1. Vodafone-Idea to issue equity shares to Government in lieu of AGR dues and Interest
Tags: Economics/Business
Telecom major Vodafone -Idea has decided to issue equity shares to the Government of India in lieu of the interest on its Adjusted Gross Revenue (AGR) and on spectrum installment during the four year moratorium period.
- Following the conversion of AGR dues, the Government will hold around 35.8% of the total outstanding shares of the Company, while the promoters Vodafone and Aditya Birla Group would hold around 28.5% and around 17.8% stake in the company, respectively.
- The net present value of interest is expected to be about Rs 16,000 crore, following final confirmation by the Department of Telecommunications.
- The equity shares will be issued to the government at par value of Rs 10 per share.
For detail on the telecom AGR and other due click the below link:
2. India to export mango to U.S.
Tags: Economics/Business
India to resume export of mangoes to U.S. after more than two years. The restriction on the export was imposed as the U.S. phytosanitary inspector did not visit India for inspection due to the Covid -19 pandemic.
- 12th India-USA TPF (Trade Policy Forum) meeting held on 23rd November in New Delhi paved the way for export of mangoes and pomegranate to the U.S. from India and import of cherries and alfalfa animal feed from the U.S. to India.
- Mango and pomegranate export to U.S. will start from January-February 2022 and pomegranate aril export from April 2022. Import of cherries and alfalfa animal feed from the U.S. will begin in April 2022.
- India ranks first in mango production followed by China and Thialand .
- Thiland ranks first in mango export followed by Maxico and Netherlands.
- Malda (West Bengal) is known as the Mango City of India.
3. NSO estimates FY22 GDP growth at 9.2%
Tags: Economics/Business
National Statistical Office(NSO) release the first advance estimates of India’s GDP Growth in Financial Year 2022 better than last fiscals 7.3%. , amid concerns over the likely impact of a third wave of the COVID19 pandemic.
- The assessment is based on the data for the first eight months of the FY22.
- GDP at constant prices (2011-12) in the year 2021-22 is estimated at 147.54 lakh crore, as against the provisional estimate of GDP for the year 2020-21 of 135.13 lakh crore showing that the growth in real GDP is pegged at 9.2%.
- Similarly Real Gross Value Added(GVA) at Basic Prices is estimated at 135.22 lakh crore in 2021-22, as against 124.53 lakh crore in 2020-21, showing a growth of 8.6%.
- The NSO’s GVA estimates shows-
- Mining sector outpacing others with growth of 14.3% following last year’s 8.5% contraction, followed by manufacturing which is seen expanding by 12.5% after shrinking 7.2% in the previous 12month period.
- Agriculture sector is estimated to grow at 3.9% in FY22 (3.6%).
- The electricity, water supply and other utility services category is estimated to grow at 8.5% (1.9%), Construction sector is expected to grow 10.7% (8.6%) and
- Trade, hotels, transport, communication and broadcasting services are projected to grow at 11.9% against a sharp contraction of 18.2% last year
4. Department for Promotion of Industry and Internal Trade (DPIIT) to organize Startup India Innovation Week
Tags: Economics/Business
The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry is set to organize the Startup India Innovation Week from January 10th to 16th 2022. This week-long virtual innovation celebration aims to commemorate the 75th year of India’s independence ‘Azadi Ka Amrit Mahotsav’ and is designed to showcase the spread and depth of entrepreneurship across India.
- Startup India Innovation Week will have sessions ranging from topics such as Enhancing Market Access Opportunities, Discussions with Industry leaders, Best Practices by States, Capacity Building of Enablers, Reverse Pitching by Incubators, Technology Exhibitions, Corporate Connects and more.
- The programme is expected to bring together top policy makers, industry, academia, investors, startups, and all ecosystem enablers from across the globe.
5. TCS wins second phase of Passport Seva project
Tags: Economics/Business
The Ministry of External Affairs (MEA) has selected Tata Consultancy Services(TCS) for the second phase of the Passport Seva Programme, following ‘successful’ implementation of its first phase. The order value is likely worth at least ₹6,000 crore
- In this phase, TCS would refresh existing facilities and systems, and develop ‘innovative’ new solutions to enable the issuance of e-passports.
- Use of technologies such as biometrics, artificial intelligence, data analytics, chatbots, autoresponse, natural language processing, and cloud would help enhance the citizen experience
- This Passport Seva project was first introduced in 2008 through public-private partnership for enhanced citizen service.
