Indian Economy-News & Updates

[Hindustani78]

Ministry of Railways
07-September, 2017 16:44 IST
Minister of Railways Shri Piyush Goyal chairs a high level meeting on Safety in Train Operations with Railway Board officials.

The comprehensive review of Safety was undertaken at the meeting.

The Minister emphasised on according top most priority to Safety.

The Railway Minister directed to undertake immediate measures to address the problem of Unmanned Level Crossings & Derailments

Minister of Railways and Coal, Shri Piyush Goyal today held a marathon meeting with members of full Railway Board & Safety Directorate of Railway Board to comprehensively review Safety measures for train operations. A detailed presentation on Safety was made at the meeting. There was threadbare discussion on the subject and the root cause of repeated cases of train accidents in recent past was thoroughly analysed. In the meeting, the Minister emphasised that the safety is paramount and there cannot & should not be any compromise on this front.


Two major causes leading to accidents were identified as :


a) Unmanned Level Crossings

b) Derailments due to defects in tracks


The special focus of the meeting was to identify measures to reduce accidents due to derailments which has emerged as one of the major causes of Train accidents. Minister of Railways gave following directions to the Railway Board to ensure Safety in train operations:


1) All unmanned level crossings should be eliminated expeditiously on the entire Indian Railway network in a year’s time from now.

2) Track Replacement/renewal should be accorded Priority & the tracks (rails) earmarked for use for constructing new lines should be diverted to places/ stretches which are prone to accidents & where replacement is due.

3) The procurement of new rails should be expedited on a large scale with a view to complete construction of new lines in time.

4) The manufacturing of conventional ICF design coaches should be stopped forthwith & new design LHB coaches only should be manufactured.

5) Anti-Fog LED lights should be installed in Locomotives so that unhindered safe train operations can be ensured during fog season.


The Minister directed the Railway Board to monitor implementations of this action plan on a regular basis.


*****

 

[RISING SUN]

India's Eicher ready to bid up to $2 billion for Ducati: paper
India’s Eicher Motors (EICH.NS) is set to offer $1.8 billion-$2 billion for Italian motorcycle manufacturer Ducati, the Economic Times newspaper reported on Thursday, although German owner Volkswagen has put the sale process on hold, sources have said.

Volkswagen (VOWG_p.DE) put Ducati up for sale in April to help fund a strategic overhaul in the wake of the emissions scandal, but it has faced resistance from German trade unions and internal rifts over the group’s strategy.

Earlier this week, Volkswagen instructed five potential buyers to hold off making binding bids, sources familiar with the auction told Reuters.

Mumbai-based Eicher, which makes Royal Enfield motorbikes, is believed to be the only Asian firm left in the auction and the Economic Times quoted unnamed sources saying it is currently finalizing terms ahead of the original bid deadline of end-September.(bit.ly/2eHOiI5)

Bologna-based Ducati is controlled by VW’s Audi division (NSUG.DE), which along with VW declined to comment.

Eicher, whose shares reached a record high, was not available for comment.
UNION OPPOSITION
FILE PHOTO: The logo of Ducati is seen on a Monster Testastretta model during a Motor Day Exibition in Rome, Italy, March 5 2016. REUTERS/Alessandro Bianchi/File Photo
Sources close to labor representatives at Audi and VW, repeated on Thursday that trade unions remain opposed to the sale of Ducati, which has also raised interest from U.S. motorcycle maker Harley-Davidson (HOG.N), sources have said.

German labor unions are keen to avoid disruptions in the workforce ahead of next year’s works council elections at VW, two sources said.

Separately, despite the growing costs for the diesel emissions scandal and shift to electric cars, trade unions believe there is no financial need for VW and Audi to sell Ducati given the group’s strong financial results.

Under Audi’s watch, revenue at Ducati rose to 593 million euros ($712 million) in 2016 from 450 million euros in 2013, with deliveries up 25 percent to 55,451 motorbikes, according to Audi data.

VW’s head of strategy, Thomas Sedran, told Reuters last month that the German group was in no hurry to find a new owner for Ducati.

Meanwhile, Eicher shares closed up 2.4 percent having earlier risen as much as 3.9 pct on the bid report.

The Eicher Group designs, develops and manufactures trucks buses and motorcycles and their components.

“Ducati being a well-renowned brand will help Eicher in terms of design and technology, which in turn will help expand the Royal Enfield product portfolio in the years to come,” said Basudeb Banerjee, analyst at Mumbai’s Antique Stockbroking.
https://www.reuters.com/article/us-...-of-high-chevron-fuel-prices-ag-idUSKCN1BI240

India rejects Russia’s stake sale offer in five more Siberia oilfields
http://economictimes.indiatimes.com...a-oilfields/articleshow/60399635.cms?from=mdr

 

[Soumitra]

What Modi needs to do to make the elephant dance before 2019
India Today cover story lays out the path to recovery for the Indian economy.
POLITICS
| 4-minute read | 07-09-2017

AROON PURIE
@aroonpurie

The Indian economy is often depicted as a tiger. In reality, it is an elephant. It’s huge, the third largest in the world (in PPP terms), and ponderous in its pace. It can defy even the most skilled mahout.

In May 2014, when Narendra Modi took over as prime minister, the 'India story' had gone into a tailspin. The government was paralysed, corruption was deemed to be at an all-time high, and GDP growth had slumped drastically. The huge mandate for Modi brought with it fresh hope and new confidence, buoyed by the promise of maximum governance and minimum government.

For the first 24 months, all was well. India saw steady GDP growth and increasing global interest. Then, its economy, after running at a fast clip of 9.2 per cent growth for the last quarter of 2016, started to run out of breath for the next five quarters, declining to 5.7 per cent in the April-June quarter this year, the lowest in three years. Manufacturing sector growth fell to a five-year low of 1.2 per cent, down from 10.7 per cent a year ago; worse still, as many as 1.5 million jobs were lost in the first four months of the year.

