Maharashtra Investment News

Global Investors Summit: UP Govt inks Rs. 7,000-crore MoUs at Kolkata event
The Indian Express | 2 weeks ago | |
The Indian Express
2 weeks ago | |

The Uttar Pradesh government Tuesday announced that it signed Memorandum of Understanding (MoUs) worth over Rs 7,000 crore during a roadshow organised in Kolkata ahead of the Global Investors Summit that is slated to be held in Lucknow in February. The domestic roadshow was organised to seek investment for the state and was the fourth such event to be held by the state government in a city. Earlier, the Uttar Pradesh government had organised similar roadshows in Mumbai, Chennai and Delhi. The government signed MoUs with Greentech Environment Pvt Ltd (Rs 2,000 crore), Captain Steel (Rs 1,650 crore) Shyam Metallics (Rs 630 crore), Haldiram Bhujiawala (Rs 500 crore ) and Balaji Wafers (Rs 500 crore), Tata Steel DownStream Products Limited (Rs 250 crore), SRMB (Rs 250 crore), Anmol Feeds for fish farming (Rs 50 crore), Allenberry (medical gas) (Rs 200 crore), Eastern Equipment ENT (Rs 25 crore) and Lux Industry Limited (Rs 50 crore), Infinity Infotech Park (Rs 400 crore), SKM Group’s Char Nauk Hospital (Rs 200 crore) and, Meghdootam Travels (Rs 150 crore).The roadshow was led by a delegation comprising Uttar Pradesh Infrastructure and Industrial Development Minister Nand Gopal Gupta ‘Nandi’, Cabinet Minister for Labour and Employment Anil Rajbhar, and Ministers of State Dayashankar Singh and Ajit Pal Singh. The delegation apprised the investors about the state’s potential in sectors like defence and aerospace, civil aviation, logistics, electronics, IT, startups, data centre, handloom and textiles, agriculture and allied industries, tourism, films, renewable energy, electric vehicles, pharmaceuticals and healthcare, and education and skill development.A government spokesperson said investors from West Bengal mainly showed interest in transportation within cities, education, conversion of waste into energy, and construction of hospitals as well as the tourism sector.The team pitched the state as “crime-free” and a “transformed” one with an “enormous investment potential”. The delegation also assured investors that they would get a “safe environment” to do business along with quality infrastructural facilities – right from expressways, rail connectivity, Metro rails and upcoming airports.Berger Paints’ Managing Director and CEO, Abhijit Roy, who attended the roadshow in Kolkata, said, “Uttar Pradesh is attractive in terms of market, infrastructure, land, tax, and ease of doing business. The market is extremely important. Modern and progressive investment routes have become the foundation of business.”“When it comes to interest rates, the government has launched attractive profit schemes. Businesses’ desire to provide adequate solutions to all these things motivates every businessman,” said Roy.Ramakant Barman, Managing Director of Green Tech Environment Management Private Limited, whose company expressed interest in establishing around five ‘waste-to-energy’ plants in the state said, “Cities such as Lucknow, Varanasi, and Gorakhpur have a lot of potential. There are many ongoing projects in Varanasi.”

Global Investors Summit: UP Govt inks Rs. 7,000-crore MoUs at Kolkata event
Davos 2023: Global recession in 2023 seen as likely in WEF survey
The Indian Express | 2 weeks ago | |
The Indian Express
2 weeks ago | |

Two-thirds of private and public sector chief economists surveyed by the World Economic Forum (WEF) expect a global recession in 2023, the Davos-organiser said on Monday as business and government leaders gathered for its annual meeting.Some 18% considered a world recession “extremely likely” – more than twice as many as in the previous survey conducted in September 2022. Only one-third of respondents to the survey viewed it as unlikely this year.“The current high inflation, low growth, high debt and high fragmentation environment reduces incentives for the investments needed to get back to growth and raise living standards for the world’s most vulnerable,” WEF Managing Director Saadia Zahidi said in a statement accompanying the survey results.The organisation’s survey was based on 22 responses from a group of senior economists drawn from international agencies including the International Monetary Fund, investment banks, multinationals and reinsurance groups.The survey comes after the World Bank last week slashed its 2023 growth forecasts to levels close to recession for many countries as the impact of central bank rate hikes intensifies, Russia’s war in Ukraine continues, and the world’s major economic engines sputter.Definitions of what constitutes recession differ around the world but generally include the prospect of shrinking economies, possibly with high inflation in a “stagflation” scenario.On inflation, the WEF survey saw large regional variations: the proportion expecting high inflation in 2023 ranged from just 5% for China to 57% for Europe, where the impact of last year’s rise in energy prices has spread to the wider economy.A majority of the economists see further monetary policy tightening in Europe and the United States (59% and 55%, respectively), with policy-makers caught between the risks of tightening too much or too little.‘Not keeping pace’While a global slowdown would risk hitting investment in areas from education and health to tackling poverty and climate, some see it driving inflation down and forcing the U.S. Federal Reserve and others to hold back from further rate hikes.“I want the outlook to become a little weaker so that the Fed rates start going down and that whole sucking-out of liquidity by global central banks eases,” Sumant Sinha, chairman and CEO of Indian clean energy group ReNew Power, told Reuters on the sidelines of the Davos meeting.“That will benefit not just India but globally,” he said, adding the current round of rate hikes was making it dearer for clean energy companies to fund their capital-intensive projects.Others said that while more affluent people would likely escape the worst effects of recession on the back of high inflation levels, it would hit lower middle income groups hard.“If you only have your time and your energy which is creating your income, you’re getting ravaged right now because your wages are just not keeping pace,” said Anthony Scaramucci, founder of U.S.-based investment firm SkyBridge Capital.Other main findings of the WEF survey included:– Nine out of 10 respondents expect both weak demand and high borrowing costs to weigh on firms, with more than 60% also pointing to higher input costs.– these challenges are expected to lead multinational businesses to cut costs, from reducing operational expenses to laying off workers– however, supply chain disruptions are not expected to cause a significant drag on business activity in 2023– the cost-of-living crisis may also be nearing its peak, with a majority (68%) expecting it to have become less severe by the end of 2023.

Davos 2023: Global recession in 2023 seen as likely in WEF survey
Ronaldo signed, Messi on radar: Is Saudi Arabia set to become the latest international football hub?
The Indian Express | 2 weeks ago | |
The Indian Express
2 weeks ago | |

December 10, 2022 will always be remembered as the bleakest day in Portugal’s football history. This was when Portugal, favourites to win the FIFA World Cup in Qatar, were eliminated by the Morocco team in the quarterfinal.After the match, the camera zoomed in on the dejected figure of Cristiano Ronaldo, slowly walking towards the tunnel on his way to the locker room. But he could not hide his disappointment as a camera in the tunnel showed the once proud player breaking down in tears before hurriedly sweeping past it and disappearing into the confines of the Portuguese changing room.All eyes on SUNDAY 🤩 pic.twitter.com/raCA5gNTVp— AlNassr FC (@AlNassrFC_EN) January 15, 2023Without a club, without certainty of a future in the national team, Ronaldo seemed like an entity closing in on the final chapter of a once illustrious career. Enter Al Nassr. With one middle-east country taking away his dreams to be world champion, another stepped up to save his stagnating career.Al Nassr would throw in a life jacket to Ronaldo when he was navigating through the waves of rejection after the termination of his contract at Manchester United, offering him a deal worth $200 million a year. This would make him the highest paid football player in the world. From the depths of despair, there rose a glimmer of hope.This move by the Saudi-based club was not without intent and it showed how the Middle-Eastern countries are slowly but steadily emerging as the next global footballing powerhouses. After the recent success of the Qatar World Cup, this Ronaldo coup was a masterstroke. In securing Ronaldo’s services, Al Nassr not only got one of the best players of the planet but also the brand value attached to him.Picture that goes hard 🔥 pic.twitter.com/Pov4c1pEBF— AlNassr FC (@AlNassrFC_EN) January 13, 2023Even people who didn’t have any idea about the existence of Al Nassr sat up and took notice as the legions of Ronaldo fans made sure that the signing had the necessary impact. To understand the impact that Ronaldo has had on the club’s image you need not look very far as shortly after the 37-year-old’s signing was made official, the club’s Instagram page gained over 5.3 million new followers.The kingdom of Saudi Arabia, which routinely faces criticism due to its stringent rules and treatment of women, has been pulling out all stops to whitewash or sportswash its image in order to become a major player in the international sporting circle. The signing of a player of Ronaldo’s stature is a giant leap in that direction.And you can bet that this will not be the end. Recent reports have suggested that Al Nassr’s fierce rivals Al Hilal and Al Itihad are willing to pay around 350 million euros per season to bring Lionel Messi to Saudi Arabia and have also asked for help from the government so that they can make the offer. It’s worth mentioning here that Messi already has a pretty lucrative promotional deal with Saudi, a contract which he signed last year making him one of the ambassadors of The kingdom’s tourist board. These steps were no coincidence but carefully calculated moves with an endgame in mind.According to reports, Al Nassr are also weighing up moves to bring Marco Reus as well as Sergio Ramos in their fold. If they manage to pull these off, it will go a long way in establishing the middle-eastern countries as serious contenders in the vast footballing landscape.Even before the blockbuster Ronaldo transfer, the middle-eastern countries were slowly dipping their toes in the vast pool of the sport with clubs like Manchester City, Paris-Saint Germain (PSG), and Sheffield United, all having owners from the gulf states. Newcastle became the latest to join this club (pun intended) in 2021 when the Saudi Arabia-led consortium, headed by the Saudi sovereign wealth fund, the Public Investment Fund (PIF), purchased it for over £300 million. Interestingly, PIF also played a role in Ronaldo’s transfer as Al Nassr is backed by its subsidiary Qiddiya Investment Company (QIC).The transfer of Ronaldo and the rampaging rumours of major names who could be on their way to Saudi Arabia have put the country and its neighbouring regions firmly on the map. Now, they have enough ammunition in their tanks to feasibly aim for their reported bid to host the 2030 World Cup with Greece and Egypt.

