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Letter from the Power of Thoughts

Editor

A closer look at CSR in India

Editor in Chief DR. HARIOM TYAGI

Business Editor

News Editor

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RAVINDER KUMAR

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CORPORATE OFFICE B-97, Sector-63, Noida, Gautambuddh Nagar, U.P. Contact No.: 0120-4804780

CSR is a method through which a corporation combines environmental, social, and human development considerations into its planning and activities in order to guarantee that its operations are ethical and useful to society. CSR has always been viewed as a charity activity in India. With the addition of Section 135 to the Companies Act of 2013, India became the first country to make CSR mandatory for some businesses. Companies having a net worth of 500 crore or more, a turnover of 1,000 crore or more, or a net profit of 5 crore or more during the previous financial year must spend 2 per cent of their average net earnings over the previous three years on CSR operations, according to the Act. It lists the actions that may be done as well as how firms can go about doing CSR initiatives and programmes. Because CSR costs are 'philanthropic' in character and not 'wholly and solely' in the nature of business expenses, Parliament decided that they would not be eligible for a deduction under section 37 of the Income Tax Act. The goal of CSR, it was said, is to share the responsibility of providing social services with the government by enterprises with a net worth/turnover/profit above a certain level. Allowing the same as business expenses would result in a one-third subsidy of the expenditure. As a result, an explanation was included stating that any expense made by an assessee on CSR activities would not be construed to be expenditure incurred for the purpose of business and profession. CSR has evolved into a powerful instrument for achieving the Sustainable Development Goals (SDGs) by putting a high emphasis on social performance in firms' CSR programmes. The Sustainable Development Goals (SDGs), also known as the Global Goals, are a global call to action to eradicate poverty, safeguard the environment, and guarantee that all people live in peace and prosperity. Notably, although accepting the obligation of corporations to integrate people, profits, and the environment, numerous nations throughout the world have not made CSR expenditure mandatory, owing to a "philosophical approach." Expenses can be deducted from taxable income in countries where CSR is mandated. All costs made by any corporation, whether a major taxpayer or not, in the exercise of its CSR can be deducted from taxable revenue in the Philippines. Businesses in Singapore can deduct 250 per cent of salary and incidental expenses paid by sending staff to volunteer and offer services to designated charity institutions within a certain term, subject to certain restrictions. Malaysia provides tax benefits to taxpayers by allowing them to deduct costs for services, public utilities, education, health, and housing, among other things. Capacity building and re-skilling of CSR workforces are constantly relevant and critical to CSR effectiveness in today's fast-changing environment. Human resources are an absolute necessity. Leaders in the CSR field must empower their subordinates by instilling in them the appropriate attitude, knowledge, information, and training. At the same time, CSR executives must be willing to develop new skills. The process of developing soft skills, professional skills, project management skills, and leadership skills among CSR employees is ongoing. Time, effort, and resources may be saved by rigorous training, development, and re-skilling of CSR ways.

OBSERVER DAWN MEDIA & ENTERTAINMENT PRIVATE LIMITED Publisher/Printer/Editor: Dr. Hariom Tyagi Published from B-97, Sector -63, Noida-201301, U.P. Printed at Modest Print Pack Pvt. Ltd., C-52, DDA Sheds, Phase-I, Okhla Industrial Area, New Delhi-110020 www.observerdawn.com • info@observerdawn.com Contact No.: 0120-4804747

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BRIEFING 08

NEWS RBI more than doubles limit on IMPS to INR 5 lakh

PSUS NLC India gearing up to ramp up coal output amid coal crisis

COVER STORY CSR IN INDIA

DAWN

Corporate Social Responsibility: Benefits that are hidden

WHAT'S CHANGED RECENTLY?

