India Indian Economy + Infra Archive

[Nilgiri]

Fitch lauds Indian economic recovery, ups outlook from negative to stable

Fitch rating agency scaled down the GDP growth estimates for FY23 to 7.8% from 8.5%

www.business-standard.com

 

[Nilgiri]

Adani, TotalEnergies join hands to invest $50 billion in green hydrogen

Gautam Adani, chairman, Adani Group said, he is confident the company will produce the world's least expensive green hydrogen

www.business-standard.com

French giant TotalEnergies will buy a quarter of the equity in Adani New Industries Ltd (ANIL), a part of Gautam Adani’s eponymous group. The Adani group did not disclose the value of the deal. Instead, it talked about ANIL investing $50 billion over 10 years in green hydrogen and, in the initial phase, building a production capacity of 1 million tonnes a year for green hydrogen before 2030.

ANIL is critical to Adani’s ambition of becoming the world’s cheapest producer of green hydrogen, the zero-emission fuel that can propel the world’s decarbonisation drive but has yet to be produced in a way that makes it commercially viable.

Adani Enterprises, the group flagship, saw its stock rise 5.6 per cent on Tuesday, after it informed the stock exchanges about its deal with Total. The BSE benchmark Sensex, of which Adani Enterprises is not a part, fell slightly by 0.29 per cent.

“Our confidence in our ability to produce the world’s least expensive electron is what will drive our ability to produce the world’s least expensive green hydrogen,” Gautam Adani, chairman, Adani Group, said in a written statement.

He is not alone in this quest. The search for the cheapest hydrogen has brought the country’s two richest industrialists face to face.

Mukesh Ambani, with whom Adani has been swapping the position of being Asia’s richest, has ambitions of his own. In January, he announced a $75-billion push in renewables infrastructure, in which green hydrogen is said to have a pride of place. Last year, the Reliance Industries Chairman talked about producing green hydrogen at $1 a kg — the lowest cost in the world and about 60 per cent lower than what it is today. He said Reliance will “aggressively pursue” the $1 a kg target and “achieve it well before the turn of this decade”.

The Adani Group had in 2020 said it would invest 70 per cent of the budgeted capex of its energy vertical in clean energy and energy-efficient systems. In June 2021, Reliance announced its foray into green energy with investments worth Rs 75,000 crore in the ensuing three years. Two months later, Adani followed suit by announcing a $20-billion investment over 10 years in the renewable energy supply chain, including power generation, manufacturing, transmission and distribution.

Adani Enterprises, which recently launched its arm, Adani Petrochemicals, plans to offer a range of green fuels and use its supply chains and renewable energy units for their production and transport. The company plans to make green hydrogen, green methanol, green ammonia and green fertiliser.

The deal announced on Tuesday is the fourth between Adani Group and Total. In 2021, the French major picked up a 20 per cent stake in Adani Green Energy Ltd, the renewable power company of the Adani group. In 2020, Total and Adani formed a 50-50 joint venture at an enterprise value of Rs 17,385 crore for 2.3 Gw of solar assets. In 2019, Total had acquired 37.4 per cent in Adani Gas and 50 per cent in the group’s Dhamra LNG project.

“This future production capacity of 1 million tonne per annum of green hydrogen will be a major step in increasing TotalEnergies’ share of new decarbonised molecules including biofuels, biogas, hydrogen, and e-fuels to 25 per cent of its energy production and sales by 2050,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

 

[Nilgiri]

https://twitter.com/i/web/status/1538164677758230532

 

[Nilgiri]

Thoughts? @Jackdaws et al.

 

[Jackdaws]

Thoughts? @Jackdaws et al.

Airport was much needed. Adani getting all the airports in India is no longer shocking. He is Modi's blue eyed boy.

About 7-8 years ago I went to check out this new high rise in Bombay called Monte South - turns out the builder is Adani. They were quite open about taking money in various ways. Oh, and the project is still not complete.

 

[Paro]

.

 

[Nilgiri]

 

[Paro]

UPI is pretty awesome. I could tell you their larger business case for the coming years. Probably on a weekday.

UPI was mostly adopted in cities as it was based on mobile internet. just 2 months ago NCPI launched UPI through mobile SMS. it is projected to quadruple by 2024. The company I previously worked for consulted in building the use case.

A year ago NCPi also launched E-Rupi. How it works is the gov pays banks money to issue an E-voucher in form of a QR code and an OPT authentication to AADAR cardholders through UPI.

For example, if gov issues a free education scheme for girls in the country they send out a QR code to those specific AADAR numbers. The student or the parents can get their QR code voucher scanned in their school's UPI apps to get the free education scheme availed by the gov. These Vouchers will specifically work only to the scheme it was issued. This way the gov can make sure the subsidy issued to citizens is used for a specific purpose rather than other family members misusing it.