Ronaldo signed, Messi on radar: Is Saudi Arabia set to become the latest international football hub?
Indian campuses of foreign universities are a win-win for students and institutesPremium Story
The Indian Express | 2 weeks ago | |
The Indian Express
2 weeks ago | |

With the launch of the National Education Policy (NEP) 2020, the world is looking at India as an ideal destination to establish campuses and invest in the higher education sector. The NEP also envisions that India will be promoted as a global study destination that provides affordable, excellent education. Establishing foreign campuses will provide wider educational choices, exposure to innovative pedagogical approaches and the potential for collaboration with world-class institutions.By fixing a benchmark of allowing only the top 500 foreign universities in India, the draft UGC regulations have an in-built mechanism to ensure the entry of only the highest-quality institutions. Foreign higher education institutions (FHEIs) intending to come to India will be experienced in imparting education and with robust financial resources, integrity, long-term commitment, and a better understanding of the venture’s feasibility. The FHEIs that intend to open campuses in India are expected to have adequate financial and other resources. They should also arrange for appropriate physical infrastructure in terms of built-up spaces for their academic programmes.The draft regulations empower the positioning of India as an affordable value player in the global education sector. Campuses of foreign HEIs will attract students from the Global South as students worldwide will find the high-quality education in India appealing. Given India’s cultural ambience, international students can get a world-class learning experience near their home country. It is precisely to provide an environment for interaction that the regulations say that academic programmes in the FHEI campuses need to be in physical mode.The draft regulations are also a breath of fresh air, giving more viable options to the four lakh or so Indian students who head overseas each year for transnational education. Many students who plan to go abroad will continue to do so to study and work in a different environment. However, many may not be able to due to family or financial situations. While some may think studying in a foreign country is about much more than just earning an international degree, FHEIs will provide opportunities for students who do not wish to immigrate to stay in India and study at a foreign university. This can be a win-win situation because Indian students will be able to access high-quality education living in India while foreign universities can cater to huge numbers.However, all this will only happen with enabling legal and regulatory structures. The establishment of foreign campuses will be facilitated through the provisions of the Foreign Exchange Management Act 1999 and its rules. A few representative ways in which FHEIs can establish campuses are: As a company under the Companies Act, 2013 and operate the campus through this company; via the Limited Liability Partnership Act, 2008; as a joint venture with an existing Indian entity such as a university or setting up a branch office in India for conducting its operations in education. The biggest incentive for FHEIs is that there is no need to keep a corpus fund and they can repatriate their funds to the parent university.The Union budget announced on February 1, 2022, emphasised foreign direct investment (FDI) in education. If we factor in potential FDI in the education sector, the cascading effects on employment, technology transfer, and investment in academic infrastructure are promising.The National Institute of Educational Planning and Administration recently conducted a study to gather reliable information on foreign universities’ current and future priorities regarding establishing their campuses in India, identifying major concerns and expectations of foreign universities, and to identify areas that need policy interventions. In the report, several universities ranking in the top 200 have expressed their interest in considering India as a destination.Therefore, there is evidence for the need for FHEI campuses in India at least in two aspects. First, such campuses will foster healthy competition among Indian institutions to better their standards and establish world-class institutions. Second, the Institutions of Eminence (IoE) have made considerable progress in multidisciplinary teaching and research, leveraging technology for effective teaching-learning, developing state-of-the-art facilities, and promoting the internationalisation of higher education. They and other institutes in India can be potential partners in research collaborations with FHEIs in cutting-edge areas.Trust in regulations and regulatory bodies is not an event but a series of continuous efforts and improvements. Following NEP 2020, the UGC has been proactively working to meet the aspirations of Indian higher education institutes by providing them with more autonomy and bringing out progressive regulation. The draft regulations on FHEIs consider the current and desired stages of internationalising Indian higher education. Opening windows for cross-border growth for top institutions from other countries and opening ourselves to other countries is a progressive regulatory step.Suppose, we see regulations regarding campuses of FHEIs along with the other recent initiatives like the joint, and dual degrees with foreign universities, and the regulations for enabling the Indian universities to open campuses in other countries, which are in the making. Then, one can see how the regulatory architecture addresses the desired stages of internationalisation. The UGC’s reforms should not be read in silos. Rather, the cumulative effects of the enabling provisions must be seen as a catalyst for transforming higher education in India.The writer is chairman, University Grants Commission. Views are personal

Indian campuses of foreign universities are a win-win for students and institutesPremium Story
Global Investors Summit: Rs. 56,000 cr investments for Lucknow, most for real estate
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

The UP government Tuesday said it signed 262 Memorandums of Understanding (MoUs), worth Rs 56,299 crore, with several companies and received 331 investment proposals during the daylong event to woo local investors in Lucknow ahead of the Global Investors Summit. Most of the investment proposals were in the real estate sector, the government said, adding it was much above the target of Rs 50,000 crore.Among the top investment proposals included projects by Shalimar Corporation (Rs 2,032 crore), Omaxe Ltd (Rs 1,500 crore), Amravati Developers (Rs 1,400 crore), Rishita Developers (Rs 903 crore), Sapphire Infra Ventures Pvt Ltd (Rs 226 crore), a statement released by the government said.The event, which was attended by several local businesspersons, was divided into four sessions for different sectors – beginning with industrial, MSMEs, textiles; followed by dairy, food processing and alternative energy, then housing infrastructure and logistics; and concluding with a session on Nivesh Mitra, where investors were informed in detail about the newly launched policies of the government.Some of the other MoUs signed by the government included investment promises by Aroloy Technology (Rs 300 crore), and Labcam Pathlab (Rs 45 crore). The government said it received investment proposals worth Rs 329 crore in agriculture and related sectors, including about Rs 238 crore in horticulture sector alone.Deputy Chief Minister Brajesh Pathak, who inaugurated the event, assured businesspersons safety from “gunda-badmash (anti-social elements) and soshan (exploitation)”.“Before 2017, UP was known for its poor law and order… but since 2017, the Yogi Adityanath-led government has been working to change this image… No one has the courage to harm the traders, I want to guarantee you this… No government officer has the courage to exploit anyone as Chief Minister (Yogi Adityanath) is directly monitoring everything,” Pathak told businesspersons, adding there is no more organised crime in the state.Minister in-charge of Lucknow district Kapil Dev, who was also present at the event, said that the BJP government was able to put a stop to “palayan” (exodus) of the workforce.Union Minister Kaushal Kishore also attended the event.

Global Investors Summit: Rs. 56,000 cr investments for Lucknow, most for real estate
World Bank warning: Global economy is at risk of recession
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

The global economy will come “perilously close” to a recession this year, led by weaker growth in all the world’s top economies — the United States, Europe and China — the World Bank warned on Tuesday.In an annual report, the World Bank, which lends money to poorer countries for development projects, said it had slashed its forecast for global growth this year by nearly half, to just 1.7 per cent, from its previous projection of 3 per cent. If that forecast proves accurate, it would be the third-weakest annual expansion in three decades, behind only the deep recessions that resulted from the 2008 global financial crisis and the pandemic in 2020.Though the United States might avoid a recession this year — the World Bank predicts the US economy will eke out growth of 0.5 per cent — global weakness will likely pose another headwind for America’s businesses and consumers, on top of high prices and more expensive borrowing rates.Also Read |India’s economy in 2023: Hope, challenges, and a lot of uncertaintyThe United States also remains vulnerable to further supply chain disruptions if COVID keeps surging or the war in Ukraine worsens. And Europe, long a major exporter to China, will likely suffer from a weaker Chinese economy.The World Bank report also noted that rising interest rates in developed economies like the United States and Europe will attract investment capital from poorer countries, thereby depriving them of crucial domestic investment. At the same time, the report said, those high interest rates will slow growth in developed countries at a time when Russia’s invasion of Ukraine has kept world food prices high.The impact of a global downturn would fall particularly hard on poorer countries in such areas as Saharan Africa, where the World Bank predicts per capita income will grow just 1.2 per cent in 2023 and 2024. That is such a tepid pace that poverty rates could rise.“Weakness in growth and business investment will compound the already devastating reversals in education, health, poverty, and infrastructure and the increasing demands from climate change,” said David Malpass, president of the World Bank.The report follows a similarly gloomy forecast a week earlier from Kristina Georgieva, the head of the International Monetary Fund, the global lending agency. Georgieva estimated on CBS’ “Face the Nation” that one-third of the world will fall into recession this year.“For most of the world economy, this is going to be a tough year, tougher than the year we leave behind,” Georgieva said.“Why? Because the three big economies — US, EU, China — are all slowing down simultaneously.” The World Bank projects that the European Union’s economy won’t grow at all next year after having expanded 3.3 per cent in 2022. It foresees China growing 4.3 per cent, nearly a percentage point lower than it had previously forecast, and about half the pace that Beijing posted in 2021.The bank expects developing countries to fare better, growing 3.4 per cent this year, the same as in 2022, though still only about half the pace of 2021. It forecasts Brazil’s growth slowing to 0.8 per cent in 2023, down from 3 per cent last year.In Pakistan, it expects the economy to expand just 2 per cent this year, one-third of last year’s pace. Other economists have also issued bleak outlooks, though most of them not quite as dire. Economists at JPMorgan are predicting slow growth this year for advanced economies and the world as a whole, but they don’t expect a global recession. Last month, the bank predicted that slowing inflation will bolster consumers’ ability to spend and power growth in the United States and elsewhere.“The global expansion will turn into 2023 bent but not broken,” the JPMorgan report said.

