Estimated cost for distribution of food grains (Rice and Wheat) and pulses under Pradhan Mantri Garib Kalyan Ann Yojana during April - November 2020 is around Rs 1,48,938 crore

Prime Minister Shri Narendra Modi had announced the extension of Pradhan Mantri Garib Kalyan Ann Yojana till the end of November 2020. He said that the PMGKAY scheme is extended from July till the end of November 2020. During this five-month period, more than 80 crore people will be provided 5 kg free wheat/rice per month along with 1 kg free whole chana to each family per month.

The Department of Food and PD has worked out estimated cost under TPDS @ 5 Kg per person per month for three months i.e. April-June 2020 would entail an estimated subsidy of Rs 44,131 crore (US$ 6.26 billion) taking the estimated Economic Cost of Rs 37,267.60 (US$ 528.69)/MT for rice and Rs 26,838.40 (US$ 380.74)/MT for wheat (as per BE 2020-2021).

Further, while under NFSA, the expenditure towards intra state transportation and handling charges for movement from FCI depots to Fair Price Shops (FPSs) as also dealer's margin etc. is shared between Govt. of India and States/UTs as per the sharing pattern and norms for expenditure on this account as per rules framed under NFSA. As Govt. of India is bearing the entire expenditure towards this Scheme, an expenditure of Rs 1,930 crore (US$ 273.80 million) would be required to be met towards transportation and handling and FPS dealers' margins etc. by Government of India as per the existing norms in this regard under NFSA. ln view of the above, the total estimated expenditure to be borne by Government of India towards food grain subsidy and expenditure on account intra state transportation, dealer's margin including additional dealer's margin towards use of ePOS would be Rs 46,061 crore (US$ 6.53 billion).

On the basis of above, an estimated cost of 32 million tonne (12 Million Tonne for April-June 2020 and 20 LMT for July-November 2020) for distribution of food grains (Rice and Wheat) from April to November 2020 will be approx. Rs 1,22,829 crore (US$ 17.43 billion).

As per Department of Consumer Affairs note, the estimated expenditure towards distribution of pulses is Rs 5,000 crore (US$ 709.32 million) for the period April-June 2020. Accordingly, the estimated expenditure for distribution of pulses during the period April-November 2020 will be Rs 11,800 crore (US$ 1.67 billion) approx.

In addition to above, the estimated cost for distribution of food grains to migrant labours for the period of two months is Rs 3,109.52 crore (US$ 441.13 million). The foregone cost of Central Issue Price for food grains which comes to approximately Rs 1,400 crore (US$ 198.61 million) per month entails an expenditure of approximately Rs 11,200 crore (US$ 1.59 billion).

Thus, the estimated cost for distribution of food grains (Rice and Wheat) and pulses will be Rs 1,48,938 crore (US$ 21.13 billion) approx.

Global PE firms eye India's auto components sector

Top private equity (PE) firms such as Temasek, Blackstone, Goldman Sachs, Samara Capital, and Baring Private Equity Asia are actively exploring investment opportunities in India’s auto parts manufacturing sector. These firms are convinced that India’s auto parts industry has long-term potential to provide to the local markets and overseas. Thus, companies are focusing on investing on the low market valuations of most of these auto parts vendors due to COVID-related uncertainties to purchase minority or controlling stakes. These firms are looking for makers of parts for internal combustion engine vehicles, and electric mobility.

According to some sources, the PE firms have approached some companies based in the automotive hubs of Chennai and Pune in the past few months.

The auto component manufacturers have been facing financial stress due to drastic decrease in vehicle sales since FY19, worsened by the lockdown since March-end. This situation has left promoters with an urgent need of funds to ramp up production and invest for the future but due to weak demand and depressed valuations, options have been limited. Banks and other financial institutions are also been careful of extending credit due to fear of loans turning bad. Some promoters are worried about taking on fresh debt, making PE investments a more viable option.

“The current fiscal will be a tough one for the auto sector since sales were down by almost 18 per cent last fiscal. Also, most promoters have invested heavily because of the upgrade to Bharat Stage VI norms. So, most of them will need partners who can guide them on investment and acquisitions in the long term as well as provide capital in the short and medium term," said the first person connected with deals.

