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INDIA'S INFRASTRUCTURE SECTOR POISED FOR A ROBUST GROWTH IN FUTURE

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Building Indian Infrastructure Fit for 21st century

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The infrastructure industry is the backbone of the country. As one of the most robust industries, it plays a critical role in boosting India's overall development and, as a result, generating economic growth. Increased government expenditure on larger-scale projects strengthens India's competitiveness globally. According to the Indian Infrastructure Sector in India Industry Report, India aims to invest USD 1.4 trillion on infrastructure between 2019 and 2023, which is expected to promote the sector's expanded expansion. Even at critical times like the COVID-19 epidemic, the Indian infrastructure industry has always showed exceptional development. In addition, once the lockdown was lifted, infrastructure and building were the first economic activities to begin in the country. Clean energy and green infrastructure development programmes have provided a much-needed boost to the sector's growth. Furthermore, the incorporation of cuttingedge technology and the notion of developing smart cities is continually adding to the country's futuristic infrastructure advancements. The growth of infrastructure development adds further impetus to investments in India. The Department for Promotion of Industry and Internal Trade (DPIIT) estimates that FDIs in the construction development and construction sectors totaled USD 25.78 billion and USD 17.22 billion, respectively, between April 2000 and September 2020. Aside from that, India has progressed from requiring foreign aid to assisting other countries in developing their infrastructure. The country has spent heavily in infrastructure projects in Nepal and Afghanistan, including the development of hydropower plants, dams, and schools. To facilitate freight flows, India's railway network is experiencing continuous development. The Indian Railways Ministry has announced the establishment of Western and Eastern Dedicated Freight Corridors in order to promote world-class cargo operations in the country. The Western Dedicated Freight Corridor (WDFC) would entail the building of a 1483-kilometer freight route connecting Dadri, Delhi, and Navi Mumbai. While the Eastern Dedicated Freight Corridor (EDFC) would entail the building of an 1839 km-long freight railway between Punjab and West Bengal. Aside from railway lines, the Ministry of Indian Railways launched the "Adarsh" station programme, which will modernise railway stations. Improvements to the station building's exterior, platform surface, waiting area and retiring rooms, foot overbridges, lifts, and escalators will all contribute to a huge upgrade of India's railroads. Aside from enhancing the railway network, the nation is focused on universal network expansion by devoting funding for new road building. The government has created Bharatmala Pariyojana, a new umbrella initiative for the roads sector, to streamline freight and passenger traffic. It fills critical infrastructure gaps through universal development, which includes the construction of Economic Corridors, Inter Corridors and Feeder Routes, National Corridor Efficiency Improvement, Border and International Connectivity Roads, Coastal and Port Connectivity Roads, and Green-field Expressways. There will also be a greater emphasis on the use of technology and scientific planning for asset monitoring and management. Furthermore, the construction of new roads and the extension of existing ones is a significant innovative method of providing continuous transportation infrastructure. The National Motorways Authority of India (NHAI) recently announced a timeframe for the completion of 23 additional highways by 2023. This can only be undertaken if the industry has a steady cash flow. To that end, NHAI's plans to establish Special Purpose Vehicles (SPVs) for the Delhi-Mumbai expressway will allow for a shorter construction timeframe and fewer hazards. The progress being made in India's infrastructure sector is amazing. Furthermore, the space's rising growth trajectory represents the country's long-term development. If the planned roadmap is followed with fervour and on schedule, the industry would become one of the most promising for the Indian economy.

Dr. Hariom Tyagi Editor-in-Chief Observer Dawn

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BRIEFING 08

NEWS Festive spirit makes Retail top talent grosser in Sept’21, FMCG & Construction sectors follow

PSUS Add energy storage to ensure adequate renewable energy reserve: RK Singh

COVER STORY India's infrastructure sector poised for a robust growth in future

BUSINESS OUTLOOK Driven by demand, American Airlines flies back to India after nearly 10 yrs

CENTRAL NEWS Freecharge announces roll out of its neo banking platform

DAWN

December 2021

TRENDS Agri-Supply Chain : reinvents to keep its operations run smoothly

FINANCE Is Low Interest Income Challenging Your Wallet?

Delivery of fourth scorpene submarine ‘Vela’ to Indian Navy

DRDO and Indian Air Force successful conducted flight tests of indigenouslydeveloped smart anti-airfield weapon

DEFENCE

BIZ TIPS Building Your 2022 Business Plan the Right Way

Employee and Manager Tips for End-Of-Year Reviews

INDUSTRY OUTLOOK Ending India's Coal Era with a Just Transition

Indian Stainless Steel Industry Tense Present, Uncertain Future

December 2021

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Power of Thoughts

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NEWS

FESTIVE SPIRIT MAKES RETAIL TOP TALENT GROSSER IN SEPT’21, FMCG AND CONSTRUCTION SECTORS FOLLOW

iding high on relaxed COVID-19 curbs, festive spirit and a positive consumer sentiment, Retail and FMCG sectors posted maximum talent demand in M-o-M analysis in Sept’21. Retail noted a 18 per cent growth, followed by Consumer Durables/FMCG sector which noted 10 per cent growth. The Construction/Cement sector posted 7 per cent growth in talent demand in Aug’21 v/s Sept’21 comparison. A Y-o-Y analysis of talent demand revealed that the FMCG, IT/Telecom and Retail sectors topped the talent demand charts with doubledigit growth. FMCG had the highest Y-o-Y growth of 22 per cent, followed by IT/

Telecom which clocked 20 per cent increment, while Retail saw 18 per cent annual growth. An in-depth analysis of functional areas revealed that Engineering and Front Office/ Administration roles were most in demand in Sept’21. While both these saw singledigit growth, the Logistics/ Supply Chain Management role saw a stagnation in talent demand with no growth, no loss as such. Rest all job roles were in the red, plummeting from their Aug’21 talent demand indices. A location-wise study indicated that Indore was the top job hub in Sept’21 with 30 per cent growth in talent demand followed by Lucknow’s 2 per

cent growth in the M-o-M study. Chandigarh saw no improvement, or loss in the talent demand indices when compared to its Aug’21 stats. All other cities, including the metro cities of DelhiNCR, Mumbai, and Bengaluru saw a dip in M-o-M study of talent demand. Sept’21 has been a fabulous month on many counts. The COVID-19

situation is under control, vaccination drives are in full swing, consumer sentiment is resurging and India is now home to 31 unicorns! With the kind of investment that is coming to India now, talent demand has picked up like never before. Retail and FMCG sectors are poised to dominate the talent demand charts in the coming months too.

INDIAN IT COMPANIES INVITED TO INVEST IN GREATER SPRINGFIELD

pringfield City Group (SCG), the master developer of Greater Springfield, in partnership with Australia India Business C o u nc il L td ( AI B C ) , t h e peak body for promoting and enhancing bilateral trade relations between the two countries, aims to further build the Australia-India relationship by attracting world-leading Indian technology companies to Australia.

Maha Sinnathamby, Chairman of SCG, said: “Greater Springfield’s unique offering to Indian technology companies that are already in this country or planning to establish in Australia, is the chance to be involved in a fully master-planned city that offers innovation at its core. Greater Springfield is an economic powerhouse located in the heart of Southeast Queensland and provides a

platform for companies to be innovative, entrepreneurial, and collaborative. Greater Springfield has, over three decades, solidified itself as a home for these types of organisations. With its own Data Centre, an extensive fibre network, a university, 15,000 students, and access to a population of over 500,000 within a 22-minute drive, Greater Springfield provides a true lifestyle within a 15-minute drive for employees that choose to work in the local Greater Springfield economy.” Jim Varghese, National Chair of AIBC said: “In our 35th year of celebrations, the Australia India Business Council was proud to support the Springfield City Group’s Australia India IT Hub Summit held recently. AIBC believes in the power of Springfield City Group’s onestop-shop location for leading tech companies from India and Australia to collaborate and further build on bilateral ties

DAWN

December 2021

between the two countries. Australia and India have a long and proud relationship of working together. The India Tech Hub planned at Springfield City will drive innovation in the technology field and Australia only stands to gain.” Ashok Mysore, Chair of AIBC’s Information and Communications Technology and Digital Chapter said: “Indian technology companies have embraced Australia. It has proven a great place for them to access local talent and build a base of knowledge workers. These companies are projecting significant growth over the next decade and there is a tremendous opportunity for Australian engineers, software developers and innovators to be part of this growth and bring their own expertise to Australia. The opportunity is for Australia to show that it is the best place for these organisations to establish and grow.”

NEWS

FORMER GODREJ PROPERTIES EXECUTIVE HARSHWARDHAN PRASAD NAMED CEO OF TRIBECA

ribeca, the developers of Trump Towers in India has announced the appointment of Harshwardhan Prasad as the new CEO to spearhead the business expansion of the company. Harsh comes with deep experience in the Indian real estate market. Prior to joining Tribeca, he occupied leadership roles at some of the largest real estate developers in India. Harsh started his real estate career with Godrej Properties where he spent close to ten years in various leadership, business development and P&L roles in Mumbai and Gurgaon. Subsequently, he joined DLF where he managed DLF’s prestigious Phase V development along the Golf Course Road. Most recently,

he served as the COO of SmartWorld. Welcoming the new CEO, Kalpesh Mehta, Founder, Tribeca Developers said, “I am delighted to have someone as experienced and talented as Harsh join the Tribeca team. He comes with an impressive background in Indian real estate, and more importantly, his leadership and management style is the perfect match for the values and culture of Tribeca. Tribeca is an asset light developer and the only way for us to thrive is to constantly focus on innovation, and Harsh imbibes this ideology. With the turnaround in real estate markets, Tribeca is entering a high growth phase of its lifecycle. I look forward to partnering with Harsh and the

rest of the Tribeca team on what promises to be a thrilling ride ahead. Commenting on the appointment Harshwardhan Prasad, CEO, Tribeca Developers said, “I am absolutely thrilled to be associated with a prestigious brand like Tribeca; a brand that believes in differentiated

products, customer-centric design, and developing trustbased relationships across the board. I look forward to working closely with Kalpesh, the senior leadership, and the hugely talented colleagues at Tribeca to foster growth and deliver the best products in the market.’’

CENTURY REAL ESTATE REAFFIRMS LEADERSHIP IN PLOTTED PROJECTS IN RISING NORTH BENGALURU

entury Real Estate, a leading real estate developer and one of the largest landowners in South India, today announced that over 75 per cent of inventory, in their plotted development project Century Seasons, has been sold in just a quarter. The company’s other plotted

development project, Century Greens, sold out entirely within two quarters. The Bengaluru real estate market has witnessed tremendous demand for investments in plots & housing despite the second wave and two-month lockdown in May

and June. Industry experts predict the sector to be a USD 1 trillion opportunity by 2030, across segments – with plotted taking reign. “Quick monetization of land, faster sales, better cash flow generation, and quick exits are now attracting large-format real estate developers into the plotted space. Century Real Estate has been at the forefront of plotted developments for many years now, and it is heartening to see many other players joining in. Century Seasons, our recent launch, is themed on the four seasons with the design and aesthetic developed to bring alive the theme. An additional advantage for consumers is that of the proprietary CenturyMark, carrying the trust, transparency, build quality and professionalism that marks Century Real Estate as one of the most

December 2021

trustworthy and respected brands in Indian real estate. From plot purchase to home interiors, complete turnkey solution services are additionally provided to the buyer ” - opined Maninder Chhabra, Chief Strategy Officer - Sales, Marketing and CRM. “The plotted development segment has been seeing bullish demand - with customers being a mix of investors and endusers. More and more people have realized the need to invest in land, as cities are getting denser and the economic value of land is significantly increasing. In addition to this, we see newage customers choosing to invest in plots as unlike earlier, these plots have modern amenities and give buyers greater flexibility to build their dream homes as per their choice,” said Ajay Singh, Vice President - Sales.

DAWN

NEWS

SATS BREAKS GROUND FOR LARGEST CENTRAL KITCHEN IN INDIA

AT S L t d . ( S AT S ) announced that work has begun on the construction of its central kitchen in India. The 20,000 sqm kitchen is located at Kempegowda International Airport, Bengaluru (KIAB/ BLR Airport), and will be the largest and first of its kind in India. The kitchen will incorporate automation and smart technology to produce nutritious, tasty, safe food cost-effectively. Examples of advanced technology that will be used include an automated rice line that can produce up to 600kg of different types of rice within an hour and Internet of Things (IoT) devices for monitoring food temperature. The building has also been designed with sustainability and safety in mind. It is the

first LEED (Leadership in Energy and Environmental Design) certified frozen food manufacturing facility in India with an IoT building management system to enable utility consumption to be proactively tracked and regulated. Taking into consideration enhanced safety measures in response to COVID-19, the building has MERV-13 to 16 air filtration capability and a dedicated fresh air supply receptive zone, Ultraviolet Germicidal Irradiation (UVGI) technology t h a t u s e s U V- C r a y s t o disinfect the air, and touchless operations. Reflecting SATS' unique approach to innovation, the kitchen will also house an innovation centre that will be connected to the SATS Innovation Hub in Singapore. The Innovation Centre in India

will allow partners to leverage SATS' product and packaging development strengths to innovate and introduce a variety of cuisines and products to the India market. Partners can also leverage the technical know-how of SATS on shelflife extension food technology to reduce food wastage. The ground-breaking of SATS’ first central kitchen in India comes shortly after its announcement on 26 July 2021, signalling the rapid speed of SATS’ response to local demand. Mr Sagar Dighe, Chief Executive Officer, SATS Food Solutions India Private Limited, said, “We received good response to the news of SATS setting up a technologically innovative kitchen of this scale in India, and have already started collaborating with other reputable industry players

to commence piloting new product developments with strategic partners. These pilot projects will allow us to finetune our product offering across various customer segments and scale up production once our kitchen is ready.” SATS’ first central kitchen in India will cost USD 37 million (INR 210 crores) to build and is expected to be operational in 2023.

CRYPTOCURRENCIES ARE CAUSING THE RBI SERIOUS CONCERNS

iven the central bank's misgivings about cryptocurrencies, Reserve Bank of India (RBI) governor Shaktikanta Das has asked for a more in-depth debate. "When the central bank says we have major worries about macroeconomic and financial stability, there are considerably deeper issues involved," Das said at the State Bank of India's Economics Conclave.

The governor expressed sadness that there had been no "serious, well-informed conversations" on these problems in public. The federal government is in the midst of writing a cryptocurrency Bill, albeit it is unclear what form it will take. Das said that the number of cryptocurrency accounts in India was inflated, with 70-80 percent of accounts being of

modest amounts of INR 1,000, INR 2,000, and even INR 500. The RBI has also received reports that credit and other incentives are being offered to new account holders. Das stated that the RBI is scrutinising bank strategy. The regulator will not intervene with banks' commercial decisions, but it will closely monitor their business models. Banks should ensure that their business models and strategies are deliberate decisions made after a comprehensive strategic discussion on their boards, rather than being driven by a mechanical 'follow the market' approach, according to Das. "Certain banks have adopted the high risk and high return business model, with a skewed emphasis of serving just the interests of their investors," he added, urging for boards to play a more active role, particularly in questioning management ideas.

DAWN

December 2021

The RBI is progressively rebalancing liquidity to ensure that banks have appropriate liquidity rather than an excess of it, according to the governor. Das also stated that the central bank is actively monitoring bank business models in order to remain informed of risks and vulnerabilities that may arise. The governor stated that, regardless of whether or not liquidity is abundant, banks must exercise caution when pricing loans. "The sheer presence of significantly excess liquidity should not contribute to any mispricing of loans since this excessive liquidity will not be a permanent feature," Das added. According to Das, the RBI's oversight is now nearly real-time and not an annual exercise. "When banks make business judgments, they should consider how much liquidity is available as well as the types of interest rate arrangements they provide," he added.

NEWS

NOIDA METRO AQUA LINE'S HIGH DEMAND

ollowing the COVID-19 lockdown, the NoidaGreater Noida Aqua Line saw its greatest single-day traffic of 26,554 commuters, with a normal daily ridership of roughly 17,000 commuters. The Noida Metro Rail Corporation (NMRC) accomplished the feat on November 15, according to Managing Director RituMaheshwari. According to the NMRC, the previous single-day high traffic was 22,996 passengers on October 20. According to NMRC, the Noida Sector-51 station had the highest footfall of 10,035 people. According to a PTI report, Maheshwari stated that the Noida Metro Rail Corporation is taking all necessary steps to ensure the safety of Aqua Line

passengers, such as passenger screening at the metro station's entrance and proper sanitization of all passenger circulation areas in metro trains and stations. According to the MD, this has instilled trust among Noida Metro riders. As a result, the Aqua Line's ridership has been steadily increasing in recent months, and the Noida Metro had its greatest single-day ridership post-Covid lockout of 26,554 passengers on November 15, she added. In the pre-Covid pandemic period, the Noida Metro had a month-to-month average daily ridership of 25,920 passengers in February 2020, she added. According to government standards, Aqua Line services were halted from March 22,

2020, to September 6, 2020, in the first shutdown, and from May 1 to June 8, this year, in the second lockdown, she noted. Aqua Line's daily average ridership had dropped to 4,904 passengers after the resumption of Noida Metro train services on June 9 this year, according to Maheshwari. Openings of metro station entrance and exit gates,

as well as elevator operations, were restricted for improved passenger surveillance, s h e a d d e d . H o w e v e r, i n response to popular public demand, new entry/exit gates and elevators were built in October 2021 to assist the seamless movement of metro users at various metro stations while adhering to all COVID-19 rules, including social distancing, the MD stated.

BOUTIQUE REALTY FIRM 1 OAK AWARDED FOR COVID-FOCUSED CSR DRIVE

fter building international quality living spaces for Indians in tier II and III towns, boutique real estate firm 1 Oak has added another feather to its cap. The firm promoted by Singapore based Greenfield Advisory Pte. Ltd has been recognized and awarded for its CSR activities

M a n a g e m e n t Te c h n o l o g y during the devastating second (BIMTECH), Mr Adil Firoze Covid-19 wave in the country. , Independent Consultant , Among several initiatives, 1 CSR and Sustainability, Mr Oak had donated 100 PPE kits Vivek Prakash, Vice to Medanta hospital President , Jubilant in Lucknow. The award Group appreciated has been the initiative, Ms The award has bestowed Shalini Goel Bhalla , been bestowed on the Managing Director, on the firm by firm by International Brand India during an online award Brand India Council for Circular Economy, ICCE) function. The during Ms Vanshika Sarah virtual function was an online Simon, a student attended by CSR. award of Dallas Baptist Ms. Lopamudra function. University, Dallas Priyadarshini, and Mr Santhosh General Manager, Daniel M , a student of St. Sustainability & Community Stephens, New Delhi were Relations , Aditya Birla Group, handling the social media Brig. Rajiv Williams, Corporate platforms, event promotions, Head-CSR , Jindal Stainless and registrations of the event. L i m i t e d , M s R i c h a Pa n t , Mr. Sandeep Behera, Director Advisor Strategic CSR, Mr – Branding and Promotions Brajesh Gupta , Sr. Program of Karunya, – Deemed to be Leader , GMR Varalakshmi University welcomed all the Foundation, New Delhi, Dr. guests and speakers KK Upadhyay, Chairperson Centre for Sustainability “We are very pleased and and CSR, Birla Institute of

December 2021

grateful for this award. With Covid-19 touching every one of us in some ways, we simply wanted to be a part of and contribute to the huge effort being carried out by the government, health authorities, ho s p i ta l s a nd h ea l th c a r e providers. The second wave with all its ferocity had been particularly challenging for everyone. That we have made a positive contribution in such trying times is particularly satisfying,” said Mr. Sandeep Katiyar, CEO, 1 OAK. “In these times of the pandemic, CSR has assumed a specific and more immediate meaning for businesses and corporates. In this regard, the socially-responsible leadership and initiative shown by 1 Oak during the pandemic makes the company an ideal candidate for this CSR award. I congratulate the company on winning this award,” said Nidhi Simon, Founder Brand India.

DAWN 11

NEWS

TRANSITIONING FROM TOILETS TO TREATMENT: ROAD TO SAFE & INCLUSIVE SANITATION

ational Faecal Sludge and Septage Management (NFSSM) Alliance, a collaborative body that drives the discourse on faecal sludge and septage management (FSSM) forward in India, has launched India for the World, a comprehensive infographic – this web platform highlights India’s FSSM journey spotlighting the credible work of key states towards safe and sustainable sanitation practices. India for the World provides an orientation to the sector’s background, spotlighting progress and future directions, a i m e d a t c i t y, s t a t e a n d national level. It showcases best practices, case studies, step by step implementation milestones and sanitation outcomes for the country and key states – Uttar Pradesh, Uttarakhand, Maharashtra, Tamil Nadu, Andhra Pradesh,

Telangana & Odisha. The infographic also showcases firm will and commitment of state governments in implementing cost-effective and inclusive urban sanitation programs - recognizing sanitation as a crucial part of urban development and sustainability. “India has made tremendous progress in improving access to toilets and is prioritizing treatment of human fecal waste – many states and cities have implemented innovative and scalable solutions for FSM and inclusive sanitation service delivery. It is imperative that the learnings from this progress are well documented and disseminated to other states and cities within the country to replicate and for the world to learn from the great work that is happening in India. India for the World aims to serve as a platform to share learnings

on implementing effective FSSM and inclusive sanitation service delivery solutions” Says, Sakshi Gudwani, Senior Program Officer, Bill & Melinda Gates Foundation. She is also a member of the NFSSM Alliance. Hosted on the NFSSM Alliance official website, India for the World encapsulates replicable and scalable models of FSSM adopted by various cities and states across the country. These models speak of innovations in areas such as, improving operations efficiency by building capacities of sanitation workers as entrepreneurs, exploring diverse sources of finance to move towards operational sustainability, and using technology to eliminate the need for direct human contact with faecal waste – among many others. "India for the World is not only a great resource for city and state

ARETE GROUP INTRODUCES NEW-AGE INDUSTRY DESTINATION

ne of India’s largest industrial developers, ARETE Group, has unveiled Payal Industrial Park - India's largest privatelyintegrated Industrial Park at Dahej, Gujarat. The Park is spread over a vast 3,500 acres of area earmarked for largescale industrial development, logistics parks and utilities. It is developed within the Gujarat PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) – as declared by Government of India under PCPIR Policy 2007, and hence surrounded by fastgrowing industrial projects within Gujarat PCPIR. The Park has been approved by

DAWN

the Government of Gujarat, and world-class infrastructure facilities have been planned. Its master planning is done by engineering giant CH2M Hill; therefore it has been planned innovatively for efficient internal roads, water distribution facilities, effluent treatment plants, power distribution and firefighting. Additionally, industries will also have superlative access to manpower, close proximity to vendors and other ancillary products by being a part of the industrial cluster. All these facilities collectively make Payal Industrial Park an ideal hub for water-intensive and polluting industries such as chemical,

December 2021

agro-chemical, fertilizer, dyes intermediates, pigments, c h l o r- a l k a l i , c h e m i c a l , petrochemicals, specialty chemical, polymer, rubber, metals and metallurgical and textile industries, among others. Further, the Park is strategically located within a thriving industrially-developed ecosystem and has multi-modal connectivity via Ports, Air, Rails and Roads. It has easy access to the nearby Dahej Port, whereas Hazira Port, Surat and Jawaharlal Nehru Port (JNPT), Navi Mumbai is also important for the Park in terms of boosting exim trade and connectivity to Middle-East, Central Asia and Europe. Further, the Park is situated close to the Western Railway Network, and is also at close vicinity to 3 international airports viz. Surat International Airport, Baroda Airport and Ahmedabad Airport (with Baroda and Surat airports being in the nearest vicinity). It is also accessible via the National Highway-48 along the DelhiMumbai Industrial Corridor

governments in India, but also for international stakeholders, like practitioners, officials, or even funders. Our aim is to promote crosslearning among ecosystem players who are already working towards the wastewater treatment systems in India, along with informing others who wish to enter this ecosystem – and this is where India for the World will be a great conversation starter,” says Neera Nundy, Co-Founder, Dasra. India for the World is intended to be a knowledge resource for city planners, municipal functionaries, elected representatives, state decision-makers, civil society organizations, private-sector players, funders, international sector players etc. to understand the developments in FSSM and the opportunities it presents. (DMIC). Virender Kumar, Head - Business Strategy & Marketing, ARETE Group said, “It is a matter of great pride for us at ARETE to bring to you Payal Industrial Park – one of the largest privatelyheld industrial park of the nation. I am confident Payal Industrial Park will become the gateway for the future of industrial revolution in India. The Park envisions to be ‘Asia’s ultimate destination to set up industry’, while also fulfilling the vision of Gujarat’s ongoing ‘mega industrial revolution’ and contributing towards the ‘Make in India’ initiative. And to that end, it customizes the facilities to suit requirements of clients from different industrial backgrounds, helps them with regulatory approvals, and even provides them end-toend assistance to set up and grow within the industrial ecosystem.” Payal Industrial Park is promoted by ARETE Group -- which has over 3 decades of experience in this field, and is one of the largest land bank holders in the DahejVadodara Region of the state of Gujarat.