World Bank warning: Global economy is at risk of recession
Ashok Gulati writes: How Adani can help increase farmers' incomePremium Story
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

If there is one wish I would like to make for 2023, it is for shared peace and prosperity for all.All efforts to propel economic growth are for the prosperity of people. But GDP growth rates, the absolute size of GDP, and even per capita income, do not fully capture the prosperity of the masses. Increasing inequalities are a reality in India and most developing nations. Simon Kuznets told us decades back that it is going to happen as economies open up and growth accelerates, before it stabilises and even declines as those left behind start catching up. But how do they catch up with the front runners? It can happen only when one invests heavily in their skills, education, access to finance (capital/technology) and innovative models of development that dovetail inclusiveness with faster growth plans.In 2022, India has registered the highest growth rate amongst all G20 countries and it is likely to do so even in 2023. That’s a matter of pride. And within India, when we talk about growth and wealth creation, one name stands out — Gautam Adani. In a recent interview with India Today, he revealed that his rise started with the liberalisation of economic policies during Rajiv Gandhi’s time, and got momentum with the 1991 reforms. But the year 2022 has seen the most explosive growth with his net worth rising to about $125.8 billion (as per the Forbes list on December 28, 2022) making him the richest man in Asia and third-richest in the world.Many critics say this is all due to his proximity to Prime Minister Narendra Modi. But then, why is the Chief Minister of Rajasthan hosting him as he announced plans to invest about Rs 65,000 crore in setting up a mega solar power plant of 10,000 MW, expanding a cement plant, and upgrading the Jaipur airport? Similarly, why did the Tamil Nadu government support him in setting up one of the largest solar power plants at Kamuthi? Even the West Bengal government has been wooing him for investment and the upgradation of its ports. The reality is that most of the top business houses work with all governments so long as it makes economic sense to them. Be it Adani, Reliance, Tatas, Wipro, and others — they all create wealth and millions of well-paid jobs. That’s their contribution to society. But they also give back to society through their CSR activities as well as through family foundations and trusts.A few years back, Azim Premji pledged to give away about half of his wealth to the society through Azim Premji Foundation. He topped the EdelGive Hurun India Philanthropy List in 2020. How many people are aware that Gautam Adani’s foundation is committing Rs 60,000 crore to give back to society through promoting better health, education, and skill development? This, said Adani, was the best gift on his 60th birthday.While all this is commendable, I feel there could also be an alternative model for shared prosperity. And that is making the less privileged partners in the journey of wealth creation. Let me elaborate. Since Gautam Adani is committing Rs 60,000 crore through the Adani Foundation to give back to society, here is a small idea that can make millions prosperous, if he takes it up as a priority.The largest share of India’s working population is engaged in agriculture (about 46 per cent). Their education levels are low and the average holding size is small (1.08 ha). The average household income hovers below Rs 20,000 per month at current prices. Of course, many marginal farmers earn even less than this. This is not enough to provide a sustainable demand base for a manufacturing revolution in India. Educating these people at a large scale or even creating new skills may be a long-drawn process. So, here is an idea that can augment their incomes substantially and quickly.Adani aims to be the largest player in green energy, especially solar. Solar farms today need a lot of land that is degraded. But land is scarce in India and I am not sure how far this model can be scaled up. The alternative is to have solar as a third crop on farmers’ fields. The designing of solar panels and structures has to be done in a manner that allows enough sunlight to come through for photosynthesis of crops below. Farmers can keep growing two crops below these solar trees that are about four meters high. The investment in solar panels will be done largely by entrepreneurs (say Adani Green Energy) with some equity participation by the farmers (say 10 to 15 per cent). Farmers will maintain these solar trees regularly. Power will be generated throughout the year and it can be fed to the grid at an agreed price. The farmer will get rent for his land and a share in the profits of power generation.This idea is being tried in a number of countries, including India. Our research in this area led to the setting up of a pilot in Ujwa KVK in the Najafgarh area in Delhi with the help of former Lt Governor of Delhi, Anil Baijal. Just two kilometres from the site of the pilot project, an entrepreneur, Surinder Ahuja (CEO, SUNMASTER), has tried out this idea on four acres and he is offering Rs 1.25 lakh per acre/year to farmers for using their land for solar and agriculture activities. This doubles farmers’ income within six months.The question is whether Adani can scale it a million times and create a revolution with farmers generating solar power along with food crops. Only then can the farmer become not only anna daata but also urja daata (giver of food as well as solar energy). This will be a true shared prosperity model.Gulati is Distinguished Professor at ICRIER. Views are personal

Ashok Gulati writes: How Adani can help increase farmers' incomePremium Story
Govt pins hope on big ticket investments in data centres
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

To meet its investment target of Rs 17 lakh crore during the Global Investors Summit, scheduled to take place next month, the Uttar Pradesh government is banking on the data centre and electronic manufacturing sector.As the government increased its investment target from Rs 10 lakh crore to Rs 17 lakh crore, it revised its investment target for the IT and electronics sector to Rs 1.6 lakh crore – the highest among the 32 big and small sectors identified for targeted investment. The sector with the second biggest investment target of Rs 1.2 lakh crore is medium and small-scale enterprises (MSMEs).Officials said the reasons behind increasing the investment target of the IT and electronics sector were three-fold: the advantage of the state being close to Delhi, the national capital; easy availability of skilled workforce; and interests shown in the sector by both national as well as international investors.“We aim to make Uttar Pradesh the future data centre hub of the country and the targets have been kept high as investors have already shown interest. Groups like Hiranandani, which had earlier committed to Rs 9,000 crore Data Centre project, have committed another Rs 30,000 crore as they see prospects here,” Additional Chief Secretary (Infrastructure and Industries; Information Technology and Electronics) Arvind Kumar said.“That is why, the state government decided to come out with specific data centre policy to encourage the sector further, and is also in the process of establishing the first Data Centre Park” in Noida, which is in the National Capital Region,” Kumar added.Officials said during ministerial delegation visits to countries like South Korea, Japan as well as Singapore, companies there committed to investing in data centres.Officials said that Star Consortium of Singapore has promised to invest Rs 2,000 crore for setting up a data centre and logistic services hub in the state. Another company, SLG Capital, had signed an MoU with the government for an investment of Rs 8,273 crore in setting up a capital data centre in the state.A senior official said that during the government delegation visits to South Korea and Japan, Samsung and NTT Group, which is working in the telecommunication sector in Japan, also showed interest in opening data centres in Gautam Buddh Nagar.Also, there are two project proposals, worth over Rs 2000 crore each, from the Adani Group in the data centre sector, the official added.The areas in which these companies are showing interest are quantum computing, 3D printing, 5G, virtual reality and even space tech.Recently, the UP government in its new data centre policy revised the earlier target of creating 250 MW of storage capacity by 2026 to now 900 MW, and promised to fund up to Rs 10 crore for setting up of “Centre of Excellence Data Centres” along with other incentives like easy availability of electricity and other exemptions.“The biggest roadblock is that these investment proposals in data centres have come for Gautam Buddh Nagar (Noida), while the incentives offered in our policy are for setting up of data centres in other parts of the state,” an official said. Along with this, the government is also receiving proposals in electronics manufacturing for which it has come out with a separate incentive policy. The government claims that UP contributes 26 per cent of the total mobile manufacturing of India, and the target is to increase it further by bringing in more large-scale investments in the sector.

Govt pins hope on big ticket investments in data centres
Goldman Sachs to start cutting thousands of jobs midweek
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

Goldman Sachs Group will start cutting thousands of jobs across the firm from Wednesday, two sources familiar with the move said. The company is preparing for a tough economic environment in the year ahead. The job cuts are expected to be just over 3,000, one of the sources said. The final number is yet to be determined.The sources could not be named as the information was not yet public disclosure. Goldman Sachs declined to comment. Bloomberg News reported on Sunday that Goldman would eliminate about 3,200 positions. Goldman had 49,100 employees at the end of the third quarter, after adding significant numbers of staff during the coronavirus pandemic.The layoffs are likely to affect most major divisions of the banks but should centre on Goldman Sachs’ investment banking division, one of the sources said. Institutional banks have suffered a major slowdown in corporate dealmaking activity as a result of volatile global financial markets.Hundreds of jobs are also likely to be reduced from Goldman Sachs’ loss-making consumer business after it scaled back plans for its direct-to-consumer unit Marcus, the sources said. The bank’s chief executive David Solomon sent a year-end voice memo to staff warning of a headcount reduction in the first half of January, two separate sources said.Goldman Sachs declined comment on the memo. The job cuts come ahead of the bank’s annual bonus payments which are usually delivered later in January and are expected to be down about 40%. The bank restarted its annual job cutting program in September which had been put on hold for two years during the pandemic. The Wall Street giant typically trims about 1% to 5% of its staff each year.These new cuts come on top of those layoffs. Investment banking fees nearly halved in 2022, with $77 billion earned globally by the banks, down from $132.3 billion one year earlier, Dealogic data showed. The total value of mergers and acquisitions globally had slumped 37% to $3.66 trillion by Dec. 20, according to Dealogic data, after hitting an all-time high of $5.9 trillion last year.Banks had executed $517 billion worth of equity capital markets (ECM) transactions by late December 2022, the lowest level since the early 2000s and a 66% drop from 2021’s deal bonanza, according to Dealogic data.

Goldman Sachs to start cutting thousands of jobs midweek
Billionaires like Gautam Adani can help increase farmers’ incomes by funding solar treesPremium Story
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

If there is one wish I would like to make for 2023, it is for shared peace and prosperity for all.All efforts to propel economic growth are for the prosperity of people. But GDP growth rates, the absolute size of GDP, and even per capita income, do not fully capture the prosperity of the masses. Increasing inequalities are a reality in India and most developing nations. Simon Kuznets told us decades back that it is going to happen as economies open up and growth accelerates, before it stabilises and even declines as those left behind start catching up. But how do they catch up with the front runners? It can happen only when one invests heavily in their skills, education, access to finance (capital/technology) and innovative models of development that dovetail inclusiveness with faster growth plans.In 2022, India has registered the highest growth rate amongst all G20 countries and it is likely to do so even in 2023. That’s a matter of pride. And within India, when we talk about growth and wealth creation, one name stands out — Gautam Adani. In a recent interview with India Today, he revealed that his rise started with the liberalisation of economic policies during Rajiv Gandhi’s time, and got momentum with the 1991 reforms. But the year 2022 has seen the most explosive growth with his net worth rising to about $125.8 billion (as per the Forbes list on December 28, 2022) making him the richest man in Asia and third-richest in the world.Many critics say this is all due to his proximity to Prime Minister Narendra Modi. But then, why is the Chief Minister of Rajasthan hosting him as he announced plans to invest about Rs 65,000 crore in setting up a mega solar power plant of 10,000 MW, expanding a cement plant, and upgrading the Jaipur airport? Similarly, why did the Tamil Nadu government support him in setting up one of the largest solar power plants at Kamuthi? Even the West Bengal government has been wooing him for investment and the upgradation of its ports. The reality is that most of the top business houses work with all governments so long as it makes economic sense to them. Be it Adani, Reliance, Tatas, Wipro, and others — they all create wealth and millions of well-paid jobs. That’s their contribution to society. But they also give back to society through their CSR activities as well as through family foundations and trusts.A few years back, Azim Premji pledged to give away about half of his wealth to the society through Azim Premji Foundation. He topped the EdelGive Hurun India Philanthropy List in 2020. How many people are aware that Gautam Adani’s foundation is committing Rs 60,000 crore to give back to society through promoting better health, education, and skill development? This, said Adani, was the best gift on his 60th birthday.While all this is commendable, I feel there could also be an alternative model for shared prosperity. And that is making the less privileged partners in the journey of wealth creation. Let me elaborate. Since Gautam Adani is committing Rs 60,000 crore through the Adani Foundation to give back to society, here is a small idea that can make millions prosperous, if he takes it up as a priority.The largest share of India’s working population is engaged in agriculture (about 46 per cent). Their education levels are low and the average holding size is small (1.08 ha). The average household income hovers below Rs 20,000 per month at current prices. Of course, many marginal farmers earn even less than this. This is not enough to provide a sustainable demand base for a manufacturing revolution in India. Educating these people at a large scale or even creating new skills may be a long-drawn process. So, here is an idea that can augment their incomes substantially and quickly.Adani aims to be the largest player in green energy, especially solar. Solar farms today need a lot of land that is degraded. But land is scarce in India and I am not sure how far this model can be scaled up. The alternative is to have solar as a third crop on farmers’ fields. The designing of solar panels and structures has to be done in a manner that allows enough sunlight to come through for photosynthesis of crops below. Farmers can keep growing two crops below these solar trees that are about four meters high. The investment in solar panels will be done largely by entrepreneurs (say Adani Green Energy) with some equity participation by the farmers (say 10 to 15 per cent). Farmers will maintain these solar trees regularly. Power will be generated throughout the year and it can be fed to the grid at an agreed price. The farmer will get rent for his land and a share in the profits of power generation.This idea is being tried in a number of countries, including India. Our research in this area led to the setting up of a pilot in Ujwa KVK in the Najafgarh area in Delhi with the help of former Lt Governor of Delhi, Anil Baijal. Just two kilometres from the site of the pilot project, an entrepreneur, Surinder Ahuja (CEO, SUNMASTER), has tried out this idea on four acres and he is offering Rs 1.25 lakh per acre/year to farmers for using their land for solar and agriculture activities. This doubles farmers’ income within six months.The question is whether Adani can scale it a million times and create a revolution with farmers generating solar power along with food crops. Only then can the farmer become not only anna daata but also urja daata (giver of food as well as solar energy). This will be a true shared prosperity model.Gulati is Distinguished Professor at ICRIER. Views are personal

