ONGC raises US$ 300 million under ECB route #ONGC #Sukumarbalakrishnan

Oil and Natural Gas Corporation (ONGC) has raised US$ 300 million under the External Commercial Borrowing route for meeting its capital expenditure needs.

"The bonds will bear a coupon of 3.375 per cent and will mature in 2029. This is the tightest coupon for 10 year or longer tenor offering from India ever achieved by any Indian Corporate," an ONGC statement said.

"The mix of investors is diverse, from across Singapore, HK, London, Taiwan, Japan and Middle East which includes 77 per cent bid from Asian investors and 23 per cent from EMEA investors. The Bankers to the deal were - Citi, DBS Bank Ltd, MUFG, SBICAP and Standard Chartered," the statement added.

ONGC Chairman Mr. Shashi Shanker said that the company finances its operations from internal accruals, and it has capacity to do the same in future too. But the offering of US$ bond was important to set a benchmark for ONGC group. It is anticipated that once the benchmark is set, it will facilitate group entities to raise funds at a competitive price, the statement said.

JSW Cement to invest Rs 2,875 crore to add 11 mtpa capacity #JSW #Sukumarbalakrishnan

JSW Cement intend to invest Rs 2,875 crore (US$ 411.36 million) to increase the capacity to 25 million tonnes per annum from 14 mtpa by 2023.
The company previously set the target to reach production capacity of 20 mtpa by 2020 with an investment of Rs 2,000 crore (US$ 286.1 million) and list the company on the stock exchange with an initial public offer.

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

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

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

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

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

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

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

Coal production in India up by 164.58 MT in 5 years #CoalProduction #Sukumarbalakrishnan

According to Minister of Coal and Parliamentary Affairs, Mr. Prahlad Joshi, the production of raw coal in the country has increased from 567.77 million tons (MT) in 2013-14 to 730.35 MT in 2018-19. Last year, India had to import 234 MT coal for which it lost Rs 1.7 lakh crore (US$ 24.32 billion) foreign exchange.

"All India raw coal production increased from 565.77 MT in 2013-14 to 730.35 MT in 2018-19, an absolute increase of 164.58 MT as compared to increase of coal production of 73.01 MT between 2008-09 and 2013-14," he said.

He added that the production witnessed a positive growth in the first quarter of the current year (April- June 2019) but there has been decrease in production since July. One of the main reasons is heavy rainfall witnessed in coal mining areas of the country, he said.

Mr. Joshi said that the growth of production in October was hindered as rainfall continued in the month this year that normally witness growth after the rainy session. He added that during the current year (April-October 2019), though there has been a decrease in dispatch to power sector, it has not affected the coal availability position at the powerhouse end.

Currently, stock at Powerhouse end stands at 22.78 MT as on November 19, 2019, that is equal to 14 days' consumption with 5 power plants under critical list, as against last year same day's stock of 11.68 Million tonnes, equivalent to 7 days' consumption, with 25 power plants reeling under criticality.

"The coal production of CIL and its subsidiaries is being reviewed regularly at the highest level of Ministry. The CIL has been asked to make all out efforts to reach the target by improving production in the remaining months of the current year," he said.

Mr. Joshi said the focus of the government is on increasing the domestic production of coal by allocating more coal blocks, pursuing with state government for assistance in land acquisition and coordinated efforts with Railways for movement of coal.

Highways ministry lines up projects worth Rs 50,000 crore to be awarded in next 3 months #Sukumarbalakrishnan

According to minister of roads and highways, Mr. Nitin Gadkari, the highways ministry will award road projects with a total length of around 4,500 km worth Rs 50,000 crore (US$ 7.15 billion).

In September, he asked his department to locate the road projects to boost the economic activity in the country.

Mr. Gadkari said in a written response in the Parliament, "Award of road projects covering a length of 4,471 km with an approximate cost of Rs 50,000 crore (US$ 7.15 billion) has been targeted during the next three months."

The highways ministry was planning to award road construction projects worth over Rs 50,000 crore (US$ 7.15 billion) over the next three months to boost demand in the construction and automobile sector, Mr. Gadkari said.

The ministry has awarded 168 road projects covering a length of 3,215 km, since April 2019, he added.

In 2018-19, National Highway Projects of an aggregated length of 5,493 km were awarded.

The reason for weak participation of private sector in road projects were the capacity constraints on the part of developers, lack of availability of debt products, Mr. Gadkari said.

"Major highway developers had capacity constraints including over-leveraged financials due to excessive exposure of infrastructure projects including highways," Mr. Gadkari said.

The overall share of private investment in total road construction during the last five years is about Rs 98,100 crore, Mr. Gadkari said.

