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

A round-up of top newspaper stories to keep you ahead of others

#1. Capital expenditure by private sector has started, finance minister says

India’s private sector has begun to invest, and the economy will do well in the coming quarters, Finance Minister Nirmala Sitharaman said. India will be able to manage the spillovers of high US interest rates, she said. Prime Minister Narendra Modi will return to power in 2024 as the government has delivered on its promises, the finance minister said.

Why it’s important: The central government ratcheted up capital spending in recent years, which was not matched by new investments by the private sector. It will be good news for the economy if that changes.

#2. Government slashes cooking gas prices by Rs 200 to tame inflation

The price of domestic LPG cylinders has been reduced by Rs 200 for all connections, the government has announced. The reduction in price of LPG cylinder, the first change in six months, will take effect immediately and will provide relief to 314 million domestic LPG consumers.

Why it’s important: The reduced price will ease stress in household budget grappling with persistently high inflation. The move ahead of the crucial polling season may also yield electoral dividends.

#3. Maruti Suzuki to invest Rs 45,000 crore in eight years to double capacity

Maruti Suzuki India, the country’s biggest automaker, will invest about Rs 45,000 crore to double its annual production capacity to 4 million units in the next eight years, chairman R C Bhargava has said during the the company’s 42nd annual general meeting. The company needs to reorganize and focus on different powertrains, including for electric and hybrid vehicles, compressed natural gas, and ethanol.

Why it’s important: Maruti is trying to pivot from an overemphasis on internal combustion engines, which follows the overall trend in the auto industry. It will require new infrastructure and support services.

#4. JSW Group in advanced talks to acquire Ford factory in Chennai

The Sajjan Jindal-led JSW Group is in advanced discussions to buy the closed Chennai factory of Ford Motor for its planned entry into the electric vehicle space. The company is speaking with both the state government and Ford. Spread over 350 acres, the Ford factory, shut since July last year, has an annual production capacity of 200,000 vehicles and 340,000 engines.

Why it’s important: If the acquisition goes through successfully, JSW will gain a toehold in the rapidly expanding electric vehicle sector. The Tamil Nadu government is also keen to find a new owner who can restart production.

#5. Goldman Sachs likely to convert partial debt into equity in PharmEasy

Goldman Sachs may convert a part of the debt it gave to PharmEasy into equity after the upcoming rights issue of about $424 million (Rs 3,500 crore) by the online pharmacy that will open on September 4. Goldman, which had issued a $300-million loan to PharmEasy, is in discussions to convert around $38-40 million debt into equity.

Why it’s important: The rights issue is likely to value the e-pharmacy at $500-600 million, significantly lower than its peak valuation of $5.6 billion in 2021. India’s start-ups are undergoing a reality check.

#6. India’s power demand and shortage smash records in August

Electricity usage, which started rising in July, touched record demand in August as rainfall sputtered, driving stocks of power companies to new highs. As demand surged, power shortage also shot up. India saw a record peak shortage of 9.11 GW, or over 4 percent of the peak demand, on 21 August, when peak demand was 226GW, data from the Grid Controller showed. Generation outage stood at 51.65GW.

Why it’s important: Electricity demand to run pumps to water farms have shot up as rains have been scanty in recent weeks. The demand is likely to remain high as the monsoon recedes over the country.

#7. Government working on providing private sector access to non-sensitive data

The central government is considering ways to give the private sector enhanced access to non-sensitive data on the Gati Shakti platform, Trade Minister Piyush Goyal has said. The demand from the private sector to use Gati Shakti has been overwhelming, the minister said.

Why it’s important: Gati Shakti is intended to hasten implementation for infrastructure projects. The government needs to ensure checks and balances while letting the private sector use the platform as data leaks could be damaging.

#8. Coordinated data regulation critical in connected world, Mastercard chief says

When it comes to regulating the digital economy, it’s important in a globally connected world that there is coordinated regulation, according to Michael Miebach, CEO of Mastercard. If every country does their own, the global digitally connected economy is going to be difficult to run, he said.

Why it’s important: India has moved to legislate on data privacy as the digital economy gathers steam. How the data is used and how it moves across borders are concerns that need to be addressed.

#9. Senior executives in Big Tech open to changing employment but jobs are getting scarce

There was a time when it was difficult to pin down senior Big Tech professionals for job offer conversations. Not any longer, executive search and hiring firms including Transearch, Longhouse Consulting, CIEL HR and GI Group Holdings said. Now they’re the ones who often make the first move. While those on tech functions have it easier, salaries remain a big challenge, with few hiring companies willing to match the huge packages many of these professionals currently get.

Why it’s important: The hiring trend among senior tech executives underline the slowdown in the sector globally. Finding suitable jobs in senior management is not going to be easy.

#10. India will fly to Venus and Mars with private sector as vital partner

Private companies will be a crucial partner in India’s future space missions, including those to Mars and Venus, government think tank NITI Aayog member and defence scientist V.K. Saraswat has said. India is not behind any world power, including China, in technical capability, although the country needs to build scale, he said.

Why it’s important: The private sector already plays a role in India’s space sector by making vital components. Its role will only increase in the coming years as commercial use of space technology rises.