Billionaires like Gautam Adani can help increase farmers’ incomes by funding solar treesPremium Story
  • How Gautam Adani can help increase farmers' incomePremium Story
  • The Indian Express

    If there is one wish I would like to make for 2023, it is for shared peace and prosperity for all.All efforts to propel economic growth are for the prosperity of people. But GDP growth rates, the absolute size of GDP, and even per capita income, do not fully capture the prosperity of the masses. Increasing inequalities are a reality in India and most developing nations. Simon Kuznets told us decades back that it is going to happen as economies open up and growth accelerates, before it stabilises and even declines as those left behind start catching up. But how do they catch up with the front runners? It can happen only when one invests heavily in their skills, education, access to finance (capital/technology) and innovative models of development that dovetail inclusiveness with faster growth plans.In 2022, India has registered the highest growth rate amongst all G20 countries and it is likely to do so even in 2023. That’s a matter of pride. And within India, when we talk about growth and wealth creation, one name stands out — Gautam Adani. In a recent interview with India Today, he revealed that his rise started with the liberalisation of economic policies during Rajiv Gandhi’s time, and got momentum with the 1991 reforms. But the year 2022 has seen the most explosive growth with his net worth rising to about $125.8 billion (as per the Forbes list on December 28, 2022) making him the richest man in Asia and third-richest in the world.Many critics say this is all due to his proximity to Prime Minister Narendra Modi. But then, why is the Chief Minister of Rajasthan hosting him as he announced plans to invest about Rs 65,000 crore in setting up a mega solar power plant of 10,000 MW, expanding a cement plant, and upgrading the Jaipur airport? Similarly, why did the Tamil Nadu government support him in setting up one of the largest solar power plants at Kamuthi? Even the West Bengal government has been wooing him for investment and the upgradation of its ports. The reality is that most of the top business houses work with all governments so long as it makes economic sense to them. Be it Adani, Reliance, Tatas, Wipro, and others — they all create wealth and millions of well-paid jobs. That’s their contribution to society. But they also give back to society through their CSR activities as well as through family foundations and trusts.A few years back, Azim Premji pledged to give away about half of his wealth to the society through Azim Premji Foundation. He topped the EdelGive Hurun India Philanthropy List in 2020. How many people are aware that Gautam Adani’s foundation is committing Rs 60,000 crore to give back to society through promoting better health, education, and skill development? This, said Adani, was the best gift on his 60th birthday.While all this is commendable, I feel there could also be an alternative model for shared prosperity. And that is making the less privileged partners in the journey of wealth creation. Let me elaborate. Since Gautam Adani is committing Rs 60,000 crore through the Adani Foundation to give back to society, here is a small idea that can make millions prosperous, if he takes it up as a priority.The largest share of India’s working population is engaged in agriculture (about 46 per cent). Their education levels are low and the average holding size is small (1.08 ha). The average household income hovers below Rs 20,000 per month at current prices. Of course, many marginal farmers earn even less than this. This is not enough to provide a sustainable demand base for a manufacturing revolution in India. Educating these people at a large scale or even creating new skills may be a long-drawn process. So, here is an idea that can augment their incomes substantially and quickly.Adani aims to be the largest player in green energy, especially solar. Solar farms today need a lot of land that is degraded. But land is scarce in India and I am not sure how far this model can be scaled up. The alternative is to have solar as a third crop on farmers’ fields. The designing of solar panels and structures has to be done in a manner that allows enough sunlight to come through for photosynthesis of crops below. Farmers can keep growing two crops below these solar trees that are about four meters high. The investment in solar panels will be done largely by entrepreneurs (say Adani Green Energy) with some equity participation by the farmers (say 10 to 15 per cent). Farmers will maintain these solar trees regularly. Power will be generated throughout the year and it can be fed to the grid at an agreed price. The farmer will get rent for his land and a share in the profits of power generation.This idea is being tried in a number of countries, including India. Our research in this area led to the setting up of a pilot in Ujwa KVK in the Najafgarh area in Delhi with the help of former Lt Governor of Delhi, Anil Baijal. Just two kilometres from the site of the pilot project, an entrepreneur, Surinder Ahuja (CEO, SUNMASTER), has tried out this idea on four acres and he is offering Rs 1.25 lakh per acre/year to farmers for using their land for solar and agriculture activities. This doubles farmers’ income within six months.The question is whether Adani can scale it a million times and create a revolution with farmers generating solar power along with food crops. Only then can the farmer become not only anna daata but also urja daata (giver of food as well as solar energy). This will be a true shared prosperity model.Gulati is Distinguished Professor at ICRIER. Views are personal

Clean energy transition finance must put India’s interests front and centre
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

As India starts its G20 presidency, all eyes are on a crucial point mentioned in the final decision text of the recently concluded COP27 — a “just transition and just energy transition partnership (JETP)”. While an energy transition to renewables typically focuses on requisite technology and finance, a “just” energy transition argues for people-centric measures, one that reduces the negative impact of energy transitions on communities. The JETP combines technology, finance and people to help facilitate this transition. The G7 countries signed an $8.5 billion JETP deal with South Africa at COP26 in 2021, followed by a $20 billion deal with Indonesia and a $15.5 billion deal with Vietnam in 2022. There are now strong murmurs that the G7, led by the US and Germany, is courting India for a similar partnership. Should Delhi play ball?A JETP for India has to be tailored to the country’s needs and not be a hand-me-down. A blinkered desire of the developed world to phase out coal use from the developing world without factoring in country-specific needs gives the same warning signs that erstwhile IMF-led deals did. As economist Joseph Stiglitz has argued, the conditions that IMF required for lending such as fiscal austerity, trade liberalisation, open capital markets and so on, were often counterproductive and devastating for the local population. We analyse why a JETP for India cannot be a neo-IMF bailout on terms dictated by the G7.India isn’t staring at a financial crisis of the kind it saw in 1991 before liberalisation. The country’s current bargaining position needs to be acknowledged. A look at the terms of the deal that South Africa has signed suggests that the country was in dire need of foreign capital infusion. For South Africa, the JETP terms dictate no new investment in coal-based power plants and reducing the coal-based power generation fleet. Just focusing on a coal phase-out could impose unforeseen challenges on the already weak South African power system and the livelihoods that depend on it, not unlike the IMF bailouts. The $8.5 billion support is meagre compared to what the country needs and most of it comprises loans at regular rates of interest.India, however, has little need for capital with such tight terms. It has already unleashed significant equity investment in its renewable energy generation sector. This growing momentum of private equity into renewables reiterates that any further investments cannot be made with stringent conditions.The key reason for the G7 countries’ interest in South Africa, Indonesia, Vietnam and India is the dependence of these economies on coal. Looking at the South African story can inform India’s decision, since the other JETP deals are still new.First, India’s power sector needs a customised transition plan and finance. The power systems of both India and South Africa are mainly driven by coal and are in a financial mess. In South Africa, Eskom, the power generation company that owns and operates its power fleet, is facing financial duress. In the case of India, it boils down to power distribution companies (discoms) not managing to raise revenues to cover power purchase costs. These problems need specific solutions and not superimposition of terms.Second, India needs enhanced investments in a power grid that is responsive and ready to absorb an increasing share of renewable energy. A key dissimilarity between India and South Africa is the technical state of their power systems. The South African grid has witnessed years of neglect and under-investment. Power cuts even in major cities such as Cape Town are a part of life. But while public sector-owned power discoms in India are in a perpetual financial crisis, their technical state has continually improved. Transmission and distribution losses in the grid have fallen from 31.3 per cent in 2004-05 to 20.66 per cent in 2018-19. The challenge now is to increase the share of renewables in the grid.Third and most importantly, a JETP deal for India cannot just focus on a quick coal phase-out. India’s carbon emissions are expected to peak only two decades from now, necessitating the addition of both renewable energy as well as coal for its fast-growing electricity demand as shown in the Council on Energy, Environment and Water (CEEW)’s research on a net-zero future. South Africa’s emissions, however, are expected to peak in the next three years by 2025.If the G7 countries want to secure a JETP with India, they should focus on building trust and recognising India’s bargaining power. A clear way forward is to ensure that India is an equal partner in setting the terms and agenda for its energy transition. For instance, the sheer scale of the transition in India is different from most others. Millions of Indians are directly and indirectly dependent on the coal economy which begs for a wider, deeper and institutionalised conversation on “just transitions”. In addition, if the G7 countries want to secure a JETP from India, they should focus on offering support to build a green hydrogen-based economy and enhancing the share of renewable energy by investing in technologies that help make the power grid flexible, like battery storage, along with low-cost finance.Any different dynamic in the corridors of power, where India’s economic aspirations are sidelined, will surely evoke fears of the JETP being “a neo-IMF bailout”. It’s a crucial partnership. But Delhi can dictate its terms.Chaturvedi is Fellow and Jhunjhunwala is Programme Lead, Council on Energy, Environment and Water