NEWS

CENTURY REAL ESTATE RECORDS 32 PER CENT SALES GROWTH

entury Real Estate, a leading developer and one of the largest landowners in South India, clocked in their highest monthly residential sales ever in October. According to company officials, the 32 per cent growth in sales revenue compared to previous monthly sales records is attributed to the demand for luxury projects and ready-to-move-in homes. The company has achieved a 38 per cent Y-o-Y growth in H1 as well. Century Real Estate is currently ranked in the Top 40 in India and is seen as one of the leading private developers in Bengaluru that offer high-quality projects across aspirational, luxury, and plotted segments. The company ’s luxury projects contributed 53 per cent of the sales in October, followed by the aspirational segment at 27

per cent. The company also states that themed plotted development projects continue to see a growing demand in this post-pandemic era. Century Real Estate’s plotted developments - Century Seasons and Century Greens 2, launched in 2021 under the Century MarkTM, sold out within two quarters. With this current growth trajectory, the company is on course to join the four-digit revenue league in the next two years. “We are witnessing an unprecedented number of genuine buyers walking into our projects in the recent months, along with much higher conversion rates into bookings. Post the lockdowns, we are seeing consumers in Bengaluru looking to invest in larger & better quality homes/ plots from trustworthy Grade A players. We are also seeing overall buoyancy in the market

among customers and channel partners alike since the waning of the second wave, which culminated in record sales for us in the festive season,” said Ajay K Singh, VP, Sales at Century Real Estate. “North Bengaluru is a very exciting market, and we are seeing buyers from across Bengaluru now eager to participate in the growth & appreciation story,” he added. In the last 20 years, Century Real Estate has delivered close to 4.3 million sq. ft. of residential, plotted, and commercial properties. The company currently has ongoing

residential projects with a built-up area of ~3.5 million sq. ft., plotted developments with an area of ~4.11 million sq. ft., and commercial office projects with a leasable area of ~1.5 million sq. ft. Despite the lockdown from April to June, the company has seen steady growth in demand for luxury homes & themed plotted developments. Century Real Estate is optimistic about the upcoming quarter and is also looking to expand to neighbouring regions in the near future.

OVER 75 PER CENT YOY GROWTH FORECAST IN INDIAN REAL ESTATE FOR THE NEXT THREE YEARS

fter being hit hard by COVID due to scarcity of labour and low budget spending, India’s real estate industry is now gathering pace and is on the course to healthy recovery. The commercial segment which is relatively a more formal segment (with big players involved) has seen an

influx of investment. Among dominant markets, Bengaluru, Chennai, and the National Capital Region (NCR) recorded largest recovery in the September 2021 quarter. The Information Technology (IT) remains the largest consumer of space during the quarter, occupying 34 per cent of the space transacted. Talking about residential spaces, the interest rates on home loans are likely to act as an incentive for prospective buyers. Along with that, the buying decisions now factor in adverse impact on income, ‘thriftiness’ caused by unforeseen emergencies, ‘access to large green areas’ and ‘access to good healthcare’. The Government has an active and essential role to play in the socio-economic setting of the nation. The Infomerics report outlines the various initiatives taken by the government to help and bolster the sector like tax holidays for affordable

housing projects, tax deduction on interests on housing loans in the Union Budget 2021-22 augur well for the industry. Further, the interest rates on home loans (October 2021), and festival offers are likely to act as an incentive for prospective buyers. Fu rt he r, t he re p o rt a l s o mentions that the possibility of the third wave of Covid 19 and the emergence of delta variant, however, causes concern for the industry.

Indian business space as more companies are being formed as they touch greater heights of expansions with need in working spaces. Moreover, about 88 crore people are expected to live in urban areas in India by 2051 as against the current 46 crore people. Therefore, this trend setting pattern is sure to be salubrious for the real estate industry along with government interventions & new schemes rolling in in urban house spacing.

The report mentions that post-pandemic, the real estate industry has been witnessing drastic change over the past two years. While the COVID induced ‘work from home’ model reduced the demand for commercial spaces, it increased the demand for residential spaces. However, commercial investments augur well, given the scope of business activity in India & this can be clearly witnessed with the on-going developments in

Factors driving the growth of the real estate industry in India include low interest rates, favourable government policies, revised circle rates in Delhi, more ready-to-live projects etc. The report also highlights the fact that more than 58 per cent people consider property as a mode of safe investment, with a notion that the prospects for real estate are likely to get an upswing once the pandemic recedes.

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ADD ENERGY STORAGE TO ENSURE ADEQUATE RENEWABLE ENERGY RESERVE: RK SINGH

nion Minister of Power and New & Renewable Energy RK Singh chaired a virtual meeting today with senior officials from the central government, PSUs, renewable energy developers, PSP developers and battery manufacturers for discussion on the 'Report on comprehensive Policy Framework for promotion of Energy Storage in the Power Sector. The Minister emphasized that our objective should be to ensure that no energy is lost and for that, we need to be in a position to store all the energy, which is going to be surplus at any point in time. Singh stated that some Storage needs to be added with the Generation in order to ensure round the clock renewable energy. He further directed to prepare separate Guidelines on treatment of Energy Storage and Resource Adequacy. In order to meet the target of 500 GW Renewable Energy by 2030, the Minister directed to work out the requirement of Storage capacity year wise in keeping with the upcoming addition of Solar & Wind projects. Regarding ancillary services, Singh emphasized the need to have adequate energy reserve, which can be utilised at a moment's notice to support our power system and Grid operation. The Minister directed all Hydro CPSUs and Private industries to survey and identify Pump Hydro sites in the vicinity of existing HEPs. The meeting was also attended by the Minister of State for Power Krishan Pal Gurjar, Secretary (Power), Secretary (MNRE), Additional Secretary (Hydro) and senior officials from the MoP, MNRE, CEA, POSOCO, SECI, NTPC, DVC, BBMB and Hydro CPSUs.

NHSRCL SIGNS MOU WITH JRTC FOR DESIGNS OF HIGH SPEED RAIL TRACK WORKS

ational High-Speed Rail Corporation Limited (NHSRCL) has signed an MoU with Japan Railway Track Consultant Co. Limited (JRTC) on Thursday for the designs of high-speed rail (HSR) track works for the T-3 package (116 km between Vadodara and Sabarmati Depot and Workshop in Gujarat state) for MumbaiAhmedabad High-Speed Rail Corridor Project (commonly known as bullet train project).

As per the MoU, JRTC will provide the detailed design and drawings of HSR

IDENTIFY AREAS FOR INVOLVING PRIVATE SECTOR AS MUCH AS POSSIBLE, GOVT TELLS ONGC

he government has come out in open in pushing the ONGC, the state-owned oil and gas producer that’s also the country’s largest, to involve private sector companies and service providers wherever possible to help raise oil and gas production. Govt is clear, ONGC has to do more, said Petroleum Secretary TarunKapoor on Thursday. Petroleum Secretary's comments came days after the second-highest ranked official in his ministry asked Oil and Natural Gas Corporation (ONGC) to give away a 60 per cent stake plus operating control in India's largest oil and gas producing fields of Mumbai High and Bassein to foreign companies. ONGC in 2019 had said that it has planned to double its oil and gas production both in India and its overseas fields by 2040. This was a bold claim from a company whose oil production had already been on the decline for six years. This may briefly explain why the govt is mistrustful of ONGC. India imports 85 percent of the oil its economy needs. It had planned to reduce that to 67 percent by next year, but that looks quite impossible today. Especially when India’s demand for oil is expected to grow 5.1 per cent on average every year compared to a global average of just 0.9 per cent. "ONGC has to explore more so that it can discover more oil and gas reserves and bring them quickly to production to raise domestic output.

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December 2021

PSU's

PM MODI LAUNCHED RBI'S INTEGRATED OMBUSMAN SCHEME

P track components like RC track bed, track slab arrangement and continuous welded rail (CWR) etc. Speaking on the occasion, NHSRCL’s Director Project Rajendra Prasad said, “This MoU signing today is the culmination of hard work put in by JICC, JRTC and NHSRCL teams. JRTC is the only specialized agency for this kind of highly technical work and with their cooperation, we are hopeful to finalize track designs quickly.” The ceremony was also attended by ISAO Horiyama, President JRTC, HL Suthar, Principal Executive Director (Design) of NHSRCL and other senior officers from NHSRCL, JICC, and JRTC. NHSRCL had earlier signed MoU for the designs of HSR track and track works for the T-2 package (237 km long section) between Vadodara and Vapi in the Gujarat state.

The government is very clear that ONGC has to do more," he said speaking to Media on Thursday here in New Delhi. "Naturally, when they do more work, there are areas where they can get experts in the fields... such as in deepsea," Kapoor said. Discoveries that the company hasn't been able to develop or areas that it hasn't been able to explore are some of the examples where the ONGC can involve the private sector and foreign companies. ONGC, he said, should identify areas where it can get private sector expertise and efficiencies. These could range from technical collaboration to giving partially explored and undeveloped discoveries to private firms. The private sector can also be involved in enhancing production from existing fields. "We have only made suggestions to ONGC... the government cannot give directive to a Maharatna company. The ultimate decision has to be taken by the company board," he said. India's premier news agency PTI reports that Amar Nath, additional secretary (exploration) in the Ministry of Petroleum and Natural Gas, on October 28 had written a 3-page letter to ONGC Chairman and Managing Director Subhash Kumar, saying productivity of the Mumbai High and Bassein& Satellite (B&S) offshore assets under state-owned firm was low, and international partners should be invited and given 60 per cent participating interest (PI) and operatorship.

rime Minister Narendra Modi launched two innovative customer-centric initiatives of the Reserve Bank of India (RBI) via video conferencing. These initiatives are the RBI Retail Direct Scheme and the Reserve Bank - Integrated Ombudsman Scheme. The RBI Retail Direct Scheme is aimed at enhancing access to the government securities market for retail investors. It offers them a new avenue for directly investing in securities issued by the government of India and the state governments. Investors will be able to easily open and maintain their government securities account online with the RBI, free of cost. The Reserve Bank - Integrated Ombudsman Scheme aims to further improve the grievance redress mechanism for resolving customer complaints against entities regulated by RBI. The central theme of the scheme is based on ‘One Nation-One Ombudsman’ with one portal, one email and one address for the customers to lodge their complaints. There will be a single point of reference for customers to file their complaints, submit the documents, track status and provide feedback. A multi-lingual toll-free number will provide all relevant information on grievance redress and assistance for filing complaints. Union Finance Minister and RBI Governor will also attend the event.

NTPC BARH SUPER THERMAL POWER STATION BEGAN ITS COMMERCIAL OPERATIONS

tate-run NTPC Limited said informed that Unit-1 (660 MW) of Barh Super Thermal Power Station Stage-I (3x660 MW) started its commercial operation from the midnight of 11 November 2021 .Barh Super Thermal Power Station or NTPC Barh is located in Barh in the Indian state of Bihar. The 1,320 MW (2 x 660 MW) Barh Stage-2 built by BHEL is operational. While Barh Stage-1 is being built by Russian firm Technopromexport (TPE). In a regulatory filing to the stock exchanges the company said, "We wish to inform that Unit-1 (660 MW) of Barh Super Thermal Power Station Stage-I (3x660 MW) is declared on commercial Operation w.e.f. 00:00 Hrs. of November 12, 2021." With this, the commercial capacity of NTPC and NTPC group will become 54,232.5 MW and 67,657.5 MW respectively. NTPC Limited is a Maharatna PSU under the Ministry of Power. The company is engaged in the business of the generation of electricity and allied activities.

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BRIJ MOHAN MISHRA (IAS) APPOINTED AS DEPUTY SECRETARY IN DEPARTMENT COMMERCE

rij Mohan Mishra (IAS) has been selected for appointment as Deputy Secretary in the Department of Commerce under the Ministry of Commerce. According to an order from the Department of Personnel & Training (DoPT) issued on Thursday, he has been selected for the appointment under the Central Staffing Scheme (CSS) for a period of four years from the date of taking over charge of the post or until further orders, whichever event takes place earlier. Brij Mohan Mishra is a 2008-batch Indian Administrative Service (IAS) officer of the AGMUT cadre. He is a Science Graduate (B.Sc.) in Zoology from UdaiPartap College of Purvanchal University Jaunpur. He has also done an MBBS from King George's Medical College (Now King George's Medical University). Prior to joining as District Magistrate (South District) of Delhi, he has held various important positions in Delhi (UT). His previous assignments include Additional Commissioner of Enforcement Department, Secretary of Income Tax Department, Deputy Commissioner and Settlement Officer among others.

ZOMATO, IRCTC AMONG SEVEN STOCKS ADDED TO ITS STANDARD INDEX

s the American finance company MSCI Inc. (earlier known as Morgan Stanley Capital International and MSCI Barra) is set to announce its semi-annual index rejig the brokerage house Edelweiss has said that stocks like Indian Railway Catering and Tourism Corporation (IRCTC), Zomato, SRF, Tata Power, Mindtree, Godrej Properties, and Mphasis could see the inclusion in the MSCI index. If all of the seven stocks present in Edelweiss' high conviction inclusion list, get included in the MSCI index then India can see the passive flow of around USD 1.3 billion, Edelweiss said in a note. “As per Edelweiss Alternative Research, early assessment all the MSCI potential high conviction inclusion names holds a strong chance to move from current Midcap Categorization to Large-cap Categorization. While Zomato will be for a sure fresh entrant in Large-cap category," the note mentioned. It is important to mention here that this stocks inclusion prediction is as per Edelweiss Alternative Research Analysis and not the final names announced by MSCI. The global index provider MSCI rebalances its indices semi-annually and quarterly. The adjustment for its November semi-annual index rebalancing will take place on November 30 and

NATIONAL INTERNET EXCHANGE OF INDIA 'NIXI' LAUNCHES DIGITAL PAYMENT GATEWAY

ational Internet Exchange of India (NIXI) is a not-for-profit company under the aegis of the Ministry of Electronics and Information Technology (MeitY) with the mission to make the internet accessible to everyone. To facilitate its customers and partners, NIXI has gone digital by enabling digital payments across its three business units by integrating payment gateways on all its customer-facing websites for ease of use. NIXI has partnered with PayU and NSDL to offer payment gateway services. This integration will lead to increased ease of use for NIXI’s customers by offering real-time payments, providing uninterrupted services and ensuring a seamless experience to all stakeholders. NIXI CEO Anil Kumar Jain who presided as the Chief Guest on this occasion said, “NIXI has been contributing to the 'Digital India' mission by helping the internet infrastructure to be self-reliant, robust and secure. This initiative of our own payment gateway will ensure more digital independence and transparency in NIXI’s own ecosystem.” "PayU is enabling payment digitisation for crucial initiatives across the three key

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December 2021

PSU's

EGCA: JYOTIRADITYA SCINDIA LAUNCHES E-GOVERNANCE IN DGCA

the rejig will be with effect from December 1. MSCI is a global provider of equity, fixed income, hedge fund stock market indexes, multi-asset portfolio analysis tools and ESG products. It publishes the MSCI BRIC, MSCI World and MSCI EAFE Indexes. Asserting that Tata Power could be the largest beneficiary of inflows, with USD 240 million funds expected to come in favour of the company with an expected weightage of 0.5 per cent in the index, the report said "We have been flagging off Tata Power from 135 levels and now if stock sustains above 185 levels, then it can very safely qualify for MSCI November Inclusion".

domains of NIXI. It has designed a customised flow for digital payment acceptance both from customers and vendors and has also made refund & reconciliation absolutely seamless for NIXI. This partnership is testimony to PayU's technical expertise & readiness to be a preferred partner for the 'Digital India' initiative," said PayU India's CEO Anirban Mukherjee.

nion Minister of Civil Aviation Jyotiraditya M Scindia on 11 November 2021 launched e-Governance in Directorate General of Civil Aviation (eGCA), the e-governance platform in Directorate General of Civil Aviation (DGCA). "Adopting the vision of Prime Minister of Digital India, DGCA has implemented its e-governance platform eGCA", Scindia said speaking at the occasion. Ministry of Civil Aviation’s Secretary Rajiv Bansal, Director General of Civil Aviation Arun Kumar and eminent members of the civil aviation industry were present at the launch. Speaking on the occasion, Scindia said that adopting the vision of Prime Minister of Digital India, DGCA has implemented its e-governance platform eGCA. The project has been aimed at automation of the processes and functions of DGCA, with 99 services covering about 70 percent of the DGCA work being implemented in the initial phases, and 198 services to be covered in other phases. He said that this single window platform will bring in monumental change- eliminating operational inefficiencies, minimizing personal interaction, improving regulatory reporting, enhancing transparency and increasing productivity. Schindia lauded the DGCA for ushering in a paradigm shift from restrictive regulation to constructive collaboration. The Minister said that we have just begun, the journey is not yet over, and soon there will be a review to understand as to how the customers have benefitted from this transformation, and what more needs to be done. Scindia said that ours is a responsive government, which, under the leadership of Narendra Modi, converted the adversity of pandemic time into an opportunity. The project will provide a strong base for IT infrastructure and service delivery framework. The e-platform provides an end-to-end solution including various software applications, connectivity with all the regional offices, a ‘portal’ for dissemination of information and for providing online and speedy service delivery in a secure environment. The project would enhance the efficiency of the various services provided by the DGCA and would ensure transparency and accountability in all DGCA functions. The project has been implemented with TCS as Service Provider and PWC as Project Management Consultant. "The eGCA initiative is a milestone in the digital transformation journey of DGCA and would enrich the experience of its stakeholders. For DGCA, it is a step in the direction of ‘ease of doing business.’ This digital transformation would bring significant value addition to the safety regulatory framework of DGCA" MoCA said in an official statement released.

"NSDL excited to be associated with NIXI in this initiative and wish NIXI a grand success in their endeavour," said Hamid Arif Head - Payments Business (PayGov India &SurePay) NSDL Database Management Ltd.

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GOVT APPROVES MECHANISM FOR PROCUREMENT OF ETHANOL BY OIL PSUS the price of sugarcane-based ethanol to INR 63.45 a litre from INR 62.65, Minister of Information and Broadcasting Anurag Singh Thakur said. The new prices of ethanol will come into effect from December 1, the minister said.

he Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given approval for fixing higher ethanol prices derived from different sugarcane-based raw materials under the Ethanol Blended Petrol (EBP) Programme. The step will benefit sugarcane farmers and can also lead to a higher blending of ethanol with conventional petroleum products. The new price will be applicable for the forthcoming sugar season 2021-22 during ESY 2021-22 from December 01, 2021, to November 30, 2022. The hike pushes up

The rate for ethanol from B-heavy molasses and C-heavy molasses has also been hiked by Rs 2.55 per litre and INR 2.12 per litre, respectively. The Price of ethanol from C heavy molasses route be increased from INR 45.69 per litre to INR 46.66 per litre, the rate of ethanol from B heavy molasses route be increased from INR 57.61 per litre to INR 59.08 per litre, and the rate of ethanol from sugarcane juice, sugar/ sugar syrup route be increased from Rs 62.65 per litre to INR 63.45 per litre. "Government has decided that Oil PSEs should be given the freedom to decide the pricing for 2G ethanol as this would help in setting up advanced biofuel refineries in the country. It is important to note that grainbased ethanol prices are currently being decided by Oil Marketing Companies (OMCs) only", Thakur said.

DRDO INKS PACT WITH ISRAEL'S DDR&D FOR DEVELOPMENT OF DUAL USE TECHNOLOGIES

s a tangible demonstration of the growing Indo–Israeli technological cooperation, Defence Research and Development Organisation (DRDO) and Directorate of Defence Research and Development (DDR&D), Ministry of Defence, Israel have entered into a Bilateral Innovation Agreement (BIA) to promote innovation and accelerated research & development in startups and MSMEs of both countries for the development of dual-use technologies. The agreement was signed between and Secretary, Department of Defence, R&D & Chairman DRDO Dr G Satheesh Reddy and Head of DDR&D, Israel BG (Retd) Dr Daniel Gold in New Delhi on Tuesday. Under the agreement, startups and industries of both countries will work together to bring out the next-generation technologies and products in the areas such as drones, robotics, artificial intelligence, quantum technology, photonics, biosensing, brain-machine interface, energy storage, wearable devices, natural language processing, etc. Products and technologies will be customised to meet the unique requirements of both countries.

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The decision to allow Oil PSUs to decide the price of 2G ethanol would facilitate setting up advanced biofuel refineries in the country. The government has notified administered price of ethanol since 2014. For the first time during 2018, the differential price of ethanol based on raw material utilized for ethanol production was announced by the Government. These decisions have significantly improved the supply of ethanol thereby ethanol procurement by Public Sector OMCs has increased from 38 crorelitre in Ethanol Supply Year (ESY) 2013-14 to contracted over 350 crorelitre in ongoing ESY 2020-21. Thakur said the ethanol blending with petrol has touched 8 per cent in the 2020-21 marketing year (December-November) and is expected to reach 10 per cent in the next year, and 20 per cent by ESY 2025-26. Consistent surplus of sugar production is depressing sugar price. Consequently, sugarcane farmers’ dues have increased due to the lower capability of the sugar industry to pay the farmers. The government has taken many decisions for the reduction of cane farmers’ dues. With a view to limit sugar production in the Country and to increase domestic production of ethanol, the Government has taken multiple steps including, allowing diversion of B heavy molasses, sugarcane juice, sugar and sugar syrup for ethanol production. Now, as the Fair and Remunerative Price (FRP) of sugarcane and ex-mill price of sugar have undergone changes, there is a need to revise the exmill price of ethanol derived from different sugarcane-based raw materials.

PSU's

SURENDRA PRASAD YADAV (IFOS) APPOINTED AS GOVT NOMINEE DIRECTOR OF BEML

he Government has appointed Surendra Prasad Yadav (IFoS) as Government Nominee Director on the Board of BEML Limited, a Miniratna PSU under the Ministry of Defence. He has been appointed on the board of BEML Limited with effect from November 8, 2021, in place of PuneetAgarwal. This information has been shared by the Defence PSU in a regulatory filing to the stock exchanges on Tuesday. SurendraPrasad Yadav is a qualified B Tech and M Tech and a 1996 batch Indian Forest Service (IFoS) officer of the West Bengal cadre. He is currently serving as Joint Secretary (Naval System) in Department of Defence Production under the Ministry of Defence. He has previously worked in the Department of Forest, Government of West Bengal, in different capacities i.e. Divisional Forest Officer and Chief Conservator of Forest. He also worked as Executive Director in West Bengal Industrial Development Corporation Limited for more than seven years. BEML Limited, formerly known as Bharat Earth Movers Limited is a MiniratnaDefence PSU. It was established in May 1964 for the manufacture of Rail Coaches & Spare Parts and

The development efforts will be jointly funded by DRDO and DDR&D, Israel. The technologies developed under BIA will be available to both countries for their domestic applications.

Mining Equipment at its Bangalore Complex. The company has partially disinvested and presently the government owns 54 percent of total equity and the rest 46 percent is held by the public, financial institutions, Foreign Institutional Investors, Banks and BEML Employees. BEML plays a pivotal role in serving India’s core sectors like defence, rail, power, mining and infrastructure.