ICAI sign MoU with Kuwait auditors and accountant's association #Sukumarbalakrishnan

The Institute of Chartered Accountants of India (ICAI) has signed a Memorandum of Understanding (MoU) with the Kuwait Accountants and Auditors Association (KAAA), as per the release issued by the institute.

The ICAI will provide technical training programs to the employees of the Kuwat government, Kuwait nationals and members of the KAAA in partnership with the KAAA under the MoU.

Mr. Prafulla Chhajed, President of the ICAI said, "India and Kuwait share a cordial relationship, strengthened and nurtured with historical trade links, cultural affinities and presence of large number of Indian nationals in Kuwait" adding that when the MoU was signed, there was need to promote Kuwait-India business partnership.

Mr. Faisal Abdulmohsen Al-Tabikh, Chair, KAAA said that the MoU would help in building strong relationship between the two organisations and aid in establishing areas of cooperation for the benefit of both organisations as well as boost their reputation and global influence.

"ICAI is taking all possible efforts to enter into mutual recognition agreements with maximum foreign accounting Institutes, which is the first step for promotion of export of accountancy services in the overseas market," said a release by the ICAI. The union cabinet approved the MoU between the ICAI and the KAAA on October 23, 2019.

The export of financial services is considered as one of the 12 champion sectors for export promotion by the government.

Cabinet approves big increase in the authorized capital of Food Corporation of India from Rs 3,500 crore to Rs 10,000 crore #CapitalFoodCorporation #Sukumarbalakrishnan

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved to increase the authorized capital of Food Corporation of India (FCI) from existing Rs 3,500 crore (US$ 500.79 million) to Rs 10,000 crore (US$ 1.43 billion).

With the increase of authorized capital, additional equity capital can be infused in FCI through Union Budget, to fund the foodgrains stock, perpetually held by FCI. This will reduce the borrowings of FCI, save interest cost of FCI and reduce food subsidy in consequence.

Background:

The operations of Food Corporation of India require maintaining perpetual stock of food grains which needs to be funded by the Govt. of India through equity or long-term loan. The Govt. of India is providing equity to FCI for maintaining stocks. The present authorized equity capital of FCI is Rs 3,500 crore (US$ 500.79 million) and paid up equity capital as on 31.03.2019 is Rs 3,447.58 crore (US$ 493.29 million).

Food Corporation of India was constituted under the Food Corporations Act, 1964, to implement the food policy of Government of India. Its primary objective is to ensure Minimum Support Price to farmers, maintain buffer stock of food grains and distribution of food grains under National Food Security Act and other welfare schemes of Govt. of India.

EESL and SDMC Comes Together to Enhance the EV Infrastructure in Delhi to Install Around 75 Charging Stations in SDMC Area #EESL #SDMC #Sukumarbalakrishnan

Energy Efficiency Services Limited (EESL), a joint venture under Ministry of Power, Government of India has signed a Memorandum of Understanding (MoU) with South Delhi Municipal Corporation (SDMC), a civic body under Municipal Corporation of Delhi, to establish infrastructure for Electric Vehicles (EV) in SDMC area over a 10-year period.

Under the terms outlined in the Memorandum of Understanding, SDMC and EESL shall jointly work to fast-track the adoption of e-mobility in Delhi by installing around 75 public charging stations in South Delhi Municipal Corporation Area.

Managing Director, EESL Shri Saurabh Kumar and Municipal Commissioner, SDMC Shri Gyanesh Bharti, signed the MoU in the august presence of Union Minister of Power Shri R. K. Singh and Lt. Governor, Government of NCT of Delhi Shri Anil Baijal.

Speaking at the ceremony, Minister of Power and New & Renewable Energy, Shri R.K Singh said this initiative is part of Government's vision to reduce carbon footprints. We will grow, but responsibly, he added elaborating efforts to achieve the target of 175 GW renewable energy capacity by 2022 and having 40 percent as RE capacity in total installed energy capacity by 2030. The Minister also said that government has taken a number of steps to promote environment friendly electric vehicles including revision in Electric Vehicle Charging Policy. Urging to promote use of electric vehicles, he said all of us should take it forward.

Speaking on the occasion, Lt. Governor, Government of NCT of Delhi Shri Anil Baijal said that this is good beginning. He also assured all helps in resolving any issue that may arise in due course.

The Government of India has embarked upon a very ambitious e-mobility plan, one in which the government plays a pivotal role in enabling e-mobility. Installation of public charging stations (PCS) would help in taking considerable strides in the creation of a sustainable EV ecosystem in the states across India. It's a great stride by SDMC and EESL to come together for harnessing synergies and opportunities in this broader effort.

The procurement of charging units, procurement of related infrastructure shall be borne by EESL along with the operation & maintenance of public charging infrastructure by qualified manpower, whereas, SDMC would be responsible for provision of space for setting up charging infrastructure in its area.

