ALL INDIA NEWS

Why heaping praises on your team will do you more good than you can imagine

In fact, people worry that giving credit to someone else will reflect badly on them, but it is quite the contrary.

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Five ways you can help internal hires excel in their new roles

Internal hires fit into their new roles faster than the newly-recruited talent as familiarity with the organisation and its workings allows them to be more productive.

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Indian Army recruiting for multiple posts; July 16 last date to apply

The Army will be conducting recruitment rallies for eligible candidates of Punjab districts of Fatehgarh Sahib, Barnala, Mansa, Sangrur and Patiala from August 1 to 13.

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Are you teaching in a private engineering college? Your job may be at risk

Many engineering colleges have started downsizing the number of their faculties, citing a new rule by AICTE.

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A new job in your 40s is very much possible. You just have to keep 5 things in mind

There is nothing like "being too old to seek a new job". One simply needs to be open, fearless and committed to ensure employability at any age.

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Is flatter better? Five ways to disrupt traditional workplace hierarchies

Experts say that companies that challenge work hierarchies will find more transparency, fluid communication, and motivated employees.

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Indian army invites application for multiple positions, July 8 last date to apply

The recruitment rally for eligible candidates of Rajasthan's Bharatpur, Karauli and Dholpur will be held between July 18 and 31.

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Don't let office politics bog you down. Here are 5 tips to help you sail & excel

The inability to manage professional ties properly could end up impacting your impression, and in turn your growth prospects.

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Railway recruitment 2018: Applications open for 83 vacant posts till June 29

Application forms can be accessed through the official website. Completed forms to be sent to Northern Railways' head office in New Delhi.

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Five ways to approach generation gap in the workplace

With such a mix of age groups, who have different style of working, the onus of creating an enabling environment mostly falls on the senior management.

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Five ways to build a strong professional network

Brinda Sarkar gets experts to weigh in on how to build a strong professional network.

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Railway recruitment: Posts for 1,120 sub-inspectors and 8,619 constables in RPF notified

Railway Recruitment Board has invited online applications from eligible candidates (both male and female) to fill posts of 1,120 sub inspectors and over 8000 constables with the Railway Protection Force.

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4 million new jobs created in eight months till April: CSO report

As many as 41.26 lakh new jobs were created during September 2017-April this year, with the first month of the current fiscal witnessing highest ever monthly addition of 6.85 lakh, says Central Statistics Office. The CSO had brought out the first release of employment related statistics in the formal sector in April, 2018 covering the period September 2017 to February, 2018, using information on the number of subscribers who have availed benefits under three major schemes, namely - the EPFO, Employees' State Insurance Scheme (ESIC) and National Pension Scheme (NPS). Now, in the similar data release suggest that as many as 41,26,138 new payrolls were created during September 2017 to April 2018, and in April alone 6,85,841 new payrolls were recorded by the retirement fund body EPFO (Employees' Provident Fund Organisation). According to the data, the EPFO's April payroll number was the highest in the last eight months, indicating higher jobs creations than preceding 7 month. During April, the maximum new payrolls of 1,87,221 were recorded in the age bracket of 18 to 21 years followed by 1,80,892 payrolls in 22 to 25 years. According to the EPFO, the data for most recent months are provisional as updation of employees records is a continuous process and are likely to be updated in subsequent months. For each age-wise band, the estimates are net of the members enrolled and ceased during the month. It also said the estimates may include temporary employees whose contributions may not be continuous for the entire year. The members' data are linked to unique Aadhaar identity. The body has more than 6 crore active members with at least one month contribution during the year. The CSO, which is a wing of Ministry of Statistics and Programme Implementation, said the estimated total number of new National Pension Scheme subscribers during the period September, 2017 to April, 2018 is 5,12,040 persons. The present report gives different perspectives on the levels of employment in the formal sector and does not measure employment at a holistic level, it added.

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4 million new jobs created in eight months till April: CSO report

According to the data, the EPFO's April payroll number was the highest, indicating higher job creation as compared to the preceding seven months.

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Has LIC become an ATM for govt? D-Street analysts fume at move to buy IDBI bank

64729128 NEW DELHI: As the board of Life Insurance Corporation of India, India’s largest life insurer, approved a proposal to take up a controlling stake in I DBI Bank, analysts and market watchers expressed shock and disapproval.“LIC equals ATM” (for the government) tweeted Sanjay Bakshi, a value investor and professor of finance at Management Development Institute (MDI) Gurgaon.Shares of IDBI Bank traded 1.19 per cent lower at Rs 58.35 on BSE at 2.34 pm on Monday."LIC does not have the skills to run a bank. Whether it will be able to provide the right leadership or guidance is something that needs to be questioned. There are other issues too, such as cap on the voting by shareholders. The government can exercise its vote, but LIC certainly cannot," said Amit Tandon, founder & MD, IIAS.The PSU insurer already owns 10.82 per cent stake in the state-run lender and would require regulatory clearance to increase it beyond 15 per cent. The insurer is said be weighing acquisition of a 43 per cent stake in the lender, ETNow quoted sources as saying.Neeraj Dewan, Director at Quantum Securities, believes the love looked like a desperate measure, but the timing of the decision may not be that bad. "You may have the capex cycle picking up slowly. When we go across corporates, they are in need of money. You saw that for Tata Steel, which has been able to get Bhushan Steel. Companies that are looking at inorganic growth or capacity expansion may lift credit demand slowly,” Dewan told ETNow. Last month, RBI brought the bank under its prompt corrective action (PCA) framework due to high non-performing assets (NPAs) and negative return on assets (RoAs).IDBI Bank reported a Rs 5,662.76 crore loss for March quarter, compared with Rs 3,199.77 crore loss reported for the corresponding quarter last year. The bank’s gross non-performing assets jumped to Rs 55,588 crore at the end of March quarter from Rs 44,753 crore a year ago. Net interest income (NII) fell 44 per cent YoY for the quarter to Rs 915.47 from Rs 1,633.29 crore in the same quarter last year.ET had reported earlier this month that the government was considering a preferential capital issue by IDBI Bank to bring its holding below 50 per cent as part of plans to transform its fortunes on the lines of Axis Bank.

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'Renewables to account for 55% of installed capacity'

New Delhi: The share of renewable energy in India's electricity mix is set to increase to around 55% by 2030, as the country continues to expand its installed capacity in the face of growing power demand, Power Minister RK Singh said. As part of the Paris Climate agreement, India had committed to produce 40% of its installed electricity capacity from non-fossil fuel sources by 2030."We have pledged in Paris that by 2030, 40% of our installed capacity will come from renewables. I believe we have already crossed about 30%, if we add hydro power. So by 2030, 53-55% of our capacity will come from renewables," Singh, who is also in-charge of the ministry of new and renewable energy (MNRE), said while addressing a business session with the President of Seychelles here on Monday. India has set itself a target of adding 175 GW renewable energy capacity by 2022, which Singh recently said that the government will 'over-achieve', instead adding 227 GW within the same timeline. Currently, renewables account for around 20% of the country’s total installed capacity.Singh said that the country's power demand has been increasing at the rate of 6% per annum and is expected to grow further."It (power demand) will go up further, which means we will need to expand our capacity, so energy is a good market here," Singh said, adding that India has become a highly competitive market in terms of renewables.Singh said that the future solar bids will have a mandatory local sourcing component which will make foster domestic manufacturing in the country.“The size of the bids will increase. Future bids will be tagged along with manufacturing. We bid out the capacity, plus the commitment to manufacture up to 50% of the capacity we bid for –manufacturing of solar cells right from polysilicon onwards,” Singh said.He said that India has already installed 70,000 MW renewable energy capacity while projects of 40,000 MW capacity are in various stages of implementation.“We are adding about 40 million consumers to the electricity network, the biggest expansion plan in the world,” Singh said.Industry watchers, however, remain cautious of recent government announcements around over-achieving their renewable energy targets amid key policy concerns-- safeguards duty on solar equipment, transmission constraints, availability of land for new projects, among others.“It’s hard to make sense of recent MNRE announcements. They underestimate various operational and financial challenges and are not grounded in reality. Private investors want MNRE to address their problems instead of setting even loftier targets,” said Vinay Rustagi, managing director at solar consultancy firm Bridge to India.The rapid increase in solar capacity, however, also demands a breakthrough in storage solutions, which will make solar energy viable in the long run.“Policy makers recognise that a quantum growth in future needs much lower costs, which can only come from local manufacturing,” said Kameswara Rao, leader- energy, utilities and mining at PwC India.The power minister also said that India will become one of the largest markets for storage and the government may make manufacturing of storage systems, an “obligation” in future.

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Renewables to account for 55% of total installed capacity by 2030: RK Singh

New Delhi: The share of renewable energy in India's electricity mix is set to increase to around 55% by 2030, as the country continues to expand its installed capacity in the face of growing power demand, Power Minister RK Singh said. As part of the Paris Climate agreement, India had committed to produce 40% of its installed electricity capacity from non-fossil fuel sources by 2030."We have pledged in Paris that by 2030, 40% of our installed capacity will come from renewables. I believe we have already crossed about 30%, if we add hydro power. So by 2030, 53-55% of our capacity will come from renewables," Singh, who is also in-charge of the ministry of new and renewable energy (MNRE), said while addressing a business session with the President of Seychelles here on Monday. India has set itself a target of adding 175 GW renewable energy capacity by 2022, which Singh recently said that the government will 'over-achieve', instead adding 227 GW within the same timeline. Currently, renewables account for around 20% of the country’s total installed capacity.Singh said that the country's power demand has been increasing at the rate of 6% per annum and is expected to grow further."It (power demand) will go up further, which means we will need to expand our capacity, so energy is a good market here," Singh said, adding that India has become a highly competitive market in terms of renewables.Singh said that the future solar bids will have a mandatory local sourcing component which will make foster domestic manufacturing in the country.“The size of the bids will increase. Future bids will be tagged along with manufacturing. We bid out the capacity, plus the commitment to manufacture up to 50% of the capacity we bid for –manufacturing of solar cells right from polysilicon onwards,” Singh said.He said that India has already installed 70,000 MW renewable energy capacity while projects of 40,000 MW capacity are in various stages of implementation.“We are adding about 40 million consumers to the electricity network, the biggest expansion plan in the world,” Singh said.Industry watchers, however, remain cautious of recent government announcements around over-achieving their renewable energy targets amid key policy concerns-- safeguards duty on solar equipment, transmission constraints, availability of land for new projects, among others.“It’s hard to make sense of recent MNRE announcements. They underestimate various operational and financial challenges and are not grounded in reality. Private investors want MNRE to address their problems instead of setting even loftier targets,” said Vinay Rustagi, managing director at solar consultancy firm Bridge to India.The rapid increase in solar capacity, however, also demands a breakthrough in storage solutions, which will make solar energy viable in the long run.“Policy makers recognise that a quantum growth in future needs much lower costs, which can only come from local manufacturing,” said Kameswara Rao, leader- energy, utilities and mining at PwC India.The power minister also said that India will become one of the largest markets for storage and the government may make manufacturing of storage systems, an “obligation” in future.