ONGC CMD UNANIMOUSLY NOMINATED PRESIDENT OF AIPSSPB

il and Natural Gas Corporation Limited (ONGC) CMD Subhash Kumar has been unanimously nominated as President of the All India Public Sector Sports Promotion Board (AIPSSPB). The decision was taken during the 13th Annual General Meeting (AGM) held on November 7 in New Delhi. Earlier, Kumar was serving as the Executive Vice President of the Board. During the tenure of ONGC CMD as the Executive Vice President of the All India Sports body, the Board has made phenomenal contributions towards the promotion of sports across the country. The hard work of AIPSSPB was illustrated after nine officers of central PSUs ONGC and IOC were recently conferred with the Arjuna and Dhyanchand Awards for 2021. During the AGM, ONGC Executive Director HP Singh was also unanimously nominated as the Vice President of the Board. The Board decided to enhance its efforts to revive the sporting activities, which have been affected due to the COVID-19 pandemic, by conducting inter-PSU events in some games. In this line, the first event of the Financial Year will be a PSU Cricket Tournament to be conducted with financial assistance from ONGC preferably in December 2021. Representatives of 18 member organizations namely ONGC, AAI, Oriental Insurance, Bank of Baroda, Central Warehousing Corporation, Reserve Bank of India, EPFO, NALCO, BHEL, Air India, MTNL, HPCL, LIC, FCI, NFL, Coal India, BSNL and Oil India participated in the AGM.

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CAPITAL NEWS

HDFC BANK LAUNCHES MICRO-CREDIT FACILITY FOR PM SVANIDHI SCHEME

DFC Bank recently announced the launch of micro-credit facility for street vendors, PM Street Vendor’s AtmaNirbharNidhi (PM SVANidhi), with common service centres (CSC).HDFC Bank would facilitate PM SVANidhi for its village-level entrepreneurs (VLEs) on the digital sewa portal where vendors can complete the entire process online. It is a collateral-free affordable loan of INR 10,000 with an interest subsidy of 7 per cent. The bank said that VLEs must understand the loan application requirements, ensure the mobile number is linked to the Aadhaar and check the eligibility status of their application as per the scheme rules. “Through the launch of PM SVANidhi, at HDFC Bank we will be able to provide special micro-credit facility to small street vendors through our CSC VLEs for their holistic development and economic upliftment," said Smita Bhagat, country head (GIB, CSC, e-commerce, startups and inclusive banking initiatives group), HDFC Bank. It is another opportunity for VLEs to serve every business requirement in the country well as an avenue for earning incentives, said Dinesh Tyagi, managing director, CSC SPV. “At present, we have over 50 lakh street vendors and our VLEs are widely spread to cater to them. They must capitalize on this network strength for facilitating small ticket loans of INR 10,000 for the vendors along with this VLEs should identify opportunities for other products and maximize their incentives," said Tyagi.

INDIAN CENTRAL BANK MAY PILOT TEST CBDC IN 2022: REPORT

he Reserve Bank of India is set to launch the pilot for its proposed central bank digital currency or CDBC by the first quarter of next year, a senior RBI official told media during a panel discussion at State Bank of India’s annual Banking & Economic Conclave. When asked how soon India could have its CBDC, P Vasudevan, the Chief General Manager of RBI’s Department of Payment and Settlement, said, “I think somewhere it was said that at least by the first quarter of next year a pilot could be launched.” “We are on the job and we are looking into the various nuances related to the CBDC. It’s not a simple thing to just say that CBDC can be a habit from tomorrow…We have to be very cautious, and see whether it

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should be as a wholesale segment or target the retail segment, and for what purpose as well,” Vasudevan said. He added that the central bank would have to work out how the validation mechanism for a CBDC would be implemented as it would be token based. “The banking system has been taking the lead in terms of currency distribution as a tiered model…whether the same model can be accepted for CBDC as well, we will have to see,” he said. Vasudevan said that the RBI is also checking if intermediaries can be bypassed altogether, and whether the technology would be decentralised or semi-centralised. While work is on to ensure the launch of the CBDC soon, the central bank is still

December 2021

FREECHARGE ANNOUNCES ROLL-OUT OF ITS NEO-BANKING PLATFORM

xis Bank-owned payments firm Freecharge announced the roll-out of its neo-banking platform on 16 November 2021. The platform already has 18,000 sign-ups, it said.Some of the services that its customers will be able to avail include — fixed deposits, recurring deposits, buy now, pay later (BNPL) services, digital debit and credit cards, personal loans and more.

CAPITAL NEWS

A neo-bank is a financial institution that offers an alternative to traditional banks. They are digital banks that do not have any physical branches. While they do not have a bank license, they partner with existing banks to onboard customers. Freecharge has partnered with Axis Bank, its parent company to offer neo-banking services to its customers. Freecharge has been testing its neo-banking platform for some time now. It started offering buy now, pay later (BNPL) services to its customers in the first quarter of the year and is now testing lending services for small businesses. Customers can also enrol for fixed and recurring deposits on the platform using the Freecharge app. The company has also started offering mutual fund services, allowing users to invest in mutual funds right from the app. In the future, the company also intends to offer personal loans to its customers. “We launched BNPL, the first of the (digital) products, in the first quarter. The second one was small-ticket lending for small businesses," Freecharge chief executive officer Siddharth Mehta said in an interview. “The extension of this is that we will launch the consumer financial services platform or the neo-bank. Then, eventually, we will move to the merchant," Mehta added. Freecharge will also partner with insurance providers in the coming months to allow its users to apply and renew their insurance policies. Early next year, the company aims to offer digital credit and debit cards to its users.

deliberating the finer print. “We are bullish on it,” Vasudevan added, saying that banks would be involved in the CBDC pilot when it is launched. A CBDC is legal tender issued by a central bank, but in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different. Also Read: Pros and cons of central bank digital currency “It is also important to understand what a CBDC is not. CBDC is a digital or virtual currency but it is not comparable to the private virtual currencies that have mushroomed over the last decade. Private virtual currencies sit at substantial odds to the historical concept of money. They are not commodities or claims on commodities as they have no intrinsic value; some claims that they are akin to gold clearly seem opportunistic. Usually, certainly for the most popular ones now, they do not represent any person’s debt or liabilities. There is no ISSUER. They are not money (certainly not CURRENCY)

SBI SIGNS PACT WITH U GRO CAPITAL TO FINANCE MSMES

tate Bank of India has entered into a co-lending agreement with fintech firm U GRO Capital to offer financing solutions to micro, small and medium enterprises (MSMEs), the lender said on November 7. Through this collaboration, SBI and U GRO Capital aim to disburse up to INR 500 crore by March 2022 to provide credit to MSMEs, a PTI report said. The agreement is in line with Reserve Bank of India guidelines. The co-lending agreement aims to enhance last-mile connect, financially empower MSMEs and further drive financial inclusion in the country, the public sector bank said in a press release. "We are glad to have joined hands with U GRO Capital under the co-lending programme. This collaboration will further enhance our distribution network, as we aim to extend our credit reach to more MSMEs," SBI Chairman Dinesh Khara said in a statement. The RBI has issued a set of guidelines on co-lending scheme for banks and non-banking financial companies for priority sector lending to improve the flow of credit to unserved and underserved sectors of economy. The guidelines were also issued to make funds available to borrowers at an affordable cost. The co-lending model aims to give the borrower the best interest rate and better reach.

as the word has come to be understood historically,” RBI Deputy Governor T Rabi Sankar had remarked on the matter earlier in July while delivering a lecture at the Vidhi Centre for Legal Policy. Other panelist’s concurred. “Nine out of ten central banks are in the process of issuing CDBCs, and that might be a good way for India to play in this space… It can be a catalyst to financial inclusion. It can be an opportunity to see how you reduce cost of cash,” said JoydeepSengupta, Senior Partner at McKinsey & Company. On the subject of private digital currencies, other speakers part of the panel discussion were split. While HDFC Bank’s Country head for payments, technology and digital banking- ParagRao- called cryptos a “fad” which was seeing values go up “based on, say, corporate superstars’ comments”, SBI’s Managing Director for international banking, technology and subsidiariesAshwini Kumar Tewari said that one would have to take a more “nuanced view ”, instead of completely banning

cryptos. “It no longer can be ignored. The value of crypto today is roughly USD3 trillion and growing as we speak,” added JoydeepSengupta of McKinsey. “It is a speculation-led investment or asset class. Because everyone thinks the next crypto can be a Bitcoin and it can have USD 50,000 value and it is becoming like a penny stock,” said Deepak Sharma, Chief Digital Officer at Kotak Mahindra Bank. “How would the end use of digital currencies be? Its purpose, storage, movement will continue to be a big question, I don’t have an answer to that.” “I think a deeper conversation needs to take place, not only in committees but also in public domain. So the concerns which are there and which have been articulated over time- whether the control over the cryptocurrencies or even money itself could be lost, money laundering concerns, all of these concerns are valid concerns. Does this mean we totally ban crypto? I think there can be a nuanced view here. Control is essential,” AshwiniTewari, MD of SBI said.

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CAPITAL NEWS

RBI MONITORING BIZ MODELS OF LENDERS: SHAKTIKANTA DAS

he central bank is closely monitoring the business models and strategies of banks, Reserve Bank of India Governor Shaktikanta Das said. He, however, clarified that the central bank's move is not intended at interfering in banks' commercial decisions, but it will red flag lenders if there is any risk building up. At the RBI, we have started taking a closer look at the business models and strategies of banks. Take your commercial decisions, we will not interfere, but we will see what kind of vulnerabilities and what kinds of risks are building up, and our first priority would be to caution banks themselves, Das said at the SBI's Banking and Economic Conclave. He said the RBI's supervision is now almost on a real-time basis and is not an annual exercise anymore.

The RBI is now moving towards a rebalancing of liquidity. It is making efforts to provide only that much liquidity which the system requires, Das noted

Technology has enabled a more intensive look towards the supervision process. While banks take their commercial decisions, they should also factor in the available liquidity and also the kind of interest rate structures they are providing. These decisions should be taken based on prudent principles, he said. The governor said irrespective of the fact that liquidity is in surplus, the risk pricing of various loans being extended by banks has to be done diligently by banks themselves. The mere fact that there is excess liquidity should not lead to any mispricing of loans because this excessive liquidity is not going to be a permanent feature, Das said. At a particular time last year, the economy needed liquidity because the financial markets were freezing up and there were episodes of mutual funds suddenly collapsing, and the RBI had to step in with massive liquidity support, he added. The liquidity support ensured the orderly functioning of the financial markets. The RBI is now moving towards a rebalancing of liquidity. It is making efforts to provide only that much liquidity which the system requires, Das noted. Let me make it very clear that there will always be adequate liquidity to meet the requirements of the productive sectors of the economy. But slowly we want to rebalance the economy in a manner that banks are left with that much liquidity which they need and not excess, he added.

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Earlier in his speech, the governor said banks should ensure that their business models and business strategies are conscious choices, following a robust strategic discussion in the Board, instead of being driven by a mechanical 'follow the market' approach. In their endeavour to grow, banks should avoid herd mentality and look for differentiated business strategies. Certain banks had followed the high risk and high return business strategy, with a skewed priority for serving only the interest of their investors, he said. According to him, the active role of the Board, especially in challenging the proposals of the management, becomes critical and will contribute towards a more diligent and balanced approach to decision making. He said the board of directors carry the responsibility of being guardians of the trust that depositors have reposed in a bank.

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The RBI has high expectations from the oversight role of the Board, its composition, Directors' skill profile, strong risk and compliance structure and processes, more transparency and a robust mechanism of balancing various stakeholder interests, he added. Das said banks have weathered the COVID-19 shock better than expected, with the gross non-performing assets and capital adequacy ratios of banks further improved in September 2021 from June 2021 levels. Going forward, there are risks and challenges, which require serious introspection and action on the part of the banking system, he cautioned. Das said one of the challenges banks are likely to face would be in dealing with the stressed borrowers impacted by COVID-19. During the two waves of COVID-19, the RBI announced Resolution Framework 1.0 and 2.0 to provide relief to the borrowers and banks. As the support measures start unwinding, some of these restructured accounts might face solvency issues over the coming quarters. Prudence would warrant proactive recognition of such non-viable firms for pragmatic resolution measures, he said.

CAPITAL NEWS

HSBC EXPLORES RE-ENTERING

INDIA'S PRIVATE BANKING BUSINESS

SBC Holdings is ahead of its hiring targets for its Chinese retail wealth management business and is exploring re-entering India's private banking business, senior executives said. This is part of the bank's plan to make Asia and wealth key pillars of growth. Under a strategy spearheaded by Group CEO Noel Quinn, HSBC is ploughing USD 3.5 billion into its wealth and personal banking business, in line with its ambition to become Asia's top wealth manager by 2025. "We are the leading international bank in China, so we want to squeeze that opportunity," said CEO of Wealth and Personal Banking Nuno Matos. He is one of four top executives moving to Hong Kong from London this year as part of the bank's regional pivot. powered by Rubicon Project "On the private banking side, we are now in clear expansion mode," Matos told Reuters in one of his first interviews since moving to the region. Asia is the biggest region for HSBC, and the wealth and personal banking unit contributed 44 per cent or USD 22 billion to London-headquartered HSBC's adjusted global revenue last year. The bank is looking to boost its mobile wealth planning service, HSBC Pinnacle, in China by having about 700 personal wealth planners by the year-end instead of the 550 originally planned, Matos said. HSBC's wealth management services include investments, insurance and asset management products, while private banking caters to the needs of those with investible assets of USD5 million or more. The bank had 20 people operating in China onshore private banking business at the end of last year, said SiewMeng Tan, head of HSBC Private Banking for Asia Pacific. "By the end of this year, we will get to 64 and by the end of next year, we'll double that," she said. HSBC is exploring whether to re-enter onshore private banking in India, where the ranks of the super rich are growing fast and record high stock markets have created a string of billion dollar start-ups. HSBC exited the Indian private banking business in 2015 as part of a group strategy.

The bank had 20 people operating in China onshore private banking business at the end of last year, said SiewMeng Tan, head of HSBC Private Banking for Asia Pacific

leaders such as UBS and Credit Suisse rule the market for wealthier clients.

The lucrative but very competitive Indian market has few foreign players. "We want to bank mass affluent and high net worth customers. At this moment, the two major pillars we are expanding in India are insurance and asset management," Matos said. "On the private banking side, we are not there yet and that's something that demands a strategic decision this year," he added. Currently, HSBC is focusing on catering to wealthy Indians from its global hubs in Singapore, London and the Middle East. HSBC is also looking to bulk up its Singapore and Southeast Asia presence, Matos said. In August, the bank bought French insurer AXA's Singapore assets for USD575m. Though HSBC has a dominant Asia presence with its retail banking, particularly in the financial hub of Hong Kong, global

Global wealth managers remain bullish about their growth prospects in China despite an unprecedented regulatory crackdown in the world's second-largest economy. In a global wealth report published in June, Boston Consulting Group said Asia's wealth management revenue pools will soar faster than any other market worldwide, nearly doubling over the next five years to USD 52 billion. "Asian wealth is expanding twice as fast as the rest of the world. This is a compelling opportunity for us," said Matos, who took charge of HSBC's newly combined division in February. "I'm not going to re-do now our goals but what I can say is that in 2021, we will over-deliver our goals on the wealth side," he said. After announcing plans last year to buy out its life insurance joint venture partner in China, HSBC is also keen to gain full control of its asset management company in the country, Matos said.

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INTERVIEW

RIJU JHUNJHUNWALA WRITING A NEW SUCCESS STORY Riju Jhunjhunwala has been the main driving force for RSWM Ltd. With his hard work, dedication, wisdom and knowledge, Jhunjhunwala is always on the quest for new avenues in the business. His zeal for creating a trade model that can showcase India’s potential on the global platform has always kept him on the innovative and creative edge. In his exclusive interview with Observer Dawn Media, he talks about his entire trade journey and future expansion plans.

You started your career with Rajasthan Spinning & Weaving Mills Ltd. (RSWM) and concurrently, you also handled operations for Malana Power Company Ltd. How was your overall experience of handling two big companies at the same time? Yes, that’s right! In 1999, when textiles were booming, I was supercharged to start my career with RSWM. I spent the first few months thoroughly understanding the business. I did it with help from a dedicated team of employees that had worked with my father and grandfather. So, the trust quotient was extremely high. Right after I started, we worked on numerous foundational changes such as new projects, expansions, change of teams, and fresh talent sourcing. Those were exciting times. Every day, I tried to soak in whatever I could.It was those changes that have today contributed to RSWM becoming a 2300+crturnover company today.

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Next year, I took over the reins of Malana Power Company Ltd. And soon after, I became heavily involved in the planning of another hydropower project. Both RSWM and MPCL were very different in their nature of operations. One was manufacturing while the other one was core infrastructure development. Quite frankly, it did get challenging, and I am thankful to the brilliant team of people who helped me sail through it. The current government has been actively promoting the ‘Make in India’ concept. Do you feel that this could help in surging the exports of the country? The Make in India concept and the Production-Linked Incentive schemes have been quite beneficial for the textile sector. They have been effective in encouraging large companies to take up massive expansions.

INTERVIEW

from spinning to processed denim fabric. How was the entire idea conceived and how did you manage to execute it?

RIJU JHUNJHUNWALA Chairman & Managing Director of RSWM Ltd, LNJ Bhilwara's Textile Vertical

The real pioneers of denim in India were veteran companies Arvind Ltd. and Raymond Ltd. They were in this business long before we came about. Knowing the competition was fierce, we decided to fill a void left unattended by the then players. India did not have a single world-class denim mill capable of design development. The competing nations such as Bangladesh, Pakistan, and Turkey were much ahead. Hence, there was an urgent requirement for a high-end spinning integrated denim mill. Such a mill would help the country reach new heights in the international market. We started with approaching American companies for a joint venture, but nothing worked out. So, one day, we decided to do it all by ourselves! That was back in 2007. It’s been fourteen years, and we continue to work at world-class standards. You have a keen interest in the power sector and owing to that, the group has incorporated Bhilwara Energy Ltd. (BEL) in 2006. How do you envisage the future expansion plans of BEL and what are your thoughts on the country’s power sector? BEL currently owns two hydroelectric power projects totaling 278 MW. One of the projects, MPCL has a joint venture with the Norwegian company, Statkraft having a 49% share in the power plant. Currently, we are operating some wind assets as well under BEL. We envisaged this company to address the demand-supply gap in electric power in the country. Today, BEL is one of the few merchant power plants in the country. We sell power through short-term contracts and the Indian Energy Exchange, both.

However, state subsidies play a key role in the decision-making since every state has a different scheme. Consequently, businesses in each state are impacted differently. So far, Rajasthan’s subsidy scheme has benefitted us tremendously. But the power costs put us at a slight disadvantage when competing with global players. We installed solar rooftop power plants at our manufacturing locations to mitigate this. With the China Plus One policy, we are gearing towards increasing our exports, especially since big brands are now looking for alternative nations to source the raw materials. This policy has changed the sourcing and export game for India. Our focus is on capturing the market share of Bangladesh, Vietnam, and the Philippines. You brought the denim revolution to India by creating a world-class integrated denim plant

We recently acquired a majority stake in ReplusEngitech, a company building sustainable and cutting edge energy storage solutions based on evolving Lithium & Advance Chemistry technologies. We had envisioned the surging need for such storage solutions owing to the hike in demand for renewable energy. The power produced through renewable energy resources needs to be stored until used. So, in situations where the supply exceeds the demand, such storage technology is employed. Replus has high growth potential for the next two to three decades to support the increasing use of hydro, solar, and wind energy as power sources. As you speak of climate sustainability through renewable energy and BESS, what are your thoughts on other sustainable development goals on education, unemployment, gender equality and so on? CSR and sustainability have been the core of our family values. My grandfather was quite devoted to the people of Rajasthan, and he launched several welfare programs. I observed the same zeal to do good in my father. As we speak, Jawahar Foundation (an NGO I started in 2019) is serving wholesome meals to people in three different cities in Rajasthan at just a rupee each and has served 60,000+ meals.

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INTERVIEW

I started this NGO with the vision of uplifting the people of Rajasthan by providing better healthcare, education, and employment opportunities. The pandemic served itself as an opportunity to work for the people. We executed close to 200 different projects. Today, we have Digital Literacy centres providing free, short-term computer literacy programs to students. We also have a long-running COVID awareness campaign wherein we distributed 1,00,000 masks and 22,000 packets of food. In addition to this, we planted 20,000+ trees in and around Ajmer in Rajasthan. Together, we’ve donated close to 6.5cr to support India’s fight against COVID. The textile industry has always been a lucrative domain for you what are your plans for future expansion and what all other paraphernalia you would like to focus on in the coming years? Although textiles suffered a severe dry period and COVID posed additional challenges, RSWM remains deeply committed to the industry. 2021 looks up as RSWM has emerged stronger with renewed focus and agility. I feel proud to share that we’ve embarked on a major expansion. Over the next two years, we will invest INR 500 crores in large textile projects with a focus on spinning and knitting. We will invest across business segments i.e. setting up 20,000 spindles of combed cotton at our yarn facility in Mordi; setting up 8.4 million meters of denim capacity for sheet dyeing and finishing capacity at Mordi (Banswara, Rajasthan); and setting up 30,000 spindles of Mélange yarn at the largest unit in Kharigram (Rajasthan). This is apart from the modernisation and balancing of equipment across locations. With denim already pacing up, we expect

topline growth of more than 700 crores over the next two to three years. How did you develop a knack for textiles over the years? I had observed my father and grandfather working on building the business grounds up. In addition to RSWM Ltd., they set up several other companies while being deeply committed to the welfare of the people. So, I saw the good side of business early on. Also, dining table conversations were an important learning ground. I started picking up industry insights and trade nuances. So, as soon as I graduated, I rushed back to India, ready to begin my career in textiles. I had my own ideas and I wanted to make those happen. How did renewable energy and sustainability become focus areas of your recent work? I strongly believe that a business needs its environment to thrive. Today, the environment itself is in danger. So, it is our very responsibility to step up and achieve the Sustainable Development Goals to survive. Traditionally, we Indians have lived a sustainable lifestyle. We’ve always been conscious and considerate of our environment. Today, those values need revisiting and an unshaken commitment. That’s what we are doing. We’d set up a rooftop solar power plant in __RAJASTHAN____ and hydroelectric power plants in __HIMACHAL PRADESH_____ We are converting 180 cr PET bottles into 43,200 tons of recycled polyester fibre annually. Materials like these make fashion sustainable.

JAWAHAR FOUNDATION

awahar Foundation started with the vision of uplifting the quality of life of the people of Rajasthan with a sharp focus on food accessibility, education, employability, health and sanitation, and water availability. Started in 2019, Jawahar Foundation is a CSR initiative by Mr Riju Jhunjhunwala, Chairman and Managing Director of RSWM Ltd, leading textiles producer and exporter in India. The foundation extensively worked during the pandemic distributing 1,00,000 m a s k s a n d 2 2 , 0 0 0 f o o d p a c k e t s t o t h e n e e d y. It started an extensive COVID ‘No Mask No Movement’ campaign around the city with announcement stickers and placards. It also planted 25,000 trees in and around Ajmer to indirectly increase the oxygen levels in the air. It also donated sewing machines to 500 women after training them. The foundation also donated 120 COVID beds for hospitals

and installed 100 oxygen bed pipelines. It also created COVID care wards in one of the hospitals in Gulabpura. As the situation became better in Rajasthan, the foundation continued to fight with a renewed campaign focusing on COVID hygiene and safety. To date, the staff continues to regularly visit orphanages, blind homes, old-age homes, and remote areas to inform the people about the risks and safety measures. It has also been donating COVID safety kits, gloves, masks, and sanitisers to shelter homes. Recognizing the efforts of several medical staff members, cleaners, and volunteers, Jawahar Foundation has felicitated 1,250+ Corona warriors in several districts of Rajasthan. In addition to this, the foundation donated a total amount of 1 cr for vaccination drives in Rajasthan. Today, the foundation runs a popular digital literacy course for government school students in 7 centres in Ajmer. 2,700 students are currently enrolled on this short-term program. Encouraging girls in the state, the foundation awarded 800 girls for their exemplary performance in academics and sports. Today, the foundation successfully runs community kitchens in Ajmer, Bhilwara, and Banswara serving wholesome meals at just Re 1. To date, 61,000 meals have been served to the hungry. The program was started with the vision of serving dignified meals to those in need. To know more about the work of the foundation, please connect with us on social and visit our website

www.jawaharfoundation.com

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December 2021

PROFILE

THE LNJ BHILWARA GROUP PROFILE OF MR. RIJU JHUNJHUNWALA, CMD, RSWM LIMITED

iju Jhunjhunwala is the Chairman & Managing Director of RSWM Ltd, a preeminent textile company in India for over 50 glorious years. RSWM is part of the LNJ Bhilwara Group with interests in businesses like Graphite, Power, IT and Skill Development. Apart from RSWM, Riju is a director in the other group businesses. After his bachelor’s in business management from University of Bradford, Riju joined RSWM in 1999. He was involved in various aspects of business to start with like exports and manufacturing. He took over his role as Joint Managing Director of RSWM in 2002. After spending nearly 2 decades in various roles in marketing and strategy at RSWM, Riju knows what it really takes to remain competitive and profitable in an ever globalized business landscape. Under him, RSWM has grown to now become one of the leading synthetic yarn, and fabrics company in India with yearly sales of nearly U$ 500 mn. Apart from RSWM, Riju also took over as Managing Director of Bhilwara Energy Ltd, the group’s holding company in the renewable power space. BEL owns and operates 300 MW of hydro-electric power and over 100 MW of wind energy. Riju is also actively involved in other group companies like HEG, and oversees the service businesses of the group like Bhilwara Infotech Ltd and LNJ Skills, which is into providing skilling solutions across India.