With China recording a growth of 6.9 per cent for the first two quarters of this year, not only did India lose its grand claim of being the world’s fastest growing economy but also had the greatest dip in consumer confidence in the first half of 2017 according to a survey of 18 Asian countries.

This should worry a government elected on the mandate of development. Now the debate is about how long the downturn will continue, and whether the economy has bottomed out. The prognosis of most experts seems to be "weak in the short-term and strong in the long-term".

India Today cover story, How to Put the Economy Back on Its Feet, for September 18, 2017.

No doubt the Modi government has been on steroids in reforming the economy - the drive against black money culminating in demonetisation, the Bankruptcy Code, the Benami Act, RERA or the Real Estate (Regulation and Development) Act, and finally GST.

The scale and scope of these reforms is unprecedented. The withdrawal of 86 per cent of the nation’s currency at a moment’s notice and the introduction of a unified tax across 30 states/ UTs, with four slabs (additional 3 per cent for gold), would send shockwaves through any economy.

Not surprisingly, India is still experiencing the tremors. Demonetisation and GST have dealt a seeming body blow to manufacturing and the Make in India plan. The once booming services sector, with high potential to absorb labour, has taken a hit too. GST, while it may be improving indirect and direct tax compliance, has disrupted supply. RERA, along with demonetisation, has severely depressed the real estate sector and slowed job creation. These fundamental reforms are beneficial for the long-term health of the economy, but need to be followed up by other measures to curb black money.

India is well described by analyst Neelkanth Mishra as a house under renovation and we have to suffer the discomfort of consequent disruption.

The cover story, by deputy editor MG Arun and senior editor Shweta Punj, says the government hopes for a turnaround in the September quarter on the back of a good monsoon and festive demand.

We also asked seven prominent economists for their assessments, projections and what needs to be done. Most seemed cautiously optimistic provided certain actions are taken.

The challenge India faces is monumental. We may laud ourselves for growing at 6 per cent, which is more than many countries, but we should not forget we are still a very poor country. Twenty-two per cent of our population (270 million) is still below the poverty line (BPL). Even with an average annual GDP growth of 8 per cent, it will take two decades to take them and the growing population out of BPL. We need to grow even faster to empower those who have just graduated from BPL but are stuck in a low-income trap.

If Modi wants the elephant to dance before 2019, he needs to act swiftly and decisively. A supine elephant will be almost impossible to move.

 

[Chhatrapati]

Forex reserves swell by $3.57 billion, closes in on $400 billion-mark: RBI
orex reserves surged by $3.572 billion to touch $398.122 billion for the week ended 1 September, on account of rise in foreign currency assets, shows RBI data
PTI

In the previous week, the forex reserves had increased by $1.148 billion to $394.55 billion. Photo: Reuters
Mumbai: India’s forex reserves surged by a massive $3.572 billion to touch a record high of $398.122 billion for the week ended 1 September, on account of rise in foreign currency assets, Reserve Bank of India (RBI) data showed on Friday.

In the previous week, the reserves had increased by $1.148 billion to $394.55 billion.

Last month, American brokerage Morgan Stanley had forecasted that the reserves might touch the $400 billion mark in the week to 8 September. And if the rise in the kitty continues with the same speed, it may cross that magic numbers next week.

The foreign currency assets (FCAs), a major component of the overall reserves, increased by $2.808 billion to $373.641 billion for the reporting week, according to the RBI data.

Expressed in US dollar terms, FCAs include the effect of appreciation or depreciation of non-US dollar currencies, such as the euro, the pound and the yen held in the reserves. After remaining unchanged for many weeks, gold reserves also rose by $748.3 million to $20.691 billion.



The special drawing rights with the International Monetary Fund (IMF) increased by $6.5 million to $1.506 billion, the apex bank said. The country’s reserve position with the IMF also increased by $9.8 million to $2.283 billion, it said.

First Published: Fri, Sep 08 2017. 07 46 PM IST


http://www.livemint.com/Industry/07...well-by-357-billion-closes-in-on-400-bil.html

 

[RISING SUN]

India speeds up border road work to avoid future Doklams
India's capacity to counter challenges like Doklam is likely to get a significant boost in the next couple of years with stepped up pace of work on India-China border roads likely to result in several critical high altitude links being completed well before the 2020-21 deadline.

Though the completion time-frame for most of the 61 roads — barring two or three — the Border Roads Organisation has been entrusted with, is around 2021, many will be ready earlier as enhanced financial powers given to the organisation recently begin to show results on the ground.

The construction of India-China roads has already seen a marked improvement in the past two-three years with formation cutting increasing from 107km in 2014-15 to 147 km in 2016-17. Similarly, progress on surfacing has increased from 174 km to 233 km in 2016-17 despite the heights and hard rock stretches.

The improved pace, given a limited working season of four to six months, is particularly noticeable on roads where the government accorded special dispensation considering the hostile work environment. As of now, against 3,400 km of 61 India-China roads under the BRO's charge, just 270km of formation cutting remains to achieve 100% connectivity — meaning road laying can begin from both ends of the project.

"The cumulative effect of BRO executives being able to technically and administratively sanction works up to Rs 100 crore will manifest in a year or two as time and cost curtailment are achieved," said a well-placed source. Of the 61 roads, 27 have been completed and of the remaining 34 connectivity to 21 has been established.

A sense of urgency has been injected into BRO projects as the need to close, or at least narrow the logistics gap, between Indian and Chinese forces along the border has been brought home by the serious threat posed by incidents like Doklam to India's strategic interests. The proactive action of Indian troops in moving into territory disputed by China and Bhutan needed a strong and reliable supply line.

Another factor that worried the government and spurred construction of roads was reports of local populations migrating to the Chinese side in search of better economic activities. "This was the fallout of earlier policies of not building roads out of concern that they may end up aiding Chinese forces," said the source.