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A trading secret that helped one Indian bank stay afloat in a rout

By Anto Antony and Kartik GoyalKamal Mahajan says he’s being asked just one question: how did he make money as peers lost $4.4 billion during India’s worst bond-market rout in two decades?The answer, according to the head of treasury and global markets at Bank of Baroda, goes back to a contrarian bet taken two years ago. As the Reserve Bank of India started an easing cycle in 2015, eventually cutting policy rates seven times, bond yields fell to levels not seen since the global financial crisis. While investors were lured into a one-way bet, Mahajan thought differently.“Traders, however experienced they are, tend to be carried away by the market noise,” said Mahajan, who manages $20 billion of sovereign debt at India’s second-biggest state lender. “Our model predicted the tightening cycle two years back and we started positioning ourselves for this well in advance.”His desk began selling long bonds and buying paper that matured in four years or less, while also bulking up on 200 billion rupees ($2.9 billion) of floating-rate debt from August 2016. That very month, pressure was mounting on the central bank to cut interest rates further as the latest data showed slowing economic growth.The benchmark 10-year bond yield would sink to a seven-year low just three months later, raising questions over the strategy. Backed by Chief Executive Officer PS Jayakumar, the 59-year-old stuck to his guns. 64730110 “When yields were lower than 7 percent we didn’t buy while many other desks kept on buying,” said Mahajan. “Conviction in one’s models and formula is very important to ride through the market noise that opposes your stance and to come out on top on the other end.”Yields would climb more than 180 basis points from that nadir to touch 8 percent this month, as oil prices surged and investors became increasingly concerned about Prime Minister Narendra Modi’s expanding debt sales and fiscal discipline. In April, RBI shocked traders when minutes showed a tilt toward tightening, with a hike taking place two months later.Losses mounted for local lenders, the biggest holders of sovereign debt.State lenders probably held 300 billion rupees of losses on bond holdings in the six months ended March, according to India Ratings & Research, the local unit of Fitch Group. The red ink was so deep that RBI allowed banks to spread it out over time.Trading SecretsBank of Baroda, by contrast, booked a trading profit of 4.9 billion rupees for the same period, and 14.5 billion rupees for the entire fiscal year. Of the 17 state-run banks covered, only a couple had trading gains, according to India Ratings & Research.Mahajan, who started at Baroda in 1984, doesn’t want to give away details of his trading model, except to say that it incorporates forecasts on budget deficits and oil prices, a major swing factor for India which relies on imports.The only other tip he would share is that another turning point may come if the benchmark bond yield reaches 8.25 percent.The 10-year bond yield was at 7.84 percent as of 10:30 a.m. in Mumbai on Monday, suggesting that more pain may be in store. Every 10 basis point increase leads to a loss of as much as 40 billion rupees for state banks, according to Anil Gupta, head of financial sector ratings at ICRA, the local unit of Moody’s Investors Service.Bank of Baroda’s top management is now working to ensure that Mahajan’s model will be continued by his successors. For them, the veteran trader returns to a favorite theme.“To ride the yield curve and not get persuaded by current events, the senior treasury team needs to look beyond the present time horizon,” Mahajan said. “I am not good at trigonometry or statistics. But I went through the last 30 years and formed this model based on basic logic.”

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Sebi for adjudication proceedings against Kochhar

A preliminary examination by regulator Sebi has favoured adjudication proceedings against ICICI Bank and its CEO Chanda Kochhar for alleged violation of listing disclosure norms regarding 'conflict of interest' in business dealings of her husband with Videocon group.ICICI Bank may face a penalty of up to Rs 25 crore under the relevant Sebi regulations for such lapses, while the fine for Kochhar may go up to Rs 1 crore, besides other penal actions, a senior official said.The adjudication process will convene formally soon after taking into account the replies to the show-cause notices issued by Sebi to ICICI Bank, Kochhar and others in this matter, the official added.Besides Sebi probe, ICICI Bank's board has also constituted an "independent enquiry" and Kochhar has gone on leave till completion of this enquiry.According to a regulatory filing by the bank last week, Kochhar will continue as MD and CEO, though the group's life insurance arm head Sandeep Bakshi has been appointed as a whole time director and COO. Bakshi will report to Kochhar and will handle the day-to-day operations in her absence.The bank has maintained that its board has full faith in Kochhar.According to regulatory sources, Sebi's preliminary examination findings are based on enquiries made by the regulator in the matter involving Kocchar, ICICI Bank and Videocon Group.As per the report, Kochhar has admitted that her husband Deepak Kocchar has had many dealings with Videocon Group over the last several years.Besides, it has also been admitted by her that Deepak Kocchar and Venugopal Dhoot were co-founder and promoters of NuPower.Further, in June 2009, shares of Dhoot and Pacific Capital (owned by Deepak Kocchar's father and sister-in-law) in NuPower were sold to Supreme Energy. Also, Dhoot continues to hold interest in NuPower through debentures of Rs 64 crore, subscribed through Supreme Energy, the regulator found.Association of Deepak Kocchar and Videocon has also been confirmed in case of Credential Finance.On the basis of the preliminary report, Sebi has concluded that there was conflict of interest in the transactions of ICICI Bank with Videocon.By not disclosing the details of her husband's dealings with Videocon, Kochhar has not complied with the provisions of listing agreement. Further, the bank also failed in ensuring that its directors comply with listing rules, the official said.Therefore, adjudication proceedings have been recommended against ICICI Bank and Kochhar, he added.Last week, Sebi Chairman Ajay Tyagi had said the regulator is yet to receive a reply from ICICI Bank on the allegations involving Kochhar.The cases under scanner include the bank's Rs 3,250 crore loan to Videocon Group in 2012 and the involvement of Kochhar's family members in restructuring of the loan.Kochhar and her family members are facing allegations of quid pro quo and conflict of interest with respect to a loan extended to certain entities.

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Canada is the new America for scores of students from India

Canada has introduced a faster and simpler visa processing mechanism for students from India and three other countries. The number of Indian students opting for studies in Canada is on the rise and this new program which cuts down the processing time for study permits (which are student visas) to within 45 days as opposed to within 60 days will be helpful.Students from India, China, Vietnam and Philippines who demonstrate upfront that they have the requisite financial resources and language skills to succeed academically in Canada are eligible to opt for the newly introduced ‘Student Direct Stream’ (SDS) program.The erstwhile Student Partners Program (SPP) that entailed less visa documentation and quicker processing was more narrow in scope and available only to students applying to 40 odd participating Canadian colleges. On the other hand, the SDS program, introduced in early June, is available to students opting for post-secondary courses (ie: college education) at all designated learning institutes, according to a statement issued by the Immigration, Refugees and Citizenship Canada (IRCC), which is the Canadian government’s immigration division.This announcement almost coincides with the UK’s government decision to exclude Indian students from easier visa norms. Given the growing protectionism in UK and USA, the number of Indian students opting for Canada is steadily growing. Indian students obtained 83,410 study permits during 2017, a rise of 58% over the previous year.Earlier, including during 2015 and 2016, Chinese students were the largest class of international students to be allotted the study permits. India topped this list in 2017, with its students garnering 26% of the total study permits issued in that year, with China following closely behind. The trend of Indian students being the largest class of international students is is more pronounced during the period January to April 2018, with 29,000 odd Indian students obtaining the study permits as opposed to 16,925 from China. These statistics are based on an analysis done by TOI, of the open data available on the Canadian government’s website (see table).According to the Canadian Bureau for International Education, a non-profit agency in the educational domain, there were 4.95 lakh international students studying in Canada at the end of 2017, a rise of 20%. In an email reply to TOI, a spokesperson from the IRCC said that top source countries for international students, who were present in Canada as of December 3, 2017, were China (with 1.40 lakh students), India (with 1.24 lakh students) and Republic of Korea (with 23,050 students).Ontario-based Talha Mohani, immigration law specialist and managing director at Migration Bureau Corp, explains the nitty-gritty of the SDS program “A study permit application is assessed in terms of eligibility and admissibility, which include finance, language and medical. Under the SDS program several of these criteria are to be satisfied upfront. The student must pay the first semester tuition fee, in addition to buying a guaranteed investment certificate of Canadian $ 10,000. A minimum score of 6 for English in the International English Language Testing System is also required. The applicant also has to submit a copy of the upfront medical exam confirmation document. Given that some key criteria are met upfront when the application is made, enables the IRCC to reduce the time required to verify and complete the assessment process.”“Canadian education and work experience (internship experience counts) are extremely valuable when it comes to job prospects in Canada,” cites a job facilitator. Cynthia Murphy, interim India regional manager at Canadian Immigrant Integration Program, says, “Canadian college students including international students usually complete a work placement (internship) as part of their study course. This enables them to connect with future employers.”According to IRCC, “The SDS complements the express entry system as these students will be well placed to continue on the path to permanent residence and Canadian citizenship after completing their studies in Canada, if they wish to.”The express entry program for permanent residency in Canada is point based and a Canadian education helps garner extra points. Mohani explains that an applicant can get 15 extra points for a post secondary education program in Canada which is of a one to two year duration and 30 points if it is of a duration of three years or more. While official data is not available on the most popular courses that Indian students opt for, industry watchers say that business management, civil engineering, software engineering, medicine, and hospitality are some of the popular courses.