Riju is also active in industry and social associations. He has been the past president of the Entrepreneurs Organization (Delhi Chapter) among some others. In his personal life, Riju is an avid reader of history and biographies and has a keen interest In general affairs and politics. Like everyone else, he loves to travel with his wife, Amrita and his son, Jawahar.

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COVER STORY

INDIA'S INFRASTRUCTURE SECTOR POISED FOR A ROBUST GROWTH IN FUTURE

s the country is opening its gate to promote trade and business activities, country’s economy has started reviving itself. This resulted in gushing of positive trade vibes in India’s business cycle and that struck a positive cord for the country ’s infrastructure sector. The recently conducted by Ministry of Finance, Government of India post unlocking of the economy, infra sectors are poised for growth and construction of roads is expected to return to the high pace attained before COVID-19. The infrastructure sector will be the key to overall economic growth and macroeconomic stability, the Survey said emphasising that the year after the crisis (2021-22) will require sustained and calibrated measures to facilitate the process of economic recovery and enable the economy to get back on its long-term growth trajectory. Observer Dawn pens down a full fledge story on the recent developments and shortcomings of this ever growing sector by taking

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inputs from some of the major players of this domain.

AI Asserting that INR 111 lakh crore National Infrastructure Pipeline for 2020-2025 will be a gamechanger for the Indian economy, the Survey said sectors like energy, roads, urban infrastructure, railways have a lion's share in it that will help boost growth.

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"Basic infrastructure facilities in the country provide the foundation of growth. In the absence of adequate infrastructure, the economy operates at a suboptimal level and remains distant from its potential and frontier growth trajectory. The strong backward-forward linkages of the infrastructure sector are well established. Therefore, investment in infrastructure is quintessential for more rapid and inclusive economic growth," the Economic Survey tabled in Parliament said.

Economic Survey 2021 updates AI Asserting that INR 111 lakh crore National Infrastructure Pipeline for 20202025 will be a game-changer for the Indian economy, the Survey said sectors like energy, roads, urban infrastructure, railways have a lion's share in it that will help boost growth. To boost private investment in infra sector, it said the government has set up the Public Private

COVER STORY

Partnership Appraisal Committee (PPPAC) for appraisal of PPP projects. In 2020-21, PPPAC recommended 7 projects with total project cost of INR 66,600.59 crore. Out of these 7 projects, 1 is a telecom sector project, 3 are railway sector projects, 2 are MHA sector projects and 1 is port sector project, it said. To boost the sector, in the current fiscal year, the government approved the continuation of the revamped Infrastructure Viability Gap Funding (VGF) scheme till 2024-25. Revamping of the proposed VGF scheme will attract more PPP projects and facilitate the private investment in social sectors (Health, Education, Waste Water, Solid Waste Management, Water Supply etc.), it said. About highways, it said India runs on road and the road network is the backbone of the transport system. "During the decade ended in FY19, national highways recorded a CAGR (compound annual growth rate) of 7.25 per cent followed by rural roads (6.25 per cent) and urban roads (4.27 per cent)," it said. The pace at which roads have been constructed has grown significantly from 12 km per day in 2014-15 to 30 km per day in 2018-19 before it moderated in 2019-20. The decline in the construction of road per day in 2020-21 is mostly on account of the COVID-19 shock, it noted. COVID-19 shock had resulted in decline of road construction to 22 km a day in the current fiscal from 30 km a day in 2018-19. With the unlocking of the economy, construction of roads is expected to return to the high pace attained before COVID-19, it added.

As reported by Capital Group, a global investment manager with its headquarter in Singapore, The last decade has been challenging for India’s manufacturing, construction and infrastructure sectors as the investment cycle slowed down

India could be poised for double-digit growth As reported by Capital Group, a global investment manager with its headquarter in Singapore, The last decade has been challenging for India’s manufacturing, construction and infrastructure sectors as the investment cycle slowed down. That weighed on gross domestic product growth, which reached a decade-low 4.2 per cent in 2019. Consumer demand driven by easy finance, runaway credit growth for an aspirational population, and government spending have been key supports for economic growth. So what are the prospects for India’s market and economy? In company’s view, industrial firms’ aggressive cost-cutting during the past few years has laid the foundation for change. Companies have slashed capital expenditures and reduced leverage. The Indian government has implemented much needed labour reforms. Meanwhile, bank balance sheets are healthier and interest rates are low. Against this backdrop, Indian manufacturing is probably entering a multi-year growth period with recovery in margins, profits and ROCE (return on capital employed). This should drive the new investment cycle. At the same time, the COVID-19 vaccine rollout is restoring consumer confidence. India has navigated the pandemic well despite dire forecasts. After what has been dubbed the harshest lockdown in the world, the economy has bounced back more quickly than expected. In its regular conversations with

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COVER STORY

various companies, it sensesa buoyancy in corporate and entrepreneurial sentiment that has been missing for the past few years. Various sectors of the economy have begun to normalise. Manufacturing activity, export orders and property and vehicle sales have all improved. The government’s approach also appears to be shifting. Rather than trying to clean up the system, as it has done with significant success over the last six years, it now seems to be targeting growth and wants to work with the private sector to spur the economy. Case in point: India recently unveiled a productionlinked incentive programme to encourage foreign manufacturers of mobile phones, pharmaceuticals and medical devices to set up shop in the country and for domestic producers to expand. The just-released central government budget for the 2022 fiscal year, with its focus on infrastructure spending and growth, has further buoyed sentiment. The nascent recovery, coupled with low interest rates, could start a virtuous cycle for the Indian economy. It has been believed that GDP could reach double-digit growth in the 2022 fiscal year and could stabilise in the 6 per cent to 8 per cent range in later years.

India’s digital transformation is moving at a brisk pace, pitting domestic technology companies against multinationals looking for a piece of the country’s large and youthful consumer market

Key areas to watch Some key sectors will be critical to watch for signs of progress — and investment opportunities — as India’s economy continues to mend. E-commerce: A hotly contested battleground. India’s digital transformation is moving at a brisk pace, pitting domestic technology companies against multinationals looking for a piece of the country’s large and youthful consumer market. Reliance Industries is at the centre of the fray. Its Jio mobile service launched in 2016 and recently surpassed 400 million subscribers. Growing from its roots as India’s largest oil and gas company, Reliance has transformed into a domestic technology powerhouse. But rather than go it alone, the company has teamed up with global multinationals looking for a gateway into India. Its broader vision is to connect manufacturers, retailers and consumers on the Jio platform. That’s what drove its strategic partnership with Facebook. Jio is also collaborating with Google to develop a low-priced Android smartphone. India’s banking system: A tale of two worlds. India’s banks have strong growth potential owing to relatively low market penetration and the rapid growth of mobile banking. But there is a sharp split between public and private banks. State-owned banks carry some of the highest ratios of bad loans in the world, a problem that the pandemic is likely to make worse. While a new bankruptcy law forced banks to

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recognise bad loans more quickly, it will take further reforms to get more credit flowing to stimulate growth and innovation. To that end, the government recently announced plans to create a “bad bank” to manage distressed loans. In contrast, the larger private banks have been growing profits and gaining market share. They are well-positioned to scoop up some of the country’s weaker lenders. Residential real estate: Less fragmented. In recent years, new laws have both formalised and legitimised the industry, leaving a few large, organised regional homebuilders including Godrej Properties, Sobha Ltd., and Brigade Enterprises as survivors. A speedy economic recovery in India could drive new demand for homes in urban areas. Besides the homebuilders themselves, opportunities could arise for companies that provide cement, paint, tiles or household appliances. Consumer market: Dominated by multinationals. India’s consumer market has been dominated by subsidiaries of multinationals such as Hindustan Lever, a unit of Unilever. Pepsi, Nestlé, Mondelez and Coca-Cola are pursuing greater market share through a host of innovative strategies targeted at hypermarkets. This is a high-growth area that will likely see the emergence of new domestic players and the entry of a larger group of multinationals.

COVER STORY

announcements and inflows on the back of a liberalized FDI regime, “Make in India” initiative and an improved business environment. • Thrust on urban infrastructure development with Indian urban population growing rapidly and projected to reach 583 million by 2030. • India’s emerging middle class and increase in median income - By 2030; the country ’s median income per household is expected to reach INR 0.68 million which would lead to more spending capacity. • Disruptive changes in Indian construction industry with new materials, innovative building technologies, digitization, automation and artificial intelligence are evolving the way to conceptualize, build and operate infrastructure assets. • Funding in logistics startups in India increased by 205 per cent in 2017, signifying the strong boost to the transport and logistics sector.

Further progress on reforms will be key To realise its full potential and keep markets humming, India will have to implement deep-seated structural reforms. Since taking power in 2014, Prime Minister NarendraModi has implemented a series of reforms aimed at modernising the economy, increasing the ease of doing business, rooting out corruption and raising living standards. His government has seen the pandemic as an opportunity to push long-pending measures affecting agriculture, labour and domestic manufacturing. However, major reforms can be challenging, as we’ve recently seen with widespread protests by farmers over new agricultural laws. In its experience, company has found the quality of management of India’s private-sector companies to be on par with the best in the world. Should structural reforms unleash a higher domestic growth rate, many of these companies would be well-positioned to grow both top line and bottom line at a faster pace than many of their global and emerging markets peers. At a market capitalisation of about $872 billion, based on the MSCI India Investible Market Index (IMI) as at 31 December 2020, India’s equity market is still relatively small compared with the size of the economy and its potential growth. That could mean an expanding opportunity set in India over the coming years.

Mega Trends Driving the Infrastructure Sector • Impetus to industrial activity in the economy with significant investment

According to the recently published report by Price water house Coopers, a multinational professional services network of firms, operating as partnerships under the PwC brand,

• Massive shift towards sustainable development with aims to achieve 175 GW of renewable energy by 202210 and shift to only electric vehicles by 2030.11 The adoption of such green mobility solutions would imply transformational changes in the power and automobile sector, with respect to job creation, technological advancements, and manufacturing capabilities. • India jumps up 23 positions, moving from 100th position in 2017 to 77th spot in 2018 in the world ranking for ease of doing business. This improvement represents the reforms undertaken and puts focus on continual infrastructure growth. (All the above information is provided by Ministry of Statistics and Programme Implementation)

The private sector’s role in achieving the Winning Leap According to the recently published report by PricewaterhouseCoopers, a multinational professional services network of firms, operating as partnerships under the PwC brand, India’s private sector—established corporations and entrepreneurial companies alike—can play a key role in developing and deploying Winning Leap solutions. Why? The private sector is more nimble than the government and social sectors in terms of its ability to craft new business models and strategies and leverage new technologies. Given

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COVER STORY

their experience with globalisation, these companies are well positioned to learn from and experiment with best practices developed by their global peers. International companies looking to participate in high-growth markets are equally well equipped to develop relevant solutions. This growth journey will also require public-private partnering in its broadest sense. To support progress in a number of sectors, the government will need to continue building national platforms such as improved roads, ports, and physical connectivity as well as better digital infrastructure. If India can achieve a 9 per cent per year growth trajectory, its economy would become the world’s thirdlargest in 2034, after the US and China.

Sushant Bhansali, CEO, Ambit Asset Management

This achievement would create worldclass companies originating in India that develop capabilities essential for other high-growth markets as well. These companies could successfully serve India’s already large and growing domestic market while also competing on the global stage. Pwc anticipated that at least ten Indian companies will find a place among the global top 100 by size and scale if the nation can achieve its US$10tr GDP aspiration. These industry champions will not only demonstrate unprecedented growth themselves but also build new capabilities essential for ongoing innovation of new products, services, and business models. To foster the emergence of such worldclass Indian companies, India’s private sector will have to invest more in research and development (R&D), particularly for solutions to challenges facing emerging markets, where India has already established a leadership position. Indeed, company’s economic model shows that India’s Winning Leap will require an increase in R&D spending from 0.8 per cent of GDP to 2.4 per cent in 2034.

An eagle eye view by Sushant Bhansali, CEO, Ambit Asset Management India’s current median population age stands at 26 years with around 36 percent of the people under the age 20. Among the key developed and developing nations, we are one of the youngest countries, certainly younger than the US, Australia, China, South Korea, UK, France, Germany and Japan. What is icing on the cake is that with an average 1 percent growth rate, our population is getting younger by the year. We have one of the highest working-age population, around 63 percent people fall in the age bracket of 15-59 years, which can help transform India into an economic super power. This demographic advantage is what sets India apart from other global economies like China and Japan that are ageing faster. 1)

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December 2021

Increased savings: Several economies, such as Japan, South Korea and China, were able to benefit from the rise in their working population by engaging them in productive employment, ushering in periods of sustained economic growth. Working age is also the prime years for savings, which is key to accumulation of capital and technological innovation. We do believe that India is at the cusp of this change.

Funding in logistics startups in India increased by 205 per cent in 2017, signifying the strong boost to the transport and logistics sector.

Rapid industrialisation and urbanisation: Not just a young population, India also sees a swift urbanisation which, we believe, is crucial for India’s economic growth. Cities occupy just 3 percent of the landmass, but contribute around 60 percent of the GDP. India is, however, transforming rapidly into an urban country and the pace of transformation is only expected to accelerate going forward, driven by the migration of labour from agriculture to urban-based industry and services and increased agricultural production. Powering domestic consumption: The vision for the future of consumption in India is anchored in the growth of the upper-middle income and high-income segments. Share of upper-mid and high income households in India is expected to increase from 24 percent in 2018 to 51 percent in 2030. At the same time, India will also lift nearly 25 million households out of poverty which will reduce the share of households below the poverty line to 5 percent, down from 15 percent currently. Domestic consumption, which powers 60 percent of the GDP today, is expected to grow into a $6-trillion opportunity by 2030, supported by a 1.4-billion-strong

COVER STORY

population that is younger than that of any major economy. Household savings have historically been high as cautious Indian families put away more than 20 percent of their income for a rainy day. This buffer provides support to domestic consumption expenditure even through challenging cycles in economic activity.

insurance and pensions affordable. Jan Dhan has led to the opening of nearly 300 million bank accounts since 2014, bringing a completely new class of previously unbanked people into the banking system. Fig 3.shows that financial inclusion is on an uptrend in India, driven largely by an increase in deposit accounts between FY2013 and FY2016.

With higher working population and rapid urbanisation, India is well poised to achieve strong economic growth over the coming decades. Improvement in women labour participation will provide a further push to India’s growth journey. As the economy undergoes this structural growth, can the markets remain far behind? We believe as the economy grows, markets will run at a faster pace and create massive wealth for the investors. The bull run of 2021 so far, is just the tip of the iceberg and massive wealth creation opportunities remain. The only thing that we need to be cautious about is to invest in ‘good and clean’ companies.

Leveraging the benefits of financial inclusion Besides market reforms and infrastructure, financial inclusion is also key to bridging the social divide and achieving a well distributed, robust and sustainable economic growth. Two schemes in India Aadhaar and Jan Dhan have helped to drive financial inclusion, particularly in the rural and semi-urban areas. Aadhaar is a unique identity system which allows Indian residents to prove their identity to get jobs, open bank accounts, travel by rail, and to get various entitlements as well as government benefits directly into their bank accounts. Jan Dhan, on the other hand, is a financial inclusion programme which aims to expand and make access to financial services such as bank accounts, remittances, credit,

By combining Aadhaar and Jan Dhan, Indian residents can now receive benefits directly from the government, bypass agents and avoid leakages, which can in turn facilitate consumption.

The Jewar airport, the first phase of which is scheduled to open in 2024, is being built through a public private partnership (PPP) with an investment of Rs 5,730 crore. The airport will be spread over an area of 5,000 hectares, and is being developed by Zurich International Airport AG.

Jewar airport a new feather in the cap Prime Minister NarendraModi laid the foundation stone of the Noida International Airport (NIA) at Jewar, Uttar Pradesh on25 November 2021. The ceremony could be marked as the bundle of opportunities for India’s infrastructure sector. The project is part of the government’s plan to expand existing airports and build new ones to both support growth of regional air traffic and to sustain air traffic growth in the congested metros. Imminent saturation of the existing Indira Gandhi International Airport in Delhi presents a case for a second airport in the National Capital Region to handle the future traffic projections. The airport, the first phase of which is scheduled to open in 2024, is being built through a public private partnership (PPP) with an investment of Rs 5,730 crore. The airport will be spread over an area of 5,000 hectares, and is being developed by Zurich International Airport AG. The company Noida International Airport Ltd was incorporated in 2018 as a joint venture of the Government of Uttar Pradesh (through its Department of Civil Aviation), NOIDA, Greater NOIDA, and Yamuna Expressway Industrial Development Authority (YEIDA) in the ratio of 37.5 per cent to 37.5 per cent to 12.5 per cent to 12.5 per cent. A concession agreement was signed in October last year with the concessionaire, Yamuna International Airport Private Limited (YIAPL), an SPV of the bid-winner Zurich International Airport AG. In 2019, the Swiss company offered a bid of Rs 400.97 per passenger and emerged as the winner, outbidding infrastructure players such as the Adani Group. In early December last year, Zurich Airport International selected a consortium consisting of Nordic, Grimshaw, Haptic, and STUP as the architects to design the passenger terminal of the airport. The design of the airport focuses on short and efficient passenger flows, and digital and tech-enabled customer services, according to the developers.

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TOP STORY

TECHNOLOGY ENHANCING INDIA'S INFRASTRUCTURE SECTOR

he infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initializing policies that would ensure the time bound creation of world-class infrastructure in the country. As India is progressing exponentially in terms of building smart cities, a lot of transformation is visible across the map in technology advancement and infrastructure development. According to the Department of Industrial Policy and Promotion (DIPP), Foreign Direct Investment (FDI) received in the Construction Development sector (townships, housing, built-up infrastructure, and construction development projects) from April 2000 to March 2019 stood at US$ 25.05 billion, which further implies the immense growth of the sector. Earlier, infrastructural developments were on the slower side for eg. it took nine years for Mumbai’s iconic Bandra-Worli Sea Link project to finish and become operational, after the contract for its construction was awarded in 2000. While the 5.5km project

repeatedly missed successive completion deadlines – the original plan was to complete it by 2003 – its cost ballooned four times from INR 400 crore initially to over INR 1,600 crore. But nowadays with more and more technology coming into picture, the sector is witnessing a speedy approach in completion of various projects. According to the report, the Department of Industrial Policy and Promotion (DIPP), Foreign Direct Investment (FDI) received in the Construction Development sector (townships, housing, built-up infrastructure, and construction development projects) from April 2000 to March 2019, India stands at US$ 25.05 billion, further implying the immense growth of the sector. Tra d i t i o n a l l y, ca p i t a l p ro j e ct s a n d infrastructure was largely dependent on predictable, engineering and labor driven sources. But in reality, the former has been replaced with more cutting-edge technology playing a vital role in transforming the infrastructure segment.

DIGITAL INFRASTRUCTURE IS THE NEED OF THE HOUR

nfrastructure investment in digital technology—increased access to mobile broadband, fibre-optic cable connections, and power-supply expansion—combined with the expansion of low-cost smartphones has enabled millions of Indians to connect to the internet for the first time. The number of enterprises and households that now have access to a computer has increased dramatically, and internet consumption is growing in double digits. This digital transformation has been accompanied by a growing wave of technological entrepreneurship. Digital India is the need of the hour, it is essential that companies adopt themselves with the current trend. It is a great platform for the Indian businesses to connect with their customers and provide expected services. From Internet to short

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message services; it is the time to connect holistically taking into consideration all the digital sources and transform the delivery mechanism. The banking sector in India is an extremely dynamic one and Digital infrastructure can provide solutions at a reasonable scale. India has launched numerous initiatives such as Aadhaar, Unified Payment Interface (UPI), Rupay, payments bank and India Stack. In over three years, over 270 million bank accounts were opened, with USD 10 billion in deposits. Then, RuPay came along, to increase digital financial adoption in the country with its flat processing fees. With the rising smartphone penetration in the country, has boosted the online payments sphere to unprecedented levels. As per a recent study, the Indian digital payments industry will touch

December 2021

TOP STORY

AI (ARTIFICIAL INTELLIGENCE) & ML (MACHINE LEARNING) DRIVEN SOLUTIONS

wo very hot buzzwords yet are not quite the same thing. Artificial intelligence (AI) is the intelligence exhibited by machines such as “Learning” and “Problem Solving” ML is a class of algorithms that automates analytical model building and gives computers the ability to learn without being explicitly programmed. Synthetic Intelligence and Machine learning algorithms are slowly being deployed on a vast array of sectors. The use of AI (Artificial Intelligence) is becoming prevalent in the sectors like healthcare, the subsequent motive of enormous primarily based health firms merging with different health firms, give bigger health information accessibility. Greater health information could need additional

implementation of AI algorithms. Similarly, it is becoming prevalent in other sectors like consumer technology and entertainment. As consumer expectations and preferences evolve, electronic companies are racing to provide next-gen smart products that are powered by AI and ML.

For instance, as per reported by media the first Community Centre for Artificial Intelligence was launched in Hyderabad. It was also mentioned that The HexArt Institute is an initiative of the Hexagon Capability Center India (HCCI), the greatest product development center of the technology major Hexagon AB. It recognises this institution as an initiative of timely societal responsibility. The center will train over 350 students in several batches per year.

At a time when India is striving to rekindle productivity and growth, AI promises to fill the gap. A full and responsible implementation of AI will open new economic opportunities that would not otherwise exist. The guiding principle should be to create “people first” policies and business strategies, centered on using AI to augment and extend people’s capabilities for the benefit of humankind.

Additionally, companies like Google, Microsoft, Amazon are trying to achieve the government’s needs of cloud computing and machine learning. Private companies will rush to win big contracts, add to the stream of funds to create innovative technology, and establish new AI and data scientific startups as the Indian government pushes for digital transformation and introduces more AI initiatives. However, there some challenges that country needs to overcome if it wants to apply AI in full spectrum. The first challenges isIndia has a comparatively small number of researchers in the field of machine learning and research production. Another issue is India has very little local awareness of the latest knowledge that is being generated by others each day. Given the existing and potential possibilities, Indian businesses have been reluctant to accept AI.Despite the number of available standard packages, India does not have sufficient qualified personnel to apply machine learning to its own challenges and data.

USD 500 billion by 2020, contributing 15 per cent to the country’s GDP. This digital footprint has helped in regulating the economy by making transactions faster and more transparent.

along major infrastructure transport corridors. The entry of new plants, in the organised sector and formal sector, has played a key role in these spatial transformations.

The government is actively encouraging the use of the RuPay. Funds from the Financial Inclusion Fund and Acceptance Development Infrastructure Fund should be utilised to drive adoption and create building a sustainable Digital Infrastructure Industry.

Urbanisation is helping the informal s e c t o r. I n f o r m a l e n t e r p r i s e s a r e expanding in the tradable goods sector and contracting in the non-tradable sector. The big issue here is the role of technology in making informal sector more tradable. Low-tech services have grown exponentially in large cities. Services are now the key to economic growth in developing countries, more so than manufacturing, but we still don’t have a good sense of their spatial dynamics. There still exists knowledge gap in how these emerging trends interact with urbanisation and structural transformation. A key challenge is to group industries by technology intensity, and look at the interaction of this intensity with the ability of locations to examine the impact of the digital communications infrastructure.

Synthetic Intelligence and Machine learning algorithms are slowly being deployed on a vast array of sectors, including healthcare, consumer technology and entertainment, etc, this year, AL and ML driven infrastructure projects and solutions will be deployed so as to accelerate the complex developmental projects. Advanced total stations for land surveying, for eg, use advanced geo mapping and AI technology to map and plan construction of bridges and sea-links etc.

