 09, 2019

The diabetic population in the country is close to hitting the alarming mark of 69.9 million by 2025, which denotes that the country is expected to witness an increase of 266%.

Council of Scientific and Industrial Research (CSIR), through its constituent laboratories namely CSIR-Central Institute of Medicinal & Aromatic Plants (CSIR-CIMAP), Lucknow; and CSIR-National Botanical Research Institute (CSIR-NBRI), Lucknow developed scientifically validated herbal product NBRMAP-DB as anti-diabetic formulation and the knowhow for the product was licensed to M/s AIMIL Pharma Ltd., Delhi who are manufacturing and marketing it as BGR-34, across the country.

M/s AIMIL Pharmaceuticals, the licensee carried out the clinical study of BGR-34 and the trial was registered in clinical trial registry of India (Registration number: CTRI/2016/11/007476). Further, the formulation has shown therapeutic efficacy for treating newly diagnosed type 2 diabetes, as found in independent clinical trials conducted at Banaras Hindu University (BHU), Varanasi.

The Central of Research in Ayurveda Sciences (CCRAS), and autonomous body under Ministry of AYUSH has been engaged in extending research-oriented Ayurveda based on integrative health care services for the management of Madhumeha which is Diabetes Mellitus. The following are the core activities

1. CCRAS in collaboration with Directorate General of Health Services, Ministry of Health & Family Welfare has implemented and executed a programme viz. Integration of AYUSH (Ayurveda) component with NPCDCS(National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular diseases & Stroke ) programme in the identified districts of 3 states viz. Bhilwara (Rajasthan), Surendranagar (Gujarat) and Gaya (Bihar) to cater health care services and to reduce the burden of NCDs including Diabetes by combining the strength of Ayurveda and Yoga. The programme was launched during 2016 and continuing in 3 districts viz. Bhilwara (Rajasthan), Surendranagar (Gujarat) and Gaya (Bihar). The aforesaid programme is now successfully functional in 52 centres (49 CHCs and 3 District Hospitals) of the all 3 identified districts, through AYUSH-NPCDCS Clinic/Lifestyle modification Clinics, established for prevention and management of selected NCDs by Ayurvedic intervention, Lifestyle modifications and Yoga Advice.

2. CCRAS had developed the AYUSH82 formulation for diabetes through scientific process of drug development and commercialized through National Research Development Corporation (NRDC) for wider public utility.

3. Generation of evidences on efficacy & safety of classical Ayurveda formulation on Diabetes Mellitus. CCRAS has done efficacy and safety on formulations viz. Nishamalki churna, Saptvinsti Gugullu, Yasad bhasm, Guduchi churna, Chandraprabha vati, Haridra churna anmd Gokshuradi Gugullu.

4. CCRAS has published the documents viz. Protocol on Prevention and Management for Diabetes Mellitus and compendium on research articles on Diabetes Mellitus which are made available in the public domain for benefit of practitioner's, physician and researchers.

This information was given by the Minister of State (Independent Charge) for AYUSH, Shri Shripad Yesso Naik in written reply to a question in Lok Sabha today.

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

20.1. We need to work on building a more connected India: Manu Jain

Livemint, 02 Dec. 2019, Shrabonti Bagchi

Xiaomi India's global vice-president shares his five visionary ideas with Mint for the coming decade

Topics

2020 once seemed futuristic enough to envision transformation at scale, yet close enough to set as a target and hit goals. With the end of the year weeks away, Mint invites corporate leaders to share their vision for the next decade. Manu Jain, global vice-president, Xiaomi India, shares five ideas for the future with Mint.

Professional skill training in schools

Our economy needs to work towards incubating and encouraging several more hardware startups. In India, as of 2019, less than 5% of the startups are hardware-based, and this is primarily due to lack of incentives and investments in research and development. Professional skill training at the school and college level will further aid in the employability of individuals and spark the entrepreneurial spirit at a young age.

Stable policies to promote exports

Electronics and mobile phone exports from India stagnated from 2010 to 2018. To become a global manufacturing hub, India needs to compete with Vietnam and China, which investors prefer because of the stable export-oriented policies, and better infrastructure and logistics network. We should also invest in laboratories for global standard testing since BIS is not a widely accepted standard.

A plug & play model for suppliers

We have a successful component ecosystem for batteries, chargers and USB cables, and suppliers with limited capacities of high-value components such as cameras and displays. There are challenges for manufacturing in India that keep suppliers from expanding capacity and global suppliers from investing in India. We should invest in a plug-and-play model for suppliers with readymade infrastructure.

Bringing internet to everyone

India is a land of opportunities, and all regions can contribute. In India, over 60% of the households are in rural areas and suffer from lack of internet connectivity. We should invest in bringing internet to everyone. To further increase the ease of doing business, we need to work to build a more connected India with better intra-country transport options, faster trains and improved last-mile connectivity.

5G: The next revolution

5G wireless technology is the next big revolution for the telecom sector and for original equipment manufacturers. The technology has been deployed widely in some countries already. For India, there is a need to assess the viability, the approach and deployment plan to ensure readiness in terms of operating model, commercial model, and infrastructure necessary to get the ball rolling.

20.2. Top IT institutes to build ecosystem for 5,000 startups

IBEF, Nov. 14, 2019

The Action for India (AFI), International Institute of Information Technology (IIIT-H), Indian Institute of Technology (IIT-H) and T-Hub have joined hands to develop social entrepreneurship ecosystem that will help start-ups to scale up their reach.