- As of February 2021, TCS (Headquartered in Mumbai) is the largest IT services company in the world by market capitalisation
6. India’s largest ever foreign currency bond issuance by RIL
Tags: Economics/Business
Reliance Industries Ltd.(RIL) has raised USD 4 billion in India’s largest ever foreign currency bond issuance.
- The issue was oversubscribed by three times and the money will be used by the company to retire its debts .
- The bond was issued in three tranches with a duration of 10 years, 30 years and 40 years .
- It is for the first time that any BBB rated Asian companies outside of Japan have issued a 40 years dollar bond .
- The interest rate (Coupon rate ) on the bond is linked to the US Treasuries benchmark. On the 10 year bond it will pay US treasuries benchmark plus 120 basis points which workouts to be 2,875 %,for 30 years bonds it will pay 3.625% and for 40 years it will pay 3.750%.
US Treasury papers
It refers to the debt paper issued by the government of the United States to borrow from the market .
Treasury bills or( T bills) : The debt paper issued by the US government which has a maturity of one year or less .
Treasury Bonds : The debt paper issued by the government of the US to borrow for a long term period .
Benchmark : In finance benchmark means a standard which is used to compare others . The US Treasury is considered as a benchmark in the world debt market as it is considered almost risk free . Risk free means there is a certainty that the US government will repay its debt .
The higher the risk of default the more interest the company has to pay while borrowing .So while borrowing RIL had to pay the US Treasury benchmark interest rates plus 120 basis points which works out to be 2,875 % for the 10 years bonds.
Basis points (BPS ): It refers to a common unit of measure for interest rates and other percentages in finance. 100 basis points is equal to 1%.
7. Reliance Jio introduces UPI autopay in collaboration with NPCI
Tags: Economics/Business
Reliance Jio has become the first telecom company in India to offer Unified Payment Interface (UPI) autopay facility for both Postpaid and Prepaid customers .
- Jio users can now set standing instructions for auto-debit for their tariff plans through UPI using the My Jio app.
- For recharge amounts up to Rs 5,000, customers do not even have to enter the UPI PIN on the execution of the recharge.
- UPI has been launched by the National Payment Corporation of India(NPCI)
For details on NPCI, UPI see 9 December 2021 post .
8. Hughes, Bharti form JV for VSAT services
Tags: Economics/Business
Hughes Communication India Private Limited (HCIPL) and Bharti Airtel announced the formation of a joint venture to provide satellite broadband services in India through Very Small Aperture Terminal(VSAT).
9. RBI releases the list of Domestic Systemically Important Banks (D-SIBs) 2021
Tags: Economics/Business
The Reserve Bank of India has retained SBI,ICICI bank and HDFC bank in the list of Domestically Systemically Important Banks(D-SIB) list for the year 2021.
- RBI started disclosing the name of the bank in the D-SIB list from 2015 and SBI was included in the list.
- ICICI Bank was included in 2016 and HDFC bank was included in 2017.
D-SIB (Domestic Systemically Important Banks )
- The concept behind D-SIB is that there are certain banks in India which cannot be allowed to fail as its failure may badly affect the Indian economy .
- RBI selects banks on their size and their overall contribution in the Indian economy.
- These banks have to keep an additional Common Equity Tier 1 (CET1) apart from their capital conservation buffer .
- SBI has to maintain an additional Common Equity Tier 1 (CET1) of 0.80% as a percentage of their Risk Weighted Assets .
- HDFC Bank and ICICI banks have to maintain an additional Common Equity Tier 1 (CET1) of 0.20% as a percentage of their Risk Weighted Assets .
Foreign Banks having branches in India are called as Global-Systemically Important Bank(G-SIB).At present no foreign bank has been put in the G-SIB category by RBI.
10. Airtel Payment Bank becomes a Scheduled Bank
Tags: Economics/Business
Reserve Bank of India has accorded a scheduled bank status to the Airtel Payment Bank in India.
- It means that the Airtel Payment Bank can now participate in the Central government and State government business, participate in the auctioning of government bonds in the primary market,besides participating in government-operated welfare schemes.
Airtel Payment Bank
- It is the first Payment bank to be set up in India in 2017.
- The headquarters of the Airtel Payment Bank: New Delhi.
Other Payment banks in India are India Post Payment Banks, Fino Payment Bank, NSDL payment Bank, Jio Payment Bank ,Paytm Payment Bank .