India has experienced several new spatial development trends. First, in the manufacturing sector, the formal and organised sector has begun to make the transition out of urban areas and towards rural locations within districts. In contrast, the informal or unorganised sector is still transitioning towards urban areas within the 500-odd districts in India. Looking across spatial locations, the organised sector is increasingly locating

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TOP STORY

TRANSPORT IS THE KEY TO SUCCESS

magine reaching your daily destination with better transportation facilities, fruitful time management and costefficacy! City transportation is an important pillar for the quality of life for citizens, and streamlining an organized system of transportation is imperative. Transport infrastructure has emerged as one of the major factors for a country’s progress. Having a significantly diverse transport sector, this comes with its own set of challenges. Some key additions such as opting for a more eco-friendly energy source is a primary requisite for a sustainable and advanced infrastructure network. Also geospatial-enabled efficient transportation system can help improve the reliability of public transportation by

providing visibility for arrivals/departures can prove to be beneficial for daily commuters. Transport infrastructure has emerged as a major challenge in modern cities and has led to various other complexities like air pollution, congestion of roads and noise pollution, apart from severely diminishing the quality of life. Switching to eco-friendly modes of transportation such as electronic

SECURITY AND SURVEILLANCE ESSENTIAL ARM OF MODERN INFRASTRUCTURE

ecurity has become a primary concern for the modern society. Modern techniques like drones that deploy AI driven surveillance methods and ML based security systems for individual safety set-ups, etc, are just a few instances of technology in fortification of urban societies. A wider, public network of CCTV’s and use of drones for monitoring city scrapes, mangroves, coastline security, and surveillance of national borders, is already gaining popularity. 2022 will witness greater advancement of these technologies, and wider deployment of across the nation. The safety and security industry in India has experienced steady growth in recent years, and various industry segments

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are estimated to grow between 10 to 15 percent annually. Population growth, rapid urbanisation, expansion of industries, vast infrastructure and mass transportation systems are driving expectations for greater safety and security measures—particularly in critical national infrastructure projects. Key sub-sectors include communication networks, border security, government research facilities, emergency and disaster management systems, healthcare facilities, ports, oil refineries, power plants, critical manufacturing facilities, and mass transportation systems. India’s security industry can be broadly classified into cyber security, electronic security, fire safety/detection/prevention, road

December 2021

vehicles and a robust public transport facility that can reduce the number of vehicles on the road, etc, can help alleviate the problem. One of the crucial trends therefore is going to be focused on facilitating effective technology infrastructure that can address these issues. More electronic charging points, for example, will be an important factor.

safety, private and industrial security, and personal protective apparel and equipment. The industry is highly fragmented and consists of local manufacturers, system integrators, sub-contractors, regulatory and certification agencies, distributors, consultants, and service providers. While the market is price sensitive, an increased awareness of quality, reliability, and timely after-sales service has led certain customer segments to be willing to pay a premium for innovative and technologically advanced products from U.S. manufacturers, suppliers, and solutions providers. The federal government in India has initiated many vital infrastructure projects including new airports, mega ports, highway projects, metro systems and the development of smart cities across the country. The rapid growth in hospitality, commercial and residential structures, railways, and roadways, coupled with greater presence of multinational companies, the internet of things (IoT), and smart technologies are the primary factors driving demand in the security industry. End users of safety and security products and services include airport, mass-transportation, government enterprises, law enforcement and intelligence agencies, military, emergency and disaster management agencies, private security agencies, and commercial and noncommercial enterprises.

TOP STORY

ARCHCHAT AND ICORE GIVING A TECH TOUCH TO GLOBAL INFRASTRUCTURE SECTOR

rchChat is the world’s first chat platform for design and construction projects. It is one of a kind platform that brings architects, designers, project owners, engineering consultants, contractors, product manufacturers, their dealers and art galleries together. So they can be synced together and communicate about each and every aspect of their projects. While conversing, project collaborators can convert any conversation to a task and improve project management. ArchChat has been launched to the design and construction industry after years of dedication and multiple iterations by the team behind it. There are many new innovations in ArchChat, for which global patents have been applied. The ArchChat team has not stopped innovating. ArchChat aims to reduce costs of design and construction projects by making collaboration, saving time so projects are completed earlier, creating new business opportunities and adding value for product sellers by connecting them to new buyers. Company is headquartered in Singapore with an innovation lab in India. It is founded by Chetan K Singh, a principal designer with over 20 years of experience in the design & construction industry. ArchChat brings all collaborators to a single platform.

Architects, engineering consultants, product sellers and project owners are connected 24X7through instant chats so that they all remain in sync. These chats can be converted to tasks for effective task management. This enhances responses, enables remote working and removes inefficiencies. And so, ArchChat gives users the advantage to make more profit, reduce costs by at least 20%, and complete their projects earlier than expected. With a market size of 100 million users, ArchChat estimates to capture just 1.7 million users by 2025, which would generate revenue of US$100 million. iCore helps construction professionals manage risk and build quality projects – safely, on time and with a budget. From project onboarding to billing and closeout, iCore’s simple and intuitive interface connects your team on a real-time centralized hub and on any device. A flagship product of CitrusLeaft, iCore is a construction business management software. Construction Companies and professional who work on high-risk projects can take help from the core.

iCore provides construction companies with tools such as: Data Management RFIs (Requests for Information) Daily Log Dashboard Contact Directory Punch List Developed to assist SMEs, this software has a user-friendly interface which presents remarkable features to non-tech users too. Moreover, it is also recognized as one of the Top 10 Construction Management Software by CIOReview in India. iCore Networks was established in 2001, and is the premier provider of integrated solutions that unfailingly meet customer demand now and well into the future. iCores’ unique CloudFUZN solution unifies communications (UC) to seamlessly virtualize office in the cloud solutions that provide world-class end user capabilities at a fraction of the costof maintaining in house systems.

iCore Networks was established in 2001, and is the premier provider of integrated solutions that unfailingly meet customer demand now and well into the future

Fully managed & integrated hosted Microsoft Exchange, Sharepoint&Lync; BroadSoft (BroadWorks) virtual hosted communications, video & contact center platform services along with virtualized desktop (VDI), Secure Private Network (SPN) capabilities and a complete end to end professional services support system that racks, stacks & flawlessly virtualises& maintains end user data center infrastructure both here in the United States & around the globe. The combination of 'all in one' world-class virtualization & ongoing maintenance services creates a compelling suite of outsourced services for customers to choose from in an applications on demand environment that provides state of the art voice, data, video & workforce collaboration tools when & where customers want them on a global scale. iCore’s fully secure & scalable network platform that utilizes best in breed providers such as Cisco, Juniper, Oracle, IBM, Polycom and other highly specialized platform components fused into a 'Strong Cloud' of services places iCore Networks 'CloudFUZN' as the preeminent platform for office in the cloud solutions for businesses worldwide.

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he Awardz is an independent award program it is an initiative by Observer Dawn magazine. The Awardz aims to recognize and reward excellence across private, public and charity sectors. Open to organizations of any size and individuals, based anywhere in the world, entries are encouraged from those who feel they are working smarter to create a business edge.

International Business Awards (IBA), The Indian Realty Awards (IRA), and Pride Awards (PA) bring together the most successful and influential visionaries, manufacturers, consumer and business experts and the industry’s powerful decision-makers on one mega platform as a means to Indian Business enlightenment.

Visit www.theawardz.com

BUSINESS OUTLOOK

DRIVEN BY DEMAND, AMERICAN AIRLINES FLIES BACK TO

INDIA AFTER NEARLY 10 YRS

EDIBLE OILS IMPORT UP

63 PC TO INR 1.17 LAKH CRORE IN 2020-21

lmost a decade after it stopped its India services, American Airlines — the world’s largest airline by passengers carried — flew non-stop from New York’s John F Kennedy International Airport to New Delhi’s Indira Gandhi International Airport on Friday, in a clear indication of growing demand momentum between India and the US in a post-Covid world. However, in what could be a response to the lagging corporate travel recovery, the airline has pushed back the launch of its SeattleBengaluru service by a few months. “With the launch of this new route from New York to Delhi, and in partnership with IndiGo we will provide world class travel options to address the existing passenger demand in both countries.

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The US reopened its borders for fullyvaccinated international travellers on November 8 since first shutting it down last year on account of Covid. India, too, earlier this week, started easing restrictions for tourists coming to India. In 2012, on the back of weak demand, American Airlines had shut down its only India connection between Chicago and Delhi.

Air India, which earlier operated 23 weekly flights between India and the US, has added three more weekly flights between Mumbai and Newark this week onwards

With the easing of travel between global destinations, and with more routes and options being made available soon, international travel is expected to gain huge momentum,” Molly Wilkinson, vice president-regulatory & international affairs, American Airlines said in a statement. The airline has proposed a code-share

agreement with IndiGo, meaning travellers of American Airlines could take connecting flights to other stations in India using IndiGo’s network.

Launch of the airline’s Seattle-Bengaluru flight — that connects e-commerce giant Amazon’s global and India headquarters — has now been delayed by a few months against the earlier expected launch date of January 4, 2022. In addition to American Airlines, the US-India connection has seen augmentation of capacity by other carriers, too. Air India, which earlier operated 23 weekly flights between India and the US, has added three more weekly flights between Mumbai and Newark this week onwards.

December 2021

ndia's import of edible oil remained almost flat at 131.3 lakh tonnes during the 2020-21 marketing year ending October, but in value terms inwards shipments rose 63 per cent to INR 1.17 lakh crore, according to industry data. The marketing year of vegetable oil, which comprises of edible oil and non-edible oil, runs from November to October. "Import of vegetable oils during oil year 2020-21 is reported at 135.31 lakh tonnes (13.53 million tonnes) compared to 135.25 lakh tonnes (13.53 million tonnes) compared to 135.25 lakh tonnes (13.53 million tonnes) during 2019-20," Solvent Extractors' Association of India (SEA) said in a statement. The import of vegetable oils has been at the the lowest for the second time in last six years, it added. As per the data, edible oil import fell to 131.31 lakh tonnes in 2020-21 from 131.75 lakh tonnes in the previous year, while imports of nonedible oil rose to 399,822 tonnes from 3,49,172

BUSINESS OUTLOOK

tonnes. In value terms, SEA said the import of edible oil gone up to INR 1,17,000crore in 2021-21 from INR 71,625 crore in 2019-20. The frequent changes in import duty on edible oils in last few months by the Government of India also disturbed the import pattern, the association said.

GLOBAL WEALTH SURGES AS CHINA OVERTAKES

US TO GRAB TOP SPOT

Import of refined oil has marginally increased to 6.86 lakh tonnes in 2020-21 as compared to 4.21 lakh tonnes during 2019-20, while crude oil import marginally decreased to 124.45 lakh tonnes compared to 127.54 lakh tonnes. "Crude and refined oil import ratio is 95:5, which was 81:19 in 2016-17. The higher import of crude veg oil helped domestic refiners to have the better capacity utilization, employment generation and value addition in the country," SEA said. During 2020-21, palm oil import sharply increased to 83.21 lakh tonnes as compared to 72.17 lakh tonnes during the previous year due to reduction in import duty on CPO (Crude Palm Oil) and lifting of restriction on import of RBD (Refined, Bleached and Deodorised) Palmolein. The import of soft oil (soyabean, sunflower and other oils) decreased to 48.12 lakh tonnes from 59.58 lakh tonnesin last year, consisting of 28.66 lakh tonnes of soybean oil, 18.94 lakh tonnes of sunflower oil, 0.52 lakh tonnes of rapeseed oil. Palm oil share increased to 63 per cent from 55 per cent and soft oil share decreased to 37 per cent from 45 per cent from previous year.

The balance is held in such things as infrastructure, machinery and equipment and, to a much lesser extent, so-called intangibles like intellectual property and patents

lobal wealth tripled over the last two decades, with China leading the way and overtaking the U.S. for the top spot worldwide. That’s one of the takeaways from a new report by the research arm of consultants McKinsey & Co. that examines the national balance sheets of ten countries representing more than 60 per cent of world income. “We are now wealthier than we have ever been,” Jan Mischke, a partner at the McKinsey Global Institute in Zurich, said in an interview.

Net worth worldwide rose to USD514 trillion in 2020, from USD156 trillion in 2000, according to the study. China accounted for almost one-third of the increase. Its wealth skyrocketed to USD120 trillion from a mere USD7 trillion in 2000, the year before it joined the World Trade Organization, speeding its economic ascent.

Richest 10 Per Cent The U.S., held back by more muted increases in property prices, saw its net worth more than double over the period, to USD90 trillion. In both countries -- the world’s biggest economies -- more than two-thirds of the wealth is held by the richest 10 per cent of households, and their share has been increasing, the report said. As computed by McKinsey, 68 per cent of

global net worth is stored in real estate. The balance is held in such things as infrastructure, machinery and equipment and, to a much lesser extent, so-called intangibles like intellectual property and patents. Financial assets are not counted in the global wealth calculations because they are effectively offset by liabilities: A corporate bond held by an individual investor, for instance, represents an I.O.U. by that company.

‘Side Effects’ The steep rise in net worth over the past two decades has outstripped the increase in global gross domestic product and has been fueled by ballooning property prices pumped up by declining interest rates, according to McKinsey. It found that asset prices are almost 50% above their long-run average relative to income. That raises questions about the sustainability of the wealth boom. “Net worth via price increases above and beyond inflation is questionable in so many ways,” Mischke said. “It comes with all kinds of side effects.” Surging real-estate values can make home ownership unaffordable for many people and increase the risk of a financial crisis -- like the one that hit the U.S. in 2008 after a housing bubble burst. China could potentially run into similar trouble over the debt of property developers like China Evergrande Group.

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BUSINESS OUTLOOK

VODAFONE IDEA EVALUATING GOVT'S OPTION TO CONVERT INTEREST DUES INTO EQUITY:

CFO

ebt-ridden telecom operator Vodafone Idea is evaluating the option of converting interest dues arising out of the deferment of statutory payments into equity, a senior company official said. The company is also in talks with banks and investors for raising funds and part of the proceeds is likely to be utilised towards meeting obligations related to debt maturing this fiscal, Vodafone Idea Limited (VIL) Chief Financial Officer Akshay Moondra said during the company’s earning call. The government has given the option to defer all their

dues payment for spectrum and Adjusted Gross Revenue (AGR) by four years to provide debt-ridden telecom companies an opportunity to improve their cash flows and invest in business. "For the AGR dues, we are in discussion with the DoT (Department of Telecom) to determine the final amount in line with the Supreme Court judgement. Further, there is an option to convert such deferment into equity. We are evaluating this and we will be reverting on our decision on upfront conversion of interest

into equity by the deadline of January 12, 2022,” Moondra said. According to him, the company is also in discussions with banks and investors for raising both debt and equity. "These discussions also include some kind of arrangement of funding to be able to meet immediate maturities of debt which are coming up in the remaining quarter of FY’22.” Earlier, VIL reported narrowing of consolidated loss to INR 7,144.6 crore for the September quarter on account of an increase in mobile services tariff and cost optimisation. The company had posted a loss of INR 7,218.2 crore in the corresponding period of the previous financial year. In the latest September quarter, its consolidated revenue declined about 13 per cent to INR 9,406.4 crore. The same was at INR 10,791.2 crore in the year-ago period. In the latest September quarter, its consolidated revenue declined about 13 per cent to INR 9,406.4 crore. The amount comprises deferred spectrum payment obligations of INR 1,08,610 crore, AGR liability of INR 63,400 crore that are due to the government and debt from banks and financial institutions of INR 22,770 crore. VIL MD and CEO RavinderTakkar said the company has started working on raising mobile tariffs and it is expected to be in place very soon. "Some activity on tariff hikes has started to happen. Tariff hikes which are the next important step will also take (place) soon. For us, particularly as a company, we will not shy away from raising tariffs,” Takkar said. During the September quarter, VIL increased the entry level prepaid pricing plan from INR 49 to INR 79 in a phased manner as well as hiked the tariffs for some postpaid plans.

MENSA BRANDS BECOMES INDIA’S FASTEST STARTUP TO TURN UNICORN,

RAISES USD135 MN

DAWN

December 2021

hrasio-style house of brands player, Mensa Brands on Tuesday said it has raised USD135 million as part of its latest Series B funding round led by Falcon Edge Capital’s growth stage platform, Alpha Wave Ventures, at a valuation of about USD1.2 billion. Other existing investors, including Accel Partners, Norwest Venture Pa r t n e r s a n d T i g e r G l o b a l Management, along with new investor Prosus Ventures, formerly Naspers Ventures, also participated in the round, making Mensa the fastest startup to reach unicorn status in just seven months of inception.

BUSINESS OUTLOOK

WTO SAYS GOODS TRADE SLOWING DUE TO SUPPLY ISSUES,

COOLER DEMAND

PIAGGIO INDIA LAUNCHES UPDATED VERSION OF

APRILIA SR SCOOTER RANGE

lobal goods trade is slowing after a sharp rebound following the initial shock of the COVID-19 pandemic as production and supply disruptions and cooling demand for imports dampen growth, the World Trade Organization said. The WTO said its goods trade barometer dropped to 99.5 points, close to the baseline of 100, in November following a record reading of 110.4 in August. The Geneva-based trade body said supply shocks, including port gridlock arising from surging import demand in the first half of the year and disrupted production of goods such as automobiles and semiconductors, had contributed to the decline. Demand for traded goods was also easing, indicated by falling export orders. "Cooling import demand could help ease port congestion, but backlogs and delays are unlikely to be eliminated as long as container throughput remains

A unicorn is a privately held startup with a valuation of USD1 billion. Previously, jobs platform Apna; electric mobility solution provider, Ola Electric; business-to-business marketplace Udaan; InMobi’s lock screen solution, Glance; and Paytm Mall were considered to be among India’s fastest unicorns, achieving a valuation of more than USD1 billion in about two years of starting operations. Mensa Brands now plans to deploy the fresh capital to accelerate growth, and ramp up its acquisitions in the market, while scaling its team across operations, marketing and

at or near record levels," the WTO said. The WTO said the reading was broadly in line with its forecast of a 10.8% pick-up of merchandise trade volume this year, slowing to a 4.7% rise in 2022. The WTO said the outlook for world trade continued to be overshadowed by downside risks, regional disparities and continued weakness of services trade. The Geneva-based trade body said all its barometer's component indices had declined, with the steepest decline for its automotive products index and only the air freight index firmly above trend. Electronic components, container shipping and raw materials were at or close to the 100 mark indicating growth in line with medium-term trends. The WTO goods trade barometer is a composite of data and is designed to anticipate turning points and gauge momentum in global trade growth rather than to provide a specific short-term forecast.

technology functions. The company has close to 60 employees at present, and looks to scale it to 150-200 members over the next 12-18 months. Founded this year, Mensa Brands follows a ‘house of brands’ or brand aggregation strategy where it acquires and partners with digital first brands and looks to accelerate their growth through providing on-ground expertise and tech-led interventions around marketing, and operations. Mensa currently focuses on fashion, beauty and cosmetics as well as the home furnishing category.

iaggio India on Tuesday launched the updated version of its Aprilia SR scooter range — Aprilia SR 125 and Aprilia SR 160 — with a completely new design and features. The all-new Aprilia SR 160 will be available at INR 1.17 lakh, while the Aprilia SR 125 at INR 1.07 lakh, Piaggio India, which is the wholly-owned subsidiary of Italian auto major Piaggio Group, announced at the launch event. All prices are ex-showroom Pune, the company said, adding that the latest offerings can be booked by making an initial payment of INR 5,000 at its pan-India dealerships as well as through its online retail outlet. The new SR 160 is powered by a 160-cc BSVI 3V Tech EFI engine, with an option of 125-cc as well, Piaggio India said. "It gives me immense pleasure to announce the launch of the new Aprilia SR 160 range." Aprilia SR as an innovative design with big wheels in scooters has already created a segment of Aprilia experience seekers. "SR has been a benchmark scooter and first to offer engineering tech like ABS (antilock braking system), 160 CC 3V Tech FI, hightech and high performance engine. Its new design evolution will make riders rejoice the brand experience ever more,” said Diego Graffi, Chairman and Managing Director, Piaggio India. "The all-new SR 160 is set to take the market by a storm. With an exciting representation of the latest Aprilia brand look, it’s going to enhance its prominence on the road w i t h b e s t t e chn o l og y i nc or p or a ted , representing the true Aprilia spirit," said SudhanshuAgrawal, Head for 2-wheeler business at Piaggio India.

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AGRI-SUPPLY CHAIN REINVENTS TO KEEP ITS OPERATIONS

he government of India has always given a special status to agriculture sector as it is considered as the front wheel of the Indian economy. With strengthening up the supply chain by introducing various policies and announcing numerous funding schemes, current government has made it clear that agro sector has a very distinct placing in its book. The agriculture value chain concept has been used since the beginning of the millennium, although there is no universally accepted definition for the term. It normally refers to the whole range of goods and services necessary for an agricultural product to move from farm to its final customer. Working on this line, Ministry of Food Processing Industries is sketching a campaign which focuses on ‘Fork to Farm’ model syncing growing crop with the market demand which will increase the farmers’ income on one hand and organized supply chain will reduce the loss of perishable goods on the other hand. Observer Dawn puts its scanner on the agri-supply chain to analyze what steps can be taken to bolster the growth of supply chain in the country. The agri-supply chain has been always on the move despite the ongoing pandemic crisis. After the government of India put agri sector under the essential services, companies involved with the agri-supply chain business have been working day and night to sprawl their nexus globally. Many tech-driven startups have joined hands with these companies to digitally equip their operations for better maintenance and output. Technology has been embedded in many operations of the supply chain to keep it smooth and running, right from logistical, transportation to warehousing and cold

DAWN

December 2021

storage each and every step has been linked with tech driven systems to make them work fast and concurrently monitoring them for better result.

The agri-supply chain has been always on the move despite the ongoing pandemic crisis

Owing to the current scenario which clearly indicates that there is a heavy load on the agri-supply chain, there is a constant requirement to keep the supply chain updated with new and innovative solutions to keep it upbeat and running. Urging for the further enhancement of the supply-chain, Shaktikanta Das, Governor, Reserve Bank of India stated, “There is a need to further enhance the supply chain in the agricultural domain of the country and this will ultimately increase the average share of farmers in the

TRENDS

Commenting on the new move of the government, Anuj Todi, Business HeadIndia, Pioneering Ventures, “Steps taken by the government will definitely going to improve farmers’ livelihood and moreover, these will enhance the supply chain making it stronger and more flexible. Recently announced agri-infra fund by the government will certainly going to assist in creating a larger network of temperature controlled storage and transport facilities which will further enhance our exports and strengthen our supply chain, with reduction in loss of food.”

RUN SMOOTHLY

In the first place, the government has made amendment to Essential Commodities Act by lifting restriction on vital commodities such as cereals, pulses, oilseeds, edible oils, onion and potatoes. This also means that now farmers can sell their produce directly processors, aggregators, wholesalers, large retailers and exporters across state borders. The new move is welcomed by the farmers and food business operators as it provides a win-win situation for both of them. From the side of farmers, they can get rid of the old mandi model where most of the farmers faced major issues such as low returns, logistical issues, wastage food etc. From procurer side, since now they are buying directly from the cultivators, they don’t need to deal with the middlemen which means buying on lesser rates, providing high quality logistics which leads to substantial reduction in food loss.

Developments will eventually help the farmers to get better output from their produce

retail prices.” Das further said that there is great need to create wider rural roads, better communication facilities and both of these should be coupled with easier access to micro credit. These developments will eventually help the farmers to get better output from their produce.

India has around 7,500 big wholesale farm markets and another 25,000 small weekly markets collectively known as mandis. Many farmers across the country were not exposed to other selling option than mandis but owing to current situation, most of these mandis were closed or operated for few only. Hence, farmers were not able to move their produce which means upsurge in wastage of food.

New Agri Policy equipping the farmers and the supply chain Responding to the difficulties that farmers where facing while selling their produce during lockdown, the government of India carved a new Agri Policy that focuses on freeing farmers and agri-supply chain companies from major hurdles.

The current step will not only going to increase the private investment in the agri business but concurrently, it will also enhance the food supply chain further because of big players joining sector. Acknowledging the move, PuneetSethi, Co-Founder, Farmpal stated,

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“This is a positive and bold step taken by the government which will benefit both cultivators and procurer as well. Farmers can now focus on producing high quality produce while procurers can concentrate on enhancing the supply chain with technology to reduce the wastage of produce.”

