News Nook: Oct 6, 2024

Indian Sector Specific News:

A) Indian Telecommunication:

1) Q2 FY25 Telecom Sector Outlook

• ARPU Growth: Telecom companies are expected to see a 7-8% rise in average revenue per user (ARPU) due to recent tariff hikes. Bharti Airtel is forecasted to lead with an ARPU of ₹228/month.
• Subscriber Impact: Bharti Airtel may lose 1 million users, while Reliance Jio could gain 1 million. Vodafone Idea is likely to lose 3.5 million subscribers, despite a boost in ARPU to ₹156/month.
• Business Expansion: The growth of 5G and digital penetration will support overall business expansion, particularly for Reliance Jio and Airtel.
• Other Key Players: Companies like MapmyIndia and Emudhra are expected to report significant revenue and EBITDA margin growth.
• Source: livemint

2) DoT Launches System to Block Fraudulent International Calls

• The Department of Telecommunications (DoT) has introduced an advanced system to block international spoofed calls in collaboration with telecom operators such as Reliance Jio, Bharti Airtel, Vodafone Idea, and BSNL.
• Initially, it prevents calls spoofed with subscriber phone numbers at the telecom provider level, and later it will block all spoofed calls centrally.
• Currently, 4.5 million spoofed calls are being blocked from entering the Indian telecom network, with further improvements planned.
• DoT encourages the public to report spam or fraudulent communications using its 'Chakshu' platform.
• Source: Business Standard

B) Indian Renewable Energy:

1) Renewable Energy Set to Surpass Fossil Fuels by 2030

• The global electricity generation from renewable energy is expected to surpass 50% by 2030, reducing the reliance on fossil fuels, as highlighted in a Reserve Bank of India (RBI) report.
• As of August 2024, India’s energy mix consists of 55.72% fossil fuels, with coal contributing 48.27%, while renewable energy accounts for 44.27%, led by solar (19.84%), wind (10.47%), and hydro (10.41%).
• The RBI stresses the need to triple renewable energy capacity by 2030, with a requirement for three dollars of renewable investment for every dollar invested in fossil fuels to meet net-zero emission targets.
• According to the International Energy Agency (IEA), global energy investment in 2024 is expected to exceed $3 trillion, with $2 trillion focused on clean energy technologies, driven by lower costs for solar panels and critical minerals used in batteries.
• Sources: polymerupdate

2) Union Minister Shri Pralhad Joshi's Visit to Germany for Strengthening Cooperation in Renewable Energy

• Union Minister Shri Pralhad Joshi will visit Germany from 6th October 2024 to strengthen cooperation in renewable energy and sustainable development, attending the Hamburg Sustainability Conference and meeting key ministers and officials from Germany and the UK.
• Focus areas include discussions on Green Hydrogen, decarbonizing the mobility sector, green shipping, and expanding India's renewable energy capacity, building on the India-Germany Platform for Investment in Renewable Energies launched in 2024.
• India's energy transition is advancing rapidly, having achieved 40% non-fossil fuel-based electric power capacity by 2021, well ahead of its 2030 target, with plans to reach 50% by 2030, reinforcing its global leadership in renewable energy initiatives.
• Source: pib.gov.in

3) ICMR signed MOU with NVVN boosting solar power sector

• The Indian Council of Medical Research (ICMR) has signed a Memorandum of Understanding (MoU) with NTPC Vidyut Vyapar Nigam (NVVN) to boost solar power usage across its health research facilities. 
• This partnership will involve the installation and maintenance of rooftop solar panels in 15 ICMR institutes, with a total capacity of 4,559 KW. 
• The initiative aligns with India's "Atmanirbhar Bharat" vision and includes a Power Purchase Agreement (PPA) ensuring a fixed solar tariff for 25 years, leading to significant cost savings and reduced carbon emissions. 
• This collaboration builds on the success of solar energy usage already implemented at seven ICMR institutes and reinforces India's commitment to renewable energy in the healthcare sector​.
• Source: EnergyWorld

C) Indian BFSI:

1) RBI Raises Concerns Over Gold Loans

• The Reserve Bank of India flagged issues with the valuation of gold in loans, especially without customer presence, mainly in loans linked with fintech partners.
• It warned against rolling over partially paid loans without new appraisals, which increases the risk of borrowers falling into deeper debt.
• Borrowers must ensure compliance with the 75% loan-to-value ratio, as any drop in gold prices may require them to add more collateral or cash.
• Source: Financial Express

D) Indian Agriculture:

1) PM Modi Launches Agricultural and Animal Husbandry Initiatives in Maharashtra

• Prime Minister Narendra Modi launched agricultural and animal husbandry initiatives worth ₹23,300 crore in Washim, Maharashtra, which includes the 18th installment of the PM-KISAN Samman Nidhi, benefitting around 9.5 crore farmers with ₹20,000 crore, and the 5th installment of the NaMo Shetkari Mahasanman Nidhi Yojana, providing ₹1,900 crore to about 90 lakh farmers.
• The initiatives feature over 7,500 projects under the Agriculture Infrastructure Fund, 9,200 Farmer Producer Organisations (FPOs) with a turnover of ₹1,300 crore, and the establishment of five solar parks across Maharashtra with a total capacity of 19 MW.
• PM Modi emphasized the government's commitment to enhancing farmers' incomes through infrastructure improvements, including cold storage and processing facilities, while highlighting efforts to empower women through the Ladki Bahin Yojna.
• Source: ThePrint

2) PM Modi Launches Unified Genomic Chip for Cattle to Aid Farmers

• PM Modi launched the 'Unified Genomic Chip' aimed at helping farmers identify high-quality cattle early, enhancing dairy farming efficiency in India.
• The chip has two versions: 'Gau Chip' for cattle and 'Mahish Chip' for buffalo, designed to assist farmers in making informed decisions about animal selection.
• The initiative includes new indigenous technology for sex-sorted semen, expected to lower costs by about ₹200 per dose, promoting the 'Make in India' campaign.
• Source: Business Standard

D) Extras:

• India's alcoholic beverage industry, the third-largest globally, features major exporters like United Breweries and Radico Khaitan, with Radico achieving 6.56% of its revenue from exports in FY24.
• United Breweries operates in 50 countries, while Radico Khaitan exports to over 100, showcasing their global market reach and diverse brand offerings.
• India's transportation sector is rapidly transitioning to electric and hybrid vehicles due to rising fuel prices and supportive government policies. Hybrid vehicle sales have grown to 2.5% of total sales in 2024, with major automakers like Maruti Suzuki and Toyota leading the charge. Hybrids offer a practical solution for consumers seeking eco-friendly options without the limitations of full EVs, aligning with national CO2 reduction goals.