According to a survey of the top 300 auto parts makers by ratings agency Crisil, combined revenues of the sector are likely to drop 16 per cent this fiscal due to the coronavirus-induced economic slowdown. EBITDA or earnings before interest, taxes, depreciation, and amortization of these companies is expected to drop 30-35 per cent in FY21.

“Possibly for the first time in over a decade, we are seeing demand from OEMs, exports and the aftermarket in the red this fiscal, in addition to demand slowdown for two consecutive years," said Mr Anuj Sethi, analyst, Crisil.

According to another source, promoters of auto component companies are also looking for opportunities outside India, especially in electric mobility, and the presence of a global PE investor on board is likely to help in arranging capital and other aspects of managing operations overseas.

“PE firms always look at the long-term potential and India is the only market expected to grow in the next decade as markets like China and US had already slowed before the pandemic. Most PE firms have also realized that current valuations make these companies quite lucrative and promoters also need capital. We expect consolidation in the component industry in the next two years," said another source.

Though, there has been no official announcement from any of the companies.

Carlyle to acquire about 25 per cent stake in Airtel's data centre business for about Rs 1,780 crore

Bharti Airtel and Comfort Investments II, an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated entities of The Carlyle Group announced an agreement under which Comfort Investments II will invest US$ 235 million in Nxtra Data Limited, a subsidiary of Airtel.

The valuation of Nxtra has increased to US$ 1.2 billion after this deal. On completion of the transaction, Carlyle will hold a stake of around 25 per cent in the business and Airtel will hold the remaining stake of approximately 75 per cent. Regulatory approval is required by the company for the transaction, including approval from the Competition Commission of India.

Nxtra is headquartered in New Delhi and offers data centre services to Indian and global enterprises, hyperscalers, start-ups, SMEs, and governments. It has nation-wide portfolio of 10 data centres and more than 120 edge data centres provides customers with co-location services, cloud infrastructure, managed hosting, data backup, disaster recovery, and remote infrastructure management.

An increase in demand for secure data centres is seen in India, as businesses undertake digital transformation and consumer demand for digital services continues to increase. The expansion of hyperscalers across the region following the Government’s directive on data localization is driving a lot of this demand, with other market drivers including the growth in user data and increase in cloud penetration.

Nxtra is building multiple large data centres across the country to capture the significant growth opportunities in India. In 2019, company commissioned a state-of-the-art data centre in Pune and is expanding more across Chennai, Mumbai, and Kolkata. The funds from this transaction will be utilised by the company to continue scaling up its infrastructure and offerings across the country.

Mr Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel, said, “At Airtel, we have built a robust data centre portfolio that is future ready and scalable. For us, the security and data privacy requirements of our customers are our top priorities, which we have established as a key differentiator for our data centre offerings. Rapid digitization has opened a massive growth opportunity for data centres in India and we plan to accelerate our investments to become a major player in this segment. We are delighted to have Carlyle as a strategic partner in this exciting journey, particularly given their experience in this industry, and look forward to working with them."

Mr Neeraj Bharadwaj, Managing Director of the Carlyle Asia Partners advisory team, said, “India is set to become one of the largest markets in the world for digital services. Airtel, with its proven track record of solid execution and customer focus, is well positioned to leverage the potential growth of data centres in India. We look forward to collaborating with Airtel to unlock the full potential of Nxtra."

Mr Greg Zeluck, Co-Head, Carlyle Asia Partners advisory team, added, “Airtel is a high-quality partner in India with whom Carlyle executives have built a strong and constructive relationship with over many years. We are delighted to be collaborating on this together, and believe Airtel’s nation-wide network and strong governance coupled with Carlyle’s data centre experience and operational capabilities creates a compelling partnership that will help Nxtra to capture growing demand as data usage continues to surge."

 

Union HRD Minister virtually launches World's first-ever Online B.Sc. Degree in Programming and Data Science

The Union Minister of HRD Shri Ramesh Pokhriyal ‘Nishank' today virtually launched World’s first ever online B.Sc. degree in Programming and Data Science in the presence of Minister of State for HRD, Shri Sanjay Dhotre. The programme has been prepared and offered by the Indian Institute of Technology Madras (IIT Madras), which is ranked No.1 in India Rankings 2020 by NIRF. This programme is open to anyone who has passed Class XII, with English and Maths at the Class X level, and enrolled in any on-campus UG course. Dr Pawan Kumar Goenka, Chairman, IIT, Madras, Board of Governors, Director and the faculty of the IIT, Madras, Chairman, AICTE, Prof Anil Sahasrabudhe, Additional Secretary, MHRD, Shri Rakesh Ranjan and other Senior officials of the Ministry were also present during the launch.

