Cabinet approves developing of Affordable rental housing Complexes for urban migrants / poor

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants/poor as a sub-scheme under Pradhan Mantri Awas Yojana – Urban (PMAY – U) by:

• existing vacant government funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years. Concessionaire will make the complexes liveable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc. States/UTs will select concessionaire through transparent bidding. Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.
• special incentives like use permission, 50 per cent additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing etc. will be offered to private/ public entities to develop ARHCs on their own available vacant land for 25 years.

 

A large part of workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.

An expenditure of Rs 600 crore (US$ 85.12 million) is estimated in the form of Technology Innovation Grant which will be released for projects using identified innovative technologies for construction. Approximately, three lakh beneficiaries will be covered initially under ARHCs.

ARHCs will create new ecosystem in urban areas making housing available at affordable rent close to the place of work. Investment under ARHCs is expected to create new job opportunities. ARHCs will cut down unnecessary travel, congestion, and pollution.

 Government funded vacant housing stock will be converted into ARHCs for economically productive use. The scheme would create a conducive environment for Entities to develop AHRCs on their own vacant land which will enable new investment opportunities and promote entrepreneurship in rental housing sector.

 Background:

Ministry of Housing and Urban Affairs (MoHUA) has initiated an Affordable Rental Housing Complexes (ARHCs) for urban migrants/poor as a sub-scheme under Pradhan Mantri Awas Yojana (Urban). The scheme was announced by the Hon'ble Finance Minister on 14 May 2020. This scheme seeks to fulfill the vision of 'AtmaNirbhar Bharat’.

COVID-19 pandemic has resulted in massive reverse migration of workers/ urban poor in the country who come from rural areas or small towns for seeking better employment opportunities in urban areas. Usually, these migrants live in slums, informal/ unauthorized colonies, or peri-urban areas to save rental charges. They spend lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.

 

Cabinet approves capital infusion for the three Public Sector General Insurance Companies - Oriental Insurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited

The Union Cabinet chaired by the Prime Minister; Mr Narendra Modi has approved the capital infusion for an overall value of Rs 12,450 crore (US$ 1.77 billion); (including Rs 2,500 crore (US$ 354.66 million) infused in FY20) in the three Public Sector General Insurance Companies (PSGICs) namely Oriental Insurance Company Limited (OlCL), National Insurance Company Limited (NICL) and United India Insurance Company Limited (UIICL) but of which Rs 3,475 crore (US$ 492.98 million) will be released immediately; while the balance Rs 6,475 crore (US$ 918.57 million) will be infused later. Cabinet also approved increase in authorised share capital of NICL to Rs 7,500 crore (US$ 1.06 billion) and that of UIICL and OlCL to Rs 5,000 crore (US$ 709.32 million) respectively to give effect to the capital infusion. Further, the process of merger has been ceased so far in view of the current scenario and instead, the focus shall be on their profitable growth. 

Impact

The capital infusion will enable the three PSGICs to improve their financial and solvency position, meet the insurance needs of the economy, absorb changes, and enhance the capacity to raise resources and improved risk management.

Financial implications:

In the current financial year, the immediate financial implication would be Rs 3,475 crore (US$ 492.98 million) as a result of capital infusion in three PSGICs namely OlCL, NICL and UIICL as the first tranche which will be followed by Rs 6,475 crore (US$ 918.57 million).

Way forward:

To ensure optimum utilization of the capital being provided, the Government has issued guidelines in the form of KPIs aimed at bringing business efficiency and profitable growth. In the meanwhile, given the current scenario, the process of merger has been ceased so far and/instead focus shall be on their solvency and profitable growth, post capital infusion.

National COVID-19 Recovery Rate continues to sharply improve; touches 61.53 per cent

The number of samples being tested for detection of COVID-19 is substantially growing every day. During the last 24 hours, 2,62,679 samples have been tested of which more than 53,000 samples have been tested in private labs. The cumulative number of samples tested, as of now is 1,04,73,771. As a result, the tests per million today stand at 7180. This is because of the sharply focussed “Test, Trace, Treat” strategy of the central Government, in coordination with the States/UTs.