Farmers can sell their produce outside regulated mandis with no restrictions on inter-state and intra-state trade

In the second step government has promulgated Farmers’ Produce Trade and Commerce Ordinance, 2020 which aims to create ‘One India, One Agriculture Market’. With this farmers can sell their produce outside regulated mandis with no restrictions on inter-state and intra-state trade. Currently, farmers face several obstacles in marketing their produce owing to the restrictions on farmers selling agri-produce outside notified market yards which are governed by the Agricultural Produce Market Committee (APMC) legislations of respective states. Under these legislations, farmers can sell their produce only to registered licencees and agents of the state governments, who often play the role of informal money lenders. The ordinance

DAWN

aims to create an ecosystem where farmers and traders enjoy freedom of choice of sale and purchase of agri-produce and open additional trading opportunities outside the APMC market yards to help farmers get remunerative prices due to enlarged competition. This also means that traders

December 2021

have to equip their supply chain with latest technology to reduce wastage of goods and also to increase the shelf life of their processed products. “This will open up a huge market from both farmers and buyers with massive options to choose from. Farmers especially post-harvest will have complete flexibility in terms of sale and purchase respectively.Most importantly, this landmark step will ensure higher farmer incomes and an overall improvement in their livelihoods while benefiting the struggling agriculture sector overall,” said Sethi. In its third step, the government has crafted Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020.The ordinance will provide a national framework on farming agreements that protects and empowers farmers to engage with agribusiness firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner and for matters connected therewith or incidental thereto.

TRENDS

sophisticated facilities to cover a wider range of goods, including perishables fruits and vegetables.The challenge will be to establish timetabled long-distance trains and assured delivery times even after passenger trains are back on track.

Indian Railways (IR), the world’s fourth largest rail network, seems to be responding snappily to the times

Demand-driven value chain still in its nascent stage Usually, Indian agri-sector is mostly working on production-driven model in which farmers are given free hand to grow commodities of their choice and the quantity they prefer. In return, the farmers most of the time ended up cultivating excess amount of commodity putting pressure on the supply chain and companies for the consumption and this comes back to farmers as the boomerang with their returns slashing down drastically.

Indian Railways reinventing itself during this unfriendly environment Indian Railways is one of the prominent modes of transportation in the country and it forms a very special position in agrisupply chain of India. It is the first time in the history of Indian Railways that they had to cancel their operations for almost two and half months due to Covid-19. However, post lockdown also IR is operating with limited passenger trains and this will continue till 30th September, as per the draft notification released by the Ministry of Railways. As a part of this agreement, farmer and sponsor work on mutually agreed terms and conditions for supply, quality, standards and price of farming produce as well as terms related to supply of farm services. These terms and conditions may be subjected to monitoring and certification during the process of cultivation or rearing, or at time of delivery. The farming agreement may be linked with insurance or credit instruments under schemes of central and state goverments or any financial service provider. This will ensure risk mitigation and credit flow to farmers or sponsors or both. The Ordinance prohibits sponsors from acquiring ownership rights or making permanent modifications on a farmer’s land or premises under a farming agreement. Put simply, it provides a legal basis to the existing practice of contract farming in India’s agriculture and allied sectors. This move will further strengthen the supply chain as now the farmers don’t need to think on logistics because that will be taken care by the sponsors with their tech driven supply chain.

Indian Railways (IR), the world’s fourth largest rail network, seems to be responding snappily to the times. IR might have suspended all passenger trains on March 22but the country’s lifeline has been far from idle. It has been busy reinventing itself so that its massive infrastructure — spread across a staggering 64,000 km, over 7,000 stations, and with 12 lakh employees — can be honed into a valuable tool during the pandemic. With roads blocked, the entire burden of running the agri-supply chain fell on the IR but it surprisingly, performed its task to the finesse. Numbers suggest that IR performance is remarkable with moving 4.58 million tonnes of foodgrains from 1April to April 22, compared to 1.82 million tonnes over the same period last year. However, now the bigger challenge is can India Railways retain the way it has worked till now. The ongoing crisis also provides an opportunity to IR to revamp its entire freight business model. It could, for instance, tie up with road transport to offer seamless cargo movement, and incorporate

So there is a need to promote development of inclusive plate-to-farm value chains through public-private-producer partnerships by combining the strengths of all stakeholders to support India’s resource. This will not only going to decrease pressure on the consumer companies but will also ease up the work of the supply chain to a great extent.

Warehousing is the key to change the game Due to Covid-19, there is a strong shift in the diet pattern of Indian consumers and their diet composition has now shifted from cereal-based diet to the one which has more of fruits, vegetables, milk and meat. Since all of these are perishable commodities, the pressure comes directly on the supply chain especially the warehousing facilities where such produce is stored either for distribution or for further transportation. Warehousing is now seen as an integral part of the supply chain where goods are not only stored for safekeeping but also where other value processes are implemented, thereby, minimising wastage and costs. In fact, warehousing in agriculture is part of the larger agricultural ecosystem. However, just like agriculture, the warehousing market is local, unorganised and fragmented. Many small and medium landholding farmers use the services of public warehouses, also known as third party logistic companies. These warehouses help farmers by storing and, sometimes, in packing and shipping produce. “There is no shortage of cold storages and warehouses in India but what we need isscientific warehousing to reduce the food loss percentage With the help of scientific warehousing, the post-harvest losses can be reduced to a great extent

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and can provide an interim solution to the "Food Security Problem" of India, which is a major social challenge for our society,” stated AnujTodi.

out of date product losses, lower inventory levels, and raise the effectiveness of logistics and distribution operations.

Country’s agrisupply unit is churning out well even in these time when most of the business line collapsed

To counter the challenges posed by COVID -19 pandemic, the Indian agriculture sector would need more modern and professionally managed agritech set-ups which can address the challenges posed by the pandemic. The proposed exercise to map and geotag agricultural warehouses, cold storage, and other inventory storages by NABARD would result in greater transparency and efficiency in the sector and should be taken at a war footing to mitigate the impact of COVID-19 in the agricultural sector. The agri-warehousing sector has been so far managing the proceedings smoothly and there haven’t been any significant instances of Agri supply chain disruption from anywhere in the country. That’s a huge achievement for the industry which just goes on to shows that the Indian commodity warehousing industry has come of age and that now it can assume more responsibilities going forward to make up for the lost time due to the lockdowns.

Traceability gaining traction Traceability has become a latest trend in the agri-supply chain because it enables the companies, traders, wholesalers to keep a track on its inventory and build it or reduce it as per the demand. Traceability can be added to the value chain of farming via farm

DAWN

analytics and OQ coding of the agriculture produce, thus helping organisations and/ or farmers adhere to various certificate compliances globally. This type of system not only determines traceability of farm produce but even helps in early decision making due to harvest prediction and follows ups on the package of practices defined for agriculture and monitored through the web and mobile applications. It also enables management cost, operational efficiency and market expansion for companies due to processes followed which are transparent and defined.Traceability solutions help remove

December 2021

Traceability initiatives rely on technologies to provide efficient and accurate ways to track and trace products and their movement across the supply chain. This includes technology for product identification, information capture, analysis, storage and transmission of data as well as overall systems integration. These interconnected systems also include hardware such as measuring/sensing equipment, identification tags and labels with remote sensing capabilities. All these data points are collated and stored on a cloud server and further data algorithms are run to help operator obtain valuable farm insights. It is clearly visible that country’s agri-supply unit is churning out well even in these time when most of the business line collapsed. It is mainly because of the strong backing by the government and coupled with the innovation and tech driven solutions that keep this line strong and rolling. However, now the bigger challenge for the agri-supply chain is to retain this speed and keep updating itself whenever it is required. With government giving special status to agri sector and agri-supply chain, the future is looking brighter and vibrant for the units involved in the supply-chain business.

TRENDS

n a g ! e V V-GAIN from Becoming

eganism has taken a world by a storm in recent years and most of the people across the planet are optingfor vegan diet. Now this new transformation has created a great opportunity for Food Business Operators (FBOs), food companies and traders to plan their stint into the plant based food market. Many giants in food chains such as Dominos, Cornetto, McDonalds, Ben & Jerry’s amongst others, are coming up with plant-based alternatives. Even Forbes has listed down reasons to turn one’s business to vegan and the number of eminent personalities investing in vegan businesses has been increasing rapidly, Leonardo Dicaprio, Bill Gates, Mike Tyson, Tommy Chiabra, Viratkohli, Aamir Khan, Kangana Ranaut to name a few. Talking about India, itis one of those Observer Dawn destinations across the globe that analysis current offers huge variety of veg options to market demand the food lovers. Being well known and trends for its vegetarian and flexitarian envisage the attitude towards diet, country is future of vegan well poised to become a hub for food market in vegan food market. Observer Dawn India analysis current market demand and trends envisage the future of vegan food market in India. From being an alien concept, to something one would associate with animal-rights activists, to a common alternate lifestyle, veganism has come a long way! The concept of having plant-based food is getting popular across the length and breadth of this planet. Especially in India where most of the people preferred vegetarian diet over non-veg in their daily meals.As per the report of Grand View Research, an India &US based market research and consulting company, the global vegan food market size was valued at USD 12.69 billion in 2018 and is projected to expand at a CAGR of 9.6 per cent from 2019 to 2025. Increasing awareness about the benefits of following vegan diet is the key factor responsible

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for the growth of this market. North America, Europe, and Asia Pacific, in particular, have a large percentage of vegan population. Sticking to the vegan diet will not only improve the health parameters of the humans but will drastically reduce the unnecessary slaughtering of livestock. Researchers of Oxford University have underlined this statement and touted that going Vegan will not only save millions of lives (both animals and humans), more than few billion dollars will be saved on health care if we quit meat all together.

Majority of Indian population thrive on milk for their complete nutrition

Envisaging the future of the vegan market in India, Kinjal Darukhanawala, Founder, Wegan Foods stated, “There is certainly change in eating habit of people across the globe especially after the pandemic’s outbreak. They are very much concerned about what they are consuming and what effect it is going to have on their immune system. In India, now people are opting for vegan diet which there is whole lot of new opportunities to explore from.”

Majority of Indian population thrive on milk for their complete nutrition. Milk is considered to be a vital source of calcium and protein

DAWN

From classic dairy to plant based milk Majority of Indian population thrive on milk for their complete nutrition. Milk is considered to be a vital source of calcium and protein. Being a world’s largest milk producer, India in 2019 produced 187 million metric tons of milk up from the previous year's 176.3 million metric tons. The milk production in the country had an increase of 6.5 percent over the previous year.

December 2021

But as they say there are two sides of the coin, though consumption of milk is considered a healthy habit worldwide but it has a negative side as well. Since the demand of milk in India is growing multiple folds, many people associated with milk trade start adopting unlawful practices such as adulteration, synthetic milk etc. Moreover, a study by the University of Oxford this year found that greenhouse gas emissions from cow’s milk were almost three times higher than from plantbased alternatives — giving many a reason to consider making the switch to vegan alternatives.

Eliminating the negatives that come with animal-based milk, plant-based milks are derived from cereals, nuts, legumes and other plants. These alternatives milk varieties are receiving increasing attention from health-conscious consumer who are looking for a more natural, healthy, humane and yet nutritionally rich lifestyle. With growing consumer awareness, increasing market share, and continuous innovation, plant based milks are poised to create major storm in dairy sector. Talking about the switch from dairy to plant based milk, Sheena Jain, Co-founder, Sain stated, “In Indian kitchen, it is very difficult to replace all dairy products with plants based alternatives because our palate has developed more falvour for dairy products than any other substitute. But now, the model is changing with people getting more aware of the benefits of plant based products.”

TRENDS

awareness among the people so we really scratched hard in spreading awareness about benefits of our products. Apart from awareness, there was one card that played a vital role for us in gaining momentum and that is vegetarian values are imbibed so hard in Indians that they will easily accept anything that replaces meat.” Last year, several organizations including the Good Food Institute, carried out a large-scale survey and determined that India ranked highest, even above China, in terms of the consumer acceptance of plant-based products.

“Moreover, there is almost zero adulteration in plant based milk making it more healthy and hygienic for human consumption. Walking on this line, we conceived the idea of providing almond milk to the people which will enhance their body mechanism and will make their immune system stronger than ever,” she added. Sain is a Delhibased vegan startup offers dairy-free almond milk in various flavours – cardamom, cacao, vanilla, and many others at price ranging between Rs 145 and Rs 160 per bottle. Similarly, there are other substitutes for milk such as soya milk, coconut milk, cashew milk, oat milk etc. which are floating in the market. These products are not only providing high quality nutrients but also act as a best substitute for lactose intolerant people.

Replacing meat from the platter Usually, there is devised concept that if any person wants his daily diet to be rich in proteins and carbs then he should add meat in his platter. However, this might strike a right chord for meat lovers but factually, it is not true, person can fulfill his protein quotient by sticking to plant based diet. Swapping meat for plants reduces saturated fat, and increases the fiber and vitamin content of dishes. Studies show that this leads to reduced risks for diabetes, cancer, and heart disease. Also, plants require fewer environmental resources like water and space, which can offset climate change. Finally, vegetarian proteins are food sources that animal lovers can feel good about eating. Explaining further on the subject, AbhishekSinha, C o - f o u n d e r a n d C E O, GoodDot Enterprises stated, “It has been almost seven years since we are serving our customers plant based food and till now, we have received a vibrant response from all of our clients. In fact, it is very interesting to note that many of our customers have removed real meat from their platter after they started consuming plant based meat.” Elaborating about the journey of his company, he added, “Initially when we started our business, there was lack

Choosing veganism is an expensive drive to take Taking to veganism might give one some health benefits but as the saying goes “All benefits come with a price tag”. Replacing meat, dairy products and other items containing animal stock in it might seems to be an achievable task but to retain it for the longer time is a tough nut to crack. In India, products such as milk, paneer (cottage cheese), yogurt etc. are easily available in all parts of India and to replace them with plant based products is not an easy task. Firstly, all these plant based products are not easily available and secondly, there are very expensive as compared to the original product. In India, major portion of its population comes from a middle class family and these families run on a very Taking to tight budget so switching to a diet which veganism might requires some extra spending will not give one some attract them at all. health benefits

but as the saying

For instance, 1 litre of buffalo milk usually goes “All benefits come with a cost around Rs 60/ litre and if it is to be price tag” replaced by soy milk then the customer needs to spend almost a double amount making it a very unfavourable deal. Same goes to the bi-products of milk such as cheese, butter, yogurt paneer etc. Though India has the potential of becoming the vegan capital of the world, all it needs is proper awareness among the people coupled with equivalent pricing of substitutes. India being a nation which offers maximum varieties of veg cuisines is placed very well to undergo such transformation. In this way, the country will not only make its denizens healthier but it will also be able to reduce greenhouse gas emission percentage.

Plants require fewer environmental resources like water and space, which can offset climate change

According to the findings of Food and Agriculture Organization of the United States, the livestock sector contributes to 18 per cent of total greenhouse gas emissions. The only aspect that the country needs to focus on is to reduce price difference between dairy products and plant based products and if it manages to flatten that curve than the country is poised to achieve its set goal.

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FINANCE

IS LOW INTEREST INCOME CHALLENGING YOUR WALLET?

ybrid mutual funds, as the name implies, invest in a mix of debt and equity assets. The debt part is invested in fixed income instruments such as government bonds, corporate bonds, and debtentures in order to achieve stability. The Equity part, on the other hand, is invested in the shares of publicly traded corporations, which are volatile in nature but provide the cream of the crop in terms of long-term gains. Hybrid funds are not a new concept in the financial world. They've already been around for almost a decade.

Risk is defined as anything that is unknown or unfathomable. We've all learned the hard way that even classic fixed-return instruments include some risk, namely the risk of interest rate reductions. When it comes to stock, how we react to the general reality that equity markets are volatile is crucial. Is it, however, feasible to obtain a bigger return without increasing risk? The answer is both Yes and No. It's critical to strike a balance between the risks

term volatility of markets. Balanced Advantage Funds (BAF) or Dynamic Asset Allocation Funds (DAAF) is meant to overcome this issue. Unlike other hybrid funds, this one uses a pre-defined methodology to dynamically rebalance the portfolio. Based on the movement of the equity market and valuation parameters such as PE Ratio, PB Ratio, and others, the model sends a signal to the fund management to switch between equity and debt. Simply put, when stock market values are high, the model instructs the fund management to cut the equity allocation, and vice versa. This "no-emotion mechanism" tends to limit upward return possibilities in many cases, but it significantly minimises the market's negative risk, which is the primary reason for investing in it. If a person or institution wants to invest in DAAF or BAF, they should: • The investment horizon for a goal is roughly 4 to 6 years • The investment is for the long term, but the risk-taking ability is limited • The return expectation for regular inflows is a little greater than other traditional investments

They are further classed as Aggressive Hybrid Funds, Balanced Hybrid Funds, Conservative Hybrid Funds, Dynamic Asset Allocation or Balanced Advantage Funds, Multi Asset Allocation Funds, and Equity Savings Funds based on the percentage of Equity & Debt.

For over a decade and a half, we've all been seeing a downward trend in interest income

Aggressive funds are defined as those that invest more than 65 percent of their assets in equity or similar investments. Conservative funds, on the other hand, invest more than 65 percent of their assets in debt securities. Hybrid Funds provide an investor's requirement for asset allocation while also removing the complications associated with it. For over a decade and a half, we've all been seeing a downward trend in interest income. For many of us, the current low interest rate environment looks to be a disaster. A crisis typically forces us to think creatively. As a result, it is causing us to look for other ways to make more money. We've all heard that risk and reward are inextricably linked.

DAWN

we want to take (mentally/emotionally), the risks we can afford to take (based on our total financials), and the risks we have to take (to earn a higher return). Furthermore, when we discuss risk in equity-oriented mutual funds, we are mostly referring to the short- to medium-

December 2021

Under this fund category, the Systematic Withdrawal Plan (SWP) might be a good option for people who seek a steady income over a longer period of time. The data produced from backdated testing for SWP reveals that this technique is not only tax efficient, but also has significantly increased the invested money over time. It may appear that we missed a chance in retrospect, but it is still not too late. Even today, we believe that a portion of one's wallet should be allocated to this category, with the amount gradually increasing as confidence grows. As a result, putting a portion of your money to a Balanced Advantage Fund or a Dynamic Asset Allocation Fund over a 15-year period may make sense. Of course, it is always advisable for investors to seek expert guidance when determining the eligibility of a product and investing accordingly.

FINANCE

SIMPLIFYING CUSTOMER ONBOARDING IN A NEW FINANCIAL LANDSCAPE

ollowing the COVID-19 outbreak, changed client behaviours and expectations spurred a broad digital transition in the financial services industry. Banks and financial institutions are reshaping themselves creatively around customer experience, and consumer comfort throughout the whole product lifecycle, including the onboarding process, is emerging as a critical first step in the customer-bank relationship. In the middle of this, fintechs have taken centre stage as essential facilitators of technological infrastructure to streamline the onboarding process and support financial institutions' digital banking agendas. This dependence on cutting-edge procedures has also enabled the industry to complete the whole end-to-end client acquisition funnel in 4-10 days, and in most cases, with little or no human involvement. However, while digital onboarding streamlines a variety of actions such as introducing new customers to products, keeping customers informed of product developments, and guiding them through all phases of membership, setup, and registration, many of us fail to recognise that onboarding customers is a multi-stage process rather than a simple one-step one. Each stage of the client onboarding process must be a personalised experience that is developed and performed to engage and help consumers at all times.

Digital onboarding decoded Onboarding is the process of enrolling consumers and providing them with access to the financial institution's products. It is the formal beginning of a mutually beneficial relationship with a consumer. As a consequence, the consumer will be formally registered, providing information that will allow them to be identified and have access to the platform's goods and services.Because of specialised, thorough technology and security safeguards, this entire technique, which was formerly an in-person process, can now be accomplished totally online, using any

Furthermore, the regulator has recognised the benefits of digital onboarding, allowing banks to accept a Videobased Customer Identification Process (V-CIP) to assist onboard clients remotely beginning in January 2020. Last month, the RBI made another forward-thinking decision, allowing NBFCs to seek for an e-KYC authentication licence in order to further encourage digitisation.

The larger question is why are organisations gravitating toward digital onboarding? device and from anywhere. As the saying goes, necessity is the mother of creativity, and digital onboarding as a process was introduced to assist minimise 'wait time,' which is always a terrible experience for consumers. An entirely digital procedure, on the other hand, makes it easier for the financial institution to monitor and notice any barriers or disruptions early on. A method using solely electronic documents also enables a financial institution to have a consistent, all-digital approach to administration. It should not be assumed that the procedure would just benefit new consumers; it may also be gradually carried out to existing customers in order to deliver a consistent, high-quality experience. An excellent example of this would be when existing clients seek to obtain new products or services that require extra checks, such as credit options; this would simplify and streamline the process.

The Growing Movement: Key Drivers of Digital Onboarding Adoption The sector has been completely revolutionised by digital identification. Banks, NBFCs, and other financial institutions have recognised client needs and transformed their operations to deliver a seamless and transparent onboarding experience. This saves not only time, but also money, because remote onboarding is achievable with the same confidence and safety as the physical procedure. Furthermore, the Covid-19 epidemic was a significant catalyst that provided a muchneeded boost to the onboarding process.

# Better client service A happy client may become a brand ambassador for a financial institution; the value of customer experience in reputation creation and management cannot be emphasised. For a nation like ours, where financial inclusion is a big problem, and where digital maturity is quite low, it confirms that digitalisation enables faster and safer access to financial services through easy procedures. # Reduction in fraudulent activity Digital onboarding quickly establishes a customer's identity, assisting financial institutions in improving security and reducing fraud. Financial institutions undertake liveness checks and more through a digital onboarding process by utilising trustworthy technology solutions to communicate with consumers. # Greater operating efficiency Using digital onboarding services streamlines several time-consuming tasks; it removes the need for branches, saves on operational expenses, and aids in reaching and penetrating a larger audience. What the future may hold It is critical for a financial institution to adopt technology innovations in order to provide a smooth client experience. It's time to look more closely at business, figure out what needs to change, and focus on the smartest and most intuitive methods to interact with customers, promote financial inclusion, and improve their experience at every stage of the process.

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FINANCE

INVESTING IN EQUITY SHOULD YOU BOOK PROFITS OR KEEP INVESTING?

ecause the majority of economic indicators are favourable, and the country’s stock market indexes are hitting new all-time highs on a daily basis, investors are frequently concerned about the most essential question: whether they should continue to invest or book profits. Regardless of whether the Sensex hits 62,000 or not, according to investing science literature, it is critical for investors to stay involved and continue to invest methodically in order to participate in wealth growth.

What about the financial aspect? Despite the Covid-19 times, the stock market not only rebounded, but even increased tremendously. This amazing run has benefited a great number of investors, although many are concerned about the high levels of valuation. The current market capitalization-to-GDP ratio is 127, whereas the long-term average is 78. The one-year future P/E ratio for Nifty is 23 times, but the long-term average is 16 times.

It’s a good idea to start investing as soon as you have a job. It’s also critical to select the correct investment vehicle that fits your risk tolerance, return requirements, and aids you in achieving your financial objectives. If you’re unsure about which instrument to choose, a licenced investment advisor can assist you examine your financial situation. It’s a good idea to get your investments in the proper way as early in your career as feasible.

Reduce the total risk of your portfolio Valuations are overvalued, and the market may be subject to rapid declines, as evidenced by many metrics. As a result, investors may lower their total portfolio risk by selling high beta equities, midcap companies, and small-cap stocks, which have a large effect due to market volatility. Investing in safe, high-quality defensive companies in areas like FMCG, pharmaceuticals, and others is

Aside from the foregoing, additional indicators such as dividend yield, priceto-book ratio, and others suggest that markets are overvalued. Because investors’ portfolios have grown significantly, the issue now is whether it is appropriate to take profits. The answer to this question is dependent on a number of factors, including the investor’s financial objectives.

Continue to invest in order to build riches It has been experimentally shown several times that the stock market has always been the source of the greatest wealth creation in history. So, if your aim is to build wealth by investing in the stock market, your plan should be to stay invested and invest methodically. To generate big returns, it is necessary to hold onto high-quality equities for extended periods of time.

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Valuations are overvalued, and the market may be subject to rapid declines, as evidenced by many metrics.

another method to reduce portfolio risk. You might also consider investing a portion of your money in fixed income securities like highly rated corporate bonds. Investors in equity mutual funds may want to consider shifting some of their assets to hybrid funds.