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Where Prasanth Prabhakaran of Yes Sec is value picking now

Prasanth Prabhakaran, Senior President & CEO, Yes Securities, tells ET Now where to value pick in an uncertain market. Edited excerpts: Would your preferred list amongst largecaps be restricted to the Infys and Reliances of the world or would it percolate down to some of the non-performers too? We like the consumption pack. We like the ITCs of the world which have not run up too much. They have changed the overall game plan. Their weightages in the tobacco business has come down substantially and their other businesses have picked up. But valuations are not as rich as may be an HLL or the larger ticket size ones.There is also Maruti, We are uncomfortable at this point of time but it is a must hold because they are the only one with around 50-55% market share. You have to be extremely choosy in what you pick in the next six to nine months till the election season gets over and you get FII interest back. Since the US markets have started showing growth, FIIs would prefer going to that market than come to a market which is uncertain and you have seen that exodus. In 30-35 weeks of a total of 40 odd weeks so far, there has been selling by FIIs. It is a clear indication that uncertainty is not liked by investors at this point of time.Nifty is at almost a record high. We saw a big breakout on Friday but if I look at the underlying price action, it is not all that encouraging. Do you think this kind of a polarised market is here to stay and if yes, for how long?We have been sceptical on the market for the last four or five months, since January onwards. The fact remains that valuations at around 26-27 multiples basically mean that you are expecting the companies to grow at least at 20-25% CAGR growth which does not seem to be coming in at any point of time. Our preferable range is in the 21-22 multiple range which basically means that Nifty is down to around 9800 to 10100 range. The reason the market has been at these levels is clearly liquidity. On one hand, FIIs have been leaving, but on the other hand, the domestic liquidity pool continues. Unfortunately, what is happening is this liquidity pool as far as bulk equity mutual fund collections are concerned, are showing a dip and you see a large migration of HNI clients from equity to FMPs and fixed maturity papers.Debt is again slowly coming back because you are getting fairly decent yields in the FMP side of the business. There have been launches from mutual funds into this space. If this liquidity dries down, then logically your valuation which have gone out of shape will also have an effect and they should logically come down.That is what we are expecting. Your macros are not great, your fiscals will have a problem for the next next couple of quarters.The issues that are there, have always been around, but unfortunately they did not get reflected in the correction that we had expected in Nifty.You are saying that this broader market weakness could trickle into the largecaps as well or would you say that this divergent trend would remain for the next few months?If you look at the Nifty composition, it is hardly five or six stocks which have held up the Nifty to the levels that it stands right now. Reliance, Infosys have held out and that is why Nifty has been resilient. If you look at valuations, look at the stories that have supposedly layed out. These have become safer bets and that is why money got parked there. But I would like to see 20-25% growth in the numbers. Only then will the valuations be sustainable. Finally, valuations are the ultimate truth, you have to catch up with the numbers. The fundamentals are in place. My preference actually would be to look at low debt companies. These are safer ways of navigating the murky waters when you are not clear on what has to be done. How are you approaching the argument to selectively buy pharmaceutical names right now? I actually had an opportunity to meet one of the largest contract manufacturers for quite a few large names in the pharma space and my question to him was is the margin pressure continuing? He said yes it continues and it is pretty bad. He was saying a lot of the smaller midcap pharma companies are going to have problems and there will be mergers and acquisitions. So, pharma remains an avoid. Everybody talks about a bottom getting formed as far as pharma is concerned but the pressures are different. There is pressure on both the US markets and Indian markets. Both governments are putting a curb to the pricing advantage that these pharma companies had and if margins are going to shrink as drastically as it has happened and the caps are going to come in, then there is a problem. Even if you have a volume growth, your margins do not sustain. It is better to wait by the sidelines as far as pharma is concerned and let the full story play out. What are you advising clients to do at this juncture as the market remains a bit uncertain?So, as I said we are telling clients clearly to look at companies which are low on debt because if the interest rate cycle continues to go up, then the companies with heavy debt are going to have a problem in the balance sheet. So, even though they might have run up multiple percentage points over the last couple of years, it is better to be prudent and end up moving out of these positions. Look at low debt companies which have been giving anywhere between 12-15% CAGR growth for the last couple of years, have inroads to be made into large targeted pocketed areas where government is concentrating on which is the rural belt and these are the stock that you should build in. There are outperformers like a Maruti and all which have had low debt on their books but have also given a growth that has been large. But again to anticipate a 30-35% growth -- which is what the valuation has been given to Maruti -- seems a little bit stretched out. You need to stick to a little conservative approach for the next three to six months.There are two contra ideas which everybody was very proud of when the year started; Tata Motors and ICICI Bank. Unfortunately they both have gone wrong?The fact remains that it is better to stick to the counters which have started giving value. At least for the least for the last three or four years both of these companies have not ended up doing well. If you want to compare between a Maruti and a Tata Motors in this market, especially because Tata Motors also has a large international play, it affects both global growth affects and the balance sheet of Tata Motors. It is better to stick to an Indian company which has given growth. Though the valuations are expensive for Maruti, it still remains a better bet to me at least for the next three to four quarters. ICICI Bank seems to have got over the period of uncertainty. Again, investors do not like uncertainty and as long as stability returns and there a road map laid down by the ICICI Bank board, a growth path that will come in also. So, these are very long term bets, these are not going to move out in the short-term. You will have to wait for the full transformation to happen in both these companies to give returns which are above market returns in the next couple of years.

from The Economic Times https://ift.tt/2IqESNs

Shimla crisis offers a terrifying glimpse of what most Indian cities could be facing soon

