Good Afternoon ☕

Brace yourselves, government employees! The Indian government is gearing up for some exciting news on October 6, 2023. A potential dearness allowance (DA) hike is in the air, expected to lift the current 42% to a sparkling 45%. While the specifics are still under wraps, it's a ray of hope for a festive season filled with cheer! 🎉

Important News of the Day

1. Centre likely to announce DA hike for all government employees

The Indian government is expected to announce a hike in dearness allowance (DA) for all central employees and pensioners on October 6, 2023.The DA hike, which will be effective from July 1, 2023, is anticipated to increase the current 42 percent to 45 percent. Earlier reports suggested a 3 percent DA hike, but the exact number is yet to be confirmed. The last DA increase was in March 2022, when it was raised by 3 percent to 34 percent. Employees have been eagerly awaiting the salary hike ahead of the festive season.

2. Ignored red flags triggered flash floods in Sikkim

Flash floods in Sikkim, India, were triggered by a cloud burst and ignored red flags regarding the vulnerability of Lhonak Lake in North Sikkim to a glacial lake outburst flood (GLOF). Multiple government agencies and scientific expeditions had raised concerns about the lake's vulnerability for at least a decade. The flash floods originated from Lhonak Lake and caused widespread damage downstream, including the destruction of the 1,200 MW Teesta Urja dam. At least 11 people have died, and over 120 people are missing. Flooding in Sikkim is not unusual, but scientists attribute the increasing frequency and intensity of extreme weather events to the human-caused climate crisis

3. GST Council meeting on October 7

The Goods and Services Tax (GST) Council will hold its 52nd meeting on October 7, 2023, in New Delhi's Vigyan Bhawan. The agenda for the meeting has not been disclosed yet, but it is expected to review the progress made by the states in incorporating changes with regard to the taxation of online gaming in SGST laws as approved by the council in its 51st meeting. The council is also likely to look into tax exemption for millets and review the implementation of the 28% levy on online gaming.

4. PM to inaugurate, lay foundation stones of projects worth ₹12,600 crore in MP

Prime Minister Narendra Modi is set to visit poll-bound Madhya Pradesh and inaugurate and lay the foundation stones of various projects worth ₹12,600 crore. The projects include rail and road works, as well as a memorial dedicated to Rani Durgavati. This visit is part of the Prime Minister's efforts to boost development in the region and support the upcoming elections. The projects aim to improve infrastructure and contribute to the overall growth of Madhya Pradesh.

5. AIIMS to monitor devices post breach

State-run Bharat Electronics Ltd (BEL) has installed Endpoint Detection and Response (EDR) software at the All India Institute of Medical Science (AIIMS) in New Delhi for continuous monitoring of computers following repeated cyber-attacks. This step is being taken on the advice of the National Critical Information Infrastructure Protection Centre (NCIIPC) and the Indian Computer Emergency Response Team (CERT-In).The installation of EDR software is aimed at enhancing the cybersecurity of AIIMS and ensuring the smooth functioning of its digital systems.

Stock Market Update 📈

1. India's services growth slowed slightly in August but exports hit record high

   In August, India's services sector experienced a marginal slowdown in its growth rate, suggesting a slight dip in its overall performance. However, during the same period, the country achieved a significant milestone in its trade as exports reached a record high, indicating robust international demand for Indian goods and services.

2. L&T bags 'significant' order from West Bengal Power Development Corporation

   Larsen & Toubro (L&T) has secured a noteworthy contract from the West Bengal Power Development Corporation. This "significant" order likely pertains to a substantial project or supply agreement, further strengthening L&T's presence in the power sector in West Bengal.

3. Spotlight still on Vedanta $3 billion debt despite spinoff plan

   The spotlight remains on Vedanta's $3 billion debt despite its spinoff plan because the debt obligations are still a significant financial burden for the company even after the spinoff. The spinoff might help Vedanta focus on its core operations, but the debt issue continues to raise concerns about its financial stability and ability to manage its obligations effectively.

4. IOC to invest over Rs 2,600 crore to set up greenfield units, expand facilities in northeast

   IOC to invest over Rs 2,600 crore in green projects and facility expansions in India's northeast to strengthen its regional operations, promote environmental sustainability, and stimulate economic growth.

