Uttar Pradesh: Where 'Dearness' Just Got a Bit More Dear

Thursday, May 18^th 2023

Good Morning ☕

Hold onto your calculators, folks! The Uttar Pradesh government just turned up the dial on the Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners. It's like they decided to add a dash of humor to the financial equations by giving everyone a 4% raise. Talk about adding some extra zeroes to those paychecks! I can almost hear the sound of jubilant laughter echoing through the offices as employees and pensioners celebrate their upgraded financial status.

Also, did you enjoy our little disappearing act today? Well, fear not! We apologize for the mind-boggling delay in delivering our sensational newsletter. It seems our mischievous gremlins had a field day causing logistical chaos. They must have thought it'd be hilarious to keep you on the edge of your seat, eagerly awaiting our updates.

Important News of the Day

1. UP Govt hikes DA by 4% for state employees & pensioners

The Uttar Pradesh government has announced a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners. In Uttar Pradesh, the DA has gone from 38% to 42%, benefiting around 27.35 lakh people. These changes will result in additional annual expenditures of ₹2,366.82 crore for Uttar Pradesh and will help improve the financial well-being of the employees and pensioners.

2. BPCL unveils Rs 49,000 cr petrochemical & capacity expansion project at Bina refinery

Bharat Petroleum Corporation Ltd (BPCL) has announced plans to invest ₹49,000 crores in expanding its Bina refinery's petrochemical and renewable energy capacity. This investment aims to strengthen BPCL's position in the petrochemical sector, renewable energy, and marketing infrastructure. The project signifies the company's commitment to diversifying its operations and capitalizing on the growing demand for petrochemicals and renewable energy sources.

3. RBI allows SBI Funds Management to buy up to 9.99% stake in HDFC Bank

The Reserve Bank of India (RBI) has granted SBI Funds Management (SBIFML) permission to acquire up to a 9.99% stake in HDFC Bank, subject to certain conditions. The RBI has recommended SBIFML, a joint venture between State Bank of India and AMUNDI, to complete the purchase within six months. SBIFML must ensure that its total stake in HDFC Bank does not exceed 10% of the bank's paid-up share capital or voting rights. The merger between HDFC Bank and Housing Development Finance Corporation Ltd is underway and is expected to be completed by July.

4. Investments into Indian hospitality to exceed $2.3 billion over the next 2-5 years: CBRE

Investments in India’s hospitality industry are expected to exceed $2.3bn in the next two to five years, according to a report by CBRE South Asia. The sector is expected to recover due to a successful vaccination programme, the reopening of borders, and sustained economic growth. The report predicts the addition of about 12,000 rooms in 2023, with a compound annual growth rate of 3.3% by 2025. Demand recovery is anticipated to outpace supply, benefiting key performance metrics of the hotel sector. The report also notes that industry key performance indicators are expected to surpass pre-pandemic levels this year.

5. Non-communicable diseases to cost India around $3.6 trillion by 2030

Non-communicable diseases (NCDs) cause 63% of deaths in India and could cost $3.55 trillion by 2030. To combat this, India updated its NCD guidelines, transforming the NPCDCS into National Programme for Prevention and Control of Non-Communicable Diseases (NP-NCD), which includes emphasis on prevention, private sector involvement, and aims to provide care to 75 million people with hypertension and diabetes by 2025.

6. Tamil Nadu announces 4% DA hike for 16 lakh govt employees, pensioners

The Tamil Nadu government has approved a 4% hike in the 7th Pay Commission Dearness Allowance (DA) for state government employees and pensioners. The increase will be effective retrospectively from 1 April 2023. The DA hike will benefit 16 lakh government employees, teachers, pensioners, and those receiving family pensions. The additional expenditure due to this hike is estimated to be around ₹2,366.82 crore annually. This move comes after similar announcements by the governments of Uttar Pradesh, Bihar, and Assam earlier this year.

Breaking News: The Scoop You Can't Miss!

1. Pricol files objection with CCI against Minda Corp's bid to raise its stake

Pricol is pumping the brakes on Minda Corporation's bid to acquire a 24.5% stake, after Minda bought a 15.7% chunk earlier. Pricol's waving a yellow flag for now, keeping its options open for a full-scale challenge later. Minda, on the other hand, claims it's just making a pit stop investment. As rivals in the two-wheeler instrument cluster race, this saga is revving up!

2. Goldman Sachs slashes Adani Group stakes from its active ESG Portfolios

Goldman Sachs Asset Management and others significantly cut their ESG portfolio exposure to Adani Group after fraud allegations from Hindenburg Research. Goldman alone sold 11.7 million Adani shares. Adani, looking to raise $2.6bn, has seen its market value plummet over $100bn post-report, yet maintains innocence and works to rebuild financial relationships.

3. Hinduja Group Chairman SP Hinduja dies at 87

SP Hinduja, the eldest of the Hinduja brothers and chairman of the Hinduja Group, passed away at 87 in London. He had been unwell for some time. The family described him as a visionary and mentor who played a crucial role in strengthening the relationship between the UK and India. They mourned his loss, highlighting his embodiment of the Hinduja Group's principles and values, his philanthropy, and his courageous nature.

4. Interest income from Mahila Samman Certificate exempted from TDS: Finance Ministry

Under the Mahila Samman Certificate program, interest earned will be taxed according to the account holder's tax bracket, not subject to TDS, as per the Central Board of Direct Taxes (CBDT). The FY23 introduced scheme has a max deposit of Rs. 2 lahks with a 7.5% yearly interest. CBDT stated no TDS applies if the interest earned is below ₹40,000 annually.

5. Sanchar Saathi Portal: Track or block lost mobile phones across India

India's Department of Telecom has introduced the Sanchar Saathi portal to block and trace lost or stolen mobiles nationwide, verify used device authenticity, and detect cloned phone use across networks. Developed by C-DoT, it's being piloted in select regions, with the CEIR system blocking cloned phones via multiple databases.

6. Mobile wallets market in India to surpass $5 trillion in 2027, says GlobalData

Mobile wallet payments in India are set to reach $5.7tn by 2027, driven by the success of Unified Payments Interface (UPI), QR code adoption, and a 2022 Reserve Bank mandate on wallet interoperability, says a GlobalData report. This has led mobile wallets to supersede traditional payment methods like cash and cards.

7. App Store stopped over $2 billion in fraudulent transactions

Apple thwarted 2 billion fraudulent transactions on its App Store in 2022, eliminating 428,000 developer and 282 million customer accounts linked to fraud. It rejected nearly 105,000 suspicious developer program enrollments, prevented downloads of about 57,000 dubious apps, and blocked over 147 million non-compliant ratings and reviews.

8. Goldman Sachs cuts India’s 2023 CAD estimate to 1.4% of GDP on robust remittances

Goldman Sachs has reduced its forecast for India's current account deficit (CAD) in 2023 to 1.4% of GDP, down from 2.4% of GDP in the previous year. The revision is due to various factors, such as increased remittance inflows, strong exports of services, and an anticipated decrease in the trade deficit for goods.

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