Clean energy transition finance must put India’s interests front and centre
New investment proposals up 71% in 2022 as economy strengthens
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

After two disappointing years when the Covid pandemic hit the entire country, Indian industry is showing signs of optimism on the investments front. New investment proposals by the industry rose by 71 per cent during the calendar year 2022 with the lifting of lockdown restrictions and reopening of the economy.On a cumulative basis, total investment proposals during 2022 shot up to Rs 23.6 lakh crore as compared with Rs 13.8 lakh core in the previous year and Rs 11.6 lakh crore in 2020. In fact, the Rs 23.6 lakh crore announcements made in 2022 is the highest in the last six years, according to data compiled by CMIE and Bank of Baroda.With reopening of the economy and gradual pickup in economic activity, new investment announced peaked at Rs 8.6 lakh crore in March 2022 quarter. Since then, in Q1 of FY23 and Q2 of FY23 a dip in new announcements was noticed. “However, things are now beginning to look optimistic. As of December 2022, there has been a steady pick up in new announcements and stands at around Rs 6.1 lakh crore compared with Rs 3.7 lakh crore in September 2022 and Rs 4.2 lakh crore in December 2021 quarter,” BoB said.It has also been seen that while investment announcements are made, they do not necessarily materialize as can be seen from the gross fixed capital formation rate which has been stagnant in the region of 27-29 per cent in the last 5 years. In this context it would be relevant to look at the funding side where banks are important players.The latest sector-wise data on banking business shows that non-food credit has grown by 8.9 per cent on a year-to-date basis ended November 18 2022. While the figure for last year was 1.8 per cent, data up to December 16 suggests growth increased further to 10.5 per cent as against 3.3 per cent last year, BoB research report said. “Making announcements is quite different from their fructification and the mirage has been seen in the last 5 years,” said Madan Sabnavis, Chief Economist, BoB.Chemicals and related products along with machinery accounted for 54.1 per cent share of total new announcements made between April-December of 2022, according to BoB. The chemical and related sector witnessed an uptrend in terms of new announcements, its share had been relatively lower previously. For the power sector, the share of new announcements has been growing at a healthy pace of 27.4 per cent, BoB report said.The share of new announcements in the metal sector registered a dip in the nine-month period compared with last year for the same period. Transport services (mainly airlines) used to account for a bigger share of pie in terms of new announcements. However, its share of new announcements declined the most for the nine-month period as compared with the last three years. Construction and real estate sector also disappointed as the share of new investment projects dwindled this time, thus signalling not many new projects have not been launched.While there has been improvement in growth in credit to industry, it is still the lowest performer as the overall non-food credit offtake was at 17.4 per cent as on December 16, 2022, according to RBI data. While the industry’s credit offtake was only 10.5 per cent, the progress on the whole is satisfactory given that the RBI has increased interest rates by 225 basis points since May 2022. Corporates were mostly depending on the bond market for funds till recently. However, bond yields have now started rising, making it a costlier route. On the other hand, banks have started hiking lending rates.The responsiveness of bank interest rates to repo rate changes has been varied. On fresh loans the weighted average lending rate was up by 135 bps as retail and SME loans are largely benchmarked with this rate. In case of outstanding loans, the increase was by just 71 bps. In terms of the one-year MCLR the increase was around 96 bps. Corporate loans would typically be affected by the MCLR and hence the cost has not increased commensurately with the repo rate hikes of RBI.

New investment proposals up 71% in 2022 as economy strengthens
Global Investors Summit: After Mumbai, govt delegation in Chennai to seek investment
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

Days after Chief Minister Yogi Adityanath held a roadshow and met industrialists in Mumbai to draw investment for the state, a delegation of ministers and senior officials reached Chennai Sunday on a three-day visit to invite entrepreneurs to invest in Uttar Pradesh and help it achieve its goal of becoming a $1-trillion economy.The delegation includes Cabinet Minister Suresh Khanna, and Ministers of State (Independent Charge) Nitin Agarwal, Asim Arun and Narendra Kashyap. The senior officials in the delegation include UP Defense Industrial Corridor Chief Nodal Officer RKS Bhadauria, Additional chief secretary (MSME) Amit Mohan Prasad, UPPCL Chairman M Devaraj, IIDD Principal Secretary Anil Sagar, Excise Commissioner Senthil Pandian and CM’s advisor KV Raju. The delegation will have one-to-one meetings with 25 industrialists on the lines of Business to Government (B2G) system.According to a release issued by the state government, the meetings will conclude on Tuesday. Besides, over 150 industrialists will attend the roadshow. According to a government official, following the success of roadshows organised by the government in 16 countries over the past few months to draw investments and invite industrialists to attend the Global Investors Summit, the CM kicked off domestic roadshows. These roadshows will be held in nine cities and the first one was organised in Mumbai on January 5. As per the schedule, the delegation will discuss the investment potential of the state with RG Chandramogan, Managing Director, Hutson Agro Products; M. Ponuswamy, CMD, Pompure Chemicals; and Tuffy Ltd. Group President TR Kesavan at dinner as well as with Anil Akbar, CEO of Water World and MM Murugapa, Vice Chairman of Murugapa Group at breakfast.This will be followed by B2G meetings with Tenth Planet Technologies Pvt. Ltd. CEO Kumran Mani, Trivitron Vice Chairman A Ganesan, Indira Projects CMD Bhupesh Nagarajan, Colliers GM (Industrial & Logistic Services) Karthik Rajan, Praveen Group CMD Mohd. Fazal, ED Gothman of Cetex Petrochemicals, VC of Savetha University Prof Chandram Shivaji; Fariq Ahmed, Chairman, Farida Group; Nandkumar, MD, Navvin Energy, Microchem Products India Pvt. Director Nitin Shroff, CMD Thrirumaliya Chemicals R Parthasarathy, Contact Civil Aid Solutions Pvt. K Director N Geetha, Lux TVS CMD TK Balaji, KLM Exports Proprietor G Muraleedharan, Head of India Operations of Manisha Soft Solutions Pvt Ltd. B Santosh Kumar and Rajan Vijay Kumar, CEO of Mclean India and Tomo House.Before leaving Chennai, the delegation will meet some entrepreneurs on Tuesday including the Vice Chairman and MD of MRF Ltd, Chennai, Arun Mammen and G Vishwanathan, founder and chancellor of of VIT University, Vellore.

Global Investors Summit: After Mumbai, govt delegation in Chennai to seek investment
New power subsidy policy for industries in Marathwada & Vidarbha: Deputy CM Devendra Fadnavis
Times of India | 3 weeks ago | |
Times of India
3 weeks ago | |

AURANGABAD: Deputy chief minister Devendra Fadnavis on Sunday said the state government was formulating a new power subsidy policy for the industries in Marathwada and Vidarbha regions. "The proposed policy would offer incentives to industries located far from the port and also to those located in areas with relatively lower power losses," he said while speaking at the 'Advantage Maharashtra Expo2023', an industrial exhibition of the Marathwada Association of Small Scale Industries and Agriculture (MASSIA) in Aurangabad city. Fadnavis, who holds the energy portfolio, said the BJP government led by him in past used to offer the power subsidy to industries in Marathwada and Vidarbha, which he said was discontinued by the MVA government. "The power subsidy was later introduced again by the previous government, but with certain capping. Now, we are completely redefining the subsidy policy which will definitely benefit the manufacturing sector" he said.Fadnavis said the cross-subsidy provided to the agriculture sector would be minimised by introducing solar power and the burden of such subsidy passed on to industries would be lowered.The deputy CM also said that concerns related to the power at Aurangabad Industrial City (AURIC) would be addressed by considering the differential tariff system, which he said would be less than the prevalent tariff system.Fadnavis said Aurangabad and Jalna are the future of industries in Maharashtra by virtue of the edge these cities have because of the Samruddhi expressway and the upcoming dry-port."The previous government did not hold a single meeting of the cabinet committee on investments for 15 months. After coming to power, we conducted two meetings of the committee in six months and approved an investment of Rs 90,000 crore. A considerable chunk of this investment will come to Aurangabad," he said.

New power subsidy policy for industries in Marathwada & Vidarbha: Deputy CM Devendra Fadnavis
'India is growing robustly relative to its peers...there is room to grow further'Premium Story
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