5. HCLTech, Business Finland team up to drive digital innovation in generative AI, metaverse

   HCL Technologies and Business Finland have joined forces to foster digital innovation in generative AI and the metaverse. This collaboration aims to advance technologies that can create content and experiences in virtual worlds and artificial intelligence-driven solutions for various industries.

6. NTPC logs 83% growth in coal output in first half of this fiscal

   NTPC, India's largest power generation company, has reported an impressive 83% growth in coal output during the first half of the current fiscal year. This substantial increase signifies a significant boost in the company's coal production, likely driven by increased demand for power generation and improved operational efficiency.

7. Vedanta split unlikely to help parent's near-term debt crisis: Analysts

   The Vedanta split won't quickly resolve the parent company's debt crisis. Corporate restructuring takes time to show financial benefits, and while it may simplify the group's structure in the long run, it won't offer immediate debt relief due to complex legal and financial transactions involved.

Breaking News: The Scoop You Can't Miss!

1. Centre raises cooking gas subsidy ahead of state, national elections

The Indian government has increased the cooking gas subsidy for approximately 96 million low-income households from ₹200 to ₹300 per cylinder, coinciding with upcoming assembly elections in five states and next year's national polls. This move comes just over a month after the government approved the expansion of the Pradhan Mantri Ujjwala Yojana (PMUY) scheme, which aims to provide cooking fuel, such as LPG, to rural households. The additional subsidies are specifically targeted at benefiting rural women. The total number of PMUY beneficiaries is expected to reach 103.5 million over the next three years.

2. Govt notifies bankruptcy code changes to make aircraft recovery easier

The Indian Ministry of Corporate Affairs (MCA) has notified changes to the Insolvency and Bankruptcy Code (IBC) that will make it easier for lessors to recover aircraft, engines, and related parts in the event of an airline's bankruptcy. This development will have a significant impact on the ability of bankrupt airlines, such as Go First, to resume operations. Previously, the court had ruled that the moratorium applied to leased aircraft and engines as well, preventing lessors from recovering their assets.

3. Factory PMI at 5-month low

India's manufacturing activity growth slowed in September, reaching a five-month low, as new factory orders softened from their high in August, according to a private survey. The Purchasing Managers' Index (PMI) fell to 57.5 in September, compared to 58.6 in August, indicating a moderation in the industry's growth. This slowdown was primarily attributed to a softer increase in new orders, which affected production growth. Despite the marginal decrease in PMI, the industry still faced high inflationary pressures.

4. Bhagwant Mann shares debt detail with governor, seeks 5-yr debt moratorium

Punjab Chief Minister Bhagwant Mann has shared details of the state's debt with Governor Banwarilal Purohit and requested a five-year moratorium on debt repayment. In a letter to the governor, Mann highlighted that a significant amount of Rs 27,016 crore had been spent on interest repayment on the inherited debt. The Punjab government had recently sought a five-year moratorium on debt repayment, 10 months after rejecting a similar proposal from economists. The state's debt has been a growing concern, with 57% of the Rs 47,107 crore borrowed from April 2022 to August 2023 being used to repay interest on earlier loans.

5. RBI sets up external working group on expected-credit-loss provisioning

The Reserve Bank of India (RBI) has formed an external working group to recommend a framework for expected credit loss (ECL) provisioning by banks. The group will outline the principles that banks must follow when creating credit risk models for evaluating and quantifying expected credit losses. The ECL model is expected to make the banking system more resilient by requiring banks to recognize and tackle stress in advance, unlike the current regime where they make provisions after losses are incurred. The RBI had released a discussion paper in January suggesting banks switch to the ECL method.

World News 🌎

• France moves homeless people out of Paris as city prepares for next summer’s Olympics

• Justin Trudeau considering declassifying list of ex-Nazis in Canada

• Can Donald Trump become next US Speaker? What does US Constitution say

• Italian authorities investigate Venice bus crash that killed at least 21 people

• Turkey launches airstrikes against Kurdish militants following deadly Ankara blast

• Syria’s drug problem casts shadow over Assad’s rehabilitation

• At least one killed in bomb attack near government building in Ankara, Turkey says

• 11 killed after Mexico church roof collapses

• At least 10 dead in Zimbabwe gold mine collapse as rescue efforts continue

• Four officers arrested in Burkina Faso after thwarted coup attempt, prosecutor says

• 14-year-old boy arrested after deadly Thai shopping mall shooting

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