New Delhi: The Prime Minister, Shri Narendra Modi, has announced that the NITI Aayog would constitute three sub groups: of Chief Ministers on the following themes:
Sub-group to study the 66 Centrally Sponsored Schemes and recommend which to continue, which to transfer to states, and which to cut down.
Sub-group to recommend how NITI Aayog can promote skill development and creation of skilled manpower within states.
Sub-group to decide on institutional mechanisms to be evolved, and technological inputs, for ensuring that commitment to Swachh Bharat becomes a part of our life in perpetuity.
In his concluding remarks at the first meeting of the Governing Council of NITI Aayog, the Prime Minister also asked all states to create two task forces under the aegis of the NITI Aayog One task force would focus on poverty alleviation, and the other would focus on future development of agriculture in the state, and how the Centre can assist the state in this regard.
The members of the sub-groups will be decided later, after Chief Ministers indicate their preferences.
The Prime Minister urged all states to use the upcoming school vacations as an opportunity to build and upgrade toilets, so as to ensure that the target of toilets for all schools is achieved. He also suggested that a portion of the funds under the MPLAD and MLALAD schemes can be earmarked for cleanliness-related activities, until 2019.
The Prime Minister appreciated the team spirit shown by all participating Chief Ministers in the thoughts and vision expressed by them during the meeting.
Success in my Habit
Monday, February 9, 2015
India set to become world's fastest growing e-commerce market
New Delhi: India is on route to becoming the world’s fastest growing e-commerce market, if current projections are anything to go by. This growth story is being driven by robust investment activity in the sector and the rapid increase in internet users. Internet users in India have gone up from 50 mn in 2007 to 300 million in 2014.
Last year, smart phone shipments doubled to 80 mn from a year-ago period. The prospect of connecting 1.24 billion people to the internet may be an opportunity in itself. But what analysts are excited about is the prospect of selling products and services to this digital population. Investment banks believe India is on way to becoming one of the largest internet markets in the world, with implications for consumers and investors.
Morgan Stanley expects the size of the Indian internet market to rise from $11 bn in 2013 to $137 bn by 2020 and market capitalisation of these internet businesses could touch $160-200 bn from the $4 bn at present. Currently, only three internet companies are listed in India but with the pace at which venture capital (VC) firms and private equity (PE) firms are pumping money into India, several internet companies could possibly look at listing in the next couple of years. India’s internet market was at $11 bn (gross merchandise value) in 2013, of which $11 bn was online travel and e-commerce was $3 bn.
As the market matures and more companies get listed, the market cap of internet companies will expand too. Analysts at Morgan Stanley believe that India's internet market can grow to $137 bn by 2020 (a CAGR of 43 per cent) and e-commerce will form the largest part of the internet market at $102 billion. In relatively more advanced markets like China and the US, top 30 listed internet companies account for 12 per cent and four per cent, respectively, of the total market capitalisation. Internet commerce tends to account for more than 50 per cent of the market cap among listed internet firms. Morgan Stanley expects India’s e-commerce market (revenues) to grow from $2.9 bn in 2013 to over $100 bn by 2020, making it the fastest growing e-commerce market in the world.
The basis of this argument is the kind of equity investments made by PE and VC firms in 2014. The total equity investments made in Indian internet companies is $4.5 bn. The growth in internet businesses will also give a fillip to other related businesses like logistics and payment solutions.
Last year, smart phone shipments doubled to 80 mn from a year-ago period. The prospect of connecting 1.24 billion people to the internet may be an opportunity in itself. But what analysts are excited about is the prospect of selling products and services to this digital population. Investment banks believe India is on way to becoming one of the largest internet markets in the world, with implications for consumers and investors.
Morgan Stanley expects the size of the Indian internet market to rise from $11 bn in 2013 to $137 bn by 2020 and market capitalisation of these internet businesses could touch $160-200 bn from the $4 bn at present. Currently, only three internet companies are listed in India but with the pace at which venture capital (VC) firms and private equity (PE) firms are pumping money into India, several internet companies could possibly look at listing in the next couple of years. India’s internet market was at $11 bn (gross merchandise value) in 2013, of which $11 bn was online travel and e-commerce was $3 bn.