Data Science is one of the fastest growing sectors that is predicted to create 11.5 million jobs by 2026. Online education is a trend being rapidly embraced for high quality education on a large scale. Faculty from IIT Madras are addressing the need of this sector using online education processes and present an inclusive and affordable education model that will extend IIT’s reach by orders of magnitude.

While addressing the participants Shri Pokhriyal congratulated the team of IIT Madras for the launch of the world's first-ever online B.Sc. degree program in Data Science and Programming. The Minister informed that the current batch of students who are completing their Class XII in 2020 are eligible to apply. Graduates and working professionals can also take up this programme. Shri Pokhriyal added that this unique offering removes all barriers of age, discipline or geographic location and provides access to a world-class curriculum in data science which is in huge demand for skilled professionals.

 The Minister said that IIT Madras has a rich history of continuous innovation and success and its emergence as rank 1 in the NIRF rankings consistently underscores the team’s talent, mission, and vision. Analysis reveals that every year 7 to 7.5 lakh Indian students go abroad in search of better education and our talent as well as our revenue goes outside the country. Institutions such as IIT Madras have the vision and mission to help the nation move forward on its path to self-reliance by bringing such quality education and unique courses right here in India. Even during this challenging time, when the nation is fighting the COVID-19 pandemic and everyone is forced to be at home, the IITs have come together to innovate for the sake of the nation.

Shri Pokhriyal said that the students who are currently enrolled in a different on-campus program anywhere in India can pursue this degree program without needing to switch careers or courses. Even employers who want to upskill their employees can consider this option without loss of productive time on the job. He further said that the program brightens up job prospects for students in a lucrative field, provides opportunity for working professionals to switch careers and also provides learners an opportunity to get a degree from a recognized institution such as IIT Madras.

Congratulating the IIT Madras team on the launch of the program, Shri Dhotre said that in today's world education is a continuous process. Students and professionals must continue to upgrade their knowledge to stay competitive and work within the constraints of time and location. This has become even more challenging due to the prevailing COVID situation. He added that the science and programming is a field of most significant growth for the industry and with this online degree opportunity in this important area, IIT Madras will be able to reach many more students. He Minister was confident that this course will reach a diversity of learners as it provides multiple entry and exit points and serves as a priceless contribution to the nation.

The programme will be delivered on a state-of-the-art online portal and will attract learners from even remote parts of India where outreach of digital literacy is minimal and will help them stay ahead in their career journeys. To ensure that the online learning platform is closest to a classroom learning experience, the program will have videos from the faculty, weekly assignments, and in-person invigilated exams just like any other regular course. The program will hone students’ skills in managing data, visualizing patterns to gain managerial insights, model uncertainties and build models that assist in producing forecasts to make effective business decisions.

This unique online offering will be offered in three different stages - Foundational Programme, Diploma Programme and Degree Programme. At each stage, students will have the freedom to exit from the program and receive a Certificate, Diploma, or a Degree, respectively, from IIT Madras. Based on the eligibility, interested candidates will have to fill a form and pay a nominal fee of Rs 3,000 (US$ 42.55) for the qualifier exam. Learners will get access to the four weeks of course content of four subjects (Mathematics, English, Statistics and Computational Thinking). These students will go through the course lectures online, submit online assignments and write an in-person qualifier exam at the end of four weeks. In contrast to the typical admission processes of IITs which are constrained due to the limited number of in-campus seats, in this programme all students who clear (with an overall score of 50 per cent) the qualifier exam will be eligible to register for the foundational program.

For more details about the programme, please log on to www.onlinedegree.iitm.ac.in.

PM addresses nation and announces extension of Pradhan Mantri Garib Kalyan Anna Yojana; As the fight against coronavirus shifts to Unlock 2, PM asks everyone to follow regulations with same seriousness as during Lockdown

Prime Minister Shri Narendra Modi today addressed the nation and announced the extension of Pradhan Mantri Garib Kalyan Anna Yojana till the end of November.