The construction of India-China border roads came in for scathing criticism by the comptroller and auditor general of India in a report that noted that only 27 roads were ready. BRO hopes to change this picture with improved project execution capacity and better pace of construction in the past couple of years. The BRO's task has been made easier with the latest decision to empower states to take a call on forest clearances within a certain threshold. Still, number of forest clearance cases and land acquisition cases are pending and non-allotment of stone quarries is also hurting the implementation of road projects critical to safeguarding India's interests.
http://timesofindia.indiatimes.com/...ium=social&utm_campaign=TOI&utm_content=om-bm

 

[RISING SUN]

Indian Railways: In one year, all unmanned level crossings will be removed, says Piyush Goyal
Newly appointed Railway Minister Piyush Goyal on Saturday said that all the unmanned level crossings will be removed within a year. “Initially, the Railways had a target of removing all unmanned crossings in three years. But I told them, why not do it within a year. Around 5,000 unmanned level crossings which account for nearly 30-35 per cent of total rail accidents, need to be removed by the railways in the next one year,” Goyal said while addressing a program in IIM-Calcutta. He also emphasised on leveraging technology to improve Indian Railways’ efficiency and claimed to have presented the idea of floating global tenders for laying new railway tracks. “All you need is some infrastructure and a set of communication devices. The RailTel has already prepared the optic fibre network for improving communication,” Goyal added.


RailTel Corporation, a Mini Ratna PSU, is one of the largest railway telecom infrastructure providers in the country. He further said that the officials have been asked to look into the upkeep of railway tracks and expedite procurement processes. “These are just ideas that we have discussed. Let’s see how soon we can take them forward,” Goyal said. He had chaired a high-level meeting with top Railway Board officials on train safety in New Delhi on September 7.
http://www.financialexpress.com/ind...ngs-will-be-removed-says-piyush-goyal/848923/

Bilaspur-Leh will be the most challenging rail project in India ever: Desh Ratan Gupta, chief engineer
Desh Ratan Gupta, the chief engineer in-charge of construction and survey for Northern Railways, explains why the Bilaspur-Manali-Leh route will by far be more challenging than the Udhampur-Baramulla project in Kashmir, a part of which is operational now. In a chat with ET, Gupta says the project will serve two purposes: one for the defence sector and the other to meet the needs of ordinary citizens. Excerpts:

How challenging is the Bilaspur-Manali-Leh survey that the Indian Railways is undertaking?
The Bilaspur-Manali- Leh route is about 650 km by road. The Manali-Leh route is closed for almost five months a year, making it difficult for people as well as defence personnel. That’s why the Government of India decided to have rail connectivity up to Leh. For this, the Northern Railways is undertaking the final location survey. It’s a detailed study to know the entire area of interest — how challenging the terrain and geology is; whether the railway line can be laid; will it be feasible at all at the required gradients, etc. Bilaspur to Kullu (short of Manali) would be relatively less difficult; there we have to avoid hot springs in Manikaran area (in Kullu in Himachal Pradesh). Between Manali and Leh, about 300 of 470 km are covered in snow for most of the time. The line passes through four mountain passes ranging from 3,976 m to 5,360 m (13,000 ft to 17,500 ft), and each pass will have unique challenges, the most challenging being Taglang La at over 5,300 m (17,480 ft). Also, the temperature variation from minus 30 degree Celsius to plus 30 degree Celsius is a big challenge. Then, there are avalanche-prone areas on the way. The proposed line falls in Seismic Zones 4 and 5 shall pass through a number of tectonic faults and thrust zones. In fact, 11% of our proposed track falls in Zone 5 (the most vulnerable for earthquakes). We must also keep in mind the habitats. Despite the difficulties, we must connect to the villages.
In this alignment, we start with 500 m elevation in Bilaspur to about 3,215 m in Leh, and it crosses passes at over 5,000 m. The railways, unlike the roads, can’t have sharp curves and steep gradients. So, a large portion of the track — maybe 60-65% — will pass through tunnels. In this survey, we are doing multi-criteria analysis such as constructibility, maintainability, accessibility, economy, safety, connectivity, geological and hydrological assessment, bridge and tunnel length assessment, etc.
When will you complete the survey? And when will the construction begin?
The survey (which began in September 2016) will take about three years. There will be three phases. We will soon complete Phase I in which we will have a few alternative corridors in various gradients — 1:40, 1:60 and 1:80 (a gradient of 1:40 means that every 40 m, the track will be elevated by 1 m, i.e. for every 1 km, track will be risen by 25 m).
The ideal situation is to have sharper gradients, which will mean a shorter route and less cost. But we have to weigh in the operating requirements i.e. hauling capacity and speed of trains. So, there will be a trade-off between sharper gradients and the hauling capacity.

Our study indicates that the gradient will be 1:40 or 1:60, or a mix of both. DPR (detailed project report) is expected to be ready in 2019. The construction will begin only after the DPR is approved by the government and the project is sanctioned. The government will then take the final call on how to proceed.

How challenging is the Bilaspur-Manali-Leh project compared with the Udhampur-Baramulla line?
The Bilaspur-Leh project is the most challenging for the Indian Railways. Between Bilaspur and Leh, there are four Himalayan ranges unlike just one (Pir Panjal) in Udhampur project. The highest point the Udhampur-Baramulla line passes through is only 1,750 m. Here, the line has to pass areas at over 5,300 m.
Sub-zero conditions of this magnitude (minus 30 degree Celsius in some areas) do not exist in Udhampur-Baramulla project. Here, there are many avalanche-prone patches too.

Will this line meet only the requirements of the Ministry of Defence, which is funding the survey cost, and possibly the entire project, too?