Think of Shimla and you imagine lush green hills, cool breeze and snow-capped mountains. Those who rushed to Shimla this season wanting to get away from the heat and dust of big cities were in for a rude shock — Shimla had no water. It offered a sight that one comes across only in parched small towns in the plains: long queues at the public taps.Shimla's water crisis for long turned into a full-blown crisis this season with most of the town getting water once in eight days. Though now the supply has increased a bit, water is still a precious commodity.How it all beganIn 1830s, Shimla saw rapid growth in terms of residents when the Britishers decided to buy land near the present-day Shimla. As houses grew from a few dozen to thousands, the Britishers knew how important water would be for such a settlement. In 1875, the first water scheme, the Dhalli Catchment area, was opened to supply water to 20,000 people. The water was sourced from a spring in Dhalli catchment area, providing 4.45 MLD of water. The water supply was augmented in 1914, when pumps were installed on Cherot Nallah and Chair Nallah to supply an additional 7.30 MLD of water. The next augmentation came a decade later in 1924 at Nauti Khad. After Independence, the water supply was increased by installing pumps at Gumma & Darbala, Ashwani khad and the latest one at Giri.Shimla has a total of seven water sources of which the two main sources of water, Ashwani khad and the Nauti khad (of which Gumma is a part), have witnessed significant reduction in water level. These existing water sources are tributaries and sub-tributaries of River Satluj and River Yamuna. The I&PH department lifts the water from the source and takes it to treatment plants, where the water is treated and supplied to tanks from where the Shimla Municipal Corporation supplies water to the town. 64733523 The requirement for the town is about 45 MLD according to Shimla Municipal Corporation documents, however, the present yield is less than 32 MLD even on normal days. Giri and the Gumma Scheme have the installed capacity of 20 and 24 MLD respectively, and are currently pumping 20 MLD combined.Water has always been a scarce resource in Shimla. Talking to ET, Dr BR Thakur, a geography professor at Himachal Pradesh University, blamed the British for initiating the water crisis in Shimla. “Shimla is located on a ridge. The moment the British set the town up it was an invitation for a crisis to happen. Development in Shimla over the decades is against what we see in other towns across the world, it is a geographical error.”After Himachal Pradesh was granted full statehood in 1971, the population of Shimla, being the state capital, increased manifold. The water sources present at that time were the only ones set up by the British supplying 22 MLD of water where the demand was 24 MLD, creating a deficit of 2 MLD. Over the years this deficit increased with growing population and little augmentation to the water supply.The current crisisThe current crisis, the worst in decades, has left Shimla and its residents in a tumultuous situation. Residents were being made to wait for hours for water tankers. On May 27, after waiting for the municipal tankers to arrive all day long, a large number of frustrated locals marched to the Chief Minister's residence demanding answers from his government and the BJP-led municipal corporation.Locals, politicians and activists have taken to the streets to voice their anger. Roadblocks in New Shimla, Sanjauli and Panthaghati are frequent causing hour-long traffic jams. A desperate man even threatened to self-immolate if water did not reach his house.MC employees with keys to the local water distribution lines by the order of the Himachal Pradesh High Court are being provided with police security. Reports have surfaced that some of them were being heckled in various localities to open valves to the primary water source of the area. Not only that, water tankers too are being escorted by the police in various areas to avoid any scuffle.TourismAs many as 40 hotels have had their water supply shut completely due to non-payment of water bills.The hilly town of Shimla being close to the states of Punjab and Haryana, serves as a popular tourist destination with an average 18,000 tourists visiting everyday. The number goes significantly up during weekends. In the midst of the water crisis locals took to social media advising tourists not to visit Shimla so that water available could be evenly distributed among residents. There is almost a 35% decrease in tourists as. Hoteliers are either refunding the entire amount paid by tourists wishing to cut short their stay or cancelling the bookings for the near future. 64733698 The local coolies and street vendors are the ones bearing the most burden of the reduced tourism. With tourism being the primary contributor to their income. these men who charge a few hundred bucks to carry heavy luggage have been left stranded.Deputy Commissioner Amit Kashyap, however begs to differ, “We did face a little downfall in tourism but the administration is working head over heels and for the past few days we have travellers flocking the mall road again.”The famous International Summer festival has been cancelled by the office of the Deputy Commissioner. The Summer festival has witnessed Bollywood and international artists perform for decades and is one of the main tourist attractions of the hill station.The state government closed government schools for an entire week amidst the water crisis.Main reasonsClimate change, reduced rainfall and the closing of Ashwani Khad water source have been highlighted as the reasons behind the acute shortage of water being faced by parched Shimla residents. Ashwani Khad, which has an installed capacity of 10 MLD, was shut after a sewage treatment plant was found to be discharging untreated sewage into the water source. The same was responsible for nearly a dozen deaths due to Jaundice prior to its closing in January 2016. The plant, run by a private contractor, never employed any skilled manpower and the premises was never checked by the I&PH department.The reduction in snowfall has reduced the capacity of the various sources of water in Shimla. To add to the plight, frequent hailstorm have caused the pumping of water at source to stop frequently due to excessive silt in the streams. Low voltage at Giri water source has also been a hindrance in pumping water.Shimla Deputy Commissioner, Amit Kashyap while talking to ET, stressed on the lack of snowfall in the hills during the winter season. “A month back Shimla was getting around 36 MLD of water which went down significantly. A dry spell of winters has a major role to play when it comes to water levels around the town,” Said Kashyap.The reduced green cover of the state of Himachal Pradesh is another reason behind the water scarcity this summer. Dr. BR Thakur says, “There is a simple concept called evapotranspiration, where there are more trees and plants there will be more evaporation leading to cloud formation which result in rain. This rainfall helps rejuvenate these water sources, hence the importance of trees cannot be sidelined deforestation in Shimla is an important factor for reduced water levels at source.”Logging mafia in the state is a serious problem, something that has been discussed in the state assembly repeatedly. In written reply given by forest minister Govind Singh Thakur in the state assembly, a total of 6,285 cases of illegal tree cutting surfaced between 2014-2017. The total area under forest cover in Himachal Pradesh is 28.06% of the total state area. 64733572 The age-old piping laid out by the Shimla Municipal Corporation decades ago has also helped in depleting the water distribution capacity. Various studies, including one mentioned on the Shimla Municipal Corporation website puts the water lost due to leakage at 45%. The pipe leakage issue is so huge that it became the primary election agenda in various Municipal wards during the MC elections in 2017. As the Municipal Corporation failed to keep a regular check on pipelines, locals have exploited the water connections by illegally sourcing water from the main water pipeline to their homes.The people of Shimla have never showed any zeal to deal with the impending water crisis. Shimla gets abundant rainfall in summers and rainwater harvesting on a personal level won't be a tough task for the residents. Instead building blocks of concrete is what occupies the minds of the residents. With more and more locals monetizing the hospitality industry opportunities in Shimla the care for environment seems to a diminishing agenda.DR. Thakur from the Himachal Pradesh University says, “The current water crisis is the result of political unwillingness to secure a permanent solution to the problem and the lack of knowledge among people.” He adds, “Rain water harvesting technique has been in use at the Indian Institute of advanced studies for over a century now. Looking at the situation, the town and country planning department should make it mandatory for new buildings being constructed to deploy rain water harvesting techniques.”The High Court that has taken cognizanc of the water crisis has been actively tracking the water crisis for years now. Recently the incumbent Chief Justice of the Himachal Pradesh High Court, Justice Sanjay Karol went on a midnight check across four Municipal Corporation control rooms to keeps tabs on the water distribution across the city.With the severe water scarcity, it is proving nearly impossible for residents of Shimla to do the menial daily tasks. People have switched to disposable plates and cups to save water. As water runs scarce the threat of an epidemic has increased significantly. 64733579 High and dryAlthough the state government has secured funding from the Word Bank to lift 50 MLD of water from Kol Dam located in Bilaspur and Mandi district, the project has been hanging high and dry off late. Dr. Shyam Kumar Sharma, superintending engineer I&PH circle Una, a scholar on Shimla water supply believes that Giri water scheme needs to be tapped to its full strength. “Giri is only source that can be used to solve the water crisis. It needs to restructured and re-planned.” Sharma adds that the amount of rainfall Shimla gets needs to be utilised but the lack of a storage type system has held Shimla back from using the water conservation plan. According to Dr. Shyam Kumar Sharma’s research the deficit in water supply will grow to 42.61 MLD if the present sources are not taken care of and no significant addition is made.

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CIL may offer 30 million tonnes of thermal and coking coal for non-power sector

KOLKATA: Coal India plans to offer a mix of 30 million tonnes of thermal and coking coal at its recently announced fourth tranche of long-term supply contract for the non-power sector.In the auction, the offer price for the coal would be the notified price for the non-power sector. Notified price for non-power is almost 20% higher than price fixed for the power sector.“Auctions would be held in phases where each phase would be meant for a specific industry and the first one would be for sponge iron sector where around 7 million tonnes of coal is on offer by seven Coal India subsidiaries” said a senior Coal India executive.This would be followed by offers for other sectors like cement, steel and captive power plants. According to a senior Coal India executive, 25 million tonnes of thermal coal would be on offer under the auction while the rest at 5 million tonnes would be coking coal for metallurgical uses.According to a preliminary plan, South Eastern Coalfields will offer 9 million tonnes of coal; Central Coalfields, 6.11 million tonnes and Northern Coalfields 6.3 million tonnes. Mahanadi Coalfields plans to offer 5.2 million tonnes while Western Coalfields would be offering 3.5 million tonnes. Bharat Coking Coal and Eastern Coalfields would be offering 0.5 million tonnes and 0.55 million tonnes respectively.This is part of the government’s plan to replace all existing fuel supply agreements allotted on nomination basis to the non-power sector with supply contracts decided through e-auctions. The government will not renew existing agreements although they will not be prematurely terminated.“If a fuel supply agreement expires before announcement of long-term supply contract auction, Coal India will not renew it but will continue to supply coal till a fresh round of auction is announced. They would be eligible for bidding for the exact amount of coal they have been receiving through their recently expired fuel supply agreement. They would have to participate in the auctions meant for the non-power sector in which they belong,” a senior Coal India executive said.This auction is likely to be followed by an auction for the power sector. This would be power companies that do not have coal supply agreement and power purchase agreement. The auction would be on the basis of highest bid like in the case of non-power sectors.

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Bharti AXA General business grows 34% to Rs 1,772 cr in FY18

Bharti AXA General Insurance today said it recorded 34 per cent increase in its business to Rs 1,772 crore for the fiscal ended March 31, 2018. The company, a joint venture between Bharti Enterprises and French Insurance Major AXA, had gross written premium (GWP) of Rs 1,326 crore during 2016-17. The company raised subordinated debt of Rs 220 crore in the last fiscal and has a solvency ratio of 1.86 as on March 31, 2018, Bharti AXA General Insurance said in a statement. These initiatives contributed to an impressive improvement in the financial health of the company, with a clear immediate visibility of breaking even, Bharti AXA General Insurance MD and CEO Sanjeev Srinivasan said. ''We have achieved our growth momentum largely on the success of three key focus areas - robust rise in gross written premium, improvement in combined operating ratio, and channel and segment diversification,'' he said. The company has invested in building a robust bancassurance and partnership business, complemented by significantly scaling the current lines of corporate business, agency, motor and digital business. "Our foray into the crop business was immensely successful with contribution of 21 per cent GWP in FY18," he said.

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IDBI-LIC stake deal: Finance Ministry official says boards to take a call

The government today sounded evasive about the media reports that it was planning to ask LIC to take a controlling stake in the crippled IDBI Bank, saying the boards of the respective entities will take a call on the matter. 64726728 "Both IDBI Bank and LIC are independent organisations. We have left all the decisions to bank boards and we are not going to micromanage them," a senior finance ministry official told reporters on the sidelines of the two-day annual summit of the Asian Infrastructure Investment Bank. When pressed that both the entities are government- owned, the official quipped does that mean there cannot have business relationship between two government entities? There have been reports that having failed to a get a buyer for its stake in IDBI Bank, the government might ask LIC, which already owns over 10 per cent in the infra-lender turned commercial bank, to take at least 40 per cent more in it, something it had done with Axis Bank in the past. The media reports also said the government had sought the views of insurance regulator IRDAI and markets watchdog Sebi on the move. IRDAI does not allow LIC or any other insurer to own more than 15 per cent in any company. On the Sunil Mehta committee, set up to draft guidelines for a bad bank, the official said within a short period the panel has "come up with a fantastic report". Interim finance minister Piyush Goyal on June 8 had announced setting up of a committee under the chairmanship of Punjab National Bank's non-executive chairman Sunil Mehta to make a draft on setting up an asset reconstruction or an asset management company for faster resolution of bad loans. On the special dispensation that power companies have been demanding to tide over the bad debt problem, the official said there is an Allahabad High Court judgement and we have to respect that but added quickly that the banking secretary will sit down to find a solution.