Helping hand to the poor

Prime Minister emphasized that provision of food to those in need during lockdown has been the foremost priority of the country. As soon as lockdown was announced, the government brought about PM Garib Kalyan Yojana, under which a package of Rs 1.75 lakh crore (US$ 24.83 billion) for the poor was announced.

He noted that in the last three months, Rs 31,000 crore (US$ 4.40 billion) has been transferred in the Jan Dhan accounts of almost 20 crore poor families, Rs 18,000 crore (US$ 2.55 billion) has been transferred to the bank accounts of more than 9 crore farmers and Rs 50,000 crore (US$ 7.09 billion) is being spent on PM Garib Kalyan Rojgar Abhiyaan, which has been started to provide employment opportunities.

Extension of PM Garib Kalyan Anna Yojana till November

Prime Minister observed that the enormity of the decision to provide free ration for three months to more than 80 crore people ie providing 5 kg free rice/wheat to each member of the family, along with providing 1 kg pulses to each family, per month, has made the entire world take notice. The number of people who were provided free ration is several times the population of many large countries, he said.

Prime Minister noted that with the commencement of the rainy season, most of the work takes place in the agriculture sector. Also, several festivals take place one after the other, including Guru Purnima, Raksha bandhan, Shri Krishna Janmashtami, Ganesh Chaturthi, Onam, Dussehra, Deepawali, Chhath Puja, among others. He announced that keeping in mind that requirements as well as expenditure increase during this time, the government has decided to extend PM Garib Kalyan Anna Yojana till Deepawali and Chhath Puja, i.e. the scheme will continue to remain applicable from July till the end of November. During this five-month period, more than 80 crore people will be provided 5 kg free wheat/rice per month. Along with providing 5 kg free rice/wheat to each member of a family, 1 kg free whole chana will also be provided to each family per month.

The government will spend more than Rs 90,000 crore (US$ 12.77 billion) towards the extension of the scheme, the Prime Minister said, adding that if the amount spent towards it in the previous three months is added together, a total of almost Rs 1.5 lakh crore (US$ 21.28 billion) would be spent towards the scheme. He credited and thanked the hard-working farmers and honest taxpayers for making it possible for the government to procure and distribute free food grains.

Prime Minister underlined that the country is moving towards the institution of ‘one nation, one ration card’, which will be of immense benefit to the poor who travel to other states in search of work.

Staying safe during Unlock 2

Prime Minister noted that the shift of the fight against coronavirus to Unlock 2 coincides with the weather which results in several ailments. He asked everyone to take care of their health. He observed that due to timely decisions like lockdown, it has been possible to save the lives of lakhs of people and the death rate in the country is amongst the lowest in the world. However, irresponsible and negligent behaviour has been on the rise during Unlock 1, he said, adding that earlier people were more careful about usage of mask, washing hands for more than 20 seconds several times during the day and maintaining ‘do gazdoori’. He emphasized that when more being more careful is necessary, rise of negligence is a cause of concern.

Prime Minister said that regulations need to be followed with the same seriousness as during Lockdown, especially in the Containment Zones. He exhorted people to spread awareness amongst those not following such rules and regulations, giving example of the Prime Minister of a country being fined Rs 13,000 (US$ 184.42) for not wearing mask in a public place. He said that local administration in India will need to act with same alacrity, since no one, including the Prime Minister, is above the rule of law.

Looking ahead

Prime Minister said that in the coming times, government will continue to take further steps to empower the poor and the needy. Economic activities will also be enhanced, with due precautions in place. He reiterated the pledge to work towards Atmanirbhar Bharat and to be vocal for local, while also asking people to be careful, use mask/face cover and continue following the mantra of maintaining ‘do gaz doori’.

Loans worth more than Rs 1 lakh crore sanctioned under ECLGS; More than 30 lakh units of MSMEs & other businesses received help under the Scheme

Under the 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government guarantee, Banks from Public and Private Sectors have sanctioned loans worth over Rs 1 lakh crore (US$ 14.19 billion) as of June 26, 2020, of which more than Rs 45,000 crore (US$ 6.38 billion) has already been disbursed.  This would help more than 30 lakh units of MSMEs and other businesses restart their businesses post the lockdown.