Digital Innovation in India: A Responsible Approach

November 2021

SPECIAL STORY Sustainability education for employees must be mandatory in companies

BUSINESS OUTLOOK Gems and jewellery exports jumps back to normal

BIZ TIPS Restoring the Office Environment after Remote Working

Starting a new business? We've Got 8 Tips for You

TOP STORY Top 10 CSR Companies of India

TRENDS COVID-19 changes the landscape of CSR in India

FINANCE India-U.S. Financial Dialogue shifts focus to climate change

BIZ TECH Before Investing in New Technology, Think About These 3 Things

DEFENCE Finally, Deal Cleared For LCA Tejas Mk.1A Fighters

November 2021

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Power of Thoughts

DEADLY

VIRUS

NOT INFECTED BUT AFFECTED

OUTLOOK 2020

TOURS & TRAVEL

BIG LOSS IN MUTUAL FUND SIP? KNOW YOUR OPTIONS

INVESTMENT

DEFENCE

Value of 1 rupee?

NEWS

RBI MORE THAN DOUBLES LIMIT ON IMPS TO RS 5 LAKH

he Reserve Bank of India on Friday more than doubled the limit on Immediate Payment Service (IMPS) to INR 5 lakh from the current INR 2 lakh. The central bank had recently made the real-time gross settlement system or RTGS operational round-the clock and increased the settlement cycles of IMPS, to reduce credit and settlement risks. “In view of the importance of the IMPS system in processing of domestic payment transactions, it is proposed to increase the per-transaction limit from INR 2 lakh to INR 5 lakh for channels other than SMS and Interactive Voice Response System (IVRS),”the RBI said as part of its monetary

policy announcement. “This will lead to further increase in digital payments and will provide an additional facility to customers for making digital payments beyond INR 2 lakh.” IMPS which has been developed by the National Payments Corporation of India (NPCI) provides 24×7 instant domestic funds transfer facility. The service accessible through internet banking, mobile banking, bank branches, ATMs, SMS and IVRS. The per-transaction limit for SMS and IVRS channels continues to remain capped at INR 5000. In addition to this, the central bank also said it will soon launch a framework to carry our retail digital paymenrs in the offline

mode across the country, this after the RBI conducted three pilot tests in different parts of the country during the period from September 2020 to June 2021 involving smallvalue transactions covering a volume of 2.41 lakh for value INR 1.16 crore. “The learnings indicate that there

is a scope to introduce such solutions, especially in remote areas. Given the experience gained from the pilots and the encouraging feedback, it is proposed to introduce a framework for carrying out retail digital payments in offline mode across the country,” the RBI said.

ICICI BANK EXECUTES FIRST TERM LOAN DERIVATIVE DEAL LINKED TO SOFR

CICI Bank lately announced that it has executed its first term loan and cross-currency swap derivative transactions linked to Secured Overnight Financing Rate (SOFR). The transactions were carried out with a corporate client through the Bank’s International offices. These transactions indicate the Bank’s preparedness towards a smooth transition from USD LIBOR (London Interbank

DAWN

Offered Rate) to transactions linked to Alternative Reference Rates (ARR). In January 2021, the Bank had executed its first interbank money market transaction linked to SOFR, which has been identified as the replacement for USD LIBOR.

November 2021

Commenting on the transaction, MrAnujBhargava, Head - Global Clients Group, ICICI Bank said, “The Bank has been actively working with its clients for a seamless transition from LIBOR to ARRs. These transactions are just the start of the move towards the ARRs and we are confident that increasingly Indian corporates will move towards ARR based transactions."

Mr B. Prasanna, Group Head Global Markets, Sales, Trading and Research, ICICI Bank said, “With the slew of measures announced by regulators globally, there is an increased shift towards ARR linked products in markets. As the cessation deadline approaches, the liquidity in ARR linked products will increase and ICICI Bank is ready to widen its product suite to meet the customer requirements."

NEWS

FIVE FOREIGN INVESTORS SHORTLISTED FOR MAJORITY STAKE IN YES BANK-BACKED ARC

ive international traders have showcasedvarious presentations to the administration to type a brand new three way partnership asset reconstruction company (ARC) which is able to home the lender’s non performing property (NPAs), three folks conversant in the event stated. The traders which have made shows embody Los Angeles primarily based USD 149 billion Ares-SSG Capital, USD 15 billion different funding agency Varde Companions, US primarily based USD 55 billion Ceberus Capital and distressed asset giants USD 156 billion Oaktree Capital and personal fairness firm JC Flowers, three folks conversant in the transfer stated. Particular person traders and Sure Financial