A crucial component in the appreciable growth in the COVID-19 testing is the increased number of diagnostic labs across the country. With 795 labs in the government sector and 324 private labs, there are as many as 1119 labs in the country. These include:

• Real-Time RT PCR based testing labs: 600 (Govt: 372 + Private: 228)
• TrueNat based testing labs: 426 (Govt: 390 + Private: 36)
• CBNAAT based testing labs: 93 (Govt: 33 + Private: 60)

Growing healthcare infrastructure of various types of COVID facilities adequately supported by ICU and oxygen supported beds, ventilators and other equipment has facilitated and ensured timely detection and effective clinical management of COVID-19 positive cases. With more COVID-19 patients recovering, the gap between the number of recovered cases and active cases has increased by 1,91,886 as on date.

During the last 24 hours, a total of 16,883 COVID-19 patients have been cured, taking the cumulative figure of recovered cases to 4,56,830 so far.

The rate of recovery among COVID-19 patients continues to increase over the days. It has touched 61.53 per cent today.

Presently, there are 2,64,944 active cases and all are under medical supervision.

For all authentic and updated information on COVID-19 related technical issues, guidelines & advisories please regularly visit: https://www.mohfw.gov.in/ and @MoHFW_INDIA.

Technical queries related to COVID-19 may be sent to technicalquery.covid19@gov.in and other queries on ncov2019@gov.in and @CovidIndiaSeva.

In case of any queries on COVID-19, please call at the Ministry of Health & Family Welfare helpline no.: +91-11-23978046 or 1075 (Toll-free).

List of helpline numbers of States/UTs on COVID-19 is also available at

https://www.mohfw.gov.in/pdf/coronvavirushelplinenumber.pdf.

India Post adds highest number of outlets in five years in FY19

India Post is establishing itself further in Bharat (the hinterland) by stepping up network expansion to take advantage of the rising demand for e-commerce and financial services.

According to its latest annual report (FY20), India Post (also known as the Department of Posts) opened 1,119 rural post offices (RPOs) in FY19, the highest in the last five years, against 815 in FY18 and 112 in FY17.

At the same time, the number of urban post offices (UPOs) decreased by 50 in FY19 against 249 in FY18 and 57 in FY17.

As of March-end 2019, the RPOs and UPOs stood at 1,41,001 (1,39,882 as of March-end 2018) and 15,599 (15,649), respectively.

India Post has a network of 1,56,600 post-offices, as of March-end 2019. It has presence bigger on-the-ground across the country as compared to the branches (1,45,426) of all scheduled commercial banks put together.

According to the postal department, India has the largest postal network in the world and the demand continues increase for opening of post offices.

The Department of Posts (DoP) plans to develop infrastructure, including post offices, and those relating to transportation and delivery of parcels/packets with online payment or cash on delivery, to expand the reach of the e-commerce industry to Tier II and III towns as well as to rural areas.

As per the report, the deposits (current account, savings account) of India Post Payments Bank’s (IPPB) as of December-end 2019 increased to Rs 527.15 crore (US$ 74.78 million) from Rs 94.40 crore (US$ 13.19 million) as of March-end 2019.

Each post office operates both as a postal outlet and an access point for the Payments Bank. IPPB was established in 2016 as a public limited company with 100 per cent government equity under DoP.

The bank mainly focusses on serving social sector beneficiaries, migrant labourers, unorganised sector employees, Micro-Small and Medium Enterprises (MSMEs), low-income households, and the unbanked and under-banked segments in both the rural and urban areas.

IPPB’s product suite includes savings account and current account; money transfer; direct benefit transfer; distribution of third-party products; bill and utility payments; and enterprise and merchant payments

BP to invest US$ 70 million in India's Green Growth Equity Fund

UK’s energy major, BP plans to invest US$ 70 million in the Green Growth Equity Fund (GGEF) with an aim to rapidly scale-up commercially viable low carbon solutions, the company said in a statement.

This is a two-year-old fund which already includes investments from India’s National Investment and Infrastructure Fund (NIIF), and the UK Government’s Department for International Development (DfID). It is expected to increase to about US$ 700 million commitment at final close and expand further through leveraged capital options, the company said.