As the market matures and more companies get listed, the market cap of internet companies will expand too. Analysts at Morgan Stanley believe that India's internet market can grow to $137 bn by 2020 (a CAGR of 43 per cent) and e-commerce will form the largest part of the internet market at $102 billion. In relatively more advanced markets like China and the US, top 30 listed internet companies account for 12 per cent and four per cent, respectively, of the total market capitalisation. Internet commerce tends to account for more than 50 per cent of the market cap among listed internet firms. Morgan Stanley expects India’s e-commerce market (revenues) to grow from $2.9 bn in 2013 to over $100 bn by 2020, making it the fastest growing e-commerce market in the world.
The basis of this argument is the kind of equity investments made by PE and VC firms in 2014. The total equity investments made in Indian internet companies is $4.5 bn. The growth in internet businesses will also give a fillip to other related businesses like logistics and payment solutions.
MF assets rose 12% in Jan to all-time high
Mumbai: Assets under management (AUM) of India's mutual fund (MF) sector hit a record high of Rs 11.8 lakh crore in January, a rise of nearly 12 per cent from the previous month. Continuous inflow in a majority of the asset categories, particularly equity, along with a rally in the stock markets, is helping the sector gain in size.
“The industry is targeting a total AUM of Rs 20 lakh crore by 2020. It appears we can achieve it much ahead of that,” said Sundeep Sikka, chairman, Association of Mutual Funds in India. Income funds saw a net inflow of Rs 12,163 crore in January.
Equity-related schemes saw inflow of Rs 7,663 crore. Balanced funds got Rs 835 crore and gilt funds a net inflow of Rs 1,813 crore. However, gold exchange-traded funds could not keep pace and continued to see outflows, worth Rs 131 crore in January.
According to Milind Barve, managing director of HDFC MF, “Equity as an asset class is gaining attraction among investors. Last year was a year of the return of hope. Optimism was back after the landmark election result in May. The good part is those who for many years had been buying into gold and other physical assets are now interested in buying financial assets, like equities.”
The smaller cities and towns are also contributing more to the overall AUM. According to sector executives, the investors' base beyond the top 15 (B-15) cities is now at par with the top 15. In equities, they put the figure at a little over Rs 1 lakh crore of the Rs 3.4 lakh crore of overall equity assets.
Nimesh Shah, managing director of ICICI Prudential MF, said: “There is increased enthusiasm for distributing MFs in B-15. The equity markets generating superior returns over the past few months has resulted in building a reasonable breadth of B-15 investors, content with their investments, and the momentum is catching up.”
Investor awareness and education programmes by fund houses, coupled with the incentive scheme introduced by the market regulator, have yielded results, say those in the sector. The Securities and Exchange Board of India allows MF houses to charge an additional 30 basis points in the total expense ratio if 30 per cent of the new flows are from B15.
There are 43 fund houses. The total folio count, across categories, is about 40 million.
“The industry is targeting a total AUM of Rs 20 lakh crore by 2020. It appears we can achieve it much ahead of that,” said Sundeep Sikka, chairman, Association of Mutual Funds in India. Income funds saw a net inflow of Rs 12,163 crore in January.
Equity-related schemes saw inflow of Rs 7,663 crore. Balanced funds got Rs 835 crore and gilt funds a net inflow of Rs 1,813 crore. However, gold exchange-traded funds could not keep pace and continued to see outflows, worth Rs 131 crore in January.
According to Milind Barve, managing director of HDFC MF, “Equity as an asset class is gaining attraction among investors. Last year was a year of the return of hope. Optimism was back after the landmark election result in May. The good part is those who for many years had been buying into gold and other physical assets are now interested in buying financial assets, like equities.”
The smaller cities and towns are also contributing more to the overall AUM. According to sector executives, the investors' base beyond the top 15 (B-15) cities is now at par with the top 15. In equities, they put the figure at a little over Rs 1 lakh crore of the Rs 3.4 lakh crore of overall equity assets.
Nimesh Shah, managing director of ICICI Prudential MF, said: “There is increased enthusiasm for distributing MFs in B-15. The equity markets generating superior returns over the past few months has resulted in building a reasonable breadth of B-15 investors, content with their investments, and the momentum is catching up.”