In the first phase, EV charging station will be installed in 18 locations within 6 months from the effective date, selected through joint survey by both parties. The total number of finalized locations as per the location assessment will be 75 which may increase/decrease and include multi-level parking locations in Delhi as well.

Installation of public charging stations would help these legislative efforts in creating a sustainable EV ecosystem in the states. With installation of public charging stations, the range anxiety among residents is expected to reduce, which would help in increasing the adoption of EVs in the city. This would help meet the state level targets of increasing EV adoption. With increasing penetration of EVs, the local emission of pollutants is also expected to reduce, leading to cleaner air providing several health benefits to the public.

For charging e-cars, till date, 300 AC & 170 DC captive chargers have been commissioned. Apart from this, 65 public charging stations have also been installed in NDMC area. EESL has signed agreements with various PSUs, Government departments, State Governments of Andhra Pradesh, Maharashtra and Telangana.

With the bulk procurement, EESL receives electric vehicles and electric chargers at a significantly discounted rate vis-à-vis the actual market value. Further, with access to low cost funds, the overall cost of project becomes competitive. With this, EESL has established a sustainable business model which is affordable for end consumers.

Center approves 3.31 lakh more houses under PMAY(U) Cumulative number of houses sanctioned now stands at 96.5 lakh #Sukumarbalakrishnan

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

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

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

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

FASTag Sale Grows by 330 Per Cent; Over 70 Lakh Issued till Date #FASTag #Sukumarbalakrishnan

Over 70 Lakh FASTags have been issued till date, with highest per day issuance of 1,35,583 Tags on 26th November 2019, whereas 1.03 lakh Tags were issued on the day before. The average daily issuance has grown by 330 per cent from eight thousand in July to thirty-five thousand Tags sold in November 2019. After announcement of waiver of Tag cost from 21st November, there has been a growth in FASTag issuance of over 130 per cent. FASTag is accepted on 560+ Toll Plazas and more number of plaza are getting added on daily basis.

National Electronic Toll Collection (FASTag) programme, the flagship initiative of the Ministry of Road Transport and Highways and NHAI has been implemented on pan India basis in order to remove bottlenecks and ensure seamless movement of traffic and collection of user fee as per the notified rates, using passive Radio Frequency Identification (RFID) technology. To give a major fillip to enhance digital payments and bring in enhanced transparency, it has been mandated to declare all lanes of fee plazas on National Highways as "FASTag lanes" by 1st December 2019, while provisioning one lane (in each direction) which would be kept as hybrid lane to accept FASTag and other modes of payment.

With the above mandate, average daily transactions processed through FASTag have grown from 8.8 Lakh in July this year to 11.2 lakh transactions in November 2019, while the average daily collection has grown from Rs 11.2 crore to Rs 19.5 crore for the given period.

Certain commuters face difficulty at Toll Plaza due to low balance in FASTag. To mitigate such difficulty, commuters are advised to maintain sufficient balance in the account/wallet linked to FASTag. All the available mode of recharge like Debit Card/Credit Card, Net-Banking and UPI have been enabled for loading money to the FASTag account. For ease in understanding the recharging process, an easy to understand FAQ has been released.

2. I have forgotten my Tag details. How to retrieve information?

a. For bank issued FASTag (i.e. FASTag purchased from a bank)

A customer may call concerned bank's Toll-free number written on the back side of the tag. Customer has to mention his or her user credentials (mobile number against which the tag has been registered, Vehicle Registration Number (VRN) etc.) On successful verification of use credentials, requisite information shall be provided.
The list of Customer care number of the banks can be availed from below:

i. www.ihmcl.com
ii. My FASTag App
iii. NHAI Helpline number 1033

b. For NHAI FASTag (i.e. bank neutral FASTag)
A customer may call 1033 Helpline number for any assistance.

Service sector can help achieve target of US$ 5 trillion GDP #Sugumarbalakrishnan

According to Mr. Piyush Goyal, Minister of Railways and Commerce and Industry, India's service sector can provide aid in achieving the Central government's target of US$ 5 trillion GDP.

The service sector has the potential to be the largest job creators in the country and over the next five years and to contribute US$ 3 trillion out of the US$ 5 trillion GDP target set by the government, said Mr. Goyal.

He was present at the inauguration of the fifth Global Exhibition on Services-2019 at the Palace Grounds, he added that the manufacturing and services industry act as the growth engines of the Indian economy.

According to Mr. Goyal, India requires to move beyond Business Process Outsourcing and work towards adopting new age technologies such as artificial intelligence, block chain, machine learning and participate with the rest of the world on equal terms.

The three-day event has been organised by the Ministry of Commerce and Industries, Karnataka government, Services Export Promotion Council and the Confederation of Indian Industry.