Fastags and Furious: India's Road Network Second Largest Worldwide 🥇

Wednesday, June 28^th 2023

Good Morning ☕

India's road network has been expanding at such a rapid pace that it's starting to feel like they're playing an intense game of "connect the dots" on a gigantic scale. With a growth rate of 59% in just nine years, I wouldn't be surprised if the roads themselves started plotting world domination. Watch out, rest of the world, India's road network is on the move!

1. India's current account deficit narrows sharply to $1.3 billion in Q4FY23

India's current account deficit (CAD) has narrowed sharply to $1.3 billion or 0.2% of GDP in the January to March quarter of 2022/23, compared to a revised deficit of $16.8 billion or 2% of GDP in the preceding October-December quarter. The moderation in the trade deficit to $52.6 billion in Q4:2022-23 from $71.3 billion in Q3:2022-23, coupled with robust services exports, contributed to the decline in CAD. The deficit had stood at $13.4 billion in the same quarter a year ago. A Reuters survey of 22 economists showed the current account balance likely recorded a surplus of $3.3 billion, or 0.4% of gross domestic product (GDP) in the March quarter.

2. India’s road network grows 59% in last 9 years: Gadkari

India's road network has grown by 59% in the last nine years to become the second largest in the world, according to Union Minister Nitin Gadkari. The road network now stands at 145,240 km compared to 91,287 km in 2013-14. The government has made seven world records in the sector in the last nine years. The revenues from tolls rose to Rs 41,342 crore from Rs 4,770 crore in 2013-14, and the government aims to increase the toll revenue to Rs 1,30,000 crore by 2020. The usage of fastags has helped in reducing the waiting time at the toll plazas to 47 seconds.

3. India will be among fastest growing economy in Asia-Pacific: S&P Global Ratings

According to S&P Global Ratings, India's GDP growth forecast for FY24 remains at 6%, making it the fastest-growing economy among Asia Pacific nations. The report suggests that India's growth will be driven by a rebound in consumer spending, a pickup in investment, and a supportive policy environment. Despite experiencing large swings in growth and inflation over the past decade, India's economy has rebounded, inflation has moderated, and the budget and trade deficits have narrowed.

4. HDFC - HDFC Bank merger to be effective July 1, says Deepak Parekh

Housing Development Finance Corp. (HDFC) and HDFC Bank's merger will be effective from July 1, according to HDFC Chairman Deepak Parekh. Both HDFC Bank and HDFC Ltd will have separate board meetings on June 30 to clear and approve the merger. The merger is expected to be complete by July 1, and HDFC will be delisted on July 13. However, HDFC clarified that the effective dates of July 1 for the merger and July 13 as the record date are tentative. The merger was announced in April last year and is the country's biggest ever.

5. Centre receives 35 bids for 103 coal mines under commercial auction

The Indian government has launched the seventh round of commercial coal auctions to increase the availability of dry fuel in the country. A total of 103 coal mines are up for auction, and 35 bids have been received so far. Technical bids will be opened on June 28, 2023, as part of the auction process. The government has previously successfully bid out 29 coal blocks for commercial mining, which are expected to increase average dry fuel output by 7% over time.

6. Taj Hotels signs new property with Ambuja Neotia Group in West Bengal

Indian Hotels Company Limited (IHCL), which owns the Taj Group, has signed an agreement with the Ambuja Neotia Group to manage a new Taj hotel in West Bengal. With the addition of this hotel, IHCL will have five hotels under its Taj, SeleQtions, Vivanta, and Ginger brands across the state. The new hotel will be under the Taj brand, and two more properties in New Town, one in Patna, and one in Gangtok will also be managed by IHCL under the Taj brand. The partnership between IHCL and Ambuja Neotia Group has already resulted in two other hotels in the East.

7. Power ministry revises biomass co-firing policy to promote sustainable energy practices

The Union Ministry of Power in India has revised its policy on biomass co-firing to promote sustainable energy practices. The revised policy mandates the use of 5% biomass pellets made primarily of agro-residue along with coal in thermal power plants. The policy will be in force for 25 years or until the useful life of the thermal power plant, whichever is earlier. The objective of the policy is to reduce greenhouse gas emissions from the power sector and to secure renewable energy targets. The policy aims to foster an enabling environment to boost co-firing of biomass pellets in Thermal Power Plants in India.

8. RoC imposes penalty on PTC India Financial Services, MD Pawan Singh

The Registrar of Companies (RoC) has imposed a penalty of Rs. 1 lakh on Pawan Singh, the Managing Director of PTC India Financial Services, for violating disclosure norms. The penalty was imposed for not disclosing his directorship in a company named PTC Energy. The RoC has also imposed a penalty of Rs. 10,000 on PTC Energy for not filing its annual returns for the financial year 2019-20. PTC India Financial Services is a subsidiary of PTC India, which is a power trading company.

9. Adani Group to review capital market strategy after market stablize: CFO

Adani Group CFO Jugeshinder Singh has said that the company will review its capital market strategy once the market stabilizes. The group has been affected by the volatility of the past few weeks, but Singh has expressed confidence in the growth prospects of its portfolio companies. The company is not seeking to refinance debt or inject capital. Recently, Gautam Adani, the chairman of Adani Group, accused Hindenburg Research of spreading "targeted misinformation" to drive down the group's stock prices.

10. Govt e-marketplace records 10 times growth in procurement in last 3 years: Goyal

The Indian Government e-Marketplace (GeM) has seen a 10x growth in procurement in the last three years, according to Union Minister of Commerce and Industry, Piyush Goyal. The platform has also crossed the Gross Merchandise Value of ₹2 lakh crore in the financial year 2022-2023. The minimum savings on the platform are about 10%, which translates into a savings of ~ ₹ 40,000 crore worth of goods and services.

11. Gautam Adani terms Hindenburg report as ‘targeted misinformation'

Indian tycoon Gautam Adani's conglomerate, Adani Group, has accused US short-seller Hindenburg Research of spreading "targeted misinformation" and "outdated allegations" aimed at damaging the group's reputation and driving down stock prices. Hindenburg Research had issued a report alleging that Adani Group had engaged in "brazen stock manipulation and accounting fraud scheme over the course of decades". The report caused a significant decrease in the market value of the group's listed companies, resulting in Adani losing the title of richest Indian. Adani Group has threatened to seek "remedial and punitive" action in both Indian and US courts against Hindenburg.

12. CAG conducts 'special audit' into Delhi CM Arvind Kejriwal's home renovations

The Comptroller and Auditor General (CAG) of India will conduct a special audit into the alleged administrative and financial irregularities in the renovation of Delhi Chief Minister Arvind Kejriwal's official residence at 6, Flag Staff Road Civil Lines. The move follows a recommendation by the Ministry of Home Affairs. The audit will investigate alleged irregularities and violations in the reconstruction of the residence. The Union home ministry has recommended the special CAG audit "in the name of renovation of the Chief Minister's residence".

World News🌎

• Google owner Alphabet fined $47 million by Russia for failure to pay last fine

• Ford plans slash jobs in US and Canada to restructures its corporate operations

• Vladimir Putin credits people, Russian troops for tackling Wagner mutiny

• Donald Trump discussed classified documents in 2021, report confirms

• Chinese spy balloons spotted over Asia, report

• Netflix under fire over ill-timed promo release amid Titan submarine tragedy

• Companies look to hire AI, ChatGPT experts, may pay up to ₹1.5 crores

• Ukraine crisis: US to announce another $500 million in weapons, military aid

• White House condemns harassment of WSJ journalist who questioned PM Modi