Investor awareness and education programmes by fund houses, coupled with the incentive scheme introduced by the market regulator, have yielded results, say those in the sector. The Securities and Exchange Board of India allows MF houses to charge an additional 30 basis points in the total expense ratio if 30 per cent of the new flows are from B15.
There are 43 fund houses. The total folio count, across categories, is about 40 million.
Govt announces capital infusion of Rs6,990 crore in public sector banks
New Delhi: The government on Saturday announced a capital infusion of Rs.6990 crore in nine state run banks, including State Bank of India (SBI) and Punjab National Bank (PNB), but based on new efficiency parameters such as return on assets and return on equity.
In a statement, the finance ministry said, “This year, the Government of India has adopted a new criteria in which the banks which are more efficient would only be rewarded with extra capital for their equity so that they can further strengthen their position."
The government had budgeted to infuse more than Rs.11,000 crore as capital in the current financial year. It is not clear if the government plans to infuse capital in the other state run banks that have not performed well on the listed parameters.
While State Bank of India will get Rs.2,970 crore as capital in the current fiscal, Bank of Baroda will get Rs.1,260 crore, Punjab National Bank Rs.870 crore, Canara Bank Rs.570 crore, Syndicate Bank Rs.460 crore, Allahabad Bank Rs.320 crore, Indian Bank Rs.280 crore, Dena Bank Rs.140 crore and Andhra Bank Rs.120 crore.
Though the government has specified its intention to bring down its stake in state run banks to 52% to give them more avenues to raise funds, most banks are expected to approach the market to raise capital only next fiscal.
In a statement, the finance ministry said, “This year, the Government of India has adopted a new criteria in which the banks which are more efficient would only be rewarded with extra capital for their equity so that they can further strengthen their position."
The government had budgeted to infuse more than Rs.11,000 crore as capital in the current financial year. It is not clear if the government plans to infuse capital in the other state run banks that have not performed well on the listed parameters.
While State Bank of India will get Rs.2,970 crore as capital in the current fiscal, Bank of Baroda will get Rs.1,260 crore, Punjab National Bank Rs.870 crore, Canara Bank Rs.570 crore, Syndicate Bank Rs.460 crore, Allahabad Bank Rs.320 crore, Indian Bank Rs.280 crore, Dena Bank Rs.140 crore and Andhra Bank Rs.120 crore.
Though the government has specified its intention to bring down its stake in state run banks to 52% to give them more avenues to raise funds, most banks are expected to approach the market to raise capital only next fiscal.
Foodpanda acquires food ordering portal Just Eat India
New Delhi: Online food delivery marketplace Foodpanda.in said on Friday that is had acquired food ordering portal Just Eat India in an all-stock deal as it seeks to strengthen its presence in India.
Just Eat Plc., the largest shareholder in Achindra Online Marketing Pvt. Ltd that runs Just eat India, will receive a minority stake in Foodpanda.in as part of the deal, whose valuation wasn’t disclosed. Foodpanda will assume full ownership of Just Eat India, the company said in a statement.
Gurgaon-based Foodpanda is backed by Berlin’s Rocket Internet AG, an e-commerce-focused venture capital firm and start-up incubator. The purchase is the second in four months by the company, which in November acquired food delivery business TastyKhana.in for an undisclosed amount. The latest deal comes in at a time when restaurant search portal Zomato is looking to enter the online food ordering space in India.
“We have a very clear focus of being the largest player in every country that we operate in. Though we were already a dominant player, this will further help consolidate our position as a leader,” Rohit Chadda, co-founder and managing director at Foodpanda, said .
According to Chadda, the two companies will continue to operate independently and the Just Eat brand will continue to exist separately.
He does not rule out an integration of the two platforms going forward. “I can’t rule it out and we will take a decision in due course of time. As of today, we will keep the brands and teams separate,” he added.
Just Eat Plc. was launched in Denmark in 2001 and was traded publicly on the London Stock Exchange. It entered India by acquiring a majority stake in Hungry in Bengaluru in 2011. Hungry was launched in 2006.
Today, the company partners with more than 2,000 restaurants.