By 2026 their aim is to replace all the subsidies given by the Center with the E-Rupi voucher system.

@Joe Shearer @Jackdaws @Nilgiri @crixus

 

[Joe Shearer]

.

Hungary not even as much of a democracy as Turkey.

What happened, he forgot India?

 

[Joe Shearer]

UPI is pretty awesome. I could tell you their larger business case for the coming years. Probably on a weekday.

UPI was mostly adopted in cities as it was based on mobile internet. just 2 months ago NCPI launched UPI through mobile SMS. it is projected to quadruple by 2024. The company I previously worked for consulted in building the use case.

A year ago NCPi also launched E-Rupi. How it works is the gov pays banks money to issue an E-voucher in form of a QR code and an OPT authentication to AADAR cardholders through UPI.

For example, if gov issues a free education scheme for girls in the country they send out a QR code to those specific AADAR numbers. The student or the parents can get their QR code voucher scanned in their school's UPI apps to get the free education scheme availed by the gov. These Vouchers will specifically work only to the scheme it was issued. This way the gov can make sure the subsidy issued to citizens is used for a specific purpose rather than other family members misusing it.

By 2026 their aim is to replace all the subsidies given by the Center with the E-Rupi voucher system.

@Joe Shearer @Jackdaws @Nilgiri @crixus

The UPI system is one of the genuine achievements of this present administration. I don't have an opinion yet about their subsidy administration, but on the radical impact that the UPI has had among the middle classes, the upper segments of working classes, and the retail market, there is no doubt that the UPI had brought in major change.

Where UPI has failed is the vast segment that is below these levels. The daily income earner is completely out of it. Those without bank accounts are out of it.

In essence, my position on the UPI is a complement to my position on the NDA. It is fundamentally flawed because it is tailored for the urban population, for the people who read papers, watch TV, shop in organised shopping centres and malls, have bank accounts, some of whom have jobs, not transient labour contracts, and who have a roof over their heads. Not all of India, not even half of India meets these specifications.

I am not saying the NDA rules due to its influence over this defined segment; that would be impossible in electoral terms. I am saying that however it got elected, the NDA's policies are designed for this constituency. Who elects them to power, and who speaks for them on social media are important, and aligned, but not identical to this constituency.

 

[Nilgiri]

Hungary not even as much of a democracy as Turkey.

What happened, he forgot India?

Yah I found that bit strange for a few reasons....singling orban out from a EU perspective, while sitting in India.

Some of his other points regarding the pew survey (the meaning of the question asked versus his quick interpretation) also made me cringe.


Economist (TIFWIW) has countries ranked in the democracy index as such :

The Economist Democracy Index - Wikipedia

en.wikipedia.org

There is however plenty of discussion to be had for accuracy (w.r.t final realised tier on ground) of this approach in number of countries, especially the bigger you get.

 

[Jackdaws]

The UPI system is one of the genuine achievements of this present administration. I don't have an opinion yet about their subsidy administration, but on the radical impact that the UPI has had among the middle classes, the upper segments of working classes, and the retail market, there is no doubt that the UPI had brought in major change.

Where UPI has failed is the vast segment that is below these levels. The daily income earner is completely out of it. Those without bank accounts are out of it.

In essence, my position on the UPI is a complement to my position on the NDA. It is fundamentally flawed because it is tailored for the urban population, for the people who read papers, watch TV, shop in organised shopping centres and malls, have bank accounts, some of whom have jobs, not transient labour contracts, and who have a roof over their heads. Not all of India, not even half of India meets these specifications.

I am not saying the NDA rules due to its influence over this defined segment; that would be impossible in electoral terms. I am saying that however it got elected, the NDA's policies are designed for this constituency. Who elects them to power, and who speaks for them on social media are important, and aligned, but not identical to this constituency.

I am working on something in the Fintech space and the rural issue is being addressed. It's also a question on quality of network, availability of 24x7 electricity and comfort of people with technology. They might be tech capable but don't trust the tech.

 

[Nilgiri]

 

[Nilgiri]

Guys what are your thoughts on this....how valid are these companies requests in this sector?

@Rajaraja Chola et al.

Electronics companies bat for parts makers from China

India's FDI policy for countries sharing land borders was amended on April 17, 2020, through Press Note 3 to only allow inflows through the government route with the necessary approvals.

economictimes.indiatimes.com

 

[Rajendra Chola]

Guys what are your thoughts on this....how valid are these companies requests in this sector?

@Rajaraja Chola et al.

Electronics companies bat for parts makers from China

India's FDI policy for countries sharing land borders was amended on April 17, 2020, through Press Note 3 to only allow inflows through the government route with the necessary approvals.

economictimes.indiatimes.com

I would say 200% valid. China is an essential part of electronic supply chain industry. At some point of time, whether through buying out JVs or stealing, Chinese companies have replaced Japanese and US supply chain companies. Their values might be small. Their overall value (of each company) might be as small as 50-100m. This Indian manufacturing should enable small Indian OEMs, however US and Japanese components makers have gone out of business in most cases. So we have only 3 options. Chinese or Koreans or Taiwanese.