The agreement has been signed between the four entities with an aim to provide support to around 5,000 start-ups in the next five years.

The agreement was signed at the annual Action for India Forum 2019. In order to create an ecosystem to support tech-enabled, social impact start-ups, the experiences and resources are pooled in and aid is provided by the partners to scale up the operations of the target group of start-ups.

"India requires both venture model start-ups and social model start-ups to become a five trillion-dollar economy. The venture model start-ups have almost reached maturity. But social enterprises that improve quality of life of people by deploying technology need solid support and a robust growth ecosystem," Mr. Ravi Narayan, Chief Executive Office of T-Hub, said.

The collaboration between the T-Hub and the like-minded ecosystem enablers such as IITH, IIITH and AFI will help to utilise their expertise and experiences to create a social impact ecosystem that will offer scaling support to social entrepreneurs, he said.

"The alliance will address the critical challenges that social entrepreneurs face. These challenges include working on their business models, discovery of markets, building go-to-market strategies and scale-up strategies," Mr. Sanjay Kadaveru, CEO of AFI, said.

AFI, which is a social impact-driven platform for entrepreneurs, will make use of its network to aid the start-ups, covered under the initiative. AFI Impact Investment Fund and Silicon Valley Leadership Circle will also help AFI in this regard. Whereas, IIT-H and IIIT-H will help the start-ups by providing technology upgradation and support using their government connections.

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

INDIA AND THE WORLD

21.1. Fallout of Softbank’s big reality check

Livemint, 14 Nov 2019, Mihir Dalal

The Japanese giant’s woes will have an impact on the global startup ecosystem. We take a look at its India portfolio

SoftBank is a large investor in 9 unicorns—out of 20 firms that became unicorns in the past 5 years — with its most valuable holdings being Oyo, Ola, Paytm. But investments have slowed

BENGALURU: Late last year, several senior executives in India’s startup ecosystem were approached by Japanese conglomerate SoftBank Corp. The company had launched its gigantic $100 billion Vision Fund in 2017 and had identified India as one if its main markets. It was seeking to hire accomplished leaders in financial services, retail, consumer brands and transportation who could help Paytm, Oyo, Grofers and the fund’s portfolio firms in expanding their business and moving towards profitability.

SoftBank wanted to hire as many as six such senior executives. These executives would be in addition to the investment team that the company was simultaneously setting up in India. Most of the executives approached, however, turned down the chance to work with SoftBank, said several people familiar with the matter.

“From what I saw, there was a lot of confusion internally about who was taking calls on India," said one of the executives, who held talks with SoftBank and decided against joining the Vision Fund. “It was not clear how much influence the operating partners they were looking to hire would have. You didn’t want to end up in a place where you’re advising one of the companies to cut burn, and then a month later, SoftBank cuts a cheque of $1 billion to the same company."

Nearly a year later, this executive and others are relieved that they did not join the Vision Fund. Last week, the Vision Fund, for which SoftBank reports results separately, posted an operating loss of $9 billion for the July-September period, primarily on account of a crash in the valuation of WeWork Companies Inc., the American office rental startup that is battling for survival.

WeWork, Uber fallout

The Vision Fund and SoftBank had pumped in more than $10 billion into WeWork, whose valuation touched a peak of $47 billion earlier this year. But WeWork’s loss-making business model and suspect corporate governance policies put off potential public market investors, forcing the firm to suspend its proposed initial public offering (IPO) in September. SoftBank was forced to arrange for financing of $9-10 billion last month to bail out WeWork at a valuation of less than $8 billion.

SoftBank founder Masayoshi Son, who was a cheerleader for WeWork, issued a rare apology last week, saying at the earnings press conference in Tokyo that his judgement was “poor" vis-à-vis WeWork.

SoftBank had slowed its pace of investments in India this year. While it has been the biggest backer of Indian startups, it has avoided some fast-growing segments

Son, however, vowed to persist with his high-risk investment strategy of pumping billions of dollars in internet and technology firms. He said that the second Vision Fund was on track to close soon. According to media reports, SoftBank is still trying to raise around $100 billion for this fund, just like the first.

But the WeWork debacle, along with the disappointing public market debuts of other SoftBank-backed firms such as Uber Technologies Inc. and Slack Technologies Inc., has prompted a reckoning for the Japanese company that many investors said was a long time coming. This is expected to have an impact on startups globally, including those in India. Mint spoke to a dozen venture capitalists (VCs) and entrepreneurs to understand the potential fallout.

The SoftBank Model

By pouring tens of billions of dollars into loss-making internet firms and pushing their valuations to outrageously high levels, SoftBank had led a startup investment boom globally over the past five years, prompting comparisons with the dot-com bubble of the late 1990s.

Those comparisons seem especially relevant for Son, as he had invested in dozens of internet firms during that period. The 62-year-old billionaire was driven to the edge of bankruptcy in the wake of the dot-com bust that started in 2000, though Son and SoftBank survived after bold deal-making in the telecom business and have thrived in recent years.

SoftBank’s revival and its latest investment spree have, in fact, much to do with the success of one of its dot-com investments: Alibaba Group Holding Ltd. In 2014, the Chinese internet giant went public at a record-high valuation of more than $200 billion. SoftBank, which held a third of Alibaba’s shares, reaped the rewards of the IPO and began pouring large quantities of cash into new internet firms across the world.

Internet startups in India have been among the biggest recipients of SoftBank’s largesse. In October 2014, while announcing a large investment in e-commerce firm Snapdeal, Son pledged to invest $10 billion over a decade in India. Less than five years later, SoftBank has already fulfilled that promise, a clear indicator of the company’s freewheeling investment strategy.