“Foodpanda has built a great company in India and around the globe and we are very excited to partner with them going forward. We believe that we can combine (to) bring an even better service to our customers in India,” said Ritesh Dwivedy, chief executive, Just Eat India.
Foodpanda.in, which launched in India in May 2012, operates in 39 countries across five continents. Together with TastyKhana and Just Eat, the brand is present in more than 200 cities and partners over 12,000 restaurants, the company said in a statement.
According to Chadda, the online food ordering business in India is in its nascent stage. “Share of online food ordering would be in single digits of the overall food ordering business which in 2014 was estimated to be around Rs.5,000-6,000 crore. We are growing at 20-30% month-on-month,” he added.
The company currently gets more than 100,000 unique visitors daily on its platform.
In August last year, Foodpanda raised $60 million in new financing from a group of investors and existing backer Rocket Internet.
Just Eat Plc., the largest shareholder in Achindra Online Marketing Pvt. Ltd that runs Just eat India, will receive a minority stake in Foodpanda.in as part of the deal, whose valuation wasn’t disclosed. Foodpanda will assume full ownership of Just Eat India, the company said in a statement.
Gurgaon-based Foodpanda is backed by Berlin’s Rocket Internet AG, an e-commerce-focused venture capital firm and start-up incubator. The purchase is the second in four months by the company, which in November acquired food delivery business TastyKhana.in for an undisclosed amount. The latest deal comes in at a time when restaurant search portal Zomato is looking to enter the online food ordering space in India.
“We have a very clear focus of being the largest player in every country that we operate in. Though we were already a dominant player, this will further help consolidate our position as a leader,” Rohit Chadda, co-founder and managing director at Foodpanda, said .
According to Chadda, the two companies will continue to operate independently and the Just Eat brand will continue to exist separately.
He does not rule out an integration of the two platforms going forward. “I can’t rule it out and we will take a decision in due course of time. As of today, we will keep the brands and teams separate,” he added.
Just Eat Plc. was launched in Denmark in 2001 and was traded publicly on the London Stock Exchange. It entered India by acquiring a majority stake in Hungry in Bengaluru in 2011. Hungry was launched in 2006.
Today, the company partners with more than 2,000 restaurants.
“Foodpanda has built a great company in India and around the globe and we are very excited to partner with them going forward. We believe that we can combine (to) bring an even better service to our customers in India,” said Ritesh Dwivedy, chief executive, Just Eat India.
Foodpanda.in, which launched in India in May 2012, operates in 39 countries across five continents. Together with TastyKhana and Just Eat, the brand is present in more than 200 cities and partners over 12,000 restaurants, the company said in a statement.
According to Chadda, the online food ordering business in India is in its nascent stage. “Share of online food ordering would be in single digits of the overall food ordering business which in 2014 was estimated to be around Rs.5,000-6,000 crore. We are growing at 20-30% month-on-month,” he added.
The company currently gets more than 100,000 unique visitors daily on its platform.
In August last year, Foodpanda raised $60 million in new financing from a group of investors and existing backer Rocket Internet.
Wednesday, November 19, 2014
Tata Steel, RIL, SAIL shortlisted for corporate governance award
NEW DELHI, NOVEMBER 18:
Tata Steel, Reliance Industries, Steel Authority of India and ONGC are among 26 companies shortlisted for national awards for excellence in corporate governance by the Institute of Chartered Accountants of India (ICAI).
However, before finalising the awards, the ICAI has sought the Central Provident Fund Commissioner’s help to “confirm the credentials” of these short-listed companies and ensure that there are no complaints or prosecutions pending against them.
In a letter to the CPFC, posted on EFO’s website, Sutanu Sinha, Officiating Secretary and & Chief Executive, ICAI, has sought the information before November 20, so that it could be placed before the jury, headed by Justice M N Venkatachaliah, former Chief Justice of India.
The other companies in the short-list include Canara Bank, Bharat Petroleum, Central Depository Services, Dabur India, GMR Infrastructure, M&M, Housing Development Finance Corp, Rashtriya Ispat
Tata Steel, Reliance Industries, Steel Authority of India and ONGC are among 26 companies shortlisted for national awards for excellence in corporate governance by the Institute of Chartered Accountants of India (ICAI).
