From boost of adventure tourism in Uttarakhand to Surat diamond bourse to latest Jefferies report on Indian industries, in today’s podcast we take a look at the major events that took place in the week gone by.
Weekly Business Roundup at 10:00 am on 23rd December, 2023.
[Disclaimer: This transcript is auto-generated]
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Let’s begin – In a significant attempt to boost adventure tourism, the Uttarakhand tourism department has announced the launch of the ‘Himalaya Airsafari,’ featuring gyrocopters—an innovative and exhilarating experience set to be the first of its kind in the country. The tourism department revealed that the inaugural flight test of the gyrocopter was successfully conducted in Haridwar on Saturday, marking a significant milestone for Uttarakhand’s tourism initiatives. With the necessary approvals secured from the DGCA, the state is set to introduce these cutting-edge gyrocopters to connect tourists with the pristine and untouched destinations of Uttarakhand.
Up next – The Central government may save around Rs 14,000 crore under the flagship Pradhan Mantri Awaas Yojana- Gramin in the current financial year as some states are not eligible to get funds, either for failing the eligibility conditions or not implementing the scheme. The government has budgeted Rupees 54,487 crore for PMAY-G in FY24, the highest annual allocation after the launch of the scheme in 2016. The expected savings in PMAY-G would cover, to a large extent, the additional allocation of Rupees 16,143 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme in the first supplementary demand for grants, which was approved by the Lok Sabha last week.
Meanwhile – The Telecom Disputes Settlement & Appellate Tribunal has asked the department of telecommunications to adjust the excess Rs 755.52 crore received by it from Vodafone Idea, towards licence fee and spectrum usage charges. The excess amount to be adjusted by DoT pertains to the amount collected by it from the company at the time of the merger of Vodafone India with Idea Cellular in 2018. At the time of merger in 2019, DoT had asked the company to pay Rs 3,926.34 crore as spectrum liability, which it paid to avoid any disturbance in the process of merger. However, later Vodafone Idea filed a petition with the TDSAT challenging the calculation by DoT. According to the company, the actual liability was Rs 3,170.82 crore.
In another development – In the latest report on Indian industrials, Jefferies provides a comprehensive overview of the sector, pointing to several key indicators that signal robust performance and positive trends. The second quarter of FY24 saw a remarkable surge in order flows, witnessing a substantial 67% year-on-year increase. Notably, Larsen & Toubro emerged as a frontrunner, contributing significantly to this growth with an impressive 72% YoY expansion. Jefferies notes a noteworthy 256 basis points year-on-year margin expansion for major players such as ABB, Siemens, and Thermax in Q2. This expansion is attributed to operational leverage, reflecting efficiency gains in their business operations. Industrial stocks in Jefferies’ universe have exhibited notable outperformance compared to the Nifty index over both one- and two-year periods.
Moving on – In the inauguration ceremony of the Surat diamond bourse in Gujarat, Prime Minister Narendra Modi revealed plans for the creation of 150,000 new jobs, emphasising the bourse’s role as a “one-stop shop” for artisans and businessmen. Surat, Modi’s home state, is renowned for cutting and polishing 90% of the world’s rough diamonds, and the bourse is positioned to support the city’s aspirations to become the world’s diamond capital. Spanning an impressive 6.6 million square feet, the bourse is heralded as the world’s largest office building, surpassing even the Pentagon with its 6.5 million square feet. Modi expressed optimism that the facility, once fully operational with features like international banking, safe vaults, and a jewelry mall, would generate additional jobs.
In other news – EbixCash on Tuesday announced that its operations in India will not be affected by the Chapter 11 process in the US. The company in a statement said that, quote-unquote, “The Chapter 11 proceedings apply to Ebix entities in the US only and Ebix’s approximately 200 affiliates outside the US are not included in the US-only Chapter 11 filing and will continue to operate normally.” EbixCash companies in India, besides all international subsidiaries and their franchisees around the world are not included in the Chapter 11 filing. The company has strong standalone financials and governance, with its cash flows solely available for its own needs. Chapter 11 process mandates insulation between the international companies and the US company in terms of any intercompany dealings.
Lastly – Paddy procurement under the minimum support price scheme declined 13% on year to 36.54 million tonne so far in the current season, with farmers in Chhattisgarh and Telangana holding on to stocks in anticipation of receiving bonus over MSP. On the hustings, the BJP which returned to power in Chattisgarh after recent assembly elections promised a procurement price of Rs 3100/quintal for paddy, including bonus, against MSP of Rs 2,183. The Congress which won in Telangana also hinted at bonus over paddy MSP.
