Government Splashes Out ₹ 89,047 Crore, Puts BSNL in the 5G Fast Lane!

Thursday, June 8^th 2023

Good Morning ☕

Phew, that's a lot of zeroes! The Indian government is going all in on reviving the classic telecom giant BSNL with a colossal ₹1.64 lakh crore (22 billion dollar) power-up package. It's a three-fold quest: service upgrade, balance sheet yoga (read: de-stressing), and an exciting fiber network expansion spree. In short, it seems like BSNL is gearing up for a big-league comeback. Looks like the government is giving a whole new meaning to the phrase, ‘Go big or go home!’

1. Cabinet Approves ₹ 89,047 Crore For 4G, 5G Spectrum Allocation To BSNL

The Indian government has approved a Rs 1.64 lakh crore ($22 billion) package to revive the state-owned telecom firm, Bharat Sanchar Nigam Limited (BSNL). The package has three elements: to improve services, de-stress the balance sheet, and expand the fiber network. The government will make administrative allocation of spectrum BSNL needs to offer 4G services. To de-stress the balance sheet, Rs 33,000 crore ($4.4 billion) statutory dues will be converted into equity and a similar amount of bank loans will be repaid through the issue of low-interest bonds. BBNL will be merged with BSNL. The package has a cash component of Rs 43,964 crore ($5.8 billion) and a non-cash component of Rs 1.2 lakh crore ($16 billion) spread over four years.

2. Union government of India declines tailor-made incentives for Tesla: Report

The Indian government has declined to offer any tailor-made incentives to Tesla as it plans to enter the Indian market. However, states may offer concessions to the electric vehicle manufacturer. Tesla is interested in setting up a complete supply chain in India and plans to introduce new products, such as the entry-level Model 2 and Cybertruck. Initially, Tesla may launch the Model Y and Model 3 in India.

3. 'India will have 200-220 more airports in next 5 years': Jyotiraditya Scindia

Union Civil Aviation Minister Jyotiraditya Scindia announced that India will have 200-220 more airports, heliports, and water aerodromes in the next five years. The government's focus is on creating more airports at a faster pace. In the first 65 years of independence, India built 74 airports, and in the last nine years, the country built an additional 74 airports, waterdromes, and heliports. The number of airports is set to go up from the current 148 to roughly around 200 in the next four to five years. The country's air travel growth is going to double in the next 4-5 years.

4. HDFC Bank hikes lending rates; loan EMIs to increase further

HDFC Bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by up to 15 basis points (bps) on overnight to six-month tenures. The overnight MCLR and one-month MCLR now stand at 7.95% and 8.10%, respectively. The three-month and six-month MCLRs will be 8.40% and 8.80%, respectively. The move will make home loans, car loans, and personal loans more expensive for customers. The bank last increased its MCLR by 25 bps in January 2023.

5. Centre launches scheme to leverage emerging tech in the power sector

The Indian government has launched a scheme to leverage emerging technologies in the power sector. The scheme aims to promote research and development in the power sector and encourage the adoption of emerging technologies such as artificial intelligence, blockchain, and the Internet of Things. The scheme will also provide funding for pilot projects that demonstrate the use of emerging technologies in the power sector. The scheme is expected to help India achieve its goal of providing 24x7 power supply to all households by 2025.

6. Princeton Digital Group partners with Tata Power Renewable

Princeton Digital Group (PDG) has signed a 25-year renewable energy agreement with Tata Power Renewable Energy Limited (TPREL) for its 48MW Mumbai data center. Under the agreement, PDG's MU1 data center in Airoli, Mumbai will consume power generated by a solar project located in Nanded district. This partnership will help PDG achieve its commitment to work towards achieving Net Zero for its Scope 1 and Scope 2 emissions by 2030. The agreement will also enable PDG to offer sustainable data center services to its customers by substituting a substantial portion of its energy consumption with renewable energy.

7. Cabinet approves Metro extension from HUDA City Centre to Cyber City

The Union Cabinet has approved the elevated Gurugram metro project to connect Cyber City with Huda City Centre with spur to Dwarka Expressway covering a total of 28.5 km. The project is expected to be completed in four years and will cost ₹5,452 crore. The new metro line will run between New Gurugram with Old Gurugram having a total of 27 stations that will connect with the railway station, with an objective to link it with the Indira Gandhi International Airport. The project is estimated to lead to a daily ridership increase from 5.34 lakh in 2026 to 10.5 lakh in 2041.

8. Emerging markets beat developed markets in May: Motilal Oswal

According to a report by Motilal Oswal, emerging markets outperformed developed markets in May, with India shining on a five-year rolling return basis. The report also stated that the market movements were volatile in June, with the market correcting from 18600 to 17400 points. However, traders expect the bank to return to the market soon. Motilal Oswal Financial Services is a broker and trading firm.

9. CBI raids multiple locations in Bengal linked with job scam in civic bodies

The Central Bureau of Investigation (CBI) conducted raids at multiple locations in West Bengal in connection with alleged irregularities in recruitment in civic bodies. The alleged scam relates to irregularities in the recruitment of clerks, sweepers, peons, and drivers. The CBI conducted search operations in 14 municipalities, including South Dum Dum, Panihati, Kanchrapara, Chinsurah, and Dum Dum. The state Municipal Affairs and Urban Development Minister Firhad Hakim said that this is "part of a conspiracy" hatched by the BJP.

10. Cabinet approves increase in MSP for khalif crops

The Indian Cabinet has approved a hike in the Minimum Support Price (MSP) for kharif crops for 2023-24, to ensure remunerative prices to the growers for their produce. The government has increased the MSP of several commodities by up to 10%.

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