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Connected products to add up to $685 bn to manufacturing revenue by 2020: Capgemini

Global manufacturing industry could see between $519-685bn in value added revenue by 2020 through smart, connected devices as per a new report by Capgemini’s Digital Transformation Institute. The report, Digital Engineering: The new growth engine for discrete manufacturers, says that while the potential returns are significant, manufacturers need to invest in digital continuity and digital capabilities to benefit.Manufacturers estimate that close to 50% of their products will be smart and connected by 2020, a 32 percentage point increase from 2014. Further, 18% say that they plan to stop manufacturing products altogether and move to a pure service-based business model. A move in this direction will make the shift to a service-based model a business imperative and will require enhanced capabilities.Jean-Pierre Petit, Head of Digital Manufacturing at Capgemini said, “With the significant potential gains of smart, connected products and digital continuity predicted in the next two years, the requirement to invest in new technologies is too large for manufacturers to ignore. However, the road to getting there is a challenging one. Manufacturers must balance the priorities between sustaining their core businesses while investing in digital acceleration. They must make investments in digital skills, ecosystems, tools, roadmaps and new ways of working. It will be a lot of work, but for those that get it right there is a sustainable leadership to gain.”Manufacturers meanwhile have started refocusing their IT investments. Around 50% of manufacturers aim to spend more than 100 million euros in Product Lifecycle Management (PLM) platforms and digital solutions in the next two years, while the proportion of IT budget earmarked for maintaining legacy systems has dropped significantly, from 76% in 2014 to 55% in 2017. For manufacturers to make the most of this opportunity, it will be critical to invest in a digital ecosystem. According to the report, 86% of ‘novices’ do not have the sufficient availability, within their current capabilities, for data management; 95% have insufficient skills for app design, and 94% for artificial intelligence. Outside hires will not fill the digital talent gap completely, states the report, which means that organizations will need to invest in digital training, tools and new collaborative ways of working for their existing employees. In parallel, developing an extended digital ecosystem will be key to design and will provide new end-to-end services.They would also need to capitalise on the data generated by connected products in their transition to selling services. As products shift increasingly towards connectivity, manufacturers will also need to integrate software capabilities into their product design processes.The research was carried out over 10,000 senior executives in manufacturing organisations across nine countries, Italy, India, China, Sweden, Netherlands, Germany, France, United Kingdom and the United States.

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Tata wants to sell refrigerators, washing machines & ACs again after 20 years

KOLKATA: The chairman of Tata Group firm Voltas, Noel Tata, will oversee the second coming of the group into India’s Rs 35,000-crore white goods market in August launching refrigerators, washing machines, microwave ovens and dish washers under the Voltas Beko brand and an investment of Rs 1,000 crore and corner 10% market share, a senior group executive said.Tatas used to sell refrigerators, washing machines and air-conditioners till 1998 under the Voltas brand when it decided to concentrate on its core business of air-conditioners, commercial freezers and projects as part of restructuring the company. It exited businesses like white goods, distribution of soft drinks, fork lifts and industrial products. However, Voltas continued contract manufacturing of refrigerators for LG and Samsung till 2003.Noel Tata is now charting the re-entry and hoping to be among the top three. The group is currently the market leader in the AC business and retails television, smartphone and white goods through its chain of Croma stores.The white goods re-entry will be through Voltas and Turkey’s Arcelik AS’s joint venture formed a year back -- Voltbek Home Appliances. Pradeep Bakshi, managing director at Voltas and a board member of Voltbek Home Appliances, said the launch will happen in phases from August and he hopes to establish a nationwide presence by the festive season in late October. 64727190 “The Voltas Beko range will have highly competitive pricing since we want to become a formidable player rubbing shoulders with the Korean, Chinese and other home grown brands. However, at a product level, we want to be profitable from the first day. We are looking at an overall investment of about Rs 1,000 crore,” Bakshi said.Bakshi said the products will be initially imported from Arcelik’s plants in Thailand, China and Turkey. However, from next year the company will start manufacturing some of these products in its up-coming plant in Sanand, Gujarat.“Domestic production will start from mid-2019 and will have capacity for one million refrigerators and washing machine and half a million microwave ovens. We are investing around Rs 240 crore for this,” said Bakshi.According to a recent Arcelik investor presentation, Voltbek Home Appliances will target one billion dollar sales in its tenth year of operation. Voltas Beko will also use the brand tag line of Beko - ‘Partners of Everyday.’ The company will utilise Voltas’s sales, distribution and service network, while Arcelik will provide technological and manufacturing expertise.

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Ikea bets big on India but keeps its most famous item off the menu

MUMBAI: Furniture giant Ikea is set to open its first store and restaurant in India after years of trying but arguably its most famous item is off the menu -- Swedish meatballs.Ikea, the world's biggest furniture retailer, will next month cut the ribbon on a massive 37,000 square metre outlet in Hyderabad, complete with a 1,000-seater cafeteria.The restaurant will be Ikea's largest and will cater to local tastes, with religious sensitivities in India dictating that beef and pork, staples of Swedish meatballs, will not be served."There will be chicken meatballs and vegetarian balls," Patrik Antoni, Ikea's deputy country manager for India, told AFP during an interview in the Indian financial capital of Mumbai."Fifty percent of the food will be Swedish inspired, salmon and shrimp dishes and so on. We'll also have quite a few Indian dishes like dal makhani, biryani, samosas," he added.The Swedish multinational, which revolutionised household furnishings with its range of affordable ready-to-assemble products, is betting big on India as it seeks new revenues away from its key Western markets.Ikea plans to invest $1.5 billion in Asia's third-largest economy as it seeks to lure price-sensitive Indians away from satisfying their furniture needs at local, family-run shops.Ikea has already spent close to $750 million procuring sites for four stores, including the Hyderabad one which will open in July on a date that is yet to be announced.Outlets in Mumbai, Bangalore and the capital New Delhi will follow, Antoni said, without putting a timescale on them. He added that Ikea will then look at Pune, Chennai, Ahmedabad, Surat and Kolkata."We are very bullish and excited about the Indian market. Normally, we would test a market by opening one store but in India, we are going all out and expanding," said Antoni.At 37,160 square metres the Hyderabad store will be comparable in size to an average Indian shopping mall. It will have 850 employees and is expected to attract several million visitors a year.As well as its wide range of international items Ikea will also sell goods uniquely suited to the Indian market.Alongside its popular Billy bookcases and Poang chairs, Ikea will also offer spice boxes and kitchen appliances to make traditional Indian staples such as idlis (rice cakes)."We have done over a thousand home visits and interviewed people to try to understand their needs, dreams, aspirations and how they feel about their home," explained Antoni.More than 1,000 products priced under Rs 200 ($2.94) will be on sale.India, with its abundant supply of cheap labour, is not known for its "DIY" culture so Ikea has teamed up with UrbanClap, an online platform that helps connect handymen with consumers.Ikea, founded in 1943 by late Swedish entrepreneur Ingvar Kamprad, operates 418 stores in 49 markets. In May it announced that it would expand into South America with stores in Chile, Colombia and Peru.The home goods behemoth first tried to enter India in 2006 but was foiled by strict foreign direct investment (FDI) rules that required foreign companies to sign up with a local partner.Seven years later the rules were relaxed to allow foreign businesses to own retail stores operating under a single brand, clearing the way for Ikea's entry into India.The Swedish company hopes its walk-in stores and famed restaurant will be a unique selling point as it goes up against popular Indian online furniture retailers Pepperfry and Urban Ladder.It will also have to contend with Walmart. The world's largest retailer has agreed to buy a majority stake in Indian e-tailer Flipkart, which sells a wide range of home furnishings.Ikea's global sales grew by five percent on-year in 2017 as it recorded annual revenues of 38 billion euros ($47 billion).The firm hopes access to India's growing middle class in the country of 1.25 billion people will open up new revenue streams.Analysts, however, warn it faces a long journey in a crowded market."Profitability will take some time for Ikea in India," Sowmya Adiraju, an analyst at research firm Euromonitor, told AFP.

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No Agusta crime money has come to us, says KRBL Joint MD

Anoop Kumar Gupta, Joint MD, KRBL, tells ET Now that news linking KRBL with Agusta Westland deal is wrong and that they will have an investor call to put their fears at rest.Edited excerpts: There are some media reports indicating that the ED has revived the Agusta Westland case. There were fresh leads and links to KRBL and as we understand, Gautam Khaitan the Delhi lawyer, who was arrested for alleged money laundering in 2014, is also a board member of KRBL. Could you clarify this entire case to us? Gautam Khaitan was an independent director from 2007 to 2013 in KRBL. He is no longer a director now. But because he was an independent director during 2007-13, I have been questioned by ED several times and I have given all the replies. I do not know why the name of KRBL comes up. KRBL has nothing to do with the Agusta Westland deal. Only Gautam Khaitan had a link and he resigned in 2013 from the board membership. KRBL has nothing to do with Agusta Westland deal. What about the probes on routing kickbacks? The concern would be his relationship with KRBL. It could be in the capacity of an independent director but they are probing the linkage of KRBL for alleged processing of kickbacks, KRBL has nothing to do with KRBL. There is a company in Dubai. They say Balsharaf is our distributor in Saudi Arabia. They have stopped being our distributors. They stopped their share transaction also. KRBL is in no way concerned with Balsharaf, the Dubai company ED or Gautam Khaitan. I completely take your point that Balsharaf may be a completely separate entity and has nothing to do with KRBL. But there are some concerns about share trading activity by some entities which were involved in the Agusta deal. How would you clarify this probe? There is no share deal. Balsharaf wanted to sell some shares of KRBL and ED has stopped that transaction. Balsharaf has gone to the high court and the date is 30th July. How do you rationalise the fact that your share has fallen 14%? These people are thinking in some other way. KRBL is no way concerned. It will come out in next two-three days. No crime money has come to KRBL. The news is 100% wrong. The very famous investor Mohnish Pabrai had taken a holding in your business way back in February? Yes, Balsharaf had sold the shares to Pabrai. Because of the ED, Pabrai took his money back and the shares have gone back to Balsharaf. Have you reached out to any of your current institutional investors to see if anybody has offloaded a major chunk of their stake? No, I do not know. Are you going to reach out to the regulator? Are you going to do an investor call because the stock has come off like ninepins? We will take a investor call. We will see to it.

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Seven ways to become a leader everyone wants to work for

An official report can never find out whether you are undermining your employees or boosting their performance as a boss. Here are some sure fire indicators of good bosses.

