Month: May 2022

Writes Shital Bahal

Climate change is wreaking havoc worldwide and India is no exception. It is estimated that at least 40% of India’s population will be living in water scarcity by 2050 as a result of climate change, with 35 million people facing annual coastal floods. Climate change could also have a devastating effect on the agricultural sector as yields of paddy, wheat and pulses could fall by about 9% by 2050.

Currently, India ranks seventh in the Global Climate Risk Index 2021, and climate issues could have a huge impact on building a $ 5 trillion economy over the next few years.

Many entrepreneurs and investors are looking to tackle climate change by investing in “climate technology” firms that range from renewable energy, batteries and EVs to green construction and low-carbon agriculture. The role of Venture Capitalist (VC) and Private Equity (PE) firms is important to help Clintech solutions identify, fund and scale game changes.

Globally, VC investment in climate technology companies increased from $ 6.6 billion in 2016 to $ 32.3 billion in 2021. The situation in India is also being raised A recent survey found that over the past five years, 120 climate technology start-ups have raised more than 200 funds from 272 unique investors in India. According to experts, about 20% of startups prioritize sustainability, with think tanks such as the Policy Commission providing financial support for the development of clean-tech incubation centers and entrepreneurs. As a result, climate technology companies received $ 1 billion in VC funding from 2016 to 2021. Startups and the investor ecosystem are working with the government to address the country’s emissions problem across all verticals.

Various factors have contributed to India’s emergence as a haven for climate technology investment. A favorable policy environment, inspired by Prime Minister Modi’s commitment at the COP 26 Summit, is one of the key indicators that India will achieve net zero emissions by 2070. In addition, the development of low-carbon technology, and the development of new businesses to build a large asset base in clean energy has been required.

While much of this activity has focused on financing large, utility-scale renewable projects, the focus has shifted to bring sustainable decarbonization of the economy at all levels. Sustainable mobility, for example, has gained 70 705 million in investments across 84 contracts since 2016. Similarly, চুক্ত 301 million has been invested in 44 agreements in the energy sector.

Agriculture is a sector that is extremely vulnerable to climate change. In the last few years, there has been an indicative flow of investment in this sector. VC organizations have focused on making farmers and farming practices self-sufficient and climate-tolerant. Similarly, VC / PE firms are investing in start-ups that engage in renewable energy production, electrical mobility and ancillary businesses such as OEMs, component manufacturing, and waste recycling services.

India’s transformation into a net-zero economy has begun, backed by governments and think tanks and backed by cutting-edge technology. VC / PE investors are uniquely positioned to support this change and at the same time generate significant returns. To realize this potential, climate technology ecosystems need to be scaled – through policy, investment and collaboration.

The author is MD and partner, Groax Ventures.

Goldman Sachs Group Inc. China has cut its economic growth forecast for China to 4% this year as the government has doubled its Covid Zero policy, which has forced major cities like Shanghai to lockdown for weeks.

Investment Bank cut its GDP growth forecast to 4.5% from earlier, and cut its second-quarter forecast to 1.5% year-on-year from 4% forecast. Full-year growth is based on the assumption that Covid will remain largely in control, property markets will improve and the government will increase infrastructure spending, Goldman’s economists, including Hui Shan, wrote in a note.

In order for the government to reach anywhere near its target of 5.5%, it is essential to “keep Kovid in check and avoid a severe lockdown of major economic centers such as Shanghai,” economists say. The provinces that were affected by the Covid this spring “performed significantly less,” they said, citing a 7.9% contraction in the first queue in Jilin, our business artery, which locked major cities in March.

To meet growth targets, the government could rely on “statistical smoothing,” economists say. Deviations from previous year’s GDP or “deviations from current measures of economic activity to current year GDP growth can sometimes take place in a year of solid growth,” they say.

The downward correction of 8.1% GDP growth of 2021, for example, would “reduce the base and mechanically increase the growth of 2022 evenly,” they wrote.

However, weaker-than-expected official data in April, which was found to track the trends of high frequency indicators, suggests that statistical smoothing is “less important, like the experience of 2020, now that it is too large to smooth out negative covid shocks,” economists wrote.

China’s move to conduct regular, mandatory tests of the population as a precondition for reopening would be costly, depending on how extensive it is. For the rest of the year, it would cost 2.5 trillion yuan ($ 371 billion) to test 70% of the population once every two days, or 2.2% of last year’s GDP.

Covering 30% of the population and restricting testing to big cities would reduce costs to 200 billion yuan, or 20 basis points of GDP.