With this investment, BP will become a limited partner in GGEF and have representation on its advisory committee, as well as the rights to coinvest in projects alongside GGEF, the company said.

“Our investment in GGEF is aligned with our strategy of investing in integrated low carbon energy using innovative partnerships and business models,” said Mr Dev Sanyal, BP group’s executive vice president for gas and low carbon energy.

Previously this year, BP announced its ambition to become a net zero company by 2050 or sooner.

EverSource Capital, a joint venture between Lightsource BP and Everstone Capital, is responsible for managing GGEF. It has invested in businesses like Ayana Renewable Power, Radiance Renewables, GreenCell Mobility and EverEnviro.

GGEF invests in renewable energy, energy efficiency, energy storage, e-mobility, resource conservation and associated value chains.

India's second coronavirus vaccine set to go into human trial on 1,000 people

India's second possible vaccine against COVID-19, ZyCoV-D, is all set to begin its human trial this month, the company said. It plans to conduct the trials on 1,000 volunteers across multiple sites in the country. In last week of June 2020, Zydus Cadila group received approval from Drug Controller General of India (DGCI) to initiate phase 1 and phase 2 human clinical trials of possible COVID-19 vaccine in India.

Zydus Cadila group chairman Mr Pankaj Patel said the estimated time to finish the trials is around three months. The company will get approval from apex drug regulators to go for phase 3 trials only after it has completed the phase 1 and phase 2 of human trials. "If phase-3 trials come into picture, then it will take another 3 months before the vaccine gets available in the market," Mr Patel said.

The ZyCoV-D vaccine is developed at Zydus' Vaccine Technology Centre in Ahmedabad, show a "strong immune response" in animal studies, the company said. The antibodies produced by the vaccine were able to neutralise the wild type virus in virus neutralisation assay indicating the protective potential of the vaccine candidate, the company said.

So far, no safety concerns were observed for the vaccine candidate in repeat-dose toxicology studies by both intramuscular and intradermal routes of administration.

Zydus added, with its ZyCoV-D, it has successfully established the DNA vaccine platform in India using non-replicating and a non-integrating plasmid carrying the gene of interest making it very safe.

According to the company’s claim, the vaccine candidate has no vector response and with the absence of any infectious agent. The platform offers ease of manufacturing the vaccine with minimal bio-safety requirements, Zydus said. The vaccine has also shown much-improved vaccine stability and lower cold chain requirements making it easy for transportation to remotest parts of the country, it said. "Furthermore, the platform can be rapidly used to modify the vaccine in a couple of weeks in case the virus mutates to ensure that the vaccine still elicits protection," it added.

"Before meeting country's demand, we will not start export. However, we may give our technology to other countries so that they can make this vaccine," Mr Patel said.

Another possible vaccine against COVID-19, Covaxin, will soon start human trial on over 1,100 people in two phases, according to a report. Bharat Biotech, an unlisted Indian vaccine maker, received regulatory approval to start human clinical trials for its experimental shot. The phase 1 trial of Covaxine is scheduled to start next week. Around 375 people have been enrolled by the company in the first phase of clinical trials.

CSIR in partnership with Laxai Sciences to seek regulatory approval to undertake clinical trials on Covid-19 patients using combinations of antiviral and host-directed therapies

Council of Scientific & Industrial Research (CSIR), in collaboration with Laxai Life Sciences Pvt. Ltd. Hyderabad, has sought regulatory approval to undertake four-arm randomized controlled phase III clinical trial. The design principle of the study is to rationally combine and repurpose antivirals (viral-entry and replication inhibitors) and host-directed therapies (HDTs) addressing the disease-spread and pathology simultaneously and to determine safety and efficacy of the three combination drugs (Favipiravir+Colchicine, Umifenovir+Colchicine and Nafamostat+5-ALA) and a control arm with the standard of care in COVID-19 patients. The clinical trial named MUCOVIN, to be carried out in the partnership with Medanta Medicity, will include a total of 300 patients in four different groups of 75 patients in the trials to be carried for 17 to 21 days including screening and treatment.