We should let hard manufacturing FDI from china. They need to have someone who understands Electronic manufacturing at the top at secretary level. Without development of this components makers like cell body covers, small screws, even protective mobile covers, tempered glass etc ecosystems needs to get developed in India.

 

[Nilgiri]

India, 17 others unveil roadmap for long-term resilient supply chains

Besides India, the US, the EU, other partners are Australia, Brazil, Canada, Congo, France, Germany, Indonesia, Italy, Japan, Mexico, Netherlands, South Korea, Singapore, Spain and the UK.

economictimes.indiatimes.com

 

[Nilgiri]

@Rajaraja Chola

Vedanta-Foxconn JV finalises $22 bn investment in Maharashtra

Additional Chief Secretary (Industries) Baldev Singh told The Indian Express, "We are bringing a proposal before the state Cabinet on Wednesday to facilitate investment of Vedanta-Foxconn in Maharashtra. They will bring an investment of over Rs 1,58,000 crore in the state."

indianexpress.com

The Maharashtra Cabinet is set to clear on Wednesday a proposal to allot land for a $22 billion Vedanta-Foxconn project to set up a semi-conductor and display fabs manufacturing facility in the state.

Additional Chief Secretary (Industries) Baldev Singh told The Indian Express, “We are bringing a proposal before the state Cabinet on Wednesday to facilitate investment of Vedanta-Foxconn in Maharashtra. They will bring an investment of over Rs 1,58,000 crore in the state.”
A press note issued by the Maharashtra Industrial Development Corporation (MIDC) said, “Vedanta is in active discussion with the government of Maharashtra for their proposed manufacturing facility for semi-conductors and display fabs. With a high concentration of skilled manpower, connectivity to the port, seamless domestic supply-chain and highly developed industrial infrastructure, Talegaon in Pune has emerged as a prominent option for Vedanta and Foxconn for their USD 22 billion investment that can generate more than 200,000 direct and indirect jobs.”

On Tuesday afternoon, Vedanta Electronics and Foxconn delegation called on Chief Minister Eknath Shinde and Deputy CM Devendra Fadnavis at Mantralaya.

 

[Nilgiri]

(~ 18 billion USD in first 5G spectrum sale)

5G Spectrum Auction: 5G spectrum sales net record Rs 1.45 lakh crore on Day 1 | India Business News - Times of India

India Business News: The government netted a record Rs 1.45 lakh crore on the first day of 5G spectrum sale on Tuesday, much higher than the Rs 1.1 lakh crore it made in 2

timesofindia.indiatimes.com

 

[iceream]

(~ 18 billion USD in first 5G spectrum sale)

5G Spectrum Auction: 5G spectrum sales net record Rs 1.45 lakh crore on Day 1 | India Business News - Times of India

India Business News: The government netted a record Rs 1.45 lakh crore on the first day of 5G spectrum sale on Tuesday, much higher than the Rs 1.1 lakh crore it made in 2

timesofindia.indiatimes.com

Why is Indian economy at a thirty
@Nilgiri

 

[Nilgiri]

Why is Indian economy at a thirty
@Nilgiri

Simply put.... majority of Indian labour force is still occupied in largely relatively unproductive work in agriculture.

Somewhere between 40 - 60% are locked into here (depending how you measure it) and transition away into industry and services has been slow.

That too with a pretty bad labour participation rate (another 40 - 50% mark here) to begin with.

Only when a critical mass of labour has moved away from agriculture is there a modern self-momentum generated for the bulk of the population of the country for it to be scored above 50/100 or 5/10 in my scoring system....i.e a pass mark.

Below it, an economy is simply too beholden to world economy and resources (raw, capital, labour or intellectual)...since it has not deployed scaled intensity locally for it in the bare productivity to matter for sustainable breakout into a relevant better score.

The wonderful economic news you see here in this thread literally only largely applies to 3/10 people in India at best.

For that to change India needs to rectify a great deal in its statist bureaucracy that operates on colonial and reductive mercantile and rent-seeker norms....which was imbued heavily by (47 - 91) post-industrial marxism and then a more nebulous neo-marxism (post 91) more recently.....both of which (by default) are extremely irrelevant and counterproductive to what supply side and opportunity the labour and economy of India need for faster transition to productivity and serious investment.

Parts of India given its scale ( a continent posing as a country) do better than 3/10, other parts do worse (and you can use my metric to determine this by state).

South Asia average is like 1 or 2/10, neighbourhood fares even worse, but they have squandered even more than India has....nothing to really feel better about given that really shouldn't make India feel better about how badly its done anyway.