The Bilaspur-Leh project is the most challenging for the Indian Railways. Between Bilaspur and Leh, there are four Himalayan ranges unlike just one (Pir Panjal) in Udhampur project. The highest point the Udhampur-Baramulla line passes through is only 1,750 m. Here, the line has to pass areas at over 5,300 m. Sub-zero conditions of this magnitude (minus 30 degree Celsius in some areas) do not exist in Udhampur-Baramulla project. Here, there are many avalanche-prone patches too.
Will this line meet only the requirements of the Ministry of Defence, which is funding the survey cost, and possibly the entire project, too?
Along the route, the defence has many establishments. They will have specific requirements. But it will also serve the people who will get all-weather connectivity. Now, essential commodities are brought by air during winter. With the line in place, prices will come down. It will serve two purposes:
strategic as well as the welfare of the people. Another spin-off will be tourism in Ladakh.
How much will the project cost?
It’s too early to talk about cost. By the end of next year, we will have a tentative idea. The actual cost will be known only after the DPR is ready (by 2019).
http://economictimes.indiatimes.com...aywrap&ncode=75903408e0b98cc62ba08fe4f10059f3

 

[Hindustani78]

http://www.hindustantimes.com/india...iyush-goyal/story-MY6CDEoHYVPw7PkFXu4I7K.html

Railway Minister Piyush Goyal on Saturday said the railway authorities have been asked to remove unmanned level crossings within a year.

The newly-appointed minister also emphasised on leveraging technology to improve Indian Railways’ efficiency and claimed to have mooted the idea of floating global tenders for laying new railway tracks.

“Initially, the railways had a target of removing all unmanned crossings in three years. But I told them, why not do it within a year? There are around 5,000-odd such level crossings. Removal of unmanned crossing will lead to 30-35 per cent reduction in accidents,” he said at a programme organised by IIM-Calcutta here.

Goyal had a high-level meeting on train safety and took stock of major issues leading to train derailments on Thursday.

“Why would removing unmanned crossing be so difficult? All you need is some infrastructure and a set of communication devices. RailTel has already prepared the optic fibre network for improving communication. So, I told the railway officials to complete the work within a year,” he said.

RailTel Corporation -- a Mini Ratna PSU -- is one of the largest railway telecom infrastructure providers in the country.

According to him, officials have also been asked to look into the upkeep of railway tracks and expedite procurement processes.

Authorities have also been asked to explore options, including using technology (like microscope and x-ray enabled carts), for overseeing the condition of tracks, he said, adding that at present, the Indian Railways had only linesmen for the job.

When asked about the time frame within which these global tenders would be floated, Goyal said: “These are just ideas that we have discussed. Let’s see how soon we can take them forward.”

 

[Hindustani78]

Cabinet Committee on Economic Affairs (CCEA)
12-September, 2017 17:04 IST

Cabinet approves doubling of Barabanki-Akbarpur Doubling Project for promoting Speedy, Reliable & Safe Service

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the 161 km long Barabanki-Akbarpur doubling project at a completion cost of Rs. 1,310.23 crore and is likely to be completed by 2021-22. The project will cover the districts of Barabanki and Faizabad in Uttar Pradesh and will benefit the entire route from Lucknow to Varanasi via Faizabad.


At present delay of trains in Barabanki to Varanasi is high and Express trains are taking up to 7-15 hours for covering a distance of just 323 kms. Present capacity utilization from Barabanki to Faizabad is 146.5% and from Faizabad to Akbarpur it is 152.6%. The doubling project will ensure higher speeds, reduce train delays, enhance safety by allowing more time for block maintenance and provide additional capacity for future increase in traffic.


Doubling will not only decongest the entire route from Lucknow to Varanasi but also lead to economic prosperity and overall development of the region. Further, by easing the connectivity to Varanasi often referred to as the Spiritual Capital of India and the Holy city of Ayodhya will give a boost to pilgrimage, tourism and their local economy.


It will also improve movement of coal to Tanda Power Plant near Akbarpur thereby ensuring reliable coal supplies and lead to 24x7 Affordable Power for All.


In addition, this project will generate direct employment during construction for about 38.64 lakh mandays.


*****

***********

Cabinet Committee on Economic Affairs (CCEA)
12-September, 2017 17:03 IST
Cabinet approves doubling of Daund-Manmad Railway Line for promoting Speedy, Reliable & Safe Service

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has given its approval for the Daund-Manmad doubling project of 247.5 km. The estimated cost of the project will be Rs.2,081.27 crore and completion cost of Rs. 2,330.51 crore with 5% escalation per annum. The project is likely to be completed in next five years by 2021-22.


Doubling of this section would not only speed up the operation of goods and coaching trains, but also provide additional capacity for meeting future increase in traffic allowing for faster & reliable service and minimum delays. It will greatly ease passenger and freight traffic and decongest the Daund-Manmad route, which is a critical section for trains from North India to South India via Pune and for pilgrims going to the famous pilgrimage destinations of Shirdi and Shani-Shignapur. It will also ease the congestion in Mumbai by diverting the trains to this route.


It will also help improve safety by allowing for more time for maintenance blocks. Moreover, defence and security of India will be strengthened through improved connectivity as Ahmednagar is a major tank base of Southern Command, Indian Army.


Doubling will also promote economic activity in and around the Daund-Manmad route, as industries will have additional transport capacity to meet their requirements. Further, doubling will promote rail tourism as it would improve connectivity to Shirdi and Shani- Shignapur and ease pilgrimage traffic, as the site attracts hundreds of thousands of pilgrims throughout the year.


The project will also generate direct employment during construction for about 59.40 lakh mandays. Pune, Ahmednagar and Nashik districts of Maharashtra will be directly benefited through this project.


The line capacity utilization of Daund-Manmad section during the year 2014-15 was 156% with maintenance block. The doubling of Bhigwan-Mohol, Hotgi-Gulbarga on Mumbai-Chennai main route is in progress and once completed, there will be tremendous increase in traffic over the Daund-Manmad section. Thus, an existing single line will not be in a position to deal with the increased traffic and make this section a bottleneck, as capacity utilization has already reached saturation. Therefore, doubling between Daund-Manmad section is necessary.