Goldman also points to a number of lessons learned from the Omicron outbreak, including the reduction of policy stimulus effectiveness during the lockdown.

On Wednesday, the Ministry of Power told Gencos that if they did not start mixing imported coal with domestic energy by June 15, 2022, their domestic coal allocation would be reduced by 5%. All Genco have been advised to ensure adequate stock in their power plants for smooth operation by October 2022.

In a directive issued on Wednesday, the ministry extended the deadline for 10% imported coal mix from October 31, 2022 to March 2023.

The ministry said that if Gencos do not order coal mixes for the April-June period between May 31, 2022, and if imported coal does not start arriving at power plants by June 15, all defaulting Gencos will remain. To import 15% of the required amount of coal in the remaining period till 31st October.

The ministry noted that in April and May 2022, there was not much mixing, and power plants (which have not yet started importing imported coal) had to ensure that they would mix coal at 15% by October. 2022, and then from November 2022 to March 2023 at a rate of 10%.

In a letter to the Secretary of State / Chief Secretary and all Genco, the Ministry said that all Genco-based domestic coal would be allocated proportionately, given the less objective nature of the supply of coal from domestic sources than was required to meet the demand for electricity. On potential availability from June 1, 2022. Balance needs to be met from imported coal for blending purposes and production targets will be set in captive coal mines.

The ministry has directed that imported coal-based plants should be run and coal should be imported to blend the states, as in the previous year.

On May 5, the Ministry of Power issued an instruction under Section 11 of the Power Act 2003 that all imported coal-based plants must be operated at full capacity.

However, imports by the coal states for the mixture are not satisfactory.

Congress has accused its two allies of trying to curb its electoral influence in the state. Maharashtra Congress chief Nana Patole on Wednesday accused the Nationalist Congress Party and Shiv Sena of redistributing wards in a way that would adversely affect the Congress. The party also warned that the matter could go to court.

“If the parties decide the boundaries of the ward according to their own interests, there will be an objection and we will go to court,” Patole said.

The Congress alleges that the municipal wards for the Pune Municipal Corporation elections and the Mumbai Municipal Corporation elections have been renewed in such a way as to divide the pocket pockets of the Congress and benefit the NCP in Pune and the Shiv Sena in Mumbai.

Patole said that as the Congress was an ally of Maha Bikash Aghadi (MVA), its interests should be taken into consideration while rebuilding these wards. “Everyone has to be trusted.

If the interests of your own allies are not considered, and they are adversely affected, we will object. We also had problems with the number of electoral panels proposed for civic organizations, ”said the state Congress chief. In response to a question, he admitted that the Pune border of the wards would help the NCP while in Mumbai it would help the Shiv Sena.

A Mumbai Congress leader said the party would have an adverse effect on at least 12 to 15 wards in Mumbai. “The NCP does not have a presence in Mumbai, so they are not complaining about the army’s move, and similarly, there is not much military presence in Pune, so they are not making a big deal. However, we have a presence in both the districts and it will have an adverse effect on us, “said the Congress leader.

One week ago, Patole publicly criticized the NCP for forming an alliance with the BJP for the Gondia district council elections. He briefed the Congress leadership in Delhi on the NCP’s move.

With rising inflation and the expected Russia-Ukraine conflict, the S&P Global Rating on Wednesday lowered India’s growth forecast for the current fiscal year from the previously estimated 7.8% to 7.3%.

In December 2021, S&P projected India’s GDP growth for FY23 at 7.8%. In the next financial year, the growth has been estimated at 8.5 percent. The Indian economy is projected to grow at 8.9% GDP for FY22

“Our forecast risk has increased since our last forecast round and is firmly on the downside. The Russia-Ukraine conflict is more likely to drag on and escalate than ever before, and in our view, the risks are negative, “S&P said in its global macro update forecast for growth.

S&P has set a CPI of 6.9% for the current financial year. It said it was a matter of concern that inflation would remain high for a long time, forcing central banks to raise rates higher than currently set, risking a difficult landing, including a major blow to output and employment.

In April, the World Bank lowered India’s GDP forecast for FY23 from 8.7% to 8%, as previously forecast, while the International Monetary Fund (IMF) cut its forecast from 9% to 8.2%.

The Asian Development Bank (ADB) has projected India’s growth at 7.5%, with the Reserve Bank of India lowering its forecast of 7.2% from 7.8% last month amid rising crude oil prices and supply chain disruptions due to the ongoing Russia-Ukraine crisis. War

The Supreme Court’s decision to allow the Madhya Pradesh government to elect OBCs through political patronage has adversely affected the MVA government in Maharashtra as it has failed to provide similar quotas for OBCs for local body elections in the state. The SC also rejected a move by the state to delay the election till the OBC quota empirical data is ready. The state BJP unit has now condemned the MVA government for not being “serious” about the OBC quota.

