Moneycontrol PRO
UPCOMING EVENT:Are you 45+? Planning for retirement? We have just the right webinar for you - Planning for Retirement with Life Insurance on 27-Jan, 3pm. Register now!
you are here: HomeNewsBusiness

Morning Scan: All the big stories to get you started for the day

A round-up of the biggest articles from newspapers

January 14, 2022 / 07:39 AM IST

Big capex push expected in budget to bolster growth

The government is likely to set a capital expenditure target of more than Rs 6.5 trillion for 2022-23 in the upcoming budget to be presented in Parliament on February 1. The finance minister had raised capital expenditure to Rs 5.54 trillion in the last budget. This year, another hike of more than 20 percent is expected.

Why it’s important: The central government’s priority has been to push economic activity and consumption and create jobs through increased spending on infrastructure. The states and the private sector have been provided incentives to do the same. The increased capex will act as an economic stimulus to counter the pandemic disruption.


Reliance to invest Rs 6 trillion in green projects in Gujarat


Reliance Industries has signed an accord with the Gujarat government to invest Rs 5.955 trillion ($80 billion) over the next 10-15 years for various projects of its clean energy businesses in the western state.

Why it’s important: Reliance had in June announced plans to diversify into clean energy. India’s largest fossil-fuel refiner wants to extend its dominance amid a global shift to renewables. The firm currently generates more than half of its revenue from refining and petrochemicals but will be pivoting to renewable fuels in the next few years.


Adani and Posco to build $5 billion steel plant in Mundra

South Korea’s Posco and the Adani Group will jointly build a $5 billion integrated steel plant in Gujarat. An environment-friendly steel mill would be built at Mundra as part of an initial non-binding agreement between Posco and Adani. Details of investment and manufacturing capacity are yet to be disclosed.

Why it’s important: The partnership will contribute to the growth of manufacturing in India, in sync with the government’s Atmanirbhar Bharat campaign. This is in the third attempt by the South Korean steel giant to have a significant manufacturing presence in India.


Indian firms, banks wary as Sri Lanka fights economic crisis

Companies and banks in India are taking a cautious approach towards Sri Lanka, which is battling a financial crisis. The island nation has sought $1 billion in loans from India to import essential commodities.

Why it’s important: India is Sri Lanka’s third-largest export destination. India has invested heavily in the infrastructure and social sector projects in that country. It had extended credit of some $2 billion for infrastructure projects and invested around $1.7 billion over 15 years till 2019.


Tesla facing many challenges in India, says Elon Musk

Tesla is facing a lot of challenges and is working with the government to start operations in India, chief executive Elon Musk has said, providing an update on the US electric carmaker’s plans for the country. The world’s most valuable car company has asked for a cut in import duties before it starts operations.

Why it’s important: The electric cars made by Tesla have made a big splash in Western and Chinese markets. The company is yet to sell it cars in India because it has said levies imposed by the country are the highest among large countries, and it can consider establishing a factory locally only if it succeeds with imported models.


Company law appellate tribunal to hear Amazon’s plea against antitrust ruling

The National Company Law Appellate Tribunal will on February 2 hear US e-commerce giant Amazon’s plea challenging the Competition Commission of India’s suspension of approval to its 2019 transaction with Future Group. The tribunal has directed India’s antitrust regulator and Future Coupons to file their replies in the next 10 days, and to Amazon to file a rejoinder.

Why it’s important: The Amazon and the Future Group are embroiled in a bitter legal tussle over the sale of Future’s retail assets to Reliance. The Competition Commission had in December suspended Amazon’s 2019 deal worth Rs 15 billion with Future Retail. Amazon has also approached the Supreme Court against a halt on an arbitration case against Future Retail’s asset sale to Reliance.


Actis may buy Welspun’s roads for Rs 80-100 billion

Actis, a private equity investor, is in advanced discussions to purchase six road assets of Welspun Enterprises for an enterprise value of between Rs 80 and Rs 100 billion. The road assets of the BK Goenka-led infrastructure company are up for sale. They include five hybrid annuity model roads and one build-operate-transfer project.

Why it’s important: There is increased interest by foreign investors on India’s roads and broader infrastructure sector because they promise higher yields at a time when returns on investment is at a historic low in developed markets.


Vodafone Idea may raise between $750 million and $1 billion through overseas bonds

Telecom operator Vodafone Idea is mulling an option to issue foreign currency convertible bonds worth between $750 million (approximately Rs 55.5 billion) and $1 billion (around Rs 74 billion) by early February.

Why it’s important: The beleaguered telecom firm, which recently converted debts in shares, making the government the largest stakeholder, needs an immediate cash infusion to pay vendor dues, meet loan repayment obligations and fund capex plans.


Larger steel offtake likely from automakers

India’s steel mills are expecting an increases offtake from automobile makers in the three months to March after a muted showing in the fiscal third quarter. Going by the current trend, the fourth quarter may be better in terms of auto offtake.

Why it’s important: Steel offtake by automobile companies was slow in the December quarter because of weak festive demand and supply bottlenecks. The two-wheeler segment suffered due to subdued demand and volumes of passenger vehicles suffered due to supply-side constraints.

Vedanta emerges as biggest clean energy consumer

Vedanta Aluminum Business, the country’s largest producer of aluminum, was the largest industrial consumer of renewable energy in 2021. It topped renewable energy procurement on Power Exchange India Ltd and Indian Energy Exchange by buying two billion units for its aluminum smelter in Jharsuguda in Odisha.

Why it’s important: By extensively using green energy, the Vedanta company was able to reduce greenhouse gas emissions by more than 1,540 kilo tons of carbon dioxide equivalent. Renewable energy, the prices of which have declined significantly in the past few years, is becoming increasingly attractive to many industry sectors.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Moneycontrol News
first published: Jan 14, 2022 07:38 am
ISO 27001 - BSI Assurance Mark