However, before finalising the awards, the ICAI has sought the Central Provident Fund Commissioner’s help to “confirm the credentials” of these short-listed companies and ensure that there are no complaints or prosecutions pending against them.
In a letter to the CPFC, posted on EFO’s website, Sutanu Sinha, Officiating Secretary and & Chief Executive, ICAI, has sought the information before November 20, so that it could be placed before the jury, headed by Justice M N Venkatachaliah, former Chief Justice of India.
The other companies in the short-list include Canara Bank, Bharat Petroleum, Central Depository Services, Dabur India, GMR Infrastructure, M&M, Housing Development Finance Corp, Rashtriya Ispat
TUV Rheinland commissions testing facility near Chennai
CHENNAI, NOV 18:
Germany-based TUV Rheinland has commissioned its solar photovoltaic modules testing facility at Sriperumbudur near here.
TUV Rheinland is a service provider in the technical, inspection and certification industry.
The 5,000 sq. ft. facility established under the project ‘PV Klima’ has been undertaken by TUV Rheinland in collaboration with the German Government to study the climatic factors that have an impact on energy yield of solar photovoltaic modules, the company said in a statement.
TUV Rheinland has also proposed to set up such facilities in Italy, the United States and Saudi Arabia.
“Sriperumbudur will be the latest testing facility under PV Klima to take comparable measurements of energy yields and develop methodologies to forecast and increase the energy yields of solar photovoltaic modules,” TUV Rheinland India Vice-President, Business Stream Products, Kalyan Varma, said.
The features of various solar photovoltaic technologies would be analysed with regard to climate effects, seasonal effects, low-light behaviour and temperature behaviour, he added.
Germany-based TUV Rheinland has commissioned its solar photovoltaic modules testing facility at Sriperumbudur near here.
TUV Rheinland is a service provider in the technical, inspection and certification industry.
The 5,000 sq. ft. facility established under the project ‘PV Klima’ has been undertaken by TUV Rheinland in collaboration with the German Government to study the climatic factors that have an impact on energy yield of solar photovoltaic modules, the company said in a statement.
TUV Rheinland has also proposed to set up such facilities in Italy, the United States and Saudi Arabia.
“Sriperumbudur will be the latest testing facility under PV Klima to take comparable measurements of energy yields and develop methodologies to forecast and increase the energy yields of solar photovoltaic modules,” TUV Rheinland India Vice-President, Business Stream Products, Kalyan Varma, said.
The features of various solar photovoltaic technologies would be analysed with regard to climate effects, seasonal effects, low-light behaviour and temperature behaviour, he added.
Aurobindo Vice-Chairman attacked by miscreant; escapes unhurt
HYDERABAD, NOV 19:
Aurobindo Pharma Ltd' s Director and Vice-Chairman, K Nityananda Reddy, escaped unhurt in an attempt on his life on Wednesday morning.
A 30-year-old miscreant, armed with an AK-47 gun, confronted Reddy when he boarded his car after his morning walk at the KBR Park here.
Since Reddy was alert, he pushed him back after which he opened the fire. However, Reddy escaped and the miscreant ran away leaving the weapon.
The police is investigating into the incident and the motive of the attack and the identity of the attacker are yet to be established.
The KBR Park in the posh Jubilee Hills here is a favourite spot for morning walk for the city elite and industrialists.
When contacted, one of the directors of the company told BusinessLine that Reddy was completely safe.
In 2012, the Central Bureau of Investigation (CBI) had also included Reddy as one of the accused in its chargesheet in the illegal assets case of YSR Congress Party president Y S Jaganmohan Reddy.
Aurobindo Pharma scrip lost 1.03 per cent on the Bombay Stock Exchange and was trading at Rs. 1,130.50.
The company posted a 58 per cent increase in net profit at Rs. 372 crore in the second quarter ended September 30, 2014 on a 50 per cent growth in revenue at Rs. 2,881 crore compared to the year-ago period.
Aurobindo Pharma Ltd' s Director and Vice-Chairman, K Nityananda Reddy, escaped unhurt in an attempt on his life on Wednesday morning.