A SoftBank spokesperson confirmed that it had already invested $10 billion in India but declined to comment on other queries from Mint.

The India portfolio

SoftBank is a large investor in nine Indian unicorns, out of the 20 internet firms that became unicorns in the past five years, according to Mint research (See graphic). With the exception of Paytm, the rest of the eight startups became unicorns only after SoftBank entered the fray.

That said, SoftBank’s performance has been inconsistent. Among its early investments, a $1 billion bet on Snapdeal and a smaller punt on Housing.com failed spectacularly. Other bets on InMobi and Hike Pvt. Ltd have also disappointed as these firms have consistently lagged growth expectations.

Its India strategy was driven by Nikesh Arora, who was once anointed by Son as his successor. Arora, a former Google executive, left SoftBank in 2016 under a cloud, temporarily causing uncertainty about the company’s India plans. But a year after Arora’s exit, SoftBank launched the Vision Fund and started investing aggressively again.

What has helped SoftBank redeem its India record is its $2.5 billion investment in e-commerce firm Flipkart Internet Pvt. Ltd, which was sold to the world’s largest retailer Walmart Inc. of the US in May 2018. SoftBank netted $4 billion from the sale, less than a year after it had invested in Flipkart.

In its current India portfolio, SoftBank’s most valuable holdings are: Oyo (Oravel Stays Pvt. Ltd), Ola (ANI Technologies Pvt. Ltd) and Paytm (One97 Communications Ltd). SoftBank’s holdings in two of these firms, Oyo and Paytm, are large enough to be considered significant for the overall Vision Fund. It has invested more than $3 billion in these firms.

Last week, the Vision Fund said it had invested about $76 billion in 90 firms as of 30 September 2019. It valued those stakes at about $78 billion, excluding exits. Of the $78 billion, large contributions came from Oyo and Paytm (its stake in Ola is held by the parent entity, not by the Vision Fund).

Oyo and Paytm

According to SoftBank’s presentation, the fair value of its consumer investments was $15.8 billion at the end of the September quarter. Anywhere between 20% and 33% of that can be attributed to its holdings in Oyo. SoftBank owns about 48% of the hotels firm that was valued at $10 billion in its funding round last month. Before this round, Oyo raised $1 billion from SoftBank and others at a valuation of $5 billion in September 2018. It is unclear if the Vision Fund marked up its Oyo stake after the latest round.

SoftBank’s presentation shows that the fair value of its fintech investments was $4.5 billion as of 30 September. At least half of that was on account of its 19-20% holding in Paytm, which last raised funds at a valuation of nearly $11 billion in August 2018. Paytm said its valuation jumped to $15 billion this August when some of its employees cashed out their shares in a secondary sale to unnamed New York-based investors. It is unclear if SoftBank marked up the value of its holdings in Paytm after this share sale.

As with its other portfolio firms, SoftBank has helped push up the valuations of Oyo and Paytm to record highs. Now, the two firms have to prove that they can become profitable in the future. That won’t be easy.

Paytm is locked in a market share war with Google Pay and Walmart-owned PhonePe Pvt. Ltd in digital payments. Once the clear market leader, Paytm has fallen behind its two rivals in UPI transactions. Paytm is trying to become a comprehensive financial services firm to grow and to improve margins, but it has been struggling to expand its payments bank and other businesses. A person familiar with the matter said that for months, SoftBank has been pressing Paytm to cut its spending faster and find new revenue streams.

Oyo has been on a wild expansion spree in domestic and international markets such as the US, UK and China. As with WeWork, Oyo’s strategy, backed by SoftBank, was to grab market share at all costs and worry about cutting losses later. That approach is no longer sustainable.

In July, Oyo founder Ritesh Agarwal announced that he will invest $2 billion to purchase the company’s shares from some of its early investors and invest more capital in the hospitality firm to triple his stake to about 30%. Agarwal’s purchase was to be funded by loans backed by Son, the SoftBank founder. But in the wake of the WeWork IPO failure, Son has recused himself from decisions about future investments in Oyo, The Wall Street Journal reported last week.

The wider impact

Even before the WeWork fiasco, SoftBank had slowed its pace of investments in India this year. While the company has been the biggest backer of Indian startups, it has avoided some fast-growing segments.

SoftBank had considered investing in food delivery firms Zomato Media Pvt. Ltd and Swiggy (Bundl Technologies Pvt. Ltd), but eventually the fund decided that it would only make an investment if the two firms merged, said two people familiar with the matter. However, the two firms declined, they added.

SoftBank had also discussed an investment in business-to-business e-commerce firm Udaan, but passed up on the firm.

Mint reported on 10 November that though SoftBank has been considering making large investments in eyewear retailer Lenskart Solutions Pvt. Ltd and regional language news app Dailyhunt (Verse Innovation Pvt. Ltd) for more than six months, the deals haven’t yet materialized. Earlier, being turned down by SoftBank would be worrying for any unicorn as the Japanese company had become the default choice for any startup looking for large amounts of capital. But now, SoftBank’s image as an all-powerful investor has taken a battering, say investors and entrepreneurs.

“Whenever SoftBank invested in a company, it would tend to scare off rivals. After WeWork, the aura of invincibility around SoftBank and their portfolio companies has reduced. Now there’s a feeling that Softbank’s strategy is dubious and that even if you’re up against one of their companies it is possible to win by following an alternative approach," said a partner at a venture capital firm, who declined to be named.

