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

Indian rupee tests new low, sinks past 83 against strengthening dollar

The rupee has fallen to a new low of 83.02, down 66 paise or 0.8 percent from its previous close, as the dollar strengthened, and importers scooped up the greenback. The dollar index strengthened as a 14-year high for US 10-year bond yields drove demand for dollars, which was rising from Tuesday and intensified on Wednesday. The Reserve Bank may have stayed away from the forex market and the rupee weakened throughout the day, ending the day at its lowest point. The rupee has slipped from 82 a dollar to 83 in less than a fortnight. The local currency has weakened 11.68 percent against the dollar this year.

Why it’s important: There are expectations that the Reserve Bank will intervene early on Thursday to arrest the fall. The rupee will remain under pressure in the near term.

Draft telecom bill not final, sector regulator’s concerns are being addressed

The Department of Telecommunications is looking into the concerns of the Telecom Regulatory Authority of India over a possible dilution of its powers under some provisions of the draft telecom legislation, according to communications minister Ashwini Vaishnaw, who underscored that it's only a draft and changes can be made. Vaishnaw allayed concerns of WhatsApp, Signal and Telegram, saying the government will introduce light-touch regulations, keeping consumer interest, security, and issues of cyber fraud in mind.

Why it’s important: There have been concerns that the draft bill in its present form will give greater powers to the administration at the expanse of the telecom regulator. There are fears of overregulation of messaging platforms as well.

KKR looks to sell Virescent green power platform in first exit in the space

KKR & Company is looking to sell its maiden renewable energy platform Virescent. KKR began investing in Indian infrastructure in 2019 when it acquired stake in IndiGrid. Since then, the fund has invested in setting up platforms to host operating renewable and road assets. Last month, KKR led a $450 million investment in Hero Future Energies.

Why it’s important: Once the sale is completed, it will mark the first exit for the private equity firm’s inaugural Asia Pacific Infrastructure Fund from India. The country’s renewable energy market is seeing a lot of activity as investors and corporates rush to access green energy assets.

New IT rules to retain provision of creating grievance appellate committees

The electronics and IT ministry is set to retain the provision creating state-appointed grievance appellate committees in the amended IT rules, which are likely to be released by the end of October. The government has received the department of legal affairs' approval for the final version. The IT (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2022, says the government shall establish one or more such committee within three months of the rules coming into force.

Why it’s important: Big Tech has expressed reservations over the grievance appellate committees where social media users can appeal against decisions taken by grievance officers of social media companies. Currently, users can appeal against these decisions only in courts.

Staff returns to work from office, but most prefer working from home

More than 90 percent of Indian firms have returned to work from office fully or partially. Only about 9 percent was working fully remotely in August compared with 38 percent in January, according to a survey by Aon. Attrition for companies that announced a return to office in the next few months stood at 29 percent in August, compared with 19 percent for those working virtually and those who are working in hybrid mode. Close to 70 percent of the 700 surveyed companies worked in hybrid mode in August compared with 47 percent in January.

Why it’s important: There is a clear preference among employees to work from home, even as the debate over the effectiveness of home, office, or hybrid work modes continues.

Microsoft chief says people come to office to connect, not for company policy

The world is experiencing a once-in-a-lifetime change in how, where, and why we work, and it is not going back to 2019, Microsoft chairman Satya Nadella said in an interview. Companies need to accept that and find a new path forward, he said.

Why it’s important: Microsoft has found that 80 percent of employees in India needed a better reason to go into the office than just company expectations. As much as 92 percent said they were motivated to come to work to establish connections and rebuild team bonds.

Adani to invest Rs 10,000 crore to triple passenger capacity in Ahmedabad

The Adani group will invest some Rs 10,000 crore in Ahmedabad airport between 2023 and 2027 to boost its passenger handling capacity threefold. Adani executives said Ahmedabad airport will be made a regional hub connecting airports such as Bhuj, Kandla, Jamnagar and Bhavnagar. Its annual passenger handling capacity will be increased from 9 million to 28 million in 2027.

Why it’s important: Adani has recently airport management in a big way and won bids to operate airports in Lucknow, Jaipur, Mangaluru, Thiruvananthapuram, Ahmedabad, and Guwahati when these were privatized in 2019. It has been gradually increasing its presence in the aviation sector.

Vodafone Idea may raise funds by issuing preferential convertible debentures

The board of Vodafone Idea will meet on October 21 to consider raising funds by issuing preferential convertible debentures to a vendor, which could be Indus Towers, which is owed around Rs 6,800 crore by the stressed telecom operator. Vodafone Idea had first announced a Rs 25,000 crore fundraising plan through a mix of debt and equity in September 2020. Of this, it has received some Rs 4,900 crore from promoters, a bulk of which has been used to clear Indus dues. The balance funds are yet to be raised.

Why it’s important: With around 253 million subscribers, Vodafone Idea needs cash to invest in 4G capex and roll out 5G services.

Makemytrip and Oyo fined Rs 390 crore for abusing market dominance

The Competition Commission of India has imposed a fine of Rs 390 crore on Makemytrip and Oyo for abuse of market dominance. The regulator has asked MMT to pay Rs 223.48 crore and Oyo to pay Rs 168.88 crore. The watchdog also directed MMT to review all agreements with hotels and provide them fair access. The order was based on a complaint filed by Federation of Hotel & Restaurant Associations of India.

Why it’s important: Hoteliers listed on the platforms were not allowed to sell their rooms on any other platform or on their own online portal at a price lower than that being offered on the platforms. This crimped their ability to drive higher capacity utilization.

Highway construction shows indications of slowing down considerably

Indications of a slowdown in India’s road sector seem to be becoming stronger with highway construction reaching only a fourth of the annual target in the first six months of the current financial year. Construction up to September has been 3,559 km compared to a target of 12,000 km in 2022-23, official data showed. The slowdown is also seen also in the award of new projects. Only 4,092 km of projects have been awarded in the first six months of the current fiscal year compared to 4,609 km of highways awarded in the same period last year.

Why it’s important: It is doubtful the government will be achieve its target to building 12,000 km of roads in 2022-23 as it would mean constructing 50 km every day, which has never being accomplished before.