“Chief Minister Uddhav Thackeray has not paid any attention to the OBC quota. The Maharashtra government has not been able to do what the MP has done. The MP government has submitted empirical information to justify the political quota for OBCs and so they have been given. In Nagpur, former chief minister Devendra Fadnavis said the state government was incompetent and those responsible should resign.

The BJP leader said the party would soon launch a movement against the state government over the issue. Maharashtra has about 38% OBCs, who are persuaded by parties like BJP, NCP and Congress.

Maharashtra OBC leader and Food and Civil Supplies Minister Chhagan Bhujbal said the government would follow the MP’s example. “The SC rejected the MP’s move to delay the local body elections like ours. However, they submitted their OBC commission report which was accepted by the SC. Similarly, we will submit a report to the SC within a month and get the same order as the MP,” he said. Said.

His party colleague Jitendra Auhad claimed that relief for the MP would also benefit Maharashtra. “If the MP gets relief, then Maharashtra will also benefit. How can there be two different decisions for two states in one country,” Auhad wanted to know.

Mortgage financier LIC Housing Finance (LIC HFL) on Wednesday nearly tripled its after-tax profit to Rs 1,118.64 crore due to lower provisions and improved collection efficiency.

It had a net profit of Rs 398.92 crore in the same quarter of FY21.

“In the fourth quarter of last year (fiscal year 2021), we had to make a huge provision. But in subsequent quarters we made adequate provisions and FY22 did not require higher provisions in Q4. Even our collection skills have improved, which has helped in profitability, ”said Y Bishwanath Gaur, Managing Director and CEO.

PAT 2022 has declined by 16 per cent to Rs 2,287.28 crore from Rs 2,734.34 crore in FY21.

Net interest income (NII) increased by 9 per cent to Rs 1,637 crore from Rs 1,505 crore for the same period last year.

Net interest margin (NIM) for the quarter stood at 2.65 percent, up from 2.66 percent in FY 2021. Lenders expect NIM to be 2.44 percent at FY23

By March 31, 2022, the default stage 3 exposure (gross non-performing assets) stood at 4.64 percent, up from 4.12 percent as of March 31, 2021.

Gowd expects the gross NPA to fall further below 3 percent in 2023.

Expected Credit Loss (ECL) provision was Rs 5,839.10 crore as on March 31, 2022, which was Rs 3,971.42 crore as on March 31, 2021.

The personal home loan portfolio stood at Rs 204,230 crore, an increase of 13 per cent over Rs 180,665 crore as on March 31, 2021.

Housing financiers expect a 15 percent growth in the personal home loan portfolio.

The project loan portfolio was Rs 12,978 crore as on March 31, 2022, which was Rs 15,956 crore as on March 31, 2021.

The total outstanding portfolio increased by 8% to Rs 251,120 crore from Rs 232,003 crore in the previous year.

Gowd said the share of project loans in the total loan book is 5 per cent and the lender plans to double it to 10 per cent in the current financial year.

Its total project loan arrears are Rs 1,400 crore, which will increase to Rs 2,800 crore this financial year.

Shares of the company rose 0.84 per cent to Rs 358.65 on the BSE. PTI HV MR MR

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Quinton de Kock scored a thrilling century and shared a record opening stand with skipper KL Rahul as the Lucknow Super Giants sealed their play-off spot by beating Kolkata Knight Riders by two runs in the last ball IPL thriller on Wednesday.

De Kock gave a batting masterclass of 140 not out off 70 balls as he and Rahul (68 not out off 51 balls) beat LSG by 210 runs without loss, the highest opening stand in IPL history.

It was a steep chase but KKR stayed in the game through Nitish Rana (42) and captain Shreyas Iyer (50) but it was a big task for the lower order. Their innings ended at 206 for eight in 20 overs.

While KKR looked down and out, Sunil Narine (21 not out) and Rinku Singh (40 off 15 balls) started destroying LSG bowlers around the field to revive the hopes of dug out.

KKR needed 38 runs in the last two overs and they both brought down the equation to 21 in the last over.

Rinku hit five sixes and a four off the last three balls but was caught by a special one from Evin Lewis to bring LSG back into the game.

When three were needed in the final over, Marcus Steinis got off the yorker, knocked out Umesh Yadav and helped his team win the Hamdinger.