Many investors now expect a funding downturn to take hold soon. In this period VCs are expected to do fewer deals, valuations could decline across the board and investor pressure on portfolio firms will lead to M&As, say investors. “It’s not only SoftBank companies where valuations are unsustainable, it is a broader wave. Now that it’s become clear that you can’t keep burning money to buy revenues, I think many consumer internet unicorns will have to take a hit on valuation," said another VC, who also declined to be named.

Apart from making direct investments into Indian startups, SoftBank has also been the biggest source of exits for Indian VCs over the past three years. It had bought shares worth hundreds of millions of dollars in Flipkart, Paytm and others. These exits may reduce, too, if SoftBank is forced to cut its India investments.

The intensity of the expected downturn in startup funding will depend, to an extent, on the size of the second SoftBank Vision Fund. That will only become clear over the coming months.

21.2. Qatar to invest $450 million in Adani’s Mumbai power business

Livemint, 12 Dec. 2019, Tanya Thomas

The transaction is expected to be completed in early 2020, subject to regulatory approvals and customary conditions

For the second half of FY20, Adani’s power distribution business reported revenue of ₹4,103 crore and operating profit of ₹1,043 crore

Qatar Investment Authority (QIA) is investing $450 million (about ₹3,200 crore) in Adani Electricity Mumbai Ltd (AEML), the flagship power transmission asset of billionaire Gautam Adani.

Adani Transmission Ltd (ATL), the parent of AEML, said in a stock exchange filing that the investment is for AEML’s 25.1% stake and subordinated debt. It did not provide the quantum of equity and debt.

As part of the transaction, Adani Transmission and QIA have also agreed that more than 30% of the electricity supplied by AEML will be sourced from solar and wind power plants by 2023.

QIA chief executive Mansoor Bin Ebrahim Al-Mahmoud said in the statement: “We look forward to a long-term partnership with the Adani Group, with whom we share an intergenerational perspective on investments and a common vision for the sustainable growth and the continued success of AEML."

AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers in Mumbai. Adani Transmission said AEML has a market share of around 87% by licence area in Mumbai, 67% by consumers served and 55% by electricity supplied.

The transaction is expected to be completed in early 2020, subject to regulatory approvals and customary conditions.

This follows the August 2018 deal of Anil Ambani, who sold his Mumbai power distribution business to ATL for ₹12,700 crore. The QIA investment values the AEML business at roughly ₹13,000 crore.

For the second half of FY20, Adani’s power distribution business reported revenue of ₹4,103 crore and operating profit of ₹1,043 crore.

Adani Group chairman Gautam Adani said in the statement, “We believe this is a significant step in the journey of the Adani Group, marking the start of a long-term partnership with QIA."

22.1. PSLV successfully launches RISAT-2BR1 and nine commercial satellites in its Fiftieth flight

IBEF, Dec. 12, 2019

India's Polar Satellite Launch Vehicle, in its fiftieth flight (PSLV-C48), successfully launched RISAT-2BR1 along with nine commercial satellites from Satish Dhawan Space Centre (SDSC) SHAR, Sriharikota, today.

PSLV-C48 lifted-off at 1525 Hrs (IST) from the First Launch Pad. After 16 minutes and 23 seconds, RISAT-2BR1 was successfully injected into an orbit of

576 km. Subsequently, nine commercial satellites were injected into their intended orbits. After separation, the two solar arrays of RISAT-2BR1 were deployed automatically and the ISRO Telemetry Tracking and Command Network at Bengaluru assumed control of the satellite. In the coming days, the satellite will be brought to its final operational configuration.

"Today we achieved an important milestone in the history of PSLV by successfully launching its 50th mission" Chairman, ISRO, Dr. K. Sivan declared. A book titled 'PSLV@ 50' was released by Dr. Sivan on this occasion. He further added that this versatile launcher has lifted off 52.7 tonne into space, of which 17% belongs to customer satellites.

RISAT-2BR1 is a radar imaging earth observation satellite weighing about 628 kg. The satellite will provide services in the field of Agriculture, Forestry and Disaster Management. The mission life of RISAT-2BR1 is 5 years.

Dr. Sivan appreciated the efforts of the launch vehicle and satellite teams for realizing this mission in a short span of time.

The nine customer satellites of Israel, Italy, Japan and USA were precisely injected into their designated orbits. These satellites were launched under a commercial arrangement with New Space India Limited (NSIL).

PSLV-C48 is the 2nd flight of PSLV in 'QL' configuration (with 4 solid strap-on motors). Besides being the 50th launch of PSLV, today's launch was also the 75thlaunch vehicle mission from SDSC SHAR, Sriharikota.

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

22.2. Citroen set for India entry with digitised sales process

IBEF, Dec. 10, 2019

European auto major Groupe PSA is ready to enter Indian market with smaller yet highly digitalised showrooms in ten cities for Citroen brand. The aim of the company is to help its dealers to invest judiciously on premises, as per a senior company official.

It formally announced its entry in the Indian market with Citroen brand early this year and is planning to build a seamless digital experience for potential customers of its first model which is a C5 Aircross SUV.

"Through our network, we aim to bring in a digital disruption for a seamless customer experience," said Citroen India’s Senior Vice-President, Sales & Marketing, Mr Roland Bouchara. The idea behind this is to provide opportunity to the most potential buyers to research and chose model variants, transact for finance and insurance digitally, he added. The brand aims to have relatively smaller sales outlets in the country with the introduction of digitalisation.