Dr Shekhar C. Mande, DG, CSIR highlighted that this unique combinatorial strategy (antivirals and HDTs) with repurposed drugs having complementary, additive and synergistic role, has been adopted to increase therapeutic options for COVID-19 treatment and help recover patients faster. The partner CSIR institutes in this important clinical trial are the CSIR-Indian Institute of Chemical Technology, Hyderabad and CSIR-Indian Institute of Integrative Medicine, Jammu.

Dr Ram S. Upadhayaya CEO, Laxai Life Sciences stated that “the study aims to target viral proteins essential for its replication as well as host factors that play crucial role in the viral life cycle and contribute to the cytokine storm”. Mr Vamsi Maddipatla, MD of Laxai Life Sciences adds “The co-sponsorship of this study by Laxai Life Sciences highlights the company’s commitment in bringing life-saving therapies in the service of humanity”.

These clinical trials add to the several contributions CSIR has made during the pandemic and if the trial is successful, it will provide more options for treatment of COVID-19.

World Bank provides US$ 400 million to enhance support for rejuvenating the Ganga

The World Bank and the Government of India today signed a loan agreement to enhance support for the Namami Gange programme that seeks to rejuvenate the Ganga river. The Second National Ganga River Basin Project will help stem pollution in the iconic river and strengthen the management of the river basin which is home to more than 500 million people.

The US$ 400 million operation comprises a loan of US$ 381 million and a proposed Guarantee of up to US$ 19 million. The agreement for the US$ 381 million loan was signed today by Shri Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr Qaiser Khan, Acting Country Director (India), on behalf of the World Bank. The Guarantee instrument will be processed separately.

Shri Khare said that the Ganga is India’s most important cultural, economic, and environmental resource, and the government’s Namami Gange program seeks to ensure that the river returns to a pollution-free, ecologically healthy state. The new project will extend the Government of India and World Bank’s engagement in this critical national programme to make the Ganga a clean, healthy river.

The World Bank has been supporting the government’s efforts since 2011 through the ongoing National Ganga River Basin Project, which helped set up the National Mission for Clean Ganga (NMCG) as the nodal agency to manage the river, and financed sewage treatment infrastructure in several riverside towns and cities.

Shri Rajiv Ranjan Mishra, Director General of the National Mission for Clean Ganga, said that the continuity provided by the Second National Ganga River Basin Project will consolidate the momentum achieved under the first World Bank project, and help NMCG introduce further innovations, and benchmark its initiatives against global best practices in river rejuvenation.

Ongoing National Ganga River Basin Project

• Helped set up the National Mission for Clean Ganga
• Helping build sewage collection and treatment infrastructure in 20 towns along the mainstem of the Ganga
• 1,275 MLD sewage treatment capacity created
• 3,632 km of sewage network built
• Helped foster public mobilization for Ganga rejunivation

“The government’s Namami Gange Program has revitalized India’s efforts to rejuvenating the Ganga,” Mr Junaid Ahmad, World Bank Country Director in India. “The first World Bank project helped build critical sewage infrastructure in 20 pollution hotspots along the river, and this Project will help scale this up to the tributaries. It will also help government strengthen the institutions needed to manage a river basin as large and complex as the Ganga Basin.”

The sprawling Ganga Basin provides over one-third of India’s surface water, includes the country’s largest irrigated area, and is key to India’s water and food security. Over 40 percent of India’s GDP is generated in the densely populated Basin. But the Ganga river is today is facing pressures from human and economic activity that impact its water quality and flows.

“The Project will help expand the coverage of sewage treatment infrastructure to more towns in the Ganga Basin, and focus on making sure that these assets are operated and maintained efficiently in the long term,” said Mr Xavier Chauvot de Beauchene, Lead Water & Sanitation Specialist and Shri Upneet Singh, Water & Sanitation Specialist, both co-task team leaders (TTL) for the SNGRBP. “The Project will also help NMCG develop state-of-the-art tools to help manage the river basin more effectively.”