A 30-year-old miscreant, armed with an AK-47 gun, confronted Reddy when he boarded his car after his morning walk at the KBR Park here.
Since Reddy was alert, he pushed him back after which he opened the fire. However, Reddy escaped and the miscreant ran away leaving the weapon.
The police is investigating into the incident and the motive of the attack and the identity of the attacker are yet to be established.
The KBR Park in the posh Jubilee Hills here is a favourite spot for morning walk for the city elite and industrialists.
When contacted, one of the directors of the company told BusinessLine that Reddy was completely safe.
In 2012, the Central Bureau of Investigation (CBI) had also included Reddy as one of the accused in its chargesheet in the illegal assets case of YSR Congress Party president Y S Jaganmohan Reddy.
Aurobindo Pharma scrip lost 1.03 per cent on the Bombay Stock Exchange and was trading at Rs. 1,130.50.
The company posted a 58 per cent increase in net profit at Rs. 372 crore in the second quarter ended September 30, 2014 on a 50 per cent growth in revenue at Rs. 2,881 crore compared to the year-ago period.
Shale Oil: All you wanted to know about
November 10, 2014:
In an unexpected stroke of good luck for you, me and the country, the price of crude oil has fallen from $115 a barrel in June all the way down to $84. This has meant cheaper petrol and diesel, and a lower subsidy bill for the Government. One big factor responsible for this price fall is the unexpected increase in oil produced from shale in the US.
What is it?
Shale oil is essentially crude oil but an unconventional one at that. While the conventional fuel is usually found in porous rocks such as sandstone, shale oil is trapped in shale rock formations that are not easily permeable and hence is tougher to tap. So though its existence has been known for long, shale oil wasn’t being extracted in large quantities.
But technological advancements — horizontal drilling and fracturing (fracking) — introduced and honed since the early part of the century have enabled shale oil exploration and production on an industrial scale.
Most of the action in shale oil so far has been in the US where explorers have struck copious quantities of the black gold. It has not been smooth sailing though. Environmentalists and local communities have been up in arms against the pollution caused to land and water bodies by the chemicals used in the fracking process.
Nevertheless, shale oil produced in the country has grown by leaps and bounds over the years. So the dependence of the US — the largest oil consumer in the world — on imported crude oil has fallen sharply. And this has added to the weakness of global crude oil price in recent months.
Conventional crude oil producers such as Saudi Arabia have been cutting prices to maintain their market share and to drive some of the high cost shale oil producers out of action.
But whether this will have the desired effect remains to be seen — technological improvements are expected to push down the cost of shale oil production.
Also, while Saudi Arabia might have the financial muscle to sustain low prices for quite some time, other conventional producers such as Venezuela and Nigeria may likely find it difficult to hold out.
Why is it important?
Shale oil has the potential to be a massive game-changer in global energy supply and pricing — with enormous geopolitical implications. It’s not just the US; countries such as Russia, China and Argentina are also believed to have vast stores of shale oil. India too is taking baby steps to find and explore its shale assets potential.
Progress in other nations has been quite slow so far. But there’s no saying when the inflection point will be reached. If production continues to expand, countries such as the US could start exporting oil in a few years.
Why should I care?
For starters, more shale oil means lower petrol and diesel prices. So you spend less on travel.
Cheaper crude oil also reduces India’s current account deficit and subsidy bill and will also give a boost to the country’s GDP — that means more and better-paying jobs, and more profitable businesses. But shale oil production in India in the future could also mean more environmental challenges. So the right trade-off needs to be made.
In an unexpected stroke of good luck for you, me and the country, the price of crude oil has fallen from $115 a barrel in June all the way down to $84. This has meant cheaper petrol and diesel, and a lower subsidy bill for the Government. One big factor responsible for this price fall is the unexpected increase in oil produced from shale in the US.
What is it?
Shale oil is essentially crude oil but an unconventional one at that. While the conventional fuel is usually found in porous rocks such as sandstone, shale oil is trapped in shale rock formations that are not easily permeable and hence is tougher to tap. So though its existence has been known for long, shale oil wasn’t being extracted in large quantities.
But technological advancements — horizontal drilling and fracturing (fracking) — introduced and honed since the early part of the century have enabled shale oil exploration and production on an industrial scale.