PSBs have sanctioned loans of Rs 57,525.47 crore (US$ 8.16 billion) whereas Private Sector Banks have sanctioned loans of Rs 44,335.52 crore (US$ 6.29 billion) under ECLGS. The top lenders under the Scheme are SBI, Bank of Baroda, PNB, Canara Bank and HDFC.

COAI, 5G-ACIA sign MoU to shape 5G for India's manufacturing industry

The Cellular Operators Association of India (COAI) has signed a memorandum of understanding (MoU) with global forum, 5G Alliance for Connected Industries and Automation, or 5G-ACIA, to give shape to India’s 5G mobile communications in different industries, especially in the manufacturing and process sectors.

The technology is yet to be launched in India. Although, the spectrum auction to roll out 5G services in the country is scheduled for this year. The government is yet to decide on the date of it.

The MoU is a not-for-profit type and will be valid for three years till 2022. It will facilitate cooperation between the country’s apex telecom association and the global platform on issues related to 5G and its adoption for industry automation across sectors.

According to a statement released by the COAI, “Under the partnership, both bodies will identify topics of common interest and work to strengthen their relationship and foster closer cooperation on common agenda by joint participation in events, meetings, promotional activities and many other joint initiatives".

According to the 5G-ACIA’s LinkedIn page, it is the central global forum for shaping 5G in the industrial domain. On the platform, various industries from all over the world jointly create a new information and communications technology (ICT) and operation technology (OT) ecosystem and set framework for a highly attractive emerging market.

“We are excited to partner with the 5G-ACIA, as we endeavour to continuously build our understanding and expertise towards the advancement of modern communication in the country. We truly believe that this partnership will be mutually beneficial and build on insights and learnings to shape Industrial 5G mobile communications and technology effectively" said Mr Rajan S Mathews, director general, COAI.

It is expected that 5G technology will act as a driving force and have a significant impact on design, operation and maintenance of factories and their production across the world. In India, the contribution of manufacturing is about 15 per cent of the overall GDP and supporting the sector with 5G will be crucial, said Mr Andreas Müller, chairman of 5G-ACIA.

“The world is looking towards India how it shapes its Industry 4.0 revolution and high-performance wireless communication services as provided by 5G certainly represent a critical enabler in this respect. We are very happy to partner with COAI towards the growth of such technologies and excited to share knowledge and collaborate on various topics of mutual interest with one common goal: Making Industrial 5G become a major success," Mr Muller said.

On the call of Prime Minister, Culture Ministry to celebrate "Sankalp Parva" to plant trees from 28th June to 12 July 2020

Prime Minister of India Shri Narendra Modi has called for planting at least five trees either in Office campus or wherever it is possible, to ensure clean and healthy environment of the country. Union Minister of State for Culture and Tourism (Independent charge) Shri Prahlad Singh Patel today called for successful organizing of “Sankalp Parva” and plant trees as desired by our Prime Minister.

 Shri Patel informed that the Ministry of Culture has decided to celebrate Sankalp Parva from 28th June to 12 July 2020, wherein Ministry expects all its Subordinate Offices, Academies, Attached Institutions, Affiliated Institutions to plant trees in its campus or at the surroundings wherever it is possible. He added that the Ministry of Culture recommends to plants five trees which have been identified by our Prime Minister and which represent the herbal heritage of our country. These trees are (i) “Bargad” (ii) “Awla” (iii) “Pepal” (iv) “Ashok” (v) “Bel”. He further said that if sapling of these trees is not available then people may do plantation of any other sapling of their choice. 

Shri Patel also said that the organizations must ensure that each employee should plant at least one tree of his/her choice and over and above these five trees which should be planted as per the call of the Prime Minister. The Institutions must also ensure that the employee takes care of plant planted by them during the year so that it survives and flourishes.

Shri Patel has urged all to participate in the Sankalp Parv and share the photo of plantation with #संकल्पपर्व #SankalpParv with Ministry of Culture. He said that monsoon season has started, which is right time for plantation. We have seen the importance of clean and healthy environment during this Pandemic and we are proud of our Herbal Wealth which has enough strength to enable us to sail through safely in the period of Pandemic. I urge everybody to participate in this Sankalp Parv and plant and take care of at least one plant, so we can create healthy environment and a flourishing “Bharat”.