FINANCE

Some of the things that influence one’s risk appetite are as follows: Age: As you become older, your risk appetite tends to decrease since everyone wants stability rather than excessive volatility. Experts argue that someone who is young may take large risks since they have plenty of time to recover from any losses and a lengthy working career ahead of them. Past experience: An investor’s risk appetite is heavily influenced by their prior experience. For example, if you have invested in an asset that has provided you with enough returns and is a solid overall investment, you are inclined to take greater risk with that asset, even if it has not provided you with adequate returns recently.

begun to invest, you should verify that you understand the fundamentals. 1) Emergency Fund (3-12 months): This is a fund that you can use in the event of a financial emergency. Please keep in mind that this money is not for day-to-day costs.

Death is an unpleasant thing, and when it occurs, the family must bear the financial burden

2) Term Insurance: Death is an unpleasant thing, and when it occurs, the family must bear the financial burden. To avoid such a circumstance from happening, it is a smart idea to invest in a term plan that will take care of the family’s financial requirements. 3) Health Insurance: This protects you and your family financially in the event of a major accident or sickness. You won’t have to go into your retirement or emergency assets to cover the costs if you have this in place.

Taking it easy on the rally In FY21, around 14.2 million new demat accounts were established, with retail investors accounting for a major portion of these accounts. Similarly, mutual fund inflows are also fairly large. Despite the market’s stretched valuations, buoyant GST and other revenue collections, growth in exports, and sustained profitability in chosen industries indicate that the market may stay resilient. However, because values are inflated, corrections might occur at any time. With the markets reaching new highs, investors are expecting market declines that will have a significant impact on their portfolios. As a result, many people have put their equity investments on hold or have chosen for a large cash out. A stock market correction is not a novel occurrence, and historical trends show that stock markets rebound gradually after a dramatic decline. Long-term, equity instruments aid in beating inflation. When the market is dangerous, it’s fine to be cautious, but you shouldn’t miss out on any opportunities to make a larger return. When the markets are uncomfortably high, you might choose for systematic investment plans (SIPs) instead of significant lump sum deposits. Additionally, you should concentrate on a well-balanced investment strategy that invests your cash throughout asset classes so that your returns continue to rise regardless of market fluctuations. Wisdom: This is a valuable commodity that is worth more than any other investment in your portfolio. It will raise your consciousness if you have the wisdom and understanding to comprehend and apply it correctly.

Having said that, you may optimise your returns with a minimal amount of risk if you use sound investment methods and the proper asset allocation. Furthermore, experts advise that before beginning to invest, or if you have already

To summarise, the infusion of liquidity by numerous financial institutions throughout the world is a probable rationale for the stretched value. Although the road ahead is undoubtedly rocky, investors should proceed with caution.

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BIZ TIPS

BUILDING YOUR 2022 BUSINESS PLAN THE RIGHT WAY

ny successful small business starts with a solid business strategy. Creating the strategy does not have to be difficult, and finishing it may be enjoyable, especially if you are enthusiastic about your company. Once completed, you'll have a huge feeling of accomplishment, and you'll be able to focus on following it and putting everything into action, knowing that you'll have a higher chance of succeeding and arriving at your target. Instead of last-minute worry and stress, planning allows you to brainstorm and consider the options available to you in a controlled and sensible manner. It allows you to see the big picture, and it may also help you decide whether or not to start the business in the first place, perhaps saving you a lot of misery in the long run. Plus, if you're searching for investors or funding, you'll need to provide a strategy at all times. One thing that will never change is the importance of having a solid business strategy in place. Even after you've opened your doors, you'll keep analysing, tweaking, and perfecting your plan to improve operations. Building a strategy for 2022 may seem more challenging than in the past, given the pandemic's unpredictability.

There is, however, some good news. Sticking to a few essential ideas will help alleviate some of the tension.

2. Manifest Your Vision The next step is to sketch out your vision so you can see exactly what you want to accomplish. Vision is all about where and what you want to go in the future, and it's designed to motivate you. A vision is a strong mental picture of where you want your company to go in the future. It's critical to make your idea as visual as possible. You may accomplish this by sketching drawings or looking for photos online or in publications. Creating a vision for the first and fifth years is a fantastic idea. This also aids you in being realistic about your company's growth. A year may appear to be a lengthy period of time, but it is not in the context of business. 3. Outline your Mission Your mission statement is focused on the present and focuses on how you will get to where you want to be. It provides an answer to the question "What do we do?" "What distinguishes us?" It outlines the basic objectives for which the company was founded, and its primary purpose is to help you establish the essential metric for success. 4. Examine your outcomes Your outcomes might sometimes be quite different from what you intended. This isn't always because you did something wrong or correctly, but rather because

1. Recognize your prejudices and preconceptions The majority of company strategies are based on a set of assumptions. You could believe, for example, that you must adhere to a set of rules or that you are the best person to lead the firm. In the financial sector, I've learned that even when cycles recur, nothing ever goes according to plan. What you expect to happen may differ significantly from what actually occurs. Examine your projections from the prior year. What stood the test of time? What went wrong? What's more, why didn't they hold up? If you can answer that question, you'll be able to avoid making the same mistakes again. If you've never created a strategy before, start by identifying the biases that can cause issues. Give yourself some breathing room in any scenario, and understand that life occurs.

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Investors and stockholders want to know that you know where you're heading, therefore this is quite appealing

there are so many moving pieces. Take a look at what you've come up with so far, and use the results to steer the company on the right path. If, for example, you discover that customers bought twice as much of a product as you expected, and market circumstances and attitudes haven't changed, it makes sense to spend more on that product in the future year. To determine if your findings are aberrations or long-term patterns for the organisation, think about what created them. However, don't go in blind.

5. Make some forecasts People can detect how serious you are by looking at your projections. You may state, for example, that you'll spend USD 500,000 on advertising or USD 1 million on Project A. Investors and stockholders want to know that you know where you're heading, therefore this is quite appealing. These types of estimates helped me recruit partners in one of the businesses I

BIZ TIPS

To keep you prepared, projections also take into account foreseeable concerns and anticipate events

launched. Your projections may shape your circumstances and impact the support you receive if you're both honest and brave enough. To keep you prepared, projections also take into account foreseeable concerns and anticipate events. Always consider the best and worst-case situations, collaborate with employees from all divisions, and generate predictions that depict the firm realistically.

6. Get Clear on Your Pricing Your price must be correct in order to be lucrative. In basic terms, this is how you should go about figuring it out. Price is cost plus a percentage markup. However, there are other things to consider, such as the market price of your goods. Are you going to price the same, a little higher, or a little lower? Also, don't underestimate the expense of promotion and factor it into your unit price. 7. Define Your Target Audience To run a successful business, you must first figure out who your ideal consumer is, their demographics, their passions, their basic principles, and their beliefs. You can track them down and design every message for them after they've been identified. You must be well familiar with them. Finding them and interviewing them is a wonderful approach to learning this knowledge. You should be able to create an accurate image of them if you have all of this information. The information you have about your target market is priceless. Because the market and the globe change so frequently, business strategies must be relatively flexible. Prepare to react and pivot. These three elements may be used every time you need to establish a plan for your company. Simply begin early, establish yourself, and make your commitments. Great things may happen faster if you can identify your identity and objectives as soon as possible.

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BIZ TIPS

EMPLOYEE AND MANAGER TIPS FOR END-OF-YEAR REVIEWS We're getting close to the end of the year, which means you're probably starting to think about your company goals for the coming year as you prepare end-of-year performance assessments. As we approach Q4, it's a good idea to plan and consider what you'll need to discuss in your yearly evaluations. To help you prepare, we've put up a comprehensive guide to end-of-year evaluations, replete with practical advice for both employees and managers.

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BIZ TIPS

What is an end of year review? Once a year, a manager goes through an employee's overall performance at an end of year review, also known as an annual review or a year-end performance review. This type of evaluation is more formal than a career discussion. Its objective is to review your accomplishments, aspirations, opportunities, and any other ideas you have for the following year. This annual review is an excellent opportunity to discuss

constructive criticism from both the employee and the manager's perspectives. It's also a good time to bring up HR-related issues if you've been considering taking some time off or believe you're due for that raise you mentioned last year. Your year-end performance evaluation is primarily about professional advancement, but it's also an excellent chance to strengthen relationships.

What to cover in your end of year review 1- Accomplishments First and foremost, get the yearly review off to a good start. If you're meeting with your boss, don't be afraid to mention the achievements you've worked so hard to achieve. Nobody knows your successes as well as you do, therefore it's not a bad idea to brag about the things you're proud of. Keep a collection of emails thanking you for a job well done, as well as client testimonials, presentations, and any work you did. This can serve as proof of your claims as well as a helpful reminder so you don't forget anything. If you're a manager, you'll want to let your employees know that you're proud of their achievements and appreciate the effort they've put in to get things done. We've all had the sense of walking out of a meeting wishing you had recalled key things to bring up. With an annual review, you want to prevent this as much as possible, so make a list of all the fantastic accomplishments you've accomplished this year.

2- Day-to-day responsibilities We recommend that you discuss your major accomplishments at your yearly review, but you should also discuss your ongoing daily tasks. This is your chance to talk about your level of responsibility and if it's too much or not enough. Again, no boss can know about every activity you perform every day, so make sure you present a clear image of your duties inside the organisation. This is a fantastic moment to talk about how much you have on your plate and if it's too much, or whether you have time to take on a bit more responsibility or participate in some type of training or development effort.

3- Areas to develop When it comes to giving negative comments, many individuals find it quite difficult. This implies that constructive criticism is rarely

discussed which may be troublesome. There's always space to learn and progress, even if you're not doing anything wrong or poorly on the surface. Ask yourself, for the benefit of your own personal and professional development, which areas you can improve. Inquire about particular abilities – such as analysis, presentation, and communication – as well as attributes – such as attitude and passion – that need to be improved. Let your boss know that you'd welcome honest feedback so you can improve.

4- Strengths It's time to talk about your strengths now that you've dived into the areas where you can improve and excel. This is an excellent chance to learn what your boss values and acknowledges in your work. It will undoubtedly encourage you to keep up the excellent work and apply these talents to a wider range of tasks. Make sure you're talking about concrete instances of what you're doing well so

you can keep doing what you're doing and fully grasp what abilities, behaviours, and traits your boss and the rest of the team appreciate.

5- Priorities for the company We'd want to tell you that it's all about you, but the fact is that it's about your contribution to the company's success. In an ideal world, your priorities would be in sync with the company's objectives. You want to know what your boss values, but you also want to know what the firm values. This is the moment to discuss any upcoming organisational or structural changes that you should be aware of or that may have an impact on you and your work performance. Let's take a deeper look at some recommendations that workers should consider for this meeting now that we've gone over some broad rules of thumb for year-end performance reviews.

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BIZ TIPS

End of year review: Tips for employees 1- Take time to reflect Take some time to think about all of your efforts from the previous year before going into your year-end performance evaluation. It's satisfying to reflect on your contributions to the company and to compare your early aims to what you've already done. These successes assist the firm to achieve wider organisational goals, and it's critical that you recognise this link and that you're ready to tell your boss about your contributions to the company.

2- Inquire about how to get to the next level When you discover you're entirely at ease in your current position, it's time to inquire about how you may advance to the next level of your profession - that is, if you believe you're deserving of it and have worked hard to get here. Check to see if your objectives are in line with the situation into which you've gained insight, so you can ensure that you're making progress toward your ultimate goal. It's also a good idea to inquire with your boss about any openings or possibilities in other parts of the firm that you might be interested in. Asking these kinds of questions demonstrates your initiative and willingness to succeed, which is appealing to all employers.

3- Follow up When it comes to your annual evaluation, ongoing communication is critical. Make sure you have a follow-up chat about the accomplishments you're working toward after you've defined your career goals. Take charge and tell your boss if you believe you should follow up next month, next quarter, or during your weekly oneon-one meetings. You must agree on the expectations so that you may work on your objectives before returning to the issue. Though performance evaluations are crucial in determining where an employee stands within an organisation, workers should be aware that they do not have to wait until their next performance review to have these discussions about their work and aspirations. This brings up an excellent point: we should strive to maintain constant contact with our managers and not feel obligated to wait for a formal meeting to review progress or anything else that arises along the way to achieving our objectives.

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4- Be specific When discussing particular goals, questions, comments, proposals, or ideas with your boss, be sure to be as clear as possible. The clearer the picture, the better. This is not the time to equivocate.

Make sure you have a follow-up chat about the accomplishments you're working toward after you've defined your career goals

Don't be scared, to be honest, and ask for the same in return, because it will provide you with far more useful directions for achieving your objectives and dreams.

5- Listen actively During this chat, pay attention and, better yet, take down some notes about any ideas or recommendations that come up. You'll be able to refer back to particular actionable feedback if you document it. You may actively work on ideas and keep this information in mind while you carry out your daily obligations if you are aware of your manager's comments. Being an engaged listener allows you to deliver solutions more efficiently and in a shorter amount of time.

BIZ TIPS

End of year review: Tips for managers 1- Give positive feedback first Begin your year-end performance evaluation by discussing what your team member accomplished very well. Because you're establishing the tone for the rest of the talk, it's critical to start on a good one. When you offer positive feedback to your employees, you're teaching them which behaviours are appreciated, which means you're far more likely to see that behaviour persists in new settings. Make sure you're also asking your staff about what they believe went well so you can have a candid conversation about their accomplishments.

2- Set goals and new challenges Annual evaluations are an excellent chance for your team to set new goals and identify new challenges. It's critical that you're both precise and detailed about these new goals you're setting together so that expectations are obvious and there's no room for misunderstanding. This is an interesting topic to discuss, and you want your staff to be excited about these new challenges, so make sure you approach goal-setting positively and make them reasonable and doable.

3- Promote a growth mindset Encourage your team members to seek out new possibilities to foster a development

mentality. It's a good idea for a manager to keep an eye out for professional chances as well. Remind your staff that learning is a fluid process, not a static process. This doesn't always mean going up the org chart (though it may), but it can also mean moving laterally and obtaining new competencies that complement their current expertise. Assess your workers' development so you can determine what kind of new possibilities would be beneficial.

A 3D image of an employee is provided through several sources of feedback, allowing them to better identify their growth gaps

4- Limit feedback to one or two areas at a time Overburdening staff with too much information at once isn't beneficial; it's simply exhausting. Even if there are multiple areas in which someone has to improve, pick one or two to concentrate on. This will prevent your employee from being negatively affected by the criticism, as well as a lot of confusion as they try to recall the list of things they need to work on. During your end-of-year review, address all earlier input, no matter how official or informal... Measurable improvement is essential, as is evidence that staff is taking proactive measures to incorporate input when it is appropriate.

5- Find a solution together Facilitating a two-way dialogue in which your employee participates in the solutionfinding process will empower them and make them feel as if they have a significant role to play in their growth, which they do! It's critical to attempt to see things from your employee's point of view and to handle issues with empathy. Make ideas, but make sure they're in command of their careers at the end of the day. Inquire about their thoughts about your management style, and show that you're open to receiving it.

6- Ask for 360-degree feedback 360-degree feedback is a useful tool for managers since it allows them to learn how their team members feel about each other's work. 360° feedback provides a more complete picture than depending on just one or two viewpoints. A 3D image of an employee is provided through several sources of feedback, allowing them to better identify their growth gaps. 360° feedback, on the other hand, should highlight your workers' strengths while also providing helpful ideas to address their faults.

Summary The most essential thing you can do for an annual review, whether you're an employee or a manager, is to be prepared. Although these evaluations can be stressful, they are an excellent chance to learn, grow, and strengthen your connection with your boss or team member. Make sure your evaluation covers successes, day-to-day tasks, areas for growth, strengths, and the company's goals. If you're a manager, remember to start with positive feedback, establish interesting objectives and challenges, work together to identify answers, and use 360-degree feedback to get the whole picture.

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DEFENCE

DELIVERY OF FOURTH SCORPENE SUBMARINE

‘VELA’ TO INDIAN NAVY

he fourth submarine of the Project – 75, Yard 11878 was delivered to the Indian Navy. Project – 75 includes construction of six submarines of Scorpene design. These submarines are being constructed at Mazagon Dock Shipbuilders Limited (MDL) Mumbai, under collaboration with M/s Naval Group, France. Christened ‘Vela’, the submarine was launched on 06 May 19, and has completed all major harbour and sea trials including weapon and sensor trials despite COVID restrictions.

The submarine would soon be commissioned into the Indian Navy and enhance the Indian Navies capability

Three of these submarines are already in commission with the Indian Navy. Submarine construction is an intricate activity as the difficulty is compounded when all equipment are required to be miniaturised and are subject to stringent quality requirements. Construction of these submarines in an Indian yard is yet another step towards ‘AatmaNirbhar

Bharat’. The submarine would soon be commissioned into the Indian Navy and enhance the Indian Navies capability. With the delivery of Vela - preceded by submarines Kalvari, Khanderi, and Karanja - the MDL has lived up to its reputation as one of the country's leading shipyards and reaffirmed India's membership in the exclusive club of submarine building nations. The fifth submarine in the series, Vagir, was launched on November 12, 2020 and has commenced her harbour trials and is likely to go for her maiden surface sortie on December 21, while the sixth one is in an advanced stage of outfitting. Two SSK submarines built by MDL in 1992 and 1994 are still in service today, a testimony to MDL's quality of construction, and the company is carrying out a Medium Refit and Life Certification of INS Shishumar, the first SSK submarine.

HAL DELIVERED 200TH GUN BAY DOOR FOR

BOEING F/A SUPER HORNET

AL has made a milestone delivery ofthe 200th gun bay door for Boeing F/A-18 Super Hornet. HAL has been supplying the aero-structure to Boeing for the last 10 years.

Atmanirbhar Bharat and to the growth of India's aerospace and defence ecosystem. We see tremendous potential for India to contribute to the global aerospace industry as an industrial and technology partner.

R. Madhavan, CMD, HAL stated, "HAL has a long-standing partnership with Boeing and we look forward to strengthening our association on military and civil programmes. We are prepared to collaborate with Boeing to boost manufacturing under the Atmanirbhar Bharat and Make in India programmes". "Our partnership with HAL is an example of our commitment to

This partnership is a testimony to the world class capability of our industrial partners in the country", statedSalilGupte, President, Boeing India. S ManickaVasagam, GM (Aircraft), HAL handed over the delivery documents to AshwaniBhargava, Director-Supplier Development (Boeing India). HAL's Aircraft Division has been a trusted supplier to Boeing for the last

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DEFENCE

NAVAL COMMANDERS’ CONFERENCE

he Naval Commanders’ Conference which commenced on 18 October 2021, concluded after four days of fruitful deliberations. The Defence Minister Rajnath Singh addressed Naval Commanders and commended the men and women of the Indian Navy for their professionalism and dedication towards maintaining a high operational tempo and safeguarding maritime interests of the nation. He highlighted the importance of India’s maritime character and geostrategic location which are the twin factors that have played an important role in our growth as a nation and evolution as a civilisation. Further, he stressed on the need to have strong Navy due to our increasing dependence on the seas for national development, and for proactive engagement with the world. RM commended Navy to have lived up to the expectation of the Nation by establishing a visible, credible and responsive presence in the IOR. He also complimented the Navy for providing medical aid to South West Indian Ocean Region countries, as part of Mission SAGAR which is in lines with PM’s clarion call for Security And Growth for All in the Region; undertaking various HADR Operations in the wake of natural calamities; and providing succour to civil populace during the second wave of COVID-19. The RM highlighted that Indian Navy has spent more than two-thirds of the Modernisation Budget in the last five years towards indigenous procurement and out of 41 ships and submarines ordered by the Navy, 39 are from Indian shipyards, which is a testament to the Navy’s commitment

three decades. The Division has supplied various aero-structures for Boeing's military and civil programmes such as the B757 Over-wing Exit Doors, 777 Up-lock Box, F/A-18 Wire Harness and F/A-18 Gun Bay Door.

HAL Forays into Civil Aviation, Signs Pact with Alliance Air India's Regional Connectivity Scheme (RCS) received a major boost today with HAL signing a lease agreement with Alliance Air Aviation Limited for the supply of two Civil Do-228 aircraft for regional operations in Arunachal Pradesh. Apurba Roy, General Manager, Transport Aircraft Division, Kanpur, HAL and Arun Kumar Bansal, Head of Engineering, Alliance Air Aviation Limited signed the deal papers in Bengaluru. The HAL Do- 228 is a

to ‘Atmanirbhar Bharat’. He urged IN to maintain the momentum achieved thus far and assured that the steps taken by the Government will give it more strength to increase the lethal strike capability. RM also emphasised that P75(I) project would be one of the largest ‘Make in India’ projects and complimented IN on the successful maiden Sea Trials of the indigenously designed and built Aircraft Carrier ‘Vikrant’ by overcoming challenges, including COVID related imponderables. Additionally, the Minister also highlighted training as an effective tool in bolstering naval diplomacy and commended the Navy in providing training to foreign personnel in India for more than four decades. Further, in keeping with the evolving technological transformation world over in unmanned systems, an Integrated Unmanned Roadmap for IN was also promulgated by RM during the conference. The Commanders interacted with Chief of Defence Staff, Chief of Army Staff and Chief of Air Staff

versatile aircraft well-suited for operations in the North East and has the capabilities of short take-off and landing, ability to land and take-off from semi-prepared runways. This development opens a new vista in civil aviation for HAL. The Company is keen to increase its footprint in the regional civil aviation by engaging more numbers of HAL Do-228 by Air Operators of the country. Speaking on the occasion, the Chief Minister of Arunachal Pradesh, PemaKhandu said it was a big day for the state given the geographical challenges in the vast state, the connectivity will now be easier. The Deputy Chief Minister of Arunachal Pradesh, Chowna Mein, the Home Minister of Arunachal Pradesh, . Bamang Felix, the Chief Secretary of Arunachal Pradesh,

and discussed wide range of issues including ways to enhance tri-services synergy in view of the evolving regional security scenario. Chairing the conference, the Chief of the Naval Staff Admiral Karambir Singh addressed the Naval Commanders on various important issues pertaining to combat readiness, capability enhancement, credibility as Maritime Force, safety, maintenance, op logistics philosophy, infrastructure development and human resource management. He also drew attention to the prevalent security situation and the increasing mandate of IN in the contested environment of the IOR. The Commanders deliberated on methods to optimize outcomes and fulfill operational requirements within the available resource envelope, in all facets such as operations, acquisitions, infrastructure, maintenance, logistics, HR management and training. This along with placing primacy on the operational assets of the Indian Navy were themes of the Naval Commanders’ Conference.

Naresh Kumar, Secretary (Civil Aviation) of Arunachal Pradesh, Swapnil Nayak attended the event virtually through a video conference. The dignitaries present included Pradeep Singh Kharola, Secretary (MoCA), R Madhavan, CMD (HAL), sUshaPadhee, JS (MoCA), and senior officials from HAL, DGCA and AAI. HAL’s Transport Aircraft Division, Kanpur has been in the business of transport and trainer aircraft for defence customers. The Division has ventured into the manufacturing of Hindustan-228 aircraft. The Hindustan-228 is a 19-seat multirole utility aircraft built for various applications such as VIP transport, passenger transport, air ambulance, flight inspection roles, cloud seeding, and recreational activities like para jumping, aerial surveillance, photography and cargo applications.