"Since we are setting up a new network, we are proposing a different business model to our dealers, wherein we will have relatively smaller showrooms but digitalised," said Mr Bouchara. It will ensure a competitive premises investment, but a stronger all-encompassing digital environment, he added.

"To support the launch of the C5 Aircross SUV, we will initially cover ten cities through Citron network," he said. This will consist of all the major metro and tier-1 cities where the brand sees prospective buyers for the C5 Aircross SUV, he added.

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

23.1. How English became an Indian language

Livemint, 05 Dec. 2019, Kavitha Rao

A writer travels across India to understand the vast and divisive subject of English spoken and written by Indians

The book is not an academic analysis of linguistics but a rollicking road trip, dotted with historical anecdotes and reminiscences

For a subject that is so contentious and emotive, it is surprising there are not more non-academic books on Indian English. True, G.V. Desani wrote the comic novel All About H. Hatterr as early as 1948. There have also been a couple of more recent linguistic explorations, such as journalist Binoo K. John’s 2013 book, Entry From Backside Only: Hazaar Fundas Of Indian-English. But the social impact of English—its adoption as a wholly Indian language—has gone relatively unexplored.

Kalpana Mohan takes a brave stab at a subject she accurately calls “vast and hairy". She attempts this by travelling across the country to explore a varied number of subjects: an English-language school in Dalhousie which teaches first-generation learners; a meeting with Mark Tully, the former BBC broadcaster and veteran India correspondent; Bengaluru-based radio jockey Danish Sait; a princess of the royal family of Travancore who was taught English by Anglo-Indians so she could hobnob with Lord Mountbatten; a bookseller at Bahrisons bookshop in Delhi’s Khan Market; the late Bengali writer Nabaneeta Dev Sen; and, of course, chats with taxi drivers that are essential to all non-fiction books since Thomas Friedman. “The people I finally chose had to have a personal story that informed and animated my narrative about the English language in India in some way," says Mohan.

Who: The daughter of a Chennai-based accountant, Mohan is an Indian-American writer who grew up in Dar es Salaam in Tanzania. Her childhood in the expatriate community—surrounded by Indians from various states, Africans and Europeans, all speaking their own version of English—influenced this book.

Her first book, Daddykins, published in 2016, was a memoir of her father’s life, but also a chronicle of a changing India. This book tries to do the same, except that Mohan is writing the memoir of a language here. She wrote a column on Indian English for the magazine India Currents for several years before she was approached by her publisher to write this book. “The older I get, the longer I live in America, the more furious I am about how we continue to repeat all the mistakes of the past. I realize even more the colossal tragedy of colonial rule and its aftermath—of languages lost, of stories wiped out, of lives upended," says Mohan.

What: This isn’t an academic analysis of linguistics. Rather, it is a rollicking road trip, dotted with historical anecdotes and reminiscences. Mohan explains: “I felt I would see things and hear things only when I travelled. Non-fiction books that delve into this subject without conveying a sense of place could not do this effectively. Instead of talking in general terms and spouting statistics, I felt my readers would be better engaged when I wrote about people’s lives."

A theme Mohan explores in her trips is how, as Tully tells her, “English has gone from being the language of status to being the language of opportunity". She visits a school in Dalhousie which serves one desperate purpose. “Just teach my child English" is a refrain Poonam Dhawan (the head of the school) hears often from parents from as far away as Amritsar, Ludhiana and Jammu, when they drop off their children at her boarding school. Others say, “Just give them some English so they can go to Keneda (Canada)." The children who speak in Hindi and Punjabi are punished and asked to write “I will speak only in English in school" 2,000 times.

At the other end of the country, a Gandhian school set up for tribal children teaches them in their mother tongue first, and introduces English only in class VI, with probably greater success.

Elsewhere, Mohan explores how English has blotted out Indian tongues and left their speakers feeling inferior and overlooked. She meets the doughty Bengali writer, Dev Sen (who died in November). Dev Sen moved to Kolkata when her marriage to the Nobel laureate Indian economist Amartya Sen ended. Despite her privileged bhadralok (an upper-middle caste, cultured person) upbringing in English-medium schools, she resisted pressure to write in English and went on to write over 80 books in Bengali. Dev Sen wanted fair treatment for bhasha (language) writers, obliterated by the tide of English writers. “Why do literature festivals feature young aspiring writers in English in place of senior experienced writers in the regional languages?" she asked Mohan.

Why: Read this book for an engrossing journey through the history of English in India. The author has a wonderful ear for dialogue, an eye for a good anecdote, and maintains a constant sense of place. “Can you able to understand?" demands “Humble politician Nograj", the fictional creation of Sait, who uses English, Kannada and Hindi, all equally clumsily, to further his corruption. “Now you listen to me, you, I am going to be ‘don’t care’," yells Ganga, a Tamil domestic worker who has learnt whatever English she needs to pursue her various legal disputes. For 1970s and 1980s readers, it’s also a tempting journey into nostalgia: Wren And Martin, Binaca Geetmala, the famous Pepsi tag line “Yeh dil maange more", and other shapers of Indian English all make appearances.

The problem is that occasionally the charm wears thin, and one wishes for something a little grittier. This is a slim book, and an air of unfinished business hangs over it. Often, the author mentions an intriguing or painful subject, then skittishly veers away. In one instance, Ganga mentions her Naidu caste, wistfully contrasting it with Mohan’s Brahmin caste. Mohan writes naively, “I would never be able to empathize why someone like Ganga was preoccupied with the notion of caste," then concedes, rather cursorily, that “it was something that those with less privilege thought about all the time". The vast and brutal injustice of Brahminism in Tamil Nadu—and its impact on who got to learn English and who didn’t—is glossed over.

