Business News at 10:00 am on 18th April, 2024

Let’s begin – Vodafone Idea may need further support from the government once the current moratorium on the adjusted gross revenue and spectrum dues ends in September 2025, chief executive officer Akshaya Moondra told FE on Wednesday. The company may either seek further deferral on the payments or urge the government to convert the dues into equity, he said. “After one-and-a-half years, we will be in a position to see what support we need from the government. Initially, we may need some support and it’s the government which will have the right to choose either to convert or defer the dues. That is their choice every time,” Moondra said.

Moving on – The Centre is likely to top up the 50-year interest-free capex loans to states by 15% to Rs 1.5 trillion in 2024-25 from Rs 1.3 trillion provided in the interim Budget. This is because of the increased demand from states for the liberal loan facility aimed at boosting economic activity across the country. Sources told FE that the additional amount is expected to be part of the reform-linked component of the loans as the Centre embarks on next-generation reforms. To strengthen the hands of the states, the scheme for providing financial assistance to the states for capital expenditure introduced in Covid-hit FY21 has been extended to FY25 as well with an outlay of Rs 1.3 trillion.

Up next – Paytm owner One97 Communications on Tuesday received approval from the National Payment Corporation of India to start the user migration from existing Paytm Payments Bank UPI handle to new Payment System Provider bank handles. “Following NPCI’s approval on March 14, 2024, to onboard OCL as a third-party application provider on the multi payment service provider API model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India, and Yes Bank,” the company said in an exchange filing. It added that all four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks.

In other news – South Korean giant Samsung is targeting a turnover of Rs 10,000 crore for its television business in India this year, driven by growth in sales of its mid-to-premium segment models, said Mohandeep Singh, senior VP, consumer electronics business in India. “Last year, the TV market was stagnant in terms of volume. However, this year we expect the market to be on a growth trajectory as far as volumes are concerned, and the volume growth is going to come not from the entry price points, but from the mid and premium price points,” he told FE. Samsung has been leading the overall TV market in India for the past five years, as per data from Omdia

Meanwhile – The current fiscal would be a transformative year for mining major Vedanta, a subsidiary of Vedanta Resources, as it prioritises a disciplined growth and explores opportunities. While VRL looks to deleverage $3 billion in the next three years, the group is expecting to achieve an annual group Ebitda of $7.5 billion within two years, chairman Anil Agarwal said in a communication to shareholders. “As we step into the new fiscal, we have set targets that reflect our pursuit of sustainable growth while maintaining a healthy balance sheet,” Agarwal said. He added: “Vedanta Group remains firmly focused on the exciting road ahead. FY25 will be a transformative year for us on many fronts as we prioritise disciplined growth, operational excellence, and exploring opportunities along the value chain.

Moving ahead – The government is confident of producing 1.08 billion tonne of coal during 2024-25, an official source told FE. The coal ministry is planning to inaugurate 20 first-mile connectivity projects with coal handling plants and silos this fiscal to boost evacuation. “This year, we will produce 1,080 million tonne of coal,” the source said. “Rake deployment has increased and effective utilisation of rakes is going to happen. We have CHP silos. In FY24, we inaugurated eight CHP silos. This year, we are going to inaugurate almost 20.” Of the envisioned FY25 target, Coal India is set to produce 838 MT. The company earlier had a target of producing 850 MT, which was revised owing to huge stocks at thermal power plants.

Lastly – GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a weak opening. GIFT Nifty traded lower as the index was down 41.50 points or 0.19% at 22,112.00 indicating a muted start for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Tuesday, the NSE Nifty 50 lost 124.60 points or 0.56% to settle at 22,147.90, while the BSE Sensex dropped 456.10 points or 0.62% to close at 72,943.68. The key stocks to watch in trade today are Ambuja Cements, Paytm, Infosys, Vodafone Idea, and Power Grid Corporation among others.