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DEFENCE

DRDO AND INDIAN AIR FORCE SUCCESSFUL CONDUCTED FLIGHT TESTS OF INDIGENOUSLY-DEVELOPED

SMART ANTI-AIRFIELD WEAPON

wo flight tests of indigenouslydeveloped smart anti-airfield weapon have been carried out jointly by Defence Research & Development Organisation (DRDO) and Indian Air Force (IAF). The two different configurations based on satellite navigation and electro optical sensors have been successfully tested. Electro optical seeker based flight test of this class of bomb has been conducted for the first time in the country. The electro optic sensor has been developed indigenously. The weapon was launched by an IAF aircraft from Chandan ranges at Jaisalmer, Rajasthan on October 28, 2021 and November 03, 2021. Electro optical configuration of the system is equipped with Imaging Infra-Red (IIR) Seeker technology enhancing the precision strike capability of the weapon. In both the tests, the intended target was hit with high accuracy. The system is designed for a maximum range 100 kilometres. The newly adapted launcher ensured smooth release and ejection of the weapon. Advanced guidance and navigation algorithms, software performed as per

the mission requirements. The telemetry and tracking systems captured all mission events throughout the flight. All the mission objectives were achieved. Smart anti airfield weapon has been designed and developed by Research Centre Imarat (RCI) in coordination with other DRDO Laboratories and extensive support from IAF. Quality and design certification agencies have contributed significantly in its development and Hindustan

HIGH-SPEED EXPENDABLE AERIAL TARGET

ABHYAS SUCCESSFULLY FLIGHT-TESTED BY DRDO

BHYAS - the High-speed Expendable Aerial Target (HEAT) was successfully flight-tested on 22 October 2021 by Defence Research and Development Organisation (DRDO) from the Integrated Test Range (ITR), Chandipur off the coast of Bay of Bengal in Odisha. The vehicle can be used as an aerial target for evaluation of various missile systems. The performance of the target aircraft was monitored through telemetry and various tracking sensors including Radars and Electro Optical Tracking System (EOTS). RakshaMantri, Rajnath Singh congratulated DRDO for the successful flight trial of

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Abhyas. The current flight test is carried out as a part of developmental flight trials. Expression of interest for production of the vehicle has already been floated to Indian industries. This indigenous target aircraft, once developed, will meet the requirements of High-speed Expendable Aerial Targets (HEAT) for Indian Armed Forces. ABHYAS is designed and developed by DRDO’s Aeronautical Development Establishment (ADE), Bengaluru. The air vehicle is launched using twin underslung boosters which provide the initial

December 2021

Aeronautics Limited (HAL), Bengaluru has carried out weapon integration with the aircraft. RakshaMantriRajnath Singh has complimented the synergistic efforts of DRDO, IAF and the teams associated with the mission. Congratulating the teams, Secretary, Department of Defence R&D and Chairman DRDO Dr G Satheesh Reddy said the performance and reliability of the weapon has been proved.

DEFENCE

SUCCESSFUL MAIDEN FLIGHT TEST OF

AKASH PRIME MISSILE

new version of the Akash Missile – ‘Akash Prime’ has been successfully flight tested from Integrated Test Range (ITR), Chandipur, Odisha on 27 September 2021. The missile intercepted and destroyed an unmanned aerial target mimicking enemy aircrafts, in its maiden flight test after improvements. In comparison to the existing Akash System, Akash Prime is equipped with an indigenous active Radio Frequency (RF) seeker for improved accuracy. Other improvements also ensure more reliable performance

acceleration to the vehicle. It is powered by a gas turbine engine to sustain a long endurance flight at subsonic speed. The target aircraft is equipped with MEMS based Inertial Navigation System (INS) for navigation along with the Flight Control Computer (FCC) for guidance and control. The vehicle is programmed for fully autonomous flight. The check-out of air vehicle is done using laptop-based Ground Control Station (GCS). D r G S a t h e e s h Re d d y, S e c r e t a r y, Department of Defence R&D and Chairman, DRDO also congratulated the teams associated with successful flight test of ‘ABHYAS’ and termed it as a forcemultiplier considering its accuracy and effectiveness.

under low temperature environments at higher altitudes. Modified ground system of the existing Akash weapon system has been used for the current flight test. The range stations of ITR comprising Radars, Electro Optical Tracking System (EOTS) and Telemetry stations monitored the missile trajectory and flight parameters. RakshaMantriRajnath Singh has congratulated DRDO, Indian Army, Indian Air Force, Defence Public Sector Undertaking (DPSU) and industry for the successful trials of Akash Prime Missile.

He stated that the successful flight test proves the competence of DRDO in design and development of world class Missile systems. Secretary DDR&D and Chairman DRDO Dr G Satheesh Reddy congratulated the team for the successful flight trial of Akash Prime Missile. He said that the Akash Prime system will further boost the confidence of the users (Indian Army and Indian Air Force) as the Akash system is already inducted and now getting improved with more lethal missiles.

HAL’S AVIONIC EQUIPMENT GETS ITSOA CERTIFICATE FOR

CIVIL PLATFORMS, FIRST IN INDIA

AL’s avionic equipment 'Air Data Computer (ADC) with Outside Air Temperature (OAT) Probe' has received Indian Technical Standard Order Authorisation (ITSOA) certificate from DGCA for civil platform. The certification is for both hardware and software. The ADC/OAT is the first avionic equipment in India that has qualified for ITSOA and will pave the way for the fitment on future civil platforms like ALH, Dornier, LUH, SARAS etc. This is an achievement towards mission 'Aatmanirbhar Bharat'. The ADC is

used to calculate the air data parameters like pressure altitude, calibrated airspeed, mach number, total air temperature, vertical speed based on static pressure, total pressure and outside air temperature inputs. HAL’s Strategic Electronics Research and Development Centre (SLRDC), Hyderabad indigenously designed and developed the first 'Air Data Computer ADC 3600A CVL1' which has environmentally qualified as per DO-160G standard along with in-house developed application software certified as per DO178C, Level A, required for Civil platforms of aircraft and helicopters.

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INDUSTRY OUTLOOK

ENDING INDIA'S

COAL ERA

WITH A JUST TRANSITION

or more than a century, the earth has been on fire in the dusty coal town of Jharia in the eastern Indian state of Jharkhand. Fires that started accidentally early in the twentieth century are continuously consuming the town's underground coal supplies, producing noxious gases and damaging houses. Efforts to extinguish the fires have so far been unsuccessful. Jharia is possibly the greatest coal-related disaster in Jharkhand, which possesses India's largest known coal deposits. Despite its coal reserves, Jharkhand is India's poorest state, with over half of the people living in poverty. This little eastern state is a microcosm of the several obstacles India will encounter in making a fair transition away from coal. India has said that renewable energy will generate 50 per cent of the country's electricity by 2030. As India strives to achieve net-zero emissions by 2070, this figure might increase much higher.

As a result, Jharkhand's decades-old coal industry, and by extension, India’s will eventually disappear. The next task will be to diversify the coal-dependent economy, as well as to create alternate livelihoods for the many thousands of coal workers already engaged. The heavy coal dependency in Jharkhand has prompted experts to investigate the issues that some of the country's most coal-dependent areas may confront as the country transitions to sustainable energy. Sandeep Pai, a senior researcher at Washington, DC's Center for Strategic and International Studies, is one of them. Unplanned closures have the potential to convert coal-dependent regions into ghost towns, with serious effects for individuals and communities.

IN JHARKHAND, COAL MINING TAXES AND ROYALTIES 66

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INDUSTRY OUTLOOK

reduction in corporate social responsibility payments from the industry if no action is taken. Pai's analysis warns that "unplanned shutdown might convert coal-dependent regions into ghost towns, with serious effects for people and communities." It's difficult to overestimate the importance of coal in India's electricity generation. Only China consumes more coal than the United States. In the last year or two, the country's aspirations have shifted to generating more coal, not less, with a campaign to sell commercial mining licences for the first time since the 1970s. Many Indian states have also experienced power outages owing to a shortage of coal for thermal power plants, highlighting the country's continued reliance on coal. Coal-fired power stations generate more than 70 per cent of India's total electricity. Coal also generates significant taxes and royalties for governments at all levels, as well as providing employment and lives for many people. For example, Coal India, the primary federal government-owned firm that mines more than 80 per cent of the country's coal, paid around 500 billion rupees (USD 6.7 billion) in taxes and royalties to federal, state, and municipal governments in 2019. To put this in context, this amounts to approximately 3 per cent of the federal government's entire yearly income collection. A total of 270,000 individuals work for the firm. When you include additional coal mining firms in the public and private sectors, as well as industries that are directly or indirectly dependent on coal, such as steel, the scope of India's coal dependence becomes clear.

In Jharkhand, the coal sector offers more than 300,000 direct employment and about one million indirect jobs in coal supply chains and service sectors, according to a recent report co-authored by Pai on how to achieve a fair transition in coal-dependent regions in India and South Africa. Several million more workers, usually local peasants who scavenge coal from abandoned mines, work as illegal coal miners. These jobs account for nearly 10 per cent of total employment in the state. In Jharkhand, coal mining taxes and royalties account for roughly 8 per cent of state revenue. The majority of the coal is sent to other states where it may be burned to generate electricity. According to Pai's study, the collapse of Jharkhand's coal sector might result in the loss of local employment, a decrease in local and state government income, and a

ACCOUNT FOR ROUGHLY 8 PER CENT OF STATE REVENUE December 2021

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INDUSTRY OUTLOOK

The issue here is, of course, the massive amounts of greenhouse gas carbon dioxide released when coal is burnt. India contributes considerably to global emissions, ranking third in overall emissions while having some of the lowest per capita emissions in the world. Coal power stations also contribute significantly to India's air pollution, which kills over a million people each year. Despite worldwide pressure to shift away from coal, India's government said in October 2021 that it will manufacture one billion tonnes of coal by 2024 to meet the country's energy needs. Coal is here to stay in India for the foreseeable future. At the same time, India is pursuing renewable energy, has made a fresh commitment at COP26 to build 500 gigawatts of renewable power capacity by 2030. To put things in perspective, India's renewable capacity topped 100 gigawatts in August 2021; more than double that of the United Kingdom. India also stated that by 2030, it intends to generate 50 per cent of its power from renewable sources. India is, without a doubt, undertaking a tremendous energy shift. However, securing a well-planned and equitable transition away from coal is a vital task for a country whose energy consumption is likely to expand faster than any other country in the foreseeable future. The government has developed a coal mine closure framework based on the principles of fair transition, although there are few specifics available in the public domain. There hasn't been any thorough formal initiative announced yet. We've learned from our worldwide just transition work that putting just transition policies in place takes decades. Given the huge size of fair transition planning necessary in a country like India, which has limited resources, governments must start planning now. Following India's new 2030 ambitions, there are indicators that such plans may begin to take shape. "It's not only coal," says Srestha Banerjee, head of iForest's Just Transitions programme in Delhi. "Because we now have a net-zero aim, there will be industrial transitions as well." This massive shift will undoubtedly prompt much early transition planning." She claims that the sense of urgency was

always present. "It was just not stated clearly." On the ground in India, there is some local activity for a just transition. Last but not least, in the heart of Jharkhand, the nation's coal capital. According to Pai, whose research in the region includes examples of successful ecological restoration of abandoned mines, a few very small-scale projects to shift away from coal in Jharkhand might serve as possible blueprints to mimic. Central Coalfields, a subsidiary of the state-owned coal mining firm, converted an abandoned open-cast coal mine in Ramgarh into a fishery. "An abandoned mine was cleaned up and suitable fish kinds were introduced, providing jobs for many local people," says the report. Another example is the ecological restoration effort on an overburden dump in Jharkhand's Khas Kusunda district, where coal mining waste was formerly thrown. In 2018, nine distinct plant species were discovered in the formerly barren area in Khas Kusunda as a result of an ecological restoration initiative. The initiative was just two hectares in size, but it was one of several such small-scale operations. "This project began in 2011 when the Forest Research Institute in Dehradun took on ecological restoration work and demonstrated how to achieve it. We started doing it ourselves after that. Each year, we add roughly ten new projects "According to Raju EVR, the former head of Bharat Coking Coal's environment management division, which is controlled by the federal government.

The ground in India, there is some local activity for a just transition. Last but not least, in the heart of Jharkhand, the nation's coal capital.

Raju, who left the firm in 2019, adds that the company used its personnel, which had previously worked in operational mines, to perform ecological restoration work on old coal mine sites. The firm provided funding for ecological restoration projects, such as growing grass, bushes, and plants that are suited to the local soil and climate. Locals who were previously reliant on the mine for their livelihood benefited as well, according to Raju. They were permitted to grow food crops in the environmentally restored area by the firm. According to him, about 1,000 workers restored roughly 300 hectares across 60 sites in this manner. Pai believes that promoting fisheries, planting trees and building forests in abandoned mines, and establishing renewable energy projects are all measures that may help with a just transition, but that the efforts so far have been minimal. "While such programmes have the potential to help local populations transition more smoothly," he writes, "they must be expanded up to encompass all present mines that will be shut down as well as legacy mines that have been abandoned." Replicating these projects has its own set of challenges. According to Pai, regulatory authorities need resources and authority to enforce coal mine rehabilitation, while sufficient rules are needed to control the

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INDUSTRY OUTLOOK

notes. "This is largely attributable to the existence of an informal market in the Indian economy." A big swath of contract and informal sector employees would be overlooked if India followed the lead of more industrialised countries' fair transition policies. Workers in the coal industry may also work in multiple industries at different times of the year, complicating the workforce picture. "Defining a coal transition worker would guarantee that they are included in policy choices and that no one is left behind," D' Souza adds.

process and mine closure plans necessitate transparency. Agriculture, tourism, non-coal mining, manufacturing, renewable energy generation, and non-timber forest products are six possible industries Pai recommends diversifying the state's economy through promoting growth in conjunction with local people. According to Ulka Kelkar, director of the climate at the World Resources Institute's India branch, other nations that have attempted a fair transition might serve as an example for India. "In Ethiopia, for example, the public energy provider stated, 'by 2030, we will have 50 per cent of our electricity from renewables,'" Kelkar explains. "They also stated that when renewable energy is added, we want 30 per cent of the new employment to be women."

D' Souza proposes conducting further research at the district level, particularly via capturing variables specific to women, in a planned study concerning the impact of the energy transition on coal industry jobs in India. "Women's involvement in the labour force has been declining for more than a decade," D' Souza adds.

Renewable energy investments are concentrated in western and southern India, whereas coal is concentrated in the east

However, when the company attempted to employ more women, it discovered that there were insufficient female electrical engineers available and educated, she claims. "As a result, [the utility] collaborated with their higher education authorities to provide scholarships, fellowships, and internships to young women interested in science and engineering." This demonstrates the utility's commitment to learning why women are underrepresented and what can be done about it. Another instructive example comes from South Africa, where the national government has prioritised fair transition in its national policy since 2017. This, according to Kelkar, is an example of a national strategy that recognises the social consequences of switching to clean energy. Other nations, such as Spain, are putting this on their agenda as well. But, adds Swati D' Souza, research head-on climate action at the nonprofit National Foundation for India, before scaling up initiatives that have succeeded elsewhere, India must first understand its particular requirements for an equitable transition. She points out that defining a coal transition worker is a critical problem. "In comparison to industrialised nations, India's coal and associated sectors have a relatively high number of contract labour," she

" A cco rd i n g t o re s ea r c h , d ev el op i ng renewable energy would allow more women to participate in what has traditionally been a male-dominated sector." According to D' Souza, a greater knowledge of who these women are, their socioeconomic condition, and their desire to relocate for other possibilities might all contribute to increasing the number of women in the workforce. According to Archana Soreng, a member of the UN Security General's Youth Advisory Group on Climate Change, forest-dwelling populations and Adivasi ethnic groups require special attention. Their rights to their land, forests, and territories, as well as informed consent to initiatives, must be prioritised.

Any likelihood of politicians developing such concrete plans, on the other hand, appears to be a long way off. Although early measures have been taken to seek money from the World Bank for a coal mine closure framework, India still lacks a comprehensive strategy for a fair transition away from coal. This also emphasises the need for rich countries to provide large and timely financial aid. "Just transition finance will be a big deal." "There's no doubt about that," adds iForest's Banerjee. "Transitioning fossil fuel employees isn't enough; the economy needs to be redesigned." This is especially significant, she claims, given the present pattern of renewable energy investment. "We don't have renewable investments where there is coal." Renewable energy investments are concentrated in western and southern India, whereas coal is concentrated in the east. "It should not be the case that one region enjoys access to renewable energy while another is slipping into poverty and underdevelopment," she argues. "That's where the subject of a just transition needs to be addressed."

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INDUSTRY OUTLOOK

INDIAN STAINLESS STEEL INDUSTRY TENSE PRESENT, UNCERTAIN FUTURE

owever, the announcements made in the Union Budget 202122 regarding the suspension of countervailing duties (CVD) on Chinese imports of stainless-steel flat products, as well as the repeal of the CVD on imports of stainless steel flat products from Indonesia, have created uncertainty, as the negative impact of the CVD withdrawal is now visible in an increase in imports. The government's decision in the Union Budget 2021-22 to suspend the CVD on imports of stainless steel flat products from China, which had been in place since September 2017, and the repeal of the CVD on imports of stainless steel flat products from Indonesia, which had been in place since October 2020, have derailed the sector's growth prospects by allowing imports from these two countries to flood the market. These sanctions were imposed following extensive investigations by the Directorate General of Trade Remedies (DGTR), which

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revealed the prevalence of non-WTO compliant subsidies in these nations, causing significant harm to Indian industry.

India is the second-fastestgrowing market for stainless steel, & as a result, stainless-steel flat items are being imported

Since the suspension of anti-subsidy duty on China and the removal of anti-subsidy duty on Indonesia in the Union Budget 2021-22, there has been a staggering 177 percent increase in stainless steel imports compared to last year's (FY 21) average, and a 159 percent increase compared to the 2016-17 average, the base year prior to the imposition of CVD on China. Imports from Indonesia are fueled by a massive stainless-steel capacity of roughly 5.5 MT put up by Chinese enterprises, which is mostly aimed at export markets due to low local demand. India is the second-fastest-growing market for stainless steel, and as a result, stainlesssteel flat items are being imported in enormous quantities. Even though local industrial capacity utilisation was just 60 per cent in the pre-COVID year 2019-20,

INDUSTRY OUTLOOK

imports seized as much as 24 per cent of the market, half of which came from Indonesia. The MSME sector accounts for the majority of the untapped capacity among stainless steel manufacturers. Due to dumping and non-WTO compliance subsidies, Indonesian stainless steel has been facing trade disputes from all over the world, including China. As a result of the India-ASEAN free trade agreement, India provides a ready and open market. The final DGTR recommendations on anti-subsidy countervailing tariffs on Indonesia clearly outline the subsidies that Chinese businesses get in Indonesia, giving them an unfair advantage in export markets. It would also exacerbate India's existing trade imbalance with the ASEAN region. According to some projections, Indonesia may soon overtake India as the world's second-largest stainless steel manufacturer. Both the major and small businesses are concerned that if the current import pattern continues, the local stainless-steel industry would struggle to recover further. The already poor profitability of stainlesssteel units may be pushed even harder, rendering their companies unviable. A comparison of profitability between carbon steel and stainless steel players will throw some insight on the industry's poor profitability. The proportion of EBITDA to net sales, which is a good predictor of profitability, varies a lot across the steel and stainless steel industries. For example, in FY 2020-2021, this ratio was 34 percent, 39 percent, 27 percent, and 18 percent for steel firms like Tata Steel, JSPL, JSW, and SAIL, respectively. Salem Steel Plant (based on PBIT), Shah Alloy, Jindal Stainless (Hisar) Ltd, and Jindal Stainless Ltd, for example, were -3 percent, 7 per cent, and 12 per cent correspondingly for stainless steel firms. Even with the current market recovery, the profitability of stainless steel is still half that of carbon steel. MSMEs, which employ

including the CVD issue, in the sake of speedier growth. Higher infrastructure expenditure, a focus on dairy/fisheries/food processing, railway modernization, banking sector reforms, digitalisation, and a huge vaccination campaign are among the policy initiatives outlined by the government to stimulate growth.

The MSME sector accounts for the majority of the untapped capacity among stainless steel manufacturers

This will have a big impact on the economy and the stainless steel industry. However, there is still uncertainty in the business as to whether this market would be open to domestic companies or if it will be dominated by Chinese firms. We're on the lookout for an answer, and we're taking cues from the policy and market environments.

over 400,000 people directly or indirectly through their more than 500 locations and operate on even tighter margins than the major industry, may bear the brunt of the effect, leading to closures and layoffs. The circumstance has generated uncertainty and placed future investments in the sector in jeopardy. The stainless steel sector in India is totally globalised, with major players from across the world. Stainless steel prices are determined by global raw material costs and market circumstances. Stainless steel, on the other hand, has had a lesser price growth than many other commodities. The stainless steel sector, like other commodities, is cyclical and works with lower profits than the rest of the steel industry. As a result, it is more susceptible to market fluctuations. 'Made in India Stainless Steel' is competitive with many industrialised nations, despite inherent cost disadvantages such as capital costs, shipping costs, and reliance on imported raw materials. However, it is unable to compete with nations such as China and Indonesia, who engage in unfair trade practises. The Indian Stainless Steel Development Association (ISSDA) has been lobbying the government on a variety of problems,

The stainless-steel sector in India has progressed via trial and error. When market vision was cloudy, certain pioneering businesses such as SAIL/Salem, JSL, Mukund, Viraj, and others ventured in stainless steel. In reality, JSL built a big 1.1 MT facility in Jajpur, Orrisa, during a time when such a market did not exist. The stainless steel business was confident in the Indian market and in the material's sterling attributes to expand the industry through market expansion and customer awareness. The ISSDA contributed its small part to the huge efforts, and the industry has grown tenfold in the previous 20 years. However, it failed to account for China's predatory tactics, and the country now finds itself at a crossroads between a new boom phase triggered by the government on the one hand and a Chinese attack on the other. As a result, government assistance at this vital juncture is required to continue the stainless-steel industry's next development cycle. To safeguard an important and growing market, it is necessary to reinstate the CVD on China (dated September 7, 2017), accept the new final CVD findings of Indonesia, as proposed by the DGTR on January 15, 2021, and levy anti-subsidy duties on imports from Indonesia.

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PERSONAL WORKSPACE AND SUSTAINABLE LIVING

Homebuyers increasingly view their dream house to be an address as well as a place where they may 'belong' in order to fulfil their psychological, emotional, and social demands.

With several Indian and worldwide companies considering permanent 'work from home,' geography is no longer a barrier for purchasers. It has shifted the emphasis to residences on the periphery of cities that have seen substantial infrastructure development. Holiday houses or second homes for'staycations' and 'workcations' are increasingly gaining popularity as a way to break up the monotony of working from home. The importance of dwellings placed amidst lush vegetation and provided with eco-friendly features such as green construction certification, provision for harnessing solar energy and rainwater harvesting, and so on has also been reinforced.

A NEW ASSET CLASS he socioeconomic effect of the COVID-19 epidemic has caused a seismic change in the residential real estate market in recent years. Homebuyers are increasingly readjusting their choices to reflect the new normal. In the Indian mindset, real estate has long been viewed as a safe refuge and solid financial asset. COVID-19 has emphasised the importance of purchasing a house over living with insecurity in rental housing.

preferences of discerning Indian purchasers. Residences placed in self-sustaining oasis and equipped with cutting-edge facilities such as a gym, spa, a private location for weekend gatherings, and a children's play area, among others, have emerged as sought-after real estate options. Among the primary variables affecting homebuyers' decisions are location, ticket size, attractive aesthetics, careful design, and cutting-edge technology.

Residential properties are increasingly being seen as a solid asset class by HNIs, NRIs, and millennials looking to invest in their native country due to guaranteed and consistent returns. In addition, the stock market and gold have been on a tear, offering investors another motivation to invest in residential real estate. The rise of work-from-home opportunities has signalled a shift in customer preferences toward residential options with a dedicated workstation. This tendency has inspired the remodelling of traditional dwellings with 2-BHK and 3-BHK configurations, with workstations being included as an extra component in their product offering. These dwellings are ideal for the 'work from home' (WFH) lifestyle, which is popular with both Indians working for multinational corporations and expats. COVID-19 has also encouraged developers to reconsider their products in order to cater to the

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December 2021

The rise of workfrom-home opportunities has signalled a shift in customer preferences toward residential options with a dedicated workstation

With customer-centricity becoming more popular, real estate developers are tailoring their product offers to meet the needs of homebuyers. Space customization has progressed to the point where developers are giving whole open floors with the option of configuring them to purchasers' specifications from a variety of outstanding design possibilities.Residential real estate projects that are either under construction or in the planning stages are approaching the'space' factor with a fresh perspective, bearing in mind the renewed choice of homeowners. The health and wellness issues also indicate that strong facility management will be an important consideration for homebuyers to consider when selecting a property. With customers prioritising values like as ethics, transparency, and accountability, developers' top focus will be to bridge the trust gap and maximise the customer experience. It will invariably lead to industry consolidation in favour of organised players with good credentials and a proven track record. Homes with a workplace provision have evolved as a new asset class and will remain one of the most sought-after options in the post-COVID period to cater to the compact families of Indian millennials and to showcase convenience and value-formoney features. The COVID-19 epidemic may be viewed as a tipping moment that has opened up chances for Indian real estate to reform itself in preparation for a bright future. We anticipate a swift comeback of Indian real estate in accordance with the new normal, aided by favourable government policies, developer initiatives, and solid infrastructure, contributing to the dream of a 5 trillion dollar economy by 2024.

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