The political history of English is also dealt with perfunctorily. There is a mention of the agitation in Tamil Nadu over the imposition of Hindi in the 1960s. This could have been a great topic to explore, given the current government’s attempt to push Hindi on unwilling non-Hindi speakers. Once again, the mention remains only a mention. “I think my constant struggle with this book was striking a balance—while pitting expository material against my own personal narrative in order to move the story along," says Mohan, explaining her decision to leave out certain topics.

Overall, An English Made In India achieves that tricky balance. But the reader is left wishing for more.

Kavitha Rao is a Bengaluru based independent journalist and author.

23.2. Film review: ‘Hotel Mumbai’ is a haunting reminder of sacrifice

Livemint, 29 Nov. 2019, Udita Jhunjhunwala

The film is based on the 26 November 2008 terrorist attack on the Taj Mahal Hotel

Anthony Maras directs with a sure hand and the actors convey the unfolding horror with sensitivity

Keeping within the genre of disaster/survival movies, writer-director Anthony Maras zooms into one of the sites of a horrific attack on Mumbai on 26 November 2008. The Taj Mahal Hotel and Mumbai city were under siege for 72 hours as terrorists rained bullets indiscriminately around the city.

Maras and co-writer John Collee’s film opens with the arrival of a group of young men with heavy bags on their backs and a voice in their ears that constantly directs them and reminds them of their mission and the promise of heaven.

In the plush Taj Mahal hotel, the staff is preparing for a busy evening. The screenplay tracks into a few guests and hotel staff. Among the guests are a newly married couple (played by Armie Hammer and Nazanin Boniadi) with an infant child and nanny (Tilda Cobham-Hervey), a Russian businessman (Jason Isaacs), a backpacker and his girlfriend. It’s curious that the only real life character is that of chef Hemant Oberoi, played by Anupam Kher. Oberoi is one of the heroes of this piece, supported by a fictitious hotel staff member called Arjun, played by Dev Patel.

Through them we witness the devastation, fear, horror, and resilience of those that made it and those that shepherded them through the worst nightmare imaginable. Patel, Kher, Hammer, Boniadi capture the stress, desperation, resolve, bravery and sacrifice remarkably.

Not only is the film based on the Emmy-nominated documentary Surviving Mumbai but the makers also got access to the transcripts of the original phone conversations between the hotel staff and rescue team. But the script has fictional attributes too (the café under attack is called Lilopal) and blends assorted incidents and stories from that time.

The language shifts naturally between Punjabi, Hindi, English, Marathi, Russian etc., but the put-on Indian accents adopted by the foreign actors are jarring at times and an ignorance of Indian culture is sharply in focus when Maras shows a couple publicly kissing each other goodbye in their low-income housing colony. The decision to humanise the terrorists is also questionable.

The hotel set is cleverly designed and Nick Remy Mathews moves his camera swiftly around the heavily armed terrorists. The intercutting of real-life footage and news clippings with recreated action is a reminder of the chaos and horrors unfolding around the city.

Maras directs with a sure hand and his actors approach the subject with sensitivity. Hotel Mumbai is a disturbing and haunting reminder of what so many endured. It’s a tribute not only to those who did not survive but also to those who took infinite risks for the survival of others.

24.1. Apollo Tyres enters Saudi Arabia through tie-up with Al Jomaih Tyres

IBEF, Dec. 03, 2019

Apollo Tyres Ltd, plan to enter Saudi Arabia through a tie-up with Al-Jomaih Tyres Company Limited. The company is aiming at the large and growing truck-bus radial and passenger car tyre market, looking to obtain a sizeable market share, in each of the segments, in the next couple of years.

"The entry into the Kingdom of Saudi Arabia is the culmination of a long-term product planning and development programme. We are now ready with products suited to cater to the Saudi market, which is the largest and important replacement tyre market in the Middle East region," said Mr Shubhro Ghosh, group head ASEAN, Middle East & Africa of Apollo Tyres.

"Saudi Arabia has a market potential of approximately 22 million tyres, and we have set a very aggressive target for ourselves, of selling nearly 800,000 tyres per annum, including both commercial vehicle and passenger vehicle tyres, within the next five years", he added.

Mr Sheikh Abdullah Al-Jomaih, CEO, Al-Jomaih Tyres, said: "We have noticed that the premium tier 2 market in Saudi has been expanding at a fast pace and Apollo Tyres meets the need of local customers who are seeking quality products at competitive prices."

The tyres sold in Saudi Arabia would be modified according to the demand of the local market and would be covered under a 5-year warranty from the date of manufacturing.

Apollo Tyres had set-up its hub for the Middle East and Africa region, in Dubai, in 2011.

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

24.2. Innovate & differentiate for true financial inclusion: Sachin Bansal

Livemint, 05 Dec. 2019, Madhurima Nandy

Sachin Bansal, founder and CEO, Navi Technologies, co-founder of Flipkart and technology entrepreneur, shares five ideas on the importance of financial inclusion

2020 once seemed futuristic enough to envision transformation at scale, yet close enough to set as a target and hit goals. As 2019 draws to a close, Mint invites corporate leaders to share their vision for the next decade. Sachin Bansal, founder and CEO, Navi Technologies, co-founder of Flipkart and technology entrepreneur, shares five ideas with Madhurima Nandy on the importance of financial inclusion.