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Fuel under GST impractical: NITI Aayog VC

Petroleum is the taxation milch cow for the central and the state governments and it is unlikely to be brought under the Goods and Services Tax (GST) any time soon.That's also the view of the Vice Chairman of Niti Aayog, Rajiv Kumar. Several senior ministers have demanded that petroleum products -- basically petrol and diesel -- be brought under the the new taxation regime. But says Kumar: "It (oil) can't be brought under GST. That's because the total state and central taxes on petrol put together are around 90 per cent right now." He told IANS in an interview here: "I can't see how any state will take a cut so huge as the highest rate under the GST is 28 per cent. A new GST band will have to be opened up -- and that will be an enormous exercise."While supporting "in principle" the idea of bringing all items under the new indirect tax system, he said those talking about doing it now have not thought this through."The better way to do this is to first start reducing taxes (on petroleum products) as I have said many times in public. States impose ad-valorem tax on oil and so they all had a windfall gain (when prices rose). There is a need to rationalise it," he said, adding "states should especially cut taxes."Kumar said that both the central and the state governments should start the process of weaning themselves away from their dependence on oil taxation.According to him, the Central government collects Rs 2.5 lakh crore as tax on oil out of which almost Rs 2 lakh crore goes to the states. "From where will they compensate it?" he asks adding that if the taxes are reduced gradually, the burden on the economy will get reduced. "Higher oil prices are like a tax on the economy. If oil prices are brought down, economic activity will also improve," Kumar said."Once that is achieved, once the revenues have gone up from other sources and the economy has picked up, then you can think of bringing oil under GST. It's not that easy," he added.Ever since the new tax legislation was rolled out on July 1 last year, there had been talk of bringing it under the GST with top government officials and ministers supporting the need for such a move. The Opposition parties, of course, have been clamouring for it.In December last year, Finance Minister Arun Jaitley had told the Rajya Sabha that the Central government was in favour of bringing petroleum products under the ambit of GST after building a consensus with states.More recently, in April, when the international crude oil prices were going up sharply, pushing the domestic petrol prices to record levels, BJP President Amit Shah told a rally in Mumbai that efforts were on to bring petrol and diesel under the GST.From Road Transport and Highways Minister Nitin Gadkari to Petroleum and Naural Gas Minister Dharmendra Pradhan, almost every senior BJP minister has favoured bringing petroleum products under the GST.Among states, Maharashtra Chief Minister Devendra Fadnavis has also expressed willingness to bring petrol and diesel under GST in his state if a consensus was brought about on it.Kumar says he was in favour of such a change, but it has to be thought through in practical terms."I am just simply saying that let's not try to hurry it because you would only run into problems as there is a huge dependence on oil," he said."Even electricity should be brought under GST. Everything should be under GST. But I am not sure whether it is worked out yet. Let's agree to bring it under GST but over a period of time as is practical," he said.

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IndiGo’s chief commercial officer Sanjay Kumar latest to quit

Sanjay Kumar, IndiGo’s chief commercial officer (CCO) for eleven years has resigned, said a person in the know, barely two months after its president Aditya Ghosh put in his papers.William Boulter, who joined the airline as its chief strategy officer in April, will take over from Kumar as its next CCO.Kumar’s exit is the latest development in a significant churn that has been taking place at the airline for the last two years, with a new guard taking over its management and operations as its readies for its next phase of growth, mostly overseas.Kumar, a veteran in the Indian aviation industry, joined IndiGo on Jan 29, 2007, helped in building its network and played a key role in making it the biggest Indian airline in terms of market share.Prior to joining IndiGo, Kumar worked with Sahara Airlines from May 1992 till April 2001 at various positions in the areas of commercial, marketing, sales and distribution. In April 2001 he joined Royal Airways Limited and worked on the startup project of SpiceJet which was launched in May 2005. He was the Vice President – Marketing and Planning for SpiceJet until January 2007 and was responsible for various assignments in the areas of Network Planning, Marketing and Sales, Distribution, Product and Service Development and Media Relations. Boulter joined IndiGo, primarily in charge of its international sales and revenue management. He was earlier board director and chief commercial officer at TAAG Angola Airlines between September 2015 and February 2018. His earlier stint was with Etihad Airways as vice president, network planning between June 2012 and May 2015. Interestingly, Boulter then had a short stint in India when he joined Jet Airways in an advisory role. Etihad owns 24% in Jet. He has also been regional vice president, Asia Pacific at the International Air Transport Association.Ghosh quit IndiGo in April. The new executives who have joined the airline this year are Greg Taylor as CEO, Wolfgang Prock-Schauer as chief operating officer, Michael Swiatek as chief planning officer apart from Boulter. Rohit Phillip joined the airline in July 2016 as chief financial officer; Cindy Szadokierski as vice president, airport operations and customer services in March 2016 and Jason Herter, vice president, operations control centre and dispatch in October 2016.

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When a text can trigger a lynching: WhatsApp struggles with incendiary messages in India

A WhatsApp text circulating in some districts of Madhya Pradesh helped to inflame a mob of 50-60 villagers into savagely beating up two innocent men last week on suspicion that they were going to murder people and sell their body parts.The essence of the message, written in Hindi, was that 500 people disguised as beggars were roaming the area so that they could kill people to harvest their organs. The message also urged recipients to forward it to friends and family. Police say the message was fake.Police officers who joined several local WhatsApp groups, found three men circulating the message and they were arrested, said Jayadevan A, the police chief for Balaghat district, where the incident occurred.This happened just weeks after a WhatsApp text warning of 400 child traffickers arriving in the southern Indian technology hub of Bengaluru led a frenzied mob to lynch a 26-year-old man, a migrant construction worker from another Indian state, on suspicions that he was a kidnapper. He was attacked while he was just walking on the road.So far this year, false messages about child abductors on Facebook Inc-owned WhatsApp have helped to trigger mass beatings of more than a dozen people in India - at least three of whom have died. In addition, fake messages about child snatchers on Facebook, as well as some texts on WhatsApp, also led to the lynching of two men in eastern India earlier this month.WHATSAPP'S BIGGEST MARKETWith more than 200 million users in India, WhatsApp's biggest market in the world, false news and videos circulating on the messaging app have become a new headache for social media giant Facebook, already grappling with a privacy scandal.In India, a country with over a billion phone subscribers with access to cheap mobile data, false news messages and videos can instantly go viral, creating mass hysteria and stirring up communal tensions.Those tensions can be high between the Majority Hindu community and the minority Muslim population but also within the rigid Hindu caste hierarchy where the so-called Dalits at the bottom of the pyramid have faced attacks for trying to improve their position in society.In 2017, at least 111 people were killed and 2,384 injured in 822 communal incidents in the country, according to the federal home affairs ministry. It is unclear whether any of these incidents were triggered by fake news messages.WhatsApp said it is aware of the incidents in India through media coverage."Sadly some people also use WhatsApp to spread harmful misinformation," WhatsApp said in a statement. "We're stepping up our education efforts so that people know about our safety features and how to spot fake news and hoaxes."Group texts, where fake news spreads most easily, are still a minority: 90 percent of messages are between two people, and the average group size is six people, according to the messaging platform.WhatsApp also said it is considering changes to the service. For example, there is now a public beta test that is labelling any forwarded message.The company is not planning any changes to its encryption, which ensures messages are not read by anyone except the sender and the recipient.Facebook did not respond to a request for comment.Two senior Indian government officials told Reuters that New Delhi had engaged with WhatsApp on the issue but they are not allowed to discuss the matter publicly. WhatsApp declined to comment on possible contact with Indian government officials.Indian ministries of IT, home affairs and information and broadcasting did not respond to requests for comment.PRIVACY CONCERNSA deluge of hoax news incidents, several with fatal consequences, may bolster the Indian government's attempts to get social networks to share more user data so that police can track down those spreading rumours. That concerns privacy advocates who fear the authorities will use such access against activists and political opponents, and not just against those spreading malicious information."Government restrictions on dissemination of false news are too often an attempt to shroud government intentions of restricting freedom of expression and criticism," according to David Kaye, United Nations Special Rapporteur on the Right to Freedom of Opinion and Expression.India's Ministry of Information and Broadcasting has also recently floated a tender for a firm to scrutinize social media posts of Indian users and identify fake news.The Indian authorities have been signalling they will take an increasingly harsh line with foreign companies who are providing Internet services in India.Reserve Bank of India in April issued a directive compelling all payments firms operating in the country to store payments data locally within six months for "unfettered supervisory access". Separately, Prime Minister Narendra Modi's government is working on a data protection law that could force all foreign tech firms to store key Indian user data locally."There is a distinct link between fake news and laws being proposed undermining privacy," said Apar Gupta, a co-founder of advocacy Internet Freedom Foundation.Meanwhile, the inflammatory hoax news messages keep coming.One floating in Bengaluru last month warned parents to take "extra measures towards the safety" of children during the Muslim holy month of Ramadan as they remain busy with prayers and shopping.More than 500 kidnappers have entered the southern state of Karnataka from western Rajasthan state and the cities of Chennai and Hyderabad, the message said.WhatsApp messages on organ thieves or child abductions are just the tip of the iceberg though - fake reports can range from incorrect medical advice to news about top jobs.A recent message circulating in India's northeast starts by saying the deadly brain-damaging Nipah virus has arrived in Shillong city and advises parents to keep children away from lychees, a popular summer fruit. No confirmed cases of Nipah have been found yet outside of southern Kerala state.

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Five tips to nail a phone interview

Here are five sure shot ways that can help you swing the selection process in your favour.