*****

 

[Hindustani78]

Ministry of Railways
13-September, 2017 16:34 IST
Ministry of Railways permits m-Aadhar as one of the prescribed proofs of Identity for Rail Travel Purpose.

Ministry of Railways has decided to permit m- Aadhar (Aadhar card on mobile app namely m- Aadhar launched by UIDAI) as one of the prescribed proofs of Identity for Rail Travel purpose in any reserved class.

m- Aadhar is a mobile app launched by UIDAI on which a person can download his/her Aadhar Card. It can be done only on the mobile number to which Aadhar has been linked. For showing Aadhar, the person has to open the app and enter his/ her password to show the Aadhar Card.

m- Aadhar when shown by the passenger on his/her mobile after entering the password should be accepted as proof of identity for undertaking journey in any reserved class over Indian Railways.



*****

 

[kaykay]

https://factordaily.com/reliance-adani-lithium-ion-battery-factories-india/

 

[lemurian]

http://timesofindia.indiatimes.com/business/india-business/ongc-strikes-good-offshore-oil-gas-find-sources/articleshow/60761369.cms

ONGC strikes 'good' offshore oil, gas find: Sources

NEW DELHI: The latest discovery of India's largest oil explorer Oil and Natural Gas Corp to the west of its Mumbai High offshore fields is estimated to hold in-place reserves of about 20 million tonnes, sources with knowledge of the matter said.

The Mumbai High field annually produces oil and natural gas of about 9 million to 10 million tonnes of oil equivalent.
The company discovered hydrocarbon reserves west of Mumbai High at well WO 24-3 in July.

ONGC tested nine zones in the well, the two sources with knowledge of the matter told Reuters.
"One zone alone yielded more than 3,000 barrels per day of oil and there are deeper zones where oil and gas both are encountered," said one of the sources.

"It is a large discovery going by Indian standards and is in a different play than discoveries made in the neighbouring Mumbai High fields," the source said.

ONGC informed the Directorate General of Hydrocarbons (DGH), the upstream advisory arm of the federal oil ministry, about the latest discovery earlier this month.
ONGC now plans to drill appraisal wells to determine the size of the new find's recoverable reserves, the sources said.

ONGC is struggling to ramp up its output as most of its production comes from mature fields."It is a good discovery and gives ONGC further hope. This has opened up a new area for exploration around Mumbai High," the second of the sources said.

 

[RISING SUN]

ONGC strikes 'good' offshore oil, gas find: Sources
The latest discovery of India's largest oil explorer Oil and Natural Gas Corp to the west of its Mumbai High offshore fields is estimated to hold in-place reserves of about 20 million tonnes, sources with knowledge of the matter said.

The Mumbai High field annually produces oil and natural gas of about 9 million to 10 million tonnes of oil equivalent.

The company discovered hydrocarbon reserves west of Mumbai High at well WO 24-3 in July.

ONGC tested nine zones in the well, the two sources with knowledge of the matter told Reuters.

"One zone alone yielded more than 3,000 barrels per day of oil and there are deeper zones where oil and gas both are encountered," said one of the sources.

"It is a large discovery going by Indian standards and is in a different play than discoveries made in the neighbouring Mumbai High fields," the source said.

ONGC informed the Directorate General of Hydrocarbons (DGH), the upstream advisory arm of the federal oil ministry, about the latest discovery earlier this month.

ONGC now plans to drill appraisal wells to determine the size of the new find's recoverable reserves, the sources said.
ONGC is struggling to ramp up its output as most of its production comes from mature fields.

"It is a good discovery and gives ONGC further hope. This has opened up a new area for exploration around Mumbai High," the second of the sources said.
http://timesofindia.indiatimes.com/...oil-gas-find-sources/articleshow/60761369.cms

India's first $1 billion IPO in 7 years begin
Insurance company SBI Life started offering shares Wednesday as part of an initial public offering aimed at raising 84 billion rupees ($1.3 billion).

The IPO, if successful, would be the largest in India since government-run mining firm Coal India raised $3.4 billion in 2010, the biggest stock market debut in the country's history.

SBI Life, a partnership between the State Bank of India and French financial services group BNP Paribas (BNPQF), is pricing shares between 685 rupees ($10.60) and 700 rupees ($10.90). The insurance provider is expected to be valued at nearly $11 billion.

IPOs that top $1 billion are a rare event in India.

Just nine other market debuts have ever surpassed the mark, according to data provider Dealogic. The SBI Life offering would rank seventh.

"It is signaling that the market is doing well in India," said Ken Fong, head of equity capital market research for Asia at Dealogic. "You will see more and bigger IPOs."

India's startup and tech sectors are booming, but shares in insurance companies are hottest at the moment following several moves to open up the sector.

SBI Life is the third insurance provider to go public in quick succession. The first to take the plunge -- ICICI Prudential Life Insurance -- raised $900 million last year.

At least three additional insurance companies are expected to join the $1 billion IPO club in the coming months, according to Dealogic. That includes the state-owned General Insurance Corporation of India.

A major uptick in foreign investment in recent years could also be a factor in the IPO flood, Fong said.

Last year, the government ruled that foreign investors could own up to 49% of insurance companies without government approval.

"The confidence from international investors is high," Fong said. "They're allowed to also invest in those IPOs, so everything is doing well."
http://money.cnn.com/2017/09/20/news/india/india-sbi-life-ipo-1-billion/index.html

Car sales in India to grow by 9% in 2017: Moody’s
Car sales in India are expected to grow by nine per cent this year riding on the back of GST regime as well as new product launches, Moody’s Investors Service said today. “Indian car sales will remain robust, growing 9 per cent this year and 7 per cent in 2018, supported by the impact of India’s new goods and services tax (GST) as well as new model launches,” Moody’s said in a global report.