Simplify experience for customers

This goes a long way toward achieving greater usage; easy to understand products that meet specific customer needs are essential. Products should be designed based on user-testing. The size of the transaction can be calibrated for ease of use: deciding when to use OTPs (not requiring them for less than ₹2,000), for example. Financial inclusion also implies a spectrum of services, as opposed to a set of discrete services.

Personalized financial services

Financial services must be personalized by putting customers at the centre of product design. For loans, they could be allowed to choose their repayment plans, based on the bank’s assessment of their creditworthiness. For MSMEs, the bank could leverage its data analytic capabilities to schedule instalments and price loans dynamically. For payments, customers could choose sub-accounts and set limits.

The importance of technology

Technology will have to play an important role in financial inclusion. Digital-only banking models are emerging across the globe and are attracting a growing base of retail, business and MSME customers. These models have evolved in various forms, including fintechs that evolved into banks and digital-only brands or subsidiaries launched by existing commercial and investment banks.

Digital India needs to pick up speed

Digital India (launched in 2015 to improve internet connectivity, digital literacy and the country’s technology infrastructure) should be accelerated. According to the Global Findex Report 2017 released by World Bank, just 5% of the population accessed a financial institution from their phones or through the internet; only 2% of the population has a mobile money account.

Focus on research and development

We can replicate the success of the consumer internet industry in the financial services industry. Technological capability will have to be developed and deployed at scale. That means an intense focus on research and platform development. It will also have to be customized and differentiated with innovative technologies as this approach cannot be limited by the inflexibilities of tech products sold by vendors.

25.1. Sundar Pichai made CEO in Alphabet’s biggest bet

Livemint, 05 Dec. 2019, Leroy Leo, Biman Mukherji

Madurai-born Sundar Pichai is atop the new tech order as Larry Page, Sergey Brin step aside

Pichai, who has run the core Google search business since 2015, will take up Alphabet’s reins immediately

NEW DELHI/SAN FRANCISCO: Google CEO Sundar Pichai will take over the additional reins of parent Alphabet in place of co-founders Larry Page and Sergey Brin as the sole occupant of the hot seat amid an unprecedented global demand for more safeguards, regulatory scrutiny and taxes.

The 47-year-old IIT Kharagpur and Stanford graduate becomes, arguably, the biggest Indian-born CEO on the world stage, after Page and Brin said they were stepping aside as leaders of the internet behemoth they founded 21 years ago.

Apart from leading Google, Pichai will manage Alphabet’s investments in Other Bets, a bouquet of futuristic, technology-driven businesses.

“While it has been a tremendous privilege to be deeply involved in the day-to-day management of the company for so long, we believe it’s time to assume the role of proud parents—offering advice and love, but not daily nagging!" Page and Brin wrote in a blog post on Tuesday.

Pichai, who has run the core Google search business since 2015, will immediately take up the reins of Alphabet, the parent of one of the world’s most valuable and influential companies.

“I want to be clear that this transition won’t affect the Alphabet structure or the work we do day to day," Pichai said in an email to Google employees. “I will continue to be very focused on Google and the deep work we’re doing to push the boundaries of computing and build a more helpful Google for everyone. At the same time, I’m excited about Alphabet and its long term focus on tackling big challenges through technology."

Apart from leading Google, Pichai will manage Alphabet’s investments in Other Bets, a bouquet of futuristic, technology-driven businesses

Pichai said he will continue working with Page and Brin, who will advise as board members and co-founders.

Page and Brin added, “We’ve never been ones to hold on to management roles when we think there’s a better way to run the company. And Alphabet and Google no longer need two CEOs and a President. Going forward, Sundar will be the CEO of both Google and Alphabet. He will be the executive responsible and accountable for leading Google, and managing Alphabet’s investment in our portfolio of Other Bets (a reference to a basket of businesses ranging from an autonomous vehicle unit to helium balloons that provide solar-powered internet services in remote areas)."

The move breaks up a trio that shared an emphasis on developing artificial intelligence software to make web searching faster and more personalized, while expanding the range of information and services available from a simple text query.

But their vision faces unprecedented scrutiny, with governments on five continents demanding better safeguards, an end to what many view as anticompetitive conduct, and more taxes from the world’s largest online advertising company. Thousands of employees have protested, and some have even resigned, over ongoing concern that Google’s famous “don’t be evil" mantra may be cracking.

Alphabet, which owns more than a dozen companies, including self-driving car business Waymo and healthcare software company Verily, was created in 2015. The Google unit retained control of major businesses including video giant YouTube and the Android smartphone software and hardware operations.

Page had wanted to focus on developing the newer businesses, which collectively lose money. He left Google to Pichai, who in turn delegates a lot of authority to deputies, who manage the various product lines.

But Page and Brin, once regular sights at public events, had become much less visible in recent years. Page’s retreat into the background drew increasing criticism from employees and US lawmakers, who demanded answers from him rather than Pichai about controversial projects such as an experimental search app for Chinese users.

The co-founders still control the company through preferred shares. As of April, Page held 26.1% of Alphabet’s total voting power, Brin 25.25% and Pichai less than 1%.

Born into a middle class family in Tamil Nadu, Pichai, or Pichai Sundararajan, developed an interest in computers while he was studying metallurgical engineering at the Indian Institute of Technology-Kharagpur. He later won a scholarship to Stanford, nursing dreams of joining Silicon Valley.