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Abu Dhabi oil giant signs pact to take stake in Ratnagiri refinery project

Abu Dhabi National Oil Company (ADNOC) today signed an initial agreement to pick up a stake in the planned USD 44-billion refinery-cum-petrochemical project in Ratnagiri, Maharashtra.ADNOC joins Saudi Aramco, the world's largest oil producer, in the project which is planned to come on stream by 2025."Saudi Aramco and ADNOC will together hold 50 per cent stake. The terms are being discussed," Aramco CEO Amin Nasser told reporters after inking the pact.Originally, ADNOC was to sign the pact when Oil Minister Dharmendra Pradhan visited UAE last month but the event got pushed back.Saudi Aramco had in April signed an agreement to take up to 50 per cent stake in the Ratnagiri refinery project.Aramco had, at the agreement signing event, stated that it will at a later date dilute some of its 50 per cent equity stake in the 60 million tonne-a-year refinery project in favour of another strategic investor.Now, the Saudi national oil company is diluting some of that stake to ADNOC.Nasser did not give the exact split of stake between Saudi Aramco and ADNOC.As per the April agreement, Aramco is to supply half of the crude oil required for processing at the refinery that will be commissioned by 2025. ADNOC will now supply some of the crude to be processed at the unit.State-owned refiners Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) will own the remaining 50 per cent stake.Like other major producers, Aramco and ADNOC are looking to lock in customers in the world's third-largest oil consumer through the investment. Kuwait too is looking to invest in projects in return for getting an assured offtake of their crude oil.Last year, Saudi Arabia invested in refinery projects in Indonesia and Malaysia that came with long-term crude oil supply deals.Saudi Arabia was the biggest oil supplier to India till 2016-17, but slipped behind Iraq last fiscal. It had supplied 39.5 million tonnes of crude oil to India in 2016-17, ahead of 37.5 million tonnes by Iraq.But in the first 11 months of 2017-18 fiscal, Saudi supplies at 33.9 million tonnes lagged behind Iraqi exports of 42.4 million tonnes to India.UAE supplies a small quantity of oil to India.Aramco is also keen on venturing into fuel retailing in India.India has a refining capacity of 232.066 million tonnes, which exceeded the demand of 194.2 million tonnes in 2016-17 fiscal.According to the International Energy Agency (IEA), this demand is expected to reach 458 million tonnes by 2040.IOC has 11 refineries with a total capacity of 81.2 MT, while BPCL has four refineries with a total capacity of 33.4 MT. HPCL has three refineries with a total capacity of 24.8 MT.

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Don’t invest aggressively, cyclicals best medium-term theme

The strong show by consumer stocks is a reflection of the dynamic of capital markets and not a medium-term investment theme, Adrian Mowat, EM - Equity Strategist, tells ET Now.Edited excerpts: These are tough and challenging times for emerging market investors, not only in India but across the board. What is your view? It is a very tough market. Most of the emerging markets are down. Some are down double digits, particularly places like Brazil, Philippines, Thailand, Indonesia and Turkey. India is sort of middle of the pack. Year to date, a little bit of money has been made in China offshore shares at around 1% return and it has only been markets like Qatar, Columbia and Peru which experienced a clear up-to-date commodity play. It is a tough year to date. It is important when you are talking about the midcap performance. In 2017, we made supernormal returns. To some extent, what we are seeing in markets is a little bit of a give back after a very strong year rather than reflecting the move into a secular bear market. For the longest time, for Indian markets we have argued that the earnings recovery is round the corner. The grain of the truth is that except for a select few, none of the companies are showing any green shoots. Do you think that those who are betting on very large earnings recovery in FY19 or second half of FY19, will still get it wrong? It is really difficult to see that the drivers about earnings recovery beyond may be exporters having numbers flatted by a weak Indian rupee. The macro economic data for India is sort of okay but I put it more as steady as you go. There may be a little bit of pressure on the funding side and that is a global phenomenon. As interest rates move higher and currencies get weaker, it will have an impact on people’s ability to raise fund abroad even if the RBI is not necessarily indicating much change in funding rates. I agree with you that earnings are probably going to disappoint again for the market broadly and perhaps that’s why we are seeing such a polarisation in performance. I want to talk about this dichotomy -- that the midcaps and smallcaps are doing one thing while the largecaps and Indian equities are doing the other. Would you say though that pessimism perhaps is at its peak when it comes to the broader markets? May be now is the time to start deploying cash, start nibbling into those beaten down names from the mid and the small cap universe? There are some interesting global drivers that might be impacting India. These are not necessarily about India’s fundamentals and we should try and take advantage of that. Globally, we have the Fed raising rates, a relatively strong dollar, a relatively good performance out of the oil prices. More recently, perhaps that has come off a bit but we are also moving into what looks like a very meaningful geopolitical risk for the global economy which is tit for tat trade war. We have got Trump starting this trade war with both China and the Europeans. And that has the potential to have a meaningful impact on the economy. The dynamic will be bearish here but the global economy is relatively strong going into this, particularly the US. You start to have a trade war which pushes up costs as tariffs rise and then you begin to start to be a bit more worried about inflation and the pace at which central banks move. If that is the outcome, then it is going to be quite tough for global markets. It may be a story that we will get further weakness through the summer because of the trade conflict and that generates an opportunity to buy some stocks specific examples in India. I would caution people about doing that today in June. The summer months could prove more troubled but that will provide a better buying opportunity and perhaps that is when one should turn a little bit more constructive. What are you buying now until that peak summer correction kicks in? Is the strength going to remain with traditional defensives? One is seeing some positive news flow coming from the pharma sector. Pharma and IT stocks have been bouncing back. These stocks are sitting at a 52-week high in an otherwise bleak market. What is your view?I would expect the trend of IT and pharma outperforming to continue. It is the other side of the weakness in the Indian rupee. We got to be a little bit careful with both of these. May be, the FDA news for pharma has been a bit more constructive. But we are entering a trade war and it is possible that the collateral damage to the services names like Indian IT and pharma cannot be overlooked. The pharma names have been dealing with other issues related to FDA compliances etc. and probably moving in the right direction away from those issues. Let us look at the opportunities in India. You find insurance an interesting space. Why is that? Adrian Mowat: I absolutely believe in the thematic of a financial penetration expanding in India. A rapidly growing middle class will want to buy financial products such as insurance products. Expect a high growth rate but as the case requires a lot of stuff listed in the Indian markets, prices often reflect those high valuations. Just to be clear here, we will get an opportunity to add risk in India. The underlying fundamentals are relatively solid but for now, India is going to continue to be buffeted by some of the global issues that are hitting emerging markets.I also think that we could have a domestic issue here which would be the election cycle being accelerated and that could also have an appetite impact on risk appetite in India as well. Beside insurance, private banks and defensives have outperformed. If that pocket is something that investors are either ways chasing, where can one find value? Or is it going to be more of the same where you keep paying premium for growth because there is certainty there?You are trying to protect your capital and you have a patient approach and let some of the conflicts around trade wars, what is happening with the oil price, rise in US interest rates generate opportunities for you. But I would not be recommending that people aggressively add risk in India today.The consumption names in India are not only stretched but are overstretched -- both in terms of ownership and valuations, But that is where all the action is. If I look at the stocks which are outperforming or stocks which are sitting at a 52-week highs, they are anchored in and around consumption. You may hate their valuations but for investors, frankly there is no other option. Those who bought HUL or Godrej or some other consumer names in staples and durables, are the ones who are actually making money?Yes, but it probably reflects more the dynamics of the capital markets and active management. There is concern about the outlook for the Indian economy about earnings. We have a weakening currency and so the margin flow has been out of cyclical names, out of domestic names into consumer staples or consumer defensives.This is not going into autos, two-wheelers, etc and it has also gone into the export earners such as IT and pharma. I would also that IT and pharma are perhaps moving away from some of the near-term secular concerns because of the underperformance of those sectors, particularly in 2017. So, what we are seeing reflecting here is the dynamic of capital markets as opposed to a medium-term investment theme.Would you align with the classic themes like consumption, private banks or would you align with cyclicals?My advice here would be patience but to be open minded about looking at the cyclicals over the summer months. Expect further weakness but use that time to research some of the cyclical names that have been hit. As a medium-term strategy that would probably work better. But again, I want to caution people against aggressively committing capital at this point. The global trade war has started and as of now there is limited evidence that the US is going to lower the tension here and both the European Union and the Chinese are responding in a tit for tat fashion. That is a material risk for the global economy and until we get some clarity on that it is very difficult to see global capital markets getting stability. Without that stability, you are going to struggle within the emerging markets.Are you also then sensing the same weakness trickle by for US equities, for instance?What we expect to see here is that the US equities that are more vulnerable to global trade, will be at risk. To some extent, you are beginning to see that with a narrower market with the FANGs retaking the lead with all-time highs. Facebook, Apple are continuing to do well and Netflix is hitting all-time highs. So, it is a sort of domestic tech doing well and not necessarily getting the same sort of strong performance out of some of the tech hardware names in the Unites States which could be impacted by trade flows. Major stocks like General Electric have fallen by nearly half over a one-year period. We are seeing damage within the US market related to this but this index statistics gets flattered by a narrow group of stocks which continue to do well.

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IBPS recruitment 2018: 10,190 vacancies notified; July 2 last date to apply

Institute of Banking Personnel Selection (IBPS) is inviting applications from eligible candidates to fill posts of 10,190 officers (Scale-I, II & III) & office assistants (multipurpose).

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Saudi Aramco eyes presence in India's entire energy sector, says CEO

MUMBAI: Saudi Arabian state-owned oil company Saudi Aramco wants to be present in the entire "value chain" of India's energy sector, its Chief Executive Officer Amin Nasser said on Monday in New Delhi. The company did not spell out specifics of the plan but indicated that fuel marketing is one of them. The company is looking at "all options" to enter fuel retailing through partnerships with Indian oil companies, Nasser said. Aramco and UAE's Abu Dhabi National Oil Company, commonly known as ADNOC, signed a deal on Monday which allows ADNOC to partner in the 1.2 million barrels crude oil refinery proposed in Western India.