Referring to India’s export bans on food grains, International Monetary Fund’s Deputy Managing Director Antoinette Sayeh said countries should not impose additional restrictions as such bans hurt food importers as well as India. In an interaction with reporters in New Delhi, Sayeh also said relative to other countries, India is growing very robustly and there is room to grow further. Excerpts:Q: There has been a lot of talk about tackling geo-fragmentation, need to revive multilateralism in the backdrop of India holding the G20 presidency. India has been critical of multilateral organisations when it comes to taking greater action, taking stock of issues like crypto regulation. What is the IMF doing to revive multilateralism and taking action for global crypto regulations?A: We are very much looking forward to India’s leadership at G20. Given the convergence of areas, we think between India and IMF, we can best partner to strengthen multilateralism and certainly issues around dealing with the financial tightening, that is, considerable potential impact on emerging markets and developing economies and their access to financing, dealing with the pressures on the trade front, in particular, and fragmentation we have seen there already, dealing with debt vulnerabilities also that are significant for many countries and require a multilateral approach, bilateral creditors, private sector as well to deal with and areas of focus on the quota reform at the IMF, for example, and crypto regulation. All of those areas India certainly wants to be a leader in and we’re supporting India with analytic work and other advice and information that helps we think will be helpful to the leadership role.Q: With regard to India’s goal to be a $5 trillion economy, given the country’s growth rate, what is the view of the IMF on when this milestone can be achieved and what are the initiatives India needs to take to further that objective?A: India is certainly emerging and recovering very well from the pandemic…they’re growing so robustly relative to its peers and to the global economy as a whole. In the first three quarters of 2022, looked at on a year-on-year basis, the growth has been around 6.3% already, and our projection is that for this fiscal year, that is through June this year, India will be growing by 6.8% and then the next fiscal year by 6.1%. All of those are considerably in excess of what other emerging markets are doing, their average is some 3.6%. And the world economy, we’ve projected, will only grow by 2.7% this year. So, relative to others, India is growing very robustly and there is room to grow further and to achieve the potential growth that India has that is even higher. And to get to that, of course requires a focused attention on maintaining macro stability, addressing the considerable structural reform agenda that will still be there to elicit further investments from FDI, the regulatory issues that need to be addressed also in terms of the financial sector, and its ability to intermediate and to provide needed financing on a consistent basis, issues around labour markets that need to also be addressed. Implementing the labor codes at the provincial level at the state level, those codes already in existence or needing to be implemented to make sure that employment is strengthened. Those are all efforts that need to be addressed. Employment for women and youth are also very important to maximise potential contribution to growth. So those are some of the things that will be to be worked on. There are also some challenges around the agriculture sector that need to be further addressed, work on, to increase productivity there as well.Q: The European Union has recently announced a carbon tariff on certain imports. In terms of trade, it is seen as another non-tariff barrier, which is coming in at a time when the global economy is going into recession. What is your take on such import tariffs?A: I am not familiar with the details of what you’re asking. But clearly, there is a considerable effort underway in the European Union to address climate mitigation and the use of carbon taxes, it’s one of the instruments to do that. That has to be done in a way that does not undermine free trade, but it is nevertheless a very important instrument to help countries change the pricing incentives towards more greener investments and greener growth.Q: The disruption to inter-linked supply chains was especially seen after the Russia- Ukraine conflict and India focused on three Fs — food, food, fertilizer and fuel. What kind of impact do you see for these three areas especially if India plans any kind of restrictions, say, on the food grain side?A: We are hopeful that the improvements that we’ve seen in the supply chain recently coming out of the pandemic are sustained, and continue to be able to mitigate the impact on import prices. We very much want to encourage India and other countries that are food exporters to not put in place restrictions. Because it hurts food importers, but it also potentially hurts India. So we certainly don’t want countries to be imposing additional restrictions where it’s hard to evaluate this, there is a lot of uncertainty as we know, in particular, related to the war in Ukraine and we don’t know how that will be evolving in the course of the year and the impact that will have on wheat prices for example. And so all of that has to be factored in in navigating these very difficult trade offs that countries will face in managing potential persistence of food price increases and food price pressures.Q: You said food restrictions especially for wheat won’t help. We have seen India imposing an export ban. Do you mean such bans will not help going ahead?We encourage all countries not to put in place export bans. We have seen them in the past…some of them say that they do that to mitigate the price impact in their own economies. But in fact people find ways to circumvent those bans…it is important to ensure that the efforts that governments make to mitigate the impact of price rise on the most vulnerable are indeed on the most vulnerable and those efforts are better targeted. So blanket responses like food bans are not the advisable thing to do.Q: You’ve called India a bright spot, how insulated is it from global recessionary fears?A: The robust growth that we’re seeing in India, as I said before, but relative to where India has grown in this year, for example, we’re projecting 6.1% next year and some of that reflects what’s happening on the global front, where India is linked with its exports to markets that may be less demanding oor potential recessions and leading to not being able to demand for India’s exports as not as robust, as could have been the case. So India is deeply impacted by potential recession in the rest of the world, as are many other developing countries. So we do see a risk of a slowdown in growth in those countries because of what’s happening in advanced economies, some of which may be entering a recession period. On the question of private investment certainly, there’s a robust public investment programme that is being implemented in India and that expectations are that that programme will elicit potential there with focus on infrastructure, and other areas that are important to private investment will ultimately help to generate more private investment…on India’s ability to maximise potential growth, doing that requires a greater private investment and in return progress on the structural reform agenda that is necessary to attract more foreign private investments in particular. So that will be part of what the focus of the government will need to be to maximise private investments. Private consumption, in fact, has been contributing quite a bit to the rebalance. And it’s been very robust.Q: Article IV consultations stated how India should be more ambitious in its fiscal consolidation. India is continuing on a path for a medium-term target of 4.5 per cent, how much more ambitious can India get for that?A: We certainly think that there’d be more clarity in terms of the path of consolidation is envisaged, and efforts to put in place for medium-term fiscal consolidation. And we’re hopeful that this budget that will be presented shortly does contain a clear path to fiscal consolidation that also relies on the revenue side, building on the progress India has seen this past year regarding performance and so addressing issues around the GST, simplification of GST, for example, income taxes, excise taxes as well, that can be improved to help the revenue aspects of the consolidation is important. So more ambition on the revenue side for sure, and more clarity on the medium-term fiscal consolidation. That’s broadly the advice we have given.

'India is growing robustly relative to its peers...there is room to grow further'Premium Story
  • India is growing robustly relative to its peers…there is room to grow further: Antoinette Sayeh
  • The Indian Express

    Referring to India’s export bans on food grains, International Monetary Fund’s Deputy Managing Director Antoinette Sayeh said countries should not impose additional restrictions as such bans hurt food importers as well as India. In an interaction with reporters in New Delhi, Sayeh also said relative to other countries, India is growing very robustly and there is room to grow further. Excerpts:Q: There has been a lot of talk about tackling geo-fragmentation, need to revive multilateralism in the backdrop of India holding the G20 presidency. India has been critical of multilateral organisations when it comes to taking greater action, taking stock of issues like crypto regulation. What is the IMF doing to revive multilateralism and taking action for global crypto regulations?A: We are very much looking forward to India’s leadership at G20. Given the convergence of areas, we think between India and IMF, we can best partner to strengthen multilateralism and certainly issues around dealing with the financial tightening, that is, considerable potential impact on emerging markets and developing economies and their access to financing, dealing with the pressures on the trade front, in particular, and fragmentation we have seen there already, dealing with debt vulnerabilities also that are significant for many countries and require a multilateral approach, bilateral creditors, private sector as well to deal with and areas of focus on the quota reform at the IMF, for example, and crypto regulation. All of those areas India certainly wants to be a leader in and we’re supporting India with analytic work and other advice and information that helps we think will be helpful to the leadership role.Q: With regard to India’s goal to be a $5 trillion economy, given the country’s growth rate, what is the view of the IMF on when this milestone can be achieved and what are the initiatives India needs to take to further that objective?A: India is certainly emerging and recovering very well from the pandemic…they’re growing so robustly relative to its peers and to the global economy as a whole. In the first three quarters of 2022, looked at on a year-on-year basis, the growth has been around 6.3% already, and our projection is that for this fiscal year, that is through June this year, India will be growing by 6.8% and then the next fiscal year by 6.1%. All of those are considerably in excess of what other emerging markets are doing, their average is some 3.6%. And the world economy, we’ve projected, will only grow by 2.7% this year. So, relative to others, India is growing very robustly and there is room to grow further and to achieve the potential growth that India has that is even higher. And to get to that, of course requires a focused attention on maintaining macro stability, addressing the considerable structural reform agenda that will still be there to elicit further investments from FDI, the regulatory issues that need to be addressed also in terms of the financial sector, and its ability to intermediate and to provide needed financing on a consistent basis, issues around labour markets that need to also be addressed. Implementing the labor codes at the provincial level at the state level, those codes already in existence or needing to be implemented to make sure that employment is strengthened. Those are all efforts that need to be addressed. Employment for women and youth are also very important to maximise potential contribution to growth. So those are some of the things that will be to be worked on. There are also some challenges around the agriculture sector that need to be further addressed, work on, to increase productivity there as well.Q: The European Union has recently announced a carbon tariff on certain imports. In terms of trade, it is seen as another non-tariff barrier, which is coming in at a time when the global economy is going into recession. What is your take on such import tariffs?A: I am not familiar with the details of what you’re asking. But clearly, there is a considerable effort underway in the European Union to address climate mitigation and the use of carbon taxes, it’s one of the instruments to do that. That has to be done in a way that does not undermine free trade, but it is nevertheless a very important instrument to help countries change the pricing incentives towards more greener investments and greener growth.Q: The disruption to inter-linked supply chains was especially seen after the Russia- Ukraine conflict and India focused on three Fs — food, food, fertilizer and fuel. What kind of impact do you see for these three areas especially if India plans any kind of restrictions, say, on the food grain side?A: We are hopeful that the improvements that we’ve seen in the supply chain recently coming out of the pandemic are sustained, and continue to be able to mitigate the impact on import prices. We very much want to encourage India and other countries that are food exporters to not put in place restrictions. Because it hurts food importers, but it also potentially hurts India. So we certainly don’t want countries to be imposing additional restrictions where it’s hard to evaluate this, there is a lot of uncertainty as we know, in particular, related to the war in Ukraine and we don’t know how that will be evolving in the course of the year and the impact that will have on wheat prices for example. And so all of that has to be factored in in navigating these very difficult trade offs that countries will face in managing potential persistence of food price increases and food price pressures.Q: You said food restrictions especially for wheat won’t help. We have seen India imposing an export ban. Do you mean such bans will not help going ahead?We encourage all countries not to put in place export bans. We have seen them in the past…some of them say that they do that to mitigate the price impact in their own economies. But in fact people find ways to circumvent those bans…it is important to ensure that the efforts that governments make to mitigate the impact of price rise on the most vulnerable are indeed on the most vulnerable and those efforts are better targeted. So blanket responses like food bans are not the advisable thing to do.Q: You’ve called India a bright spot, how insulated is it from global recessionary fears?A: The robust growth that we’re seeing in India, as I said before, but relative to where India has grown in this year, for example, we’re projecting 6.1% next year and some of that reflects what’s happening on the global front, where India is linked with its exports to markets that may be less demanding oor potential recessions and leading to not being able to demand for India’s exports as not as robust, as could have been the case. So India is deeply impacted by potential recession in the rest of the world, as are many other developing countries. So we do see a risk of a slowdown in growth in those countries because of what’s happening in advanced economies, some of which may be entering a recession period. On the question of private investment certainly, there’s a robust public investment programme that is being implemented in India and that expectations are that that programme will elicit potential there with focus on infrastructure, and other areas that are important to private investment will ultimately help to generate more private investment…on India’s ability to maximise potential growth, doing that requires a greater private investment and in return progress on the structural reform agenda that is necessary to attract more foreign private investments in particular. So that will be part of what the focus of the government will need to be to maximise private investments. Private consumption, in fact, has been contributing quite a bit to the rebalance. And it’s been very robust.Q: Article IV consultations stated how India should be more ambitious in its fiscal consolidation. India is continuing on a path for a medium-term target of 4.5 per cent, how much more ambitious can India get for that?A: We certainly think that there’d be more clarity in terms of the path of consolidation is envisaged, and efforts to put in place for medium-term fiscal consolidation. And we’re hopeful that this budget that will be presented shortly does contain a clear path to fiscal consolidation that also relies on the revenue side, building on the progress India has seen this past year regarding performance and so addressing issues around the GST, simplification of GST, for example, income taxes, excise taxes as well, that can be improved to help the revenue aspects of the consolidation is important. So more ambition on the revenue side for sure, and more clarity on the medium-term fiscal consolidation. That’s broadly the advice we have given.