Though he has been steering one of the world’s most successful information technology companies, in an interview to The Guardian in 2017, Pichai said: “As humans, I don’t know whether we want change that fast—I don’t think we do."

This, in fact, could prove to be a dilemma as Pichai leads Alphabet, with its experimental projects of the future.

(Reuters also contributed to this story)

25.2. Opinion | Asia’s miracle economies have lessons for India’s trade policy

Livemint, 14 Nov. 2019, Sudipto Mundle

The country must identify strategic growth sectors and companies and then push them to achieve global competitiveness

In walking away from the Regional Comprehensive Economic Partnership agreement (RCEP) in Bangkok earlier this month, India signalled to the world that it could not compete in a free trade arrangement with the other 15 member countries of RCEP. This has exposed the weak underbelly of the world’s third-largest economy (in terms of purchasing power parity), the fastest-growing major economy, etc.

However, RCEP is a play with many acts, and Bangkok was only the end of act two. There will be other acts to follow. China, the prime mover behind the agreement, has already signalled that India’s concerns would be addressed, as have Australia and other members. Where we go from here remains to be seen. But why did India walk away? Biswajit Dhar (The Hindu, 7 November 2019), Deepak Nayyar (Mint, 8 November 2018) and others have explained why India had little choice but to withdraw at this stage.

First, Indian industry cannot compete with industrial products of most RCEP partners, particularly China, without tariff protection. India’s initial negotiations were for tariff elimination on 80% of imports from the Association of Southeast Asian Nations (Asean) group of countries, and only 42.5% of imports from China, but India was later forced to accept much wider tariff elimination. It was also unable to secure strict rules of origin and other safeguards. So, RCEP, it was feared, would lead to a surge in industrial imports.

Second, low-productivity Indian agriculture—largely based on small and marginal farms—cannot compete with the high-productivity agri-businesses of other countries. But agriculture is the main livelihood for a large share of the Indian workforce. India has thus resisted agricultural liberalization and tariff reductions in all free trade agreements (FTAs). Similarly, India is the world’s largest dairy producer, but is inefficient and its dairy sector needs tariff protection from New Zealand and Australia. All this would have become history by joining RCEP.

A third issue is e-commerce. Conforming to World Trade Organization rules, imports by RCEP countries through e-commerce platforms won’t be subject to any tariffs, implying a much larger opening of domestic markets beyond the tariff cuts. RCEP provisions on cross-border transfer of information and server location would also conflict with the draft national policy on e-commerce and data security. There is a similar conflict in cross-border investment provisions of RCEP and India’s bilateral investment treaties.

For these and other reasons, virtually all stakeholders, including industry, trade unions and farmer organizations, lobbied against joining RCEP. So did all groups across the political spectrum, from the Bharatiya Janata Party and its affiliate Swadeshi Jagran Manch to the Congress party to the Communist Party of India (Marxist). Politically, the Narendra Modi government had little option but to walk away.

Only some of us economists who believe a low-tariff free trade regime can force Indian enterprises to become more competitive have lamented India’s exit. It is seen as part of an ongoing reversal of the liberal trade regime established 25 years ago. Instead of going down, average tariffs in the manufacturing sector have gone up from 11% to around 14% in the last three years and in agriculture, from around 33% to nearly 39%. Quantitative trade restrictions have also come back in various ways. However, it is important to look at the evidence. India’s experience with FTAs has largely been disappointing. While trade has grown, so has India’s trade deficit with most of these countries/groups. It was believed that India had a comparative advantage in services. However, as Amita Batra pointed out (Business Standard, 28 August 2018), India has not gained any more from FTAs in services than in goods. There is little evidence that FTAs have nudged Indian enterprises towards greater competitiveness.

So, where do we go from here? Global value chains (GVCs) have emerged as the dominant channels for international trade, and these GVCs are concentrated within regional FTAs. To grow its exports, India has no choice but to join a regional FTA. In Asia, after Donald Trump walked away from the US-led Trans-Pacific Partnership (TPP), designed to exclude China, the China-led RCEP remains the only game in town. It’s a mega regional FTA, with its members accounting for about 40% of world gross domestic product (in PPP terms), and an even larger share of the world population, and a large share of global trade. All members of the Comprehensive and Progressive Trans-Pacific Partnership—which rose from the ashes of TPP—are also members of RCEP. So, it is still India’s best bet. Whether it can achieve in a few months the better terms it failed to obtain in seven years is doubtful. But India must keep the RCEP option open as long as possible. Meanwhile, India should energetically explore FTAs in places such as Europe, the Americas and Africa.

Membership of FTAs is a necessary but not sufficient condition for rapid export growth. This will require Indian enterprises to strive more energetically for higher productivity. The “miracle economies" of East Asia, Japan, Korea, China, Taiwan, etc., have shown how “hard" states have made this happen through industrial policy. Identify strategic industries important for rapid growth, pick winners in those industries, support them to grow to global scale, and then force them to become competitive or lose state support. There is nothing equitable about this approach, but this is how East Asian countries came to dominate the global economy. Whether India’s “soft" state has the capacity and will to follow this path, or not, will determine whether its economy emerges as a model of successful state-led capitalism or flounders in the morass of crony capitalism.

Sudipto Mundle is a Distinguished Fellow at the National Council of Applied Economic Research

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Thursday 19 December 2019

NEWSLETTER, 20-XII-2019

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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NEWSLETTER, 20-XII-2019

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

- AGRICULTURE, FISHING & RURAL DEVELOPMENT

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