The defeat knocked KKR out of the competition, while LSG, who had lost their last two matches, returned to the top two with a win.

Earlier, Rahul and De Kock got the wicket measure in the powerplay, reaching 44 not out before flaunting their wide strokes on their way to the third highest stand in the history of the tournament.

The South African hit 10 sixes and four more in his whirlwind innings, where Rahul collected four sixes and three fours in his 68 off 51 balls.

De Kock, who was dropped by Abhijit Tomar off Umesh Yadav in the third over, paid the KKR a lot for his highest score of the season. His memorable innings was also the third highest individual score in the history of the tournament.

The South African destroyed spinners and pacers with equal hatred in his material.

He used pool shots against fast bowlers and was his innovative best against the spin duo of Sunil Narine and off-color Varun Chakraborty.

De Kock’s reverse sweep of the six he hit was Narine’s. No less than the pacers, De Kock is happy to have it in the deep square leg area.

De Kock reached his century with a cut from Russell in the 16th over and the innings meant a lot to him, which was visible through the celebration of his knees.

Even after reaching three figures, Dakshinapa was not in the mood to stop. Tim Southee was weak in the death over as he fed ball after ball into the slot to get De Kock to the stand.

In his 19th over, De Kock found the desired boundary and gave away 27 runs.

Rahul saw De Cock’s suffocating knock from the best seat of the room. The captain didn’t have much to do in the slog over but he also played some great strokes on his way to the third half of the season.

Rahul also completed 500 runs in the tournament for the fifth consecutive season. PTI KKR bowlers leaked 88 runs in the last five overs and Saudi and Russell proved to be the most expensive bowlers.

Foreign direct investment (FDI) is growing annually in recent times, in contrast to the massive sales of foreign portfolio investors (FPIs). Total FDI inflows to FY22 were $ 83.6 billion, up from $ 82 billion a year ago. At FY20 it stands at $ 74.4 billion. The services and manufacturing sectors accounted for a large portion of FDI in FY22, the RBI said in its monthly bulletin. However, due to higher overseas investment by Indian entrepreneurs and repatriation of foreign investors, net FDI in FY22 has increased to $ 39.3 billion from $ 44 billion a year ago, the RBI said.

India’s growing FDI is about $ 570 billion.

“FDI investments generally focus on a country’s long-term prospects and are rarely withdrawn. The high inflow of FDI indicates that India is a bright destination for foreign investment, ”he said

Chief economist Madan Sabnavis. “There is potential in various fields like IT, finance, FMCG, auto, drugs, telecom etc. They can be VC funds that support startups here. ”

In the long run, FDI investors are not present in the trading segment.

Of the 1,200 global business leaders surveyed in the United States, the United Kingdom, Japan and Singapore, more than two-fifths plan to invest in India extra or for the first time, consulting firm Deloitte said in a report last year.

The US Federal Reserve has been withdrawing FPIs since it began the process of halting purchases of Treasury bonds and mortgage-backed securities to support the economy during the epidemic. Rising commodity prices in the Russia-Ukraine conflict have led inflation to tighten the financial situation by raising policy rates, accelerating the withdrawal of investment by portfolio investors. In 2022, FPIs have so far drawn 21.3 billion.

India’s foreign exchange reserves fell to 59 596 billion at the end of May 6 from a record 64 642.453 billion on September 3 last year, as the Reserve Bank of India (RBI) sold dollars from reserves to stem the rupee’s devaluation and curb foreign exchange volatility. .

The Competition Commission of India (CCI) has approved a proposed agreement involving Serum Institute of Life Sciences, Covidshield Technologies and Biocon Biologics.

Upon completion of the agreement, Serum Institute Life Science Pvt.

Covidshield Technologies Pvt Ltd (CTPL), a wholly owned subsidiary of the Serum Institute of Life Sciences, will merge with Biocon Biologics.

In a tweet on Wednesday, Watchdog said it had “cleared up the merger through the exploitation of Covidshield technology in Biocon Biology, considering the acquisition of about 15 percent equity shareholding in Biocon Biology by Serum Institute Life Sciences.” CTPL was involved in the business of marketing, selling and distributing vaccines, medicines and other pharmaceutical products.

Biocon Biologics Limited is a subsidiary of Biocon Limited. It provides treatment for chronic and acute diseases such as diabetes, oncology, nephrology, cancer and autoimmune diseases.

The company has research and development center and production facilities.

Transactions outside the specified threshold require CCI approval, which puts a tab on anti-competitive practices in the market.

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