India Needs To Attract Investors Exiting China: Devendra Fadnavis
Ndtv | 3 weeks ago | |
Ndtv
3 weeks ago | |

The Maharashtra Deputy CM was speaking at the Advantage Maharashtra Expo. (File)Aurangabad, Maharashtra: Maharashtra Deputy Chief Minister Devendra Fadnavis on Sunday said India should be ready to attract industries exiting China, as global investors have realised they "cannot put all eggs in one basket".Addressing the valedictory session of the Advantage Maharashtra Expo here, Mr Fadnavis said there was an "exodus" of industries from China, which was the "factory of the world", with about 40 per cent of manufacturing globally done there.Mr Fadnavis also said that the Eknath Shinde-led Maharashtra government has cleared investment proposals worth Rs 90,000 crore in the last six months.''Global investors have decided to leave China now, and the only country which has the capacity to digest this exodus is India. We need to attract them, as investors have realised they can't put all their eggs in one basket," the deputy chief minister said.This is an opportune time and "we have to be ready," he said.Despite recession, India is growing at 7 to 8 per cent because of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi to make India self-reliant, Fadnavis said.He further said since the Eknath Shinde-led government took over in Maharashtra, there has not been a single day that they have not interacted with potential investors.Investors are interested in Maharashtra because of the "pro-industry approach and political stability," he said."A government has to be approachable. The previous regime did not hold a meeting of the cabinet committee on investment for 15 months. While in the last six months, we have held two meetings and cleared investment proposals worth Rs 90,000 crore," he said.In order to attract investors coming out of China, the government and industries should come together to create the right ecosystem, he said.The deputy CM said the future of Aurangabad Industrial City (AURIC) is the Aurangabad-Jalna belt and in six months, it will have connectivity to Mumbai and the Jawaharlal Nehru Port Trust (JNPT).For manufacturing to grow and be a part of the global supply chain, port connectivity is necessary, he said.PromotedListen to the latest songs, only on JioSaavn.comAt least 100 plots are reserved in AURIC for micro, small & medium Enterprises (MSMEs), he said, adding that a policy will be unveiled soon for extra incentives for industries which are away from the port.(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)Featured Video Of The DayIndia Now World's 3rd Largest Auto Market After China And US: Report

India Needs To Attract Investors Exiting China: Devendra Fadnavis
Govt gets multiple preliminary bids for buying 61% stake in IDBI Bank
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

The Centre on Saturday received multiple expressions of interests (EoIs) from domestic and foreign investors for the 60.72% stake in IDBI Bank, which will go to the successful bidder along with management control.“Multiple expressions of interest received for the strategic disinvestment of Govt and LIC stake in IDBI Bank. The transaction will now move to the second stage,” department of investment and public asset management secretary Tuhin Kanta Pandey tweeted.Saturday was the last date for submission of EoIs. In the second stage, shortlisted bidders would be asked to place financial bids. The transaction is expected to conclude in FY24.“The financial bids will be called after all the processes are completed such as due diligence of EoIs, fit-and-proper assessment of the bidders by the RBI and data room access given to the shortlisted bidders,” a senior official told FE.On October 7 last year, the Centre invited EoIs for IDBI Bank and offered to sell a total of 60.72% stake worth over `38,550 crore at current market prices, comprising 30.48% from the government and 30.24% from LIC, along with the transfer of management control.The deal was sweetened for investors as the government, market regulator Sebi and the RBI have extended necessary regulatory forbearance. Foreign banks, funds and investment vehicles incorporated outside India are allowed to bid for IDBI Bank.These include an extended period for complying with the minimum public shareholding (MPS) norms, relief from tax on notional gains if share price of the bank rises post financial bids up to transaction conclusion, and buyer will make open offer to public at the winning bid price (no additional cost even if share prices rise).IDBI Bank shares closed at `59.05 on BSE on Friday, up 7.85% from the previous closing price, while the broader Sensex closed 0.75% down.On Thursday, the Securities and Exchange Board of India (Sebi) allowed the Centre to reclassify its holding in IDBI Bank as ‘public’ following the divestment of its stake, on the condition that its voting rights do not exceed 15%. The regulator also said the buyer will have to adhere to the minimum public shareholding norms of 25% within a year of acquisitions, as per its regulations applicable in merger and acquisition transactions.However, another government official said that the one-year period for MPS compliance intimated by Sebi would not be applicable for IDBI Bank as the Centre amended the Securities Contracts (Regulation) Rules, 1957, on Tuesday to give a longer period to the buyer.The public holding in IDBI Bank is 5.28%.Sebi’s categorisation of the Centre’s residual stake of 15% in the lender would mean that the new promoters of the bank would have to just offload another 7-10% to meet the public float norm of 25%. A strategic investor may not like to offload a stake in the initial years, a period when it will likely be setting up a new management team, restructuring the business and attempting a rebranding of a company.The winning bidder will also be permitted to make an open offer to the public at the same price that it would be paying to the government and LIC, thereby reducing potential additional costs in the event of the bank’s share prices moving upwards after financial bids are submitted. Also, even if the share prices rise after financial bids are submitted and by the time the transaction concludes, there won’t be any tax liability on the notional gain in value to the buyer, sources said.The IDBI Bank strategic disinvestment would give the government a ready reckoner to undertake strategic disinvestment of public sector banks.

Govt gets multiple preliminary bids for buying 61% stake in IDBI Bank
NCP, Shiv Sena (UBT) target Eknath Shinde over Yogi Adityanath’s visit to Mumbai to attract investments
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

Soon after Uttar Pradesh Chief Minister Yogi Adityanath’s visit to Mumbai to attract investments for his state, the NCP and Shiv Sena targeted Chief Minister Eknath Shinde.“Chief Minister Eknath Shinde should protect the jobs and investments of bhoomiputras in Maharashtra and should not fall prey to BJP’s plan of diverting projects out of Maharashtra,” said Mahesh Tapase, chief spokesperson of NCP.Tapase took a serious view of Adityanath’s attempt to lure Bollywood and industries into his state of UP. “After Gujarat, now the Chief Minister of Uttar Pradesh has come to steal our projects,” he said.“Earlier, Foxcon and Tata Arbus projects were diverted to Gujarat to enable the BJP victory in the Gujarat state election and now the BJP seems to be playing the same game to transfer projects out of Maharashtra into UP keeping an eye on the Lok Sabha seats in UP,” Tapasa added.The NCP said the BJP has clearly started its calculation for the 2024 general election and hence BJP chief ministers are coming to Mumbai to “strip Maharashtra of its wealth created by the blood and sweat of the Marathi Manoos in the past 60 years”.The NCP asked the Chief Minister of Maharashtra to thwart the alleged conspiracy of the BJP and save jobs and livelihoods of the people of Maharashtra. “The BJP clearly has dubious plans and CM Shinde should ensure that no project goes out of Maharashtra,” said Tapase.Shiv Sena (UBT) spokesperson Sanjay Raut said while they have respect for Uttar Pradesh, they want to know from Shinde what he is doing about it. “Uttar Pradesh Chief Minister Yogi Adityanath comes to Mumbai and takes away Rs 5 lakh crore investment. But what is our Chief Minister doing? Where is he? He seems to be happy with a piece of land they got in Ayodhya. In return, the UP CM has walked away with Rs 5 lakh crore investment. Why are you keeping quiet?” Raut asked.However, in the same breath Raut added, “Yogi Adityanath is a respectable leader and a saintly figure. We respect him. When we went to Ayodhya and Mathura, his government had ensured proper arrangements for us.”

NCP, Shiv Sena (UBT) target Eknath Shinde over Yogi Adityanath’s visit to Mumbai to attract investments
Yogi Adityanath in Maximum City, combative MVA rakes up lost projects
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