Over 80 per cent of the pollution load in the Ganga comes from untreated domestic wastewater from towns and cities along the river and its tributaries. The SNGRBP will finance sewage networks and treatment plants in select urban areas to help control pollution discharges. These infrastructure investments and the jobs they will generate will also help India’s economic recovery from the COVID-19 (Coronavirus) crisis.

To ensure that these infrastructure assets function effectively and are well maintained, the Project will build on the innovative Hybrid Annuity Model (HAM) of public private partnership introduced under the ongoing NGRBP, and which has become the solution of choice for sewage treatment investments in the Ganga Basin. Under this model, the government pays a private operator 40 percent of the capital cost to build a sewage treatment plant during the construction period; the remaining 60 percent is paid as performance-linked payments over 15 years to ensure that the operator runs and maintains the plant efficiently.

The US$ 400 million operation includes a proposed Guarantee of up to US$ 19 million to backstop the government’s payment obligations for three Hybrid-Annuity-Model Public Private Partnership (HAM-PPP) investments on the Ganga’s tributaries. “This is the first-ever IBRD Guarantee for wastewater treatment and the first IBRD Guarantee in the water sector in India and is expected to help free up public resources in the current economic situation,” said Shri Satheesh Sundararajan, Senior Infrastructure Financing Specialist and co-TTL for the Guarantee.

The US$ 381 million variable spread loan has a maturity of 18.5 years including a grace period of 5 years. The US$ 19 million Guarantee Expiry Date will be 18 years from the Guarantee Effectiveness Date.

India ranks 34th in JLL's Global Realty Transparency Index

India's Global Real Estate Transparency Index ranking has improved by one notch to 34 on the back of regulatory reforms, better market data and green initiatives, as per property consultant JLL. During 2018 bi-annual survey, India ranked 35th in the index, while the country was at 36th position in 2016 and 39th in 2014.

India’s real estate market is presently placed in the 'semi-transparent' zone.

First rank is held by the United Kingdom (UK) in the list of 99 countries, followed by the United States, Australia, France, Canada, New Zealand, the Netherlands, Ireland, Sweden, and Germany.

Top 10 countries are classified as highly transparent, while those in the 11th position to 33rd are considered as transparent.

"The country ranks 34th globally on the index, with higher levels of transparency observed in India due to regulatory reforms, enhanced market data and sustainability initiatives," as per JLL India’s statement.

This improvement is due to the progress in the country's REIT (Real Estate Investment Trust) framework attracting greater interest from institutional investors.

The transparency in the system is brought by the structural reforms in an erstwhile largely unregulated sector a few years back such as the Real Estate Regulation and Development Act 2016 (RERA), GST, Benami Transaction Prohibition (Amendment) Act, 2016, Insolvency and Bankruptcy Code and digitisation of land records, JLL said.

This is the 11th edition of the Global Real Estate Transparency Index, covering 99 countries and territories and 163 city regions.

The latest survey has been expanded to quantify 210 separate elements of transparency, with additional coverage on sustainability and resilience, health and wellness, prop-tech, and alternatives sectors.

SME-focused investor Blue Ashva Capital raises US$ 60 million for maiden fund

Blue Ashva Capital, an investment firm focused on SMEs and start-ups, raised Rs 454 crore (US$ 64.41 million) for the initial close of its maiden fund.

According to the firm’s statement, the capital was raised from family offices and high net worth individuals.

“The fund proposes to raise a sum of Rs 400 crore (US$ 64.41 million) with a greenshoe option of Rs 200 crore (US$ 28.37 million). It has exercised a part of the greenshoe option at the initial close," the statement said.

The company plans to use this fund in businesses across sectors including financial services, technology, healthcare, consumer, manufacturing, etc. through equity, debt, or any combination thereof. The fund will also back professional-turn-entrepreneurs and partner with global companies to invest in India.

“SMEs and start-ups play a key role in fostering entrepreneurship and generating large scale livelihood opportunities. However, with so much gloom and doom around, most such businesses are currently going through challenging times. There is a need now, more than ever, to support passionate founders with optimistic capital that is willing to bet on the long term," said Mr Satya Bansal, founder, Blue Ashva Capital.

Mr Bansal was the chief executive of Barclays Private Bank in India for more than a decade before founding Blue Ashva Capital.