Elaborating further, the report said the GST rollout in July, replacing a web of indirect taxes in India, prompted some automakers to lower prices of their passenger vehicles. This encouraged dealer restocking and led to a subsequent boost in sales, it said. “Looking ahead, new model launches by domestic and foreign automakers and a seasonally stronger second half support our expectation that India’s auto sales in 2017 will touch the 3.6 million unit mark,” the report said.

Commenting on the global scenario, Moody’s said auto sales will decline by 3.6 per cent in 2017 and 0.6 per cent in 2018 as the accommodative financing environment and used car prices come under pressure. “That said, replacement demand in the wake of Hurricanes Harvey and Irma will provide some temporary relief from weakening demand,” it said.

It added that Chinese auto sales will grow 3 per cent this year and 2 per cent in 2018. Besides, Japanese car sales will grow by a robust 5.6 per cent this year and 2 per cent next year, the report said.
http://www.thehindubusinessline.com...o-grow-by-9-in-2017-moodys/article9866068.ece

New Volkswagen Passat Production Starts In India
European premium car manufacturer Volkswagen on Wednesday (20 September) has commenced the production of its sedan Passat at its Aurangabad facility in Maharashtra.

Continuing the momentum to introduce its global portfolio in India, Volkswagen will launch the New Passat later this year, the first sedan based on the MQB platform in India.

Volkswagen Passat will be available with a 2.0L TDI, 177 PS engine mated to a 6-speed DSG automatic gearbox.

Steffen Knapp, Director, Volkswagen Passenger Cars, Volkswagen Group Sales India Pvt Ltd said, “We are happy to bring back one of our most successful premium luxury products to the Indian market, the Volkswagen Passat.”

“With the introduction of the Passat we extend our portfolio, encompassing a wide variety of products from a hatchback to a luxury sedan.”

“The Passat exudes style, timeless design, exemplary performance, and is symbolic of a luxurious lifestyle. We are proud to introduce this car with an iconic heritage to the Indian market,” added Knapp.
http://businessworld.in/article/New-Volkswagen-Passat-Production-Starts-In-India/20-09-2017-126622/

Modi government finds a fix for India's big economic worries; remedial measures likely soon

The government may soon unveil a package of measures to speed up growth, generate employment, lift exports and step up investment in infrastructure.

A broad framework to boost the economy was discussed in a meeting of ministers and officials chaired by finance minister Arun Jaitley late Tuesday evening as the government grappled with a slump in growth.

Prime Minister Narendra Modi will take a final decision on the measures, according to people with knowledge of the deliberations. “We may need to take some specific, targeted steps... It's not as if there is a course correction,” a government official said.

A broad framework to boost the economy was discussed in a meeting of ministers and officials chaired by finance minister Arun Jaitley late Tuesday evening as the government grappled with a slump in growth.

Prime Minister Narendra Modi will take a final decision on the measures, according to people with knowledge of the deliberations. “We may need to take some specific, targeted steps... It's not as if there is a course correction,” a government official said.

There has been concern in government circles over growth slumping to a three-year low of 5.7% in the April-June quarter with disruption due to the rollout of goods and services tax (GST) and lingering impact of demonetisation being the primary cause. A rise in the current account deficit and inflation has added to worries. Some economists have argued that the decline is structural in nature and needs to be addressed appropriately.

Finance minister Jaitley is expected to consult other ministries before preparing a detailed plan that will be presented to the prime minister. The plan is expected to examine the reasons for the slowdown and the measures that can be taken to accelerate growth. A stocktaking meeting by the prime minister could not take place on Tuesday.

Chief economic advisor Arvind Subramanian had briefed the prime minister on the economic situation last week.

The meeting was attended by commerce and industry minister Suresh Prabhu, Niti Aayog vice chairman Rajiv Kumar, secretaries of key economic ministries and the additional secretary to the PM.

The Confederation of Indian Industry (CII) called for a 100 basis point reduction in interest rates to “inject huge growth impulse” and urged the Centre and states to ensure that public capital investment remains elevated even as it pointed to a rebound in many sectors. A basis point is 0.01percentage point. The Reserve Bank of India is set to make its next monetary policy statement on October 4.

FISCAL ESCAPE CLAUSE
State Bank of India’s Ecowrap said the economy has been in slowdown mode since the second quarter of FY17 and such prolonged slump cannot be called technical or transient.

Quarterly growth has declined from 7.9% in first quarter of FY17 to 5.7% in first quarter of FY18. SBI group chief economic advisor Soumya Kanti Ghosh said there is urgent need of a fiscal push to shore up growth. That may not be easy since the government has pledged to reduce fiscal deficit to 3.2% of GDP this year and 3% next year.

EXPORTS AND JOBS WORRY
India’s exports have not picked up to the extent expected even as the global economy has rebounded. Export growth was 8.57% in the April-August period while imports rose 26.63%, worsening the trade deficit and the current account deficit.

EXPORTS AND JOBS WORRY
India’s exports have not picked up to the extent expected even as the global economy has rebounded. Export growth was 8.57% in the April-August period while imports rose 26.63%, worsening the trade deficit and the current account deficit.
http://economictimes.indiatimes.com...ews-state-of-economy/articleshow/60755564.cms

 

[RISING SUN]

India gets its first high horse power loco from Alstom France
India’s dream for high horse power locomotive moved closer to reality with the arrival of the first bodyshell of 12000 HP loco from Alstom France at Kolkata port today. This first-of-its-kind high-power electric locomotive will be used to haul freight trains at twice the existing speed by next year. The bodyshell for the fleet of the twin-section electric locomotives which Alstom is to supply to Indian Railways was unloaded at Haldia, ready for delivery to the factory at Madhepura where it will be assembled.