Most of the action in shale oil so far has been in the US where explorers have struck copious quantities of the black gold. It has not been smooth sailing though. Environmentalists and local communities have been up in arms against the pollution caused to land and water bodies by the chemicals used in the fracking process.
Nevertheless, shale oil produced in the country has grown by leaps and bounds over the years. So the dependence of the US — the largest oil consumer in the world — on imported crude oil has fallen sharply. And this has added to the weakness of global crude oil price in recent months.
Conventional crude oil producers such as Saudi Arabia have been cutting prices to maintain their market share and to drive some of the high cost shale oil producers out of action.
But whether this will have the desired effect remains to be seen — technological improvements are expected to push down the cost of shale oil production.
Also, while Saudi Arabia might have the financial muscle to sustain low prices for quite some time, other conventional producers such as Venezuela and Nigeria may likely find it difficult to hold out.
Why is it important?
Shale oil has the potential to be a massive game-changer in global energy supply and pricing — with enormous geopolitical implications. It’s not just the US; countries such as Russia, China and Argentina are also believed to have vast stores of shale oil. India too is taking baby steps to find and explore its shale assets potential.
Progress in other nations has been quite slow so far. But there’s no saying when the inflection point will be reached. If production continues to expand, countries such as the US could start exporting oil in a few years.
Why should I care?
For starters, more shale oil means lower petrol and diesel prices. So you spend less on travel.
Cheaper crude oil also reduces India’s current account deficit and subsidy bill and will also give a boost to the country’s GDP — that means more and better-paying jobs, and more profitable businesses. But shale oil production in India in the future could also mean more environmental challenges. So the right trade-off needs to be made.
No official notice yet on alignment change, says L&T Metro Hyderabad
HYDERABAD, NOVEMBER 18:
L&T Metro Rail Hyderabad Limited has informed that they have not received any official communication with regard to change in alignment suggested by the Telangana Government.
Speaking on the sidelines of an event hosted on infrastructure at Fapcci, VB Gadgil, Chief Executive of L&T Metro Rail Hyderabad Limited, said so far they have not received any letter from the State Government on the alignment change.
This statement is significant in the backdrop of an announcement made by the Telangana Government that L&T has agreed to alignment change. A statement issued by the Chief Minister’s Office on Saturday after a meeting with AM Naik, Chairman, L&T, Shankar Raman, CFO, L&T and VBGadgil, with the State Chief Minister K Chandrasekhar Rao, mentioned the Government’s keenness to bring about changes in the alignment and also the Government’s resolve to increase the length of the metro project from the present proposed 72-km stretch across three corridors to 200 km.
Responding to queries, Gadgil said, “It is not impossible to make changes and everything would depend upon the technical feasibility. In any case, if there are changes that need to be taken up, the State would have to bear additional costs involved on the changes in alignment.”
According to sources, a meeting of the Prime Minister’s Monitoring Group, which closely tracks the progress of large projects, is slated for November 30.
L&T Metro Rail Hyderabad Limited has informed that they have not received any official communication with regard to change in alignment suggested by the Telangana Government.
Speaking on the sidelines of an event hosted on infrastructure at Fapcci, VB Gadgil, Chief Executive of L&T Metro Rail Hyderabad Limited, said so far they have not received any letter from the State Government on the alignment change.
This statement is significant in the backdrop of an announcement made by the Telangana Government that L&T has agreed to alignment change. A statement issued by the Chief Minister’s Office on Saturday after a meeting with AM Naik, Chairman, L&T, Shankar Raman, CFO, L&T and VBGadgil, with the State Chief Minister K Chandrasekhar Rao, mentioned the Government’s keenness to bring about changes in the alignment and also the Government’s resolve to increase the length of the metro project from the present proposed 72-km stretch across three corridors to 200 km.
Responding to queries, Gadgil said, “It is not impossible to make changes and everything would depend upon the technical feasibility. In any case, if there are changes that need to be taken up, the State would have to bear additional costs involved on the changes in alignment.”
According to sources, a meeting of the Prime Minister’s Monitoring Group, which closely tracks the progress of large projects, is slated for November 30.
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