The rousing reception accorded to Uttar Pradesh Chief Minister Yogi Adityanath during his recent visit to Maharashtra has set off political fireworks in the state, with the Opposition Maha Vikas Aghadi (MVA) alleging that it was a BJP ploy to undermine the state and take away investments. Adityanath was in Mumbai on January 4 and 5 to meet investors and invite them to a summit set to be held in Lucknow the following month.For the Opposition, the apparent movement of investments out of Maharashtra has been a key line of attack when up against the BJP and the Shiv Sena faction led by Chief Minister Eknath Shinde. Last year, the Opposition laid into the government after at least four projects worth Rs 1.8 lakh crore went to other states, including the Vedanta-Foxconn semiconductor plant, a proposed Tata Airbus transport aircraft manufacturing plant in Nagpur, a bulk drugs park in Raigad district. This, the MVA alleged at the time, was because of the government’s ineptitude.Though Adityanath is not the first CM of another state to meet industrialists and businessmen in Mumbai — over the years, Akhilesh Yadav, Mamata Banerjee, and Naveen Patnaik have met with investors in the state — the MVA revived fears of Maharashtra again losing out on crucial investments, an accusation denied by the BJP.“We have reasons to believe that the top BJP leadership, to serve its political interests, is doing injustice against Maharashtra,” said an MVA leader. Others in the ruling alliance said Maharashtra requires industrialisation. With 25,000 villages drought-prone, especially in the region of Marathwada and parts of Vidarbha, the state relies on industrial development to generate employment, these leaders explained.“He can come and meet industrialists to attract business and investment. But if the intention is to snatch Maharashtra’s projects, then we have an objection,” Sanjay Raut, who is part of the Uddhav Thackeray-led Shiv Sena, told reporters Thursday. “Also what is the need for doing a roadshow in Mumbai for investment? I wonder if he is here for politics or to seek Maharashtra’s help to attract investment in his state.”Raut went on to say, “Why did he do a road show? He could have very well held meetings with investors. We are not against investments in UP. We want the development of UP. Eknath Shinde and (Deputy CM) Devendra Fadnavis are going to Davos to participate in the World Economic Forum. They are going to hold discussions with investors. But they are not doing road shows in Davos.”State Congress chief Nana Patole alleged that Adityanath’s “investor meet was a BJP ploy to undermine the importance of Mumbai and Maharashtra”. He added, “We are opposing Yogi because of his communal politics. Maharashtra is a progressive state that believes in communal harmony. Whereas, UP is still grappling with deep-rooted casteism, which has political patronage. Secondly, he takes pride in bulldozer politics that renders thousands homeless. We are opposing his politics of religion and polarisation.”Among other things, Adityanath’s plan to build a film city in UP is viewed as suspect and as an attempt to undermine the Hindi film industry in Mumbai. Former minister Jitendra Awhad said, “Maharashtra is made of different soil. It has always followed Jyotiba Phule, Shahu Maharaj and Dr Babasaheb Ambedkar. Attempts to undermine Mumbai or Maharashtra will boomerang. Moreover, you cannot create another Mumbai anywhere in the world even after a thousand years.”Dismissing the Opposition’s concerns, Fadnavis has said, “Every state has its distinct characteristics, geography and natural strength. Accordingly, it attracts investors and projects. We want the development of UP. These apprehensions about undermining Mumbai or Maharashtra are imaginary. I can say with absolute confidence that Maharashtra is the chosen destination for investors. Nobody can divest its leadership status in industries. Similarly, Mumbai is the headquarters of several corporate houses. It is natural state heads will come here for discussions. Nobody can take away businesses.”Maharashtra BJP’s Uttar Bharatiya wing president Sanjay Pandey said the MVA’s attack on Adityanath was reminiscent of how the Opposition had dealt with Narendra Modi before he became prime minister.“When Narendra Modi was the CM, they would accuse him of indulging in communal politics. Similarly, they are building the same narrative to attack Yogi, who has emerged stronger in UP. Maharashtra will not fall prey to such false narratives. They know the Shinde-Fadnavis government is sincerely working in the interest of the state.”A secretary in the state industries department said, “I will not comment on politics. But the fact is Maharashtra is far ahead on social and economic parameters. According to data from the Department for Promotion of Industry and Internal Trade data for November 2022, Maharashtra attracted the highest Foreign Direct Investment (FDI) inflow at Rs 62,425 crore, followed by Karnataka at Rs 41,678 crore.

Yogi Adityanath in Maximum City, combative MVA rakes up lost projects
Mumbai visit showcases Yogi as face of change, leading a 'new Uttar Pradesh'
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

Having lost two crucial years of his first regime to the Covid pandemic, Chief Minister Yogi Adityanath has set course to refurbish the image of the state and himself – making a big investment push for a “new Uttar Pradesh”, with him as the face of that change.He is leading the exercise from the front, and personally assuring potential investors of “safety” of their businesses in a state that has an image problem when it comes to law and order.In the past one month, Adityanath has addressed envoys of different countries, led domestic road shows, including in Mumbai where he this week met industrialists and bankers, and sent out high-level teams out of the country to make a push for the state. Next up is Adityanath’s visit to the World Economic Forum meeting in Davos later this month – the first by a UP CM, as per the BJP – where he will present his “vision” for the state.Sources said that with the eastern region now well-connected witht expressways, the government is inviting businesses to invest in areas such as Purvanchal, Bundelkhand and Terai that remain largely out of their umbrella.Indicating confidence about its efforts, the Adityanath government recently increased its investment target from the coming Global Investors’ Summit in February from Rs 10 lakh crore to over Rs 17 lakh crore. It claims to have got over Rs 7 lakh crore investment proposals from abroad and about Rs 5 lakh crore from Mumbai alone.In another difference, learning from the experience of the last Global Investor Summit held in February 2018, Adityanath is not just monitoring the process but will also be holding one-on-one meetings with investors. The focus will be to emphasise “safety” as well as “ease of doing business”.In Mumbai, apart from business meetings, the CM separately held individual meetings with over 17 businessmen, including Mukesh Ambani of Reliance Industries, Karan Adani of Adani Ports and SEZ, Ashok P Hinduja of Hinduja Group, Sanjiv Mehta of Hindustan Uniliver, Kumar Mangalam Birla of Birla Group, Pirojsha Godrej of Godrej Industries, N Chandrashekharan of Tata sons, S N Subrahmanyan of Larsen and Toubro, as well as a meeting with actor Akshay Kumar.Additionally, Adityanath met businessmen and other representatives from UP living in Mumbai, bankers as well as representatives from the film industry to convince them to invest in the Film City in the state.In the coming week, as part of the road show, high-power UP teams will tour Chennai, Bengaluru, Delhi, Kolkata, Hyderabad, Ahmedabad, led by the two Deputy Chief Ministers, Finance Minister, Industrial Development Minister and IT minister, and including top bureaucrats.Last month, after eight teams of over 14 ministers and 35 officials had toured 21 cities of 18 countries, they were told to not just submit reports but also give individual presentations on the outcomes and set up “follow-up” desks to stay in touch.“Just like last time, each of these teams are expected to submit a report on the specific outcomes of their visits and keep track of the feedback,” a senior official said.The Adityanath government is also hoping to make a splash with the G-20 events planned in the state. At the meetings held as part of the preparations, officials were told to ensure that the visitors got the idea of the state’s rich “culture and craft” as well as a feel of the “new Uttar Pradesh”.

Mumbai visit showcases Yogi as face of change, leading a 'new Uttar Pradesh'
How an orderly transition to net zero could propel growthPremium Story
The Indian Express | 3 weeks ago | |
The Indian Express
3 weeks ago | |

India’s per capita emissions are relatively low (1.8 tons of CO2e per person), but we are still the world’s third-largest single emitter. India has pledged to get to net zero by 2070. This goal can only be met with urgent actions in this decade, potentially accelerated through India’s recently-assumed G20 presidency. And reaching net-zero could benefit India through lower-cost energy, greater energy security and the growth of futuristic industries.This will not be easy. On its current trajectory, India’s emissions are set to grow from 2.9 GtCO2e a year to 11.8 GtCO2e in 2070. Nor will it come without cost. According to a recent McKinsey report, effective decarbonisation, down to 1.9 GtCO2e by 2070, would require India to spend a total of $7.2 trillion on green initiatives by 2050. This “line of sight” (LoS) scenario is based on announced policies and expected technology adoption.Deeper decarbonisation — an “accelerated scenario” that would reduce emissions to just 0.4 GtCO2e by 2050, or close to net zero — would require $12 trillion in total green investments by 2050. Under this scenario, India could create 287 gigatonnes (GT) of carbon space for the world, almost half of the global carbon budget, for an even chance at limiting warming to 1.5 degrees Celsius.Decarbonisation will drive many changes, from how we source energy to how we manufacture materials; from how we grow food to how we move around; from how we treat waste to how we use our land.An orderly transition to net zero could help India decarbonise while creating an engine for growth. To take just one example: If India shifted to a predominantly renewable (and hydrogen)-based energy and materials system, it could save as much as $3 trillion in foreign exchange by 2070 (largely crude oil and coking coal). While the investment is large, a vast majority of the abatement projects are in the money.This is because India is in a special place. Three-quarters of the buildings, infrastructure, and industrial capacity of India in 2050 is yet to be built. We have a choice — to invest in current technologies or to invest futuristically. Futuristic investment will need India to take urgent actions in this decade — on regulation, technology development, and on technology adoption — to make the right investments.This is something that India has done before. In renewable power, the right policies, strong institutions and industrial capabilities built in the last decade are providing India with the base to scale up four to five times in this decade. India also has other advantages. For example, its high taxation on automotive fuels translates to an imputed carbon tax of $140 to $240 per tonne of carbon dioxide. This makes electric vehicles competitive against petrol or diesel ones, explaining the recent rapid growth of electric two-wheelers.Such an “orderly” transition for India is not just desirable, but necessary. The risks of a disorderly transition are significant: Think about the recent distress from the coal shortages as demand bounced back after the pandemic. We outline four seldom-discussed ideas for India’s orderly transition:Set out five-year, 10-year, and 25-year national decarbonisation plans. High-emission industrial assets like steel plants cost billions to build and run for 30 to 50 years. The green route requires higher upfront investment and will also sometimes cost more overall. Yet, policies that enable carbon prices or blending mandates can make the economics viable. Such policies need to be held steady and require coordination across sectors like power, hydrogen and steel. A national decarbonisation plan would enable timely investment decisions. If we do not act now to set up and enable such a plan, more fossil fuel-driven infrastructure will be built, locking India into higher emissions for decades. Without decarbonisation plans, it is possible that companies, fearful of getting stranded at a later point, do not invest enough in building capacity, thus leading to shortages, inflation and greater import dependence — in other words, a disorderly transition.Second, define a national land use plan. India risks being land-short for its dual goals of growth and decarbonisation. For example, McKinsey estimates that renewable power and forest carbon sinks need 18 million additional hectares of land. India would need to maximise the use of barren land for renewable power, urbanise vertically, improve agricultural productivity, and increase forest density. This forms the case for establishing a national authority, in consultation with the states, to set land-use guidelines.Third, accelerate compliance with carbon markets. Pricing carbon creates demand signals that accelerate emissions reductions, especially in hard-to-abate sectors. Let’s illustrate this through steel, demand for which could multiply eight times by 2070; right now, much of the new capacity is likely to be added using high-emission coal. With a price on carbon emissions, more expensive green steel becomes competitive against high-emission steel. For example, a carbon price of $50 a ton could make green steel cost competitive by 2030, leading to the possibility of the next 200 million tons of capacity being created through low-emissions technologies.Companies can aim to play on the front foot, investing in opportunities like recycling, hydrogen, biomass, electrolysers, rare earths, battery materials and battery making. Some of these opportunities would take time to mature. Meanwhile, companies could invest in opportunities opened up by decarbonisation of other countries, such as exporting green hydrogen derivatives like ammonia.To embark on an orderly path to net zero, India needs imagination, realism, determination — and a sense of urgency. We must take steps this decade to set things up, to establish momentum, and to build India right for generations to come.Gupta is a senior partner, and Unni is a partner, at McKinsey & Company in India. They are co-authors of Decarbonising India: Charting a pathway to sustainable growth

How an orderly transition to net zero could propel growthPremium Story