In November 2015, the public transporter inked a contract with the French company to manufacture 800 such train engines over the next 11 years in a joint venture at the Madhepura locomotive factory in Bihar. This is the first major FDI (Foreign Direct Investment) project in the rail sector.

The first such locomotive, estimated to cost about Rs 30 crore, will be assembled with components brought in from Alstom’s factories in France and will have its trial run by February next year.

The contract allows for the first five locomotives to be imported, but the remaining 795 are to be manufactured locally in support of the government’s Make in India campaign.

The total contract is worth above three billion euro. This project includes the set-up of a plant at Madhepura (Bihar state) and two maintenance depots at Saharanpur (Uttar Pradesh state)and Nagpur (Maharashtra state). The delivery of the locomotives will spread between 2018 and 2028. The locomotive will run at a speed up to 120 km/h.

The Railways is currently using 6,000HP locomotives for freight services. The increase in speed would also result in improving line capacity in the rail network, a railway official said.

As per schedule, 35 locomotives would be rolled out from the factory by 2020, 60 in 2021, followed by 100 every year till the target of 800 is completed.
http://www.financialexpress.com/ind...h-horse-power-loco-from-alstom-france/863645/

 

[RISING SUN]

I don't respond to quarterly numbers, India is growing faster than any other country: Jamie Dimon, JP Morgan Chase
JPMorgan Chase chairman and chief executive Jamie Dimon spoke to Saloni Shukla and MC Govardhana Rangan in an interview.

Edited excerpts :

Last time we met you were very optimistic about India ... one year on our GDP growth has suffered ... what do you have to say now?

I don't worry about quarterly numbers ... India is growing faster than any other country on the planet. The government has made a lot of changes, which is going to be very good for the future. The effect that they have next quarter is not going to say much but a lot of good changes that are been made with Aadhar, GST, and the Bankruptcy law, all of which are and will be very positive.
http://economictimes.indiatimes.com...imon-jp-morgan-chase/articleshow/60788681.cms

India lists its first-ever bond index as it looks to attract foreign investors
The Indian government listed its first ever bond index on the London Stock Exchange on Friday, opening the country's debt markets to the rest of the world.

Launched in collaboration with global index and data provider FTSE Russell, the index will consist of Indian rupee-denominated government bonds – a first of its kind for India. The seeds of this were sown back in November 2015 when the two countries signed a collaboration during the visit of Indian Prime Minister Narendra Modi to the United Kingdom.

"It will turn out to be quite significant. If you look at the Indian market, it is around $1.7 trillion, of which $770 million is government issuances," Arundhati Bhattacharya, chairwoman of the State Bank of India (SBI), told CNBC Friday.

She explained that until now international investors had no transparent benchmark or index on which to base their decisions regarding investment in these papers, and therefore the expectation is that this index will give them that ability to take those decisions.


Brent Lewin | Bloomberg | Getty Images
"We are also hoping to get a few products like ETFs (exchange-traded funds) based on these indices to enable a larger population of investors to come to India."

The Indian bond market is still in its nascent stages of development as compared to the rest of the world but Bhattacharya is confident that there is a lot of potential for development.

"India has a significant domestic bond market that continues to see strong demand from foreign investors," Waqas Samad, chief executive officer of fixed income and multi asset at FTSE Russell, said in a press statement. He added that the listing would enable developing index products that can create "greater awareness and foster liquidity across the Indian domestic fixed income spectrum."

Is the economy moving forward?
The Indian economy has been in a state of transition ever since Modi came to power in May 2014. A few months before that, in September 2013, Raghuram Rajan took charge of the Reserve Bank of India, the country's central bank. Investors immediately fell in love with the Modi-Rajan duo that promised business-friendly reforms and slowly incentivized growth in India.

The Indian economy started seeing more and more foreign investors pump their money into various areas of the economy.



SBI chairman: Demonetization has had advantages for banking system 9 Hours Ago | 01:09

However, investors suffered a small blow when Rajan's term came to an end in September 2016 after speculation of a rift between the ideologies of the current government and Rajan. His successor Urjit Patel almost immediately took over the role of a market-friendly central bank governor, a move that reassured investors across the globe.

Following on from that, the government's efforts to launch the demonetization drive in order to get rid of the so-called "black money" – billions of dollars' worth of cash in unaccounted wealth and fake currency notes - has been applauded by foreign investors.

India's bad loans
The country's bad loan problem has been estimated to be much bigger than even New Zealand's $170 billion economy. Earlier this week an analyst from India Ratings and Research, a credit ratings agency and a unit of Fitch Ratings, told Reuters that about $195 billion of bad loans were already stressed.

In 2016, ICICI Bank and Axis Bank revealed the depth of the problem. According to Axis Bank, 225 billion rupees of its loans are on a "watch list." The bank said it expects 60 percent of those to default in two years. ICICI Bank, one of India's top private lenders, said about 525 billion rupees of its loans have been put on watch. These loans were made to sectors such as steel and power.



SBI chairman on reform: Short term pain required for long term gain 9 Hours Ago | 02:19

The true extent of these bad loans was laid to rest after data from Axis Bank and ICICI hit the wires but the long-term impact of this continues to baffle both investors and analysts who compare the mounting loan problem to that of the U.S. subprime crisis.

"While the Indian government doesn't want to underwrite all of this, they have come up with legal structures to help resolve this issue. As you know most of these currently are in the bankruptcy courts. Bankruptcy courts have started operating in India and it is to the credit of this government that as complicated a law as this was brought within one-and-a-half years of the government coming in place and the courts have actually started operating in super quick time," Bhattacharya told CNBC.

India took the crucial step to speed up its insolvency regime by passing the country's first bankruptcy law last year. The breakthrough is expected to help the country tackle its mounting debt problem.


Saikat Paul | Pacific Press | LightRocket | Getty Images
"We are hopeful that as this process goes through the bankruptcy courts, we will see resolutions that are acceptable and those that are not suspect of moral hazard which obviously is a major downside for the resolution of any of these things."