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Over three million cryptojacking attacks detected between January-May 18

IT security software provider Quick Heal Technologies said that it had detected over three million cryptojacking hits between January and May 2018. Further, the number of mobile cryptojacking malware variants have grown from eight in 2017, to 25 by May 2018, a three-fold increase. Quick Heal Security Labs expects these numbers to grow even further, as more cybercriminals leverage cryptojacking as a lucrative channel to generate revenues. Sanjay Katkar, Joint Managing Director, Quick Heal said, “Cryptojacking is emerging as a more cost-effective and efficient alternative to ransomware. With a ransomware attack, there is no guarantee that hackers will be paid a ransom. Cryptojacking, on the other hand, is empowering hackers to make use of infected endpoints for swifter and more assured financial gains. As of now, there are no reported instances of data loss in cryptojacking attacks.”The most commonly used method is to infect websites and pop-up ads with a JavaScript based cryptomining script, said the company. While cryptojacking attacks are mostly deployed against individual systems at present, Quick Heal Security Labs expects cloud-based services to also be targeted in the near future. It additionally expects lighter and more sophisticated versions of mining scripts to be deployed soon and forecasts the rise of mining-malware-as-a-service and an exponential growth in the number of fileless cryptomining malware.In a typical cryptojacking attack, hackers hijack the infected system’s processing power to mine cryptocurrency. As opposed to ransomware, cryptojacking attacks remain almost undetected, enabling attackers to use the compromised systems to mine cryptocurrencies for as long as they want. They are also easier to deploy than ransomware attacks as all that’s needed is dropping a cryptomining code on the system through an infected link or file. Another commonly used method is to infect websites and pop-up ads with a JavaScript-based cryptomining script, which is triggered when you click on infected ads or visit compromised websites. In such instances, attackers don’t even need to install a code; just opening the infected link is enough to turn the system into a cryptomining machine.

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It's illegal to give strangers lift in India. Mumbai man learns about law the hard way 

Navi Mumbai resident Nitin Nair spotted a group of people, including an elderly man, stranded in rain and offered them a lift. The traffic cops caught him in the act and penalised him for itBeing a Good Samaritan doesn’t always pay, as Airoli resident Nitin Nair learnt to his peril last week. The 32-year-old, who had given a lift to three strangers including a senior citizen who were stranded in the rains, ended up paying a fine of Rs 1,500 and running from pillar to post for days to get his driving licence back.In a chat with Mirror, Nair, whose Facebook post on the incident has gone viral, said, “My intention was to help people and this is what I got in return. If such is the law of our country, then no one will help a person even if he is dying on the road.” The unfamiliar law under which Nair was charged is Section 66(1) read with Section 192 (a) of the Motor Vehicles Act, which deals with using vehicles for transportation without the requisite permit.The incident happened on June 18 when Nair was on his way to his office in Andheri from Airoli. It was raining heavily that day, and so when two gentlemen, who were wearing ID cards of IT companies, asked for a lift to Gandhinagar, he offered them a lift.“After picking them up, a 60-yearold gentleman asked me for a lift and I obliged.” No sooner had he picked up the three men that a towing vehicle and a traffic cop appeared and started taking pictures of his car. “The cop told me that it was illegal to offer a lift to unknown people,” he said. 64725560 At Airoli Circle, one can find many people who give lifts in private transport for a fee. He believes this could be a reason cops felt that he was trying to do the same.“Vehicles with a T-permit can give lifts and charge passengers. There are also apps used by private car owners who ferry passengers from Airoli to Andheri’s IT Park. These private vehicles do not have a T-permit. I was probably mistaken for them and the traffic cops thought I was charging the strangers who had asked for a lift,” said Nair. Even if that was the case, he wonders why the passengers were not asked if they were asked to pay for the ride.Even after his licence was confiscated and he was given a challan, his co-passengers were not asked to take some other mode of transport. Nair in fact dropped them to their destination after the incident with the traffic cop.Section 66(1) read with 192(a) of the Motor Vehicles Act, 1988 says that no owner of a motor vehicle shall use a vehicle as a transport vehicle whether or not such vehicle is actually carrying any passengers or goods save in accordance with conditions of a permit granted by a Regional or State Transport Authority.“There are two reasons this law was made. For the safety of the owner of the car and because people misuse it as a commercial vehicle without a T-permit. If it is for the safety of the owner, then why didn’t the traffic police bother to interrogate the passengers,” wonders Nair.Nair was also taken aback by how tedious the entire process of getting one’s licence back is. When he went to the police chowky the next day, he was asked to go to CBD Belapur court to collect his licence.“I had to take a day’s leave from work to go to court on Friday. From 9.30 am to 1 pm, I was in court and produced before the judge as if I was a criminal. The judge asked my name and I paid the fine. The judge exempted Rs 500 from the fine amount and I had to pay Rs 1,500. I was then asked to go back to the police chowky to collect my licence,” said Nair.Nitin Pawar, Deputy Commissioner of Police (Traffic) for Navi Mumbai, said, “I am awaiting a detailed report after which necessary action will be taken. Prima facie, it appears that if the Honourable Court has fined the person, then it must have considered all aspects of the case. Meanwhile, I have instructed all my subordinates to verify facts/intention before taking any action under section 66/192 of Motor Vehicles Act.” Should people be more wary of helping others? “If any person has good intentions, the law must not be applied in such cases. We must encourage people to help other people in a crisis,” he added.Meanwhile, Joint Commissioner of Police (Traffic), Mumbai Police, Amitesh Kumar, explained that the provision in the Motor Vehicles Act is used to book owners of commercial vehicles which ferry passengers without proper permit. “In case a regular motorist is to be booked under this section, it is done only after due verification with passengers seated in the car who have agreed to pay for the trip. A fine is imposed only after that,” he explained.

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To what end are PSBs continuing to finance coal-fired power?

By EAS SarmaThe government's announcement to soon tender out 100 GW of solar power in one go is somewhat an ambitious step towards transition to clean energy, compared to the previous largest tender of 10 GW -- which is likely to be opened in July.The new tender has provisions for boosting domestic module manufacturing and energy storage capacities as well -- absolutely essential in light of renewables now likely to outpace coal in new power capacity. India has thus expressed its resolve to shift its energy development trajectory from fossil-based resources to renewables.This latest announcement lends further credence to the Power Minister's claim that India will overshoot its 2022 target of 175 GW of installed renewables. Whether the target is overshot or net additions fall just short, the government's periodic impetus for renewables in India shows that it is indeed committed to honoring the 2015 Paris Agreement.However, it is a matter of serious concern that the imprudent decisions during the last decade or so to take up an unduly large number of coal-based power projects over and above the demand projections made by erstwhile Planning Commission and the huge time and cost overruns in implementing those projects have not only brought many PSU financial institutions under stress but also potentially neutralised the benefits expected from renewables.PSU banks have been forced to divert their credit for refinancing the delayed coal-based projects rather than providing credit for projects based on renewables. In 2017 nearly 17 GW of coal-fired thermal power was re-financed and/or extended new financing by the public sector at a cost of Rs 60,767 crore ($9.35 billion).Latest figures suggest that 40,130 MW (20.3 per cent) of India's 199 GW of thermal power capacity has been classified as stressed assets; 2,520 MW of this is currently facing liquidation, while 10,430 MW may soon be headed that way as no power purchase agreements (PPAs) are in place.Even existing coal-based power projects are operating at low Plant Load Factors (PLFs), imposing heavy costs on state power utilities. One reason for this is that the off-peak demand for electricity is not sufficient to allow the excess coal-based generation to operate at full capacity.There are other reasons for this situation. Coal-based power generation is becoming non-competitive in the face of sub-Rs 3/kwh tariffs discovered for utility scale solar and wind power. The massive new tender for new solar capacity will further aggravate this problem for coal-based plants. In some cases, the absence of reliable fuel supply contracts and bottlenecks in coal transportation have also resulted in coal-based plants running at low PLFs. It is unlikely that these constraints will get resolved soon.The trend is, therefore, painfully obvious: Coal-fired power is increasingly becoming uncompetitive against renewables, and its future prices -- after factoring in increasingly costlier coal imports and compliance with tightening emission norms -- are only likely to inch upwards. Politico-economic considerations being what they are, higher costs of coal-based power lead to larger subsidies for electricity end-users, which imposes a heavy burden on the public exchequer.Adding to the quagmire is the fact that coal-fired power plants have led to large-scale displacement of rural families, disrupting their livelihoods. Burning of coal, in the absence of effective regulatory oversight, has adversely affected the health of the local communities, leading to larger expenditure on public health schemes.In the normal course, financial institutions would hve exercised prudence and refrained from extending credit to coal-based power projects in view of their declining viability and the uncertainty in the recovery of loans. It is therefore somewhat inexplicable that they should continue to invest heavily in coal-based power capacity, especially at a time when they are saddled with huge NPAs, especially power sector NPAs.While private sector banks have a marginal role in this, it is the PSU banks that face this problem. If they continue to extend credit to unviable projects, would it not necessitate recapitalisation of the PSU banks from out of the tax-payers' money and jeopardising the interests of the public shareholders?Globally the trend is quite the opposite. Prominent insurers such Lloyd's (UK), Allianz (Germany), AXA (France) and Dai-Ichi (Japan) have already announced their termination of insurance for coal-fired power and coal mining. Divestment from coal is also being pursued by ING (major Dutch financial institution), the Norwegian government's $1trillion pension fund, the Asian Infrastructure Investment Bank (AIIB) and to an extent, the World Bank.Even at the recently concluded G7 summit, institutional investors (including wealthy private firms) together worth nearly $26 trillion in global assets urged the leaders to phase out coal-fired power generation. Surely they would not have done so if they saw no trouble in remaining invested in coal. Of course for them returns on investment may be a more pressing concern than tackling global warming, but the two goals are not mutually exclusive.What then, is driving India's public sector financing for coal-fired power? And to what end? Are we so infatuated with relentless economic growth that we completely ignore coal-fired power's debilitating impacts on our financial institutions, our citizens' health and the world's precariously low carbon emission allowances? Apparently, there are other than prudent considerations which are compelling the government to persuade PSU banks to finance coal-based power.(EAS Sarma is a former Secretary, Ministry of Power and Ministry of Finance and also served as an energy advisor to the Planning Commission. The views expressed are personal.)

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