Bhattacharya noted that apart from this one overhang for the banking sector, all the other macroeconomic parameters in India are working well.
https://www.cnbc.com/2017/09/22/ind...as-it-looks-to-attract-foreign-investors.html

India In Talks to Acquire 20 Percent Of UAE Oilfield
Indian oil companies could acquire up to 20 percent of an oil field belonging to the Abu Dhabi National Oil Company (ADNOC), Utpal Bora, CMD of Oil India Limited, said on Thursday.

"One offer has come from ADNOC of UAE,” he said, without offering any details about the field in question. “They are offering some stake in a field. It is a producing oil field. We are now doing some due diligence now whether it is worth investing or not.”

BPCL, OVL, OIL and other Indian oil majors will be part of the consortium that will own the stake in the field, Bora said. OIL has a capital expenditures budget of just under $625 million for the 2017-2018 fiscal year. The budget includes developmental drilling and exploratory drilling projects, as well as infrastructure development, Bora added.

Currently, most of OIL’s oil and gas blocks are outdated, producing a combined total of roughly 3.35 million tonnes of oil a year. The company holds stakes in two Russian fields and one American one.

"What [the government] is saying is that if there are some fields which are marginalized in nature and the company does not have plans, then the government said they will auction it,” Bora said. "There was an auction last time for marginalized fields. Five out of six marginalized fields have been given by OIL. We gave them because they are not economically viable for us.”

India imports oil to meet most of its growing energy demand. In August, Indian Oil became the first Indian company to buy U.S. crude oil, purchasing 1.6 million barrels of Mars crude. A week later, Bharat Petroleum became the second Indian refiner to start buying U.S. crude oil, after Bharat purchased 500,000 bpd each of Mars and Poseidon crude.
http://oilprice.com/Latest-Energy-N...ks-to-Acquire-20-Percent-Of-UAE-Oilfield.html

 

[Hindustani78]

September 23, 2017 21:46 IST
Updated: September 23, 2017 23:15 IST
http://www.thehindu.com/news/nation...mic-project/article19743845.ece?homepage=true

$4.5 billion soft loan from Japan International Cooperation Agency to boost $100 bn Delhi-Mumbai Industrial Corridor project.
Funds from a Japanese government loan will soon be utilised for the first time in the $100 billion, Delhi-Mumbai Industrial Corridor (DMIC) project. So far, the mega-project was being developed only with the Indian government’s financial assistance.

The DMIC spans six States (Uttar Pradesh, Delhi National Capital Region, Haryana, Rajasthan, Gujarat and Maharashtra). It uses ‘the 1,500-km-long, high-capacity western Dedicated Railway Freight Corridor (DFC) as the backbone’ and aims to be ‘a global manufacturing and investment destination’.

Several rail links
A soft loan (with concessional conditions) to the tune of $4.5 billion to be extended by the Japan International Cooperation Agency (JICA), will shortly be utilised to develop two Mass Rapid Transit Systems (MRTS) — one each in Gujarat and Haryana — that will be part of the DMIC, official sources told The Hindu.

The JICA is the Japanese governmental agency in charge of implementation of Japan’s Official Development Assistance (ODA) — with the main objective of ‘promoting economic development and welfare in developing countries. The interest rate of the loan (in Japanese Yen) will be kept ‘very low’ (at 0.1%) and have a ‘long’ repayment period (at 40 years, including a 10-year grace period).

According to JICA, its “ODA to India started in 1958” and so far around “₹2.75 lakh crore in ODA loans have been committed for development across various sectors.” As per JICA, it is “India’s biggest bilateral donor.”

Incidentally, a JICA loan worth ₹88,000 crore, on similar terms , will be used to build the ₹1.08 lakh crore Ahmedabad-Mumbai bullet train project. JICA loans/assistance are being used to facilitate development of Metro rail networks including in Delhi and the Western DFC. The MRTS in Gujarat will be ‘at grade’ (ground level) and link Ahmedabad to the Dholera Special Investment Region (DSIR).

The sources said the Detailed Project Report (DPR) for the MRTS was ready and land was being acquired. The MRTS in Haryana will be an ‘elevated’ one and will connect Gurgaon and Bawal (part of the Manesar-Bawal Investment Region in the DMIC).

The land has been acquired and the DPR has been finalised, officials said, adding that the MRTS has been included in the JICA ‘Rolling Plan’ for the ODA loan. The Department of Economic Affairs will soon ask JICA to work on preparatory surveys for the project, they said. The length of these two MRTS projects will be 85 km each.

Grant-in-aid
According to the Commerce and Industry Ministry (the nodal body for industrial corridors), the financial assistance for the DMIC project is to be in the form of grant-in-aid worth ₹17,500 crore — as a ‘revolving fund’.

This, it said, was for the development of ‘trunk infrastructure’ in the proposed seven industrial cities in the DMIC at ₹2,500 crore per city on an average, subject to a ceiling of ₹3000 crore per city.

In September 2011, the Union Cabinet — in addition to giving approval for ₹17,500 crore as ‘Project Implementation Fund’ — had also okayed an additional corpus of ₹1000 Crore as grant-in-aid to carry out project development activities. The funds are released to the Special Purpose Vehicles (SPVs) formed between the Centre and the respective State Governments. Official sources said, out of all this, the total amount spent till September 2017 was around ₹3,500 crore.

As per the ministry, the Japanese government had announced financial support for the DMIC project to an extent of $4.5 billion in the first phase — for projects with Japanese participation through a mix of JICA and Japan Bank for International Cooperation (JBIC) lending. Also, the JBIC currently holds 26% equity in the DMIC Development Corporation (the SPV which is the DMIC’s project development agency) aggregating to ₹26 crore. The Indian government holds 49% equity in the DMICDC, while the remaining is held by HUDCO (19.9%), IIFCL (4.1%) and LIC (1%).