institution couldn’t be instantly reached. Sure Financial institution will seemingly maintain a minority share within the proposed ARC c o n s i s t e n t w i t h Re s e r v e Financial institution of India (RBI) instructions. The chosen investor is more likely to maintain a majority as a lot as 80 per cent to 85 per cent within the new enterprise, one of many individuals stated. EY helps Sure Financial institution with the method. “ The mannequin is extra of a NARC kind. Banks are usually not inspired to carry a significant share in any ARC. That’s why they’re promoting it,” stated a second senior government concerned w i t h i n t h e m a t t e r. H e was referring to the

federal government backed Nationwide Asset Reconstruction Co (NARC) which has been fashioned to resolve legacy dangerous loans from the banking sector.“Buyers haven’t but

RBI ALLOWS MULTINATIONAL BANKS TO STORE LIMITED DATA ABROAD

ringing a closure to a contentious concern, the Reserve Bank of India (RBI) has allowed multinational banks working within the nation to store a limited set of data in offshore servers.Certain fields of static info comparable to identify and deal with of shopper,

Further concessions are unlikely, and banks should implement this ASAP,” mentioned a banker

some know-your-customer particulars together with choose transaction particulars like date and quantity, identify of beneficiary, and reference quantity could be saved abroad by international banks. This was communicated every week in the past by the regulator to the Indian Banks’

been formally knowledgeable concerning the quick listed companies so the method will take some extra earlier than the associate is chosen,” stated a 3rd particular person conversant in the matter.

Association (IBA), an trade supply advised ET. “This is giving foreign banks a small leeway. There are close to 40 data fields, out of which around 30 are important. After several meetings and representations, RBI has now permitted the banks to keep a handful of data overseas. I guess this brings an end to the matter which has been debated for more than three years now. Further concessions are unlikely, and banks should i m p l e m e n t t h i s A S A P, ” mentioned a banker.

Need for ‘Unfettered Supervisory Access’ RBI, nevertheless, has turned down requests from international banks to allow them to store info comparable to cellular numbers and ‘objective of remittance’ in servers abroad. IBA might return to RBI to determine the deadline for implementing the regulation primarily based on the most recent communication.

November 2021

DAWN

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 single-digit 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 Delhi-NCR, 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

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 Council Ltd (AIBC), the peak body for promoting and enhancing bilateral trade relations between the two countries,aims to further build theAustralia-India relationship by attractingworld-

leading Indian technology companies to Australia. Maha Sinnathamby, Chairman of SCG, said:“Greater Springfield’sunique offering to Indian technology companiesthat 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, anextensive 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

DAWN

November 2021

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.

Springfield City Group’s onestop-shop location for leading tech companies from India and Australia to collaborate and further build on bilateral ties 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 Chaptersaid: “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 G u r g a o n . S u b s e q u e n t l y, hejoined 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

CENTURY REAL ESTATE REAFFIRMS LEADERSHIP IN PLOTTED PROJECTSIN 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

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.’’

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 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 new-age 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.

November 2021

DAWN 11

PSU's

NLC INDIA GEARING UP TO RAMP UP COAL OUTPUT AMID COAL CRISIS

LC India Limited has crossed 2 million tonne coal production till date during its first full year of operation. "NLCIL has taken steps to achieve the target of 6 MT per year from its original schedule of 4 MT during the current year and considering the high demand for coal, NLCIL is taking all-out efforts to augment coal production of Talabira Mine up to 10 MT for the current year and up to 20 MT from next year onwards", the PSU said in an official statement. NLC India said that it has taken steps to achieve the target of 6 MTPA from its original schedule of four MTPA during the current year. Considering the high demand of coal, the company is taking all out efforts to augment the coal production of Talabira Mine up to 10 MTPA for the current year and up to 20 MTPA from next year onwards. This will not only provide fuel security to end use plants but also make available coal in the market, it added. The coal produced is being transported to its one of the end use plant, NLC Tamil Nadu Power Ltd's 2 x 500 MW plant at Tuticorin, Tamil Nadu. This is a subsidiary of the company.

Recent Amendment to Mines and Minerals (Development and Regulation) Act on Mineral Concession Rules by Ministry of Coal, has enabled the Mine for sale of excess coal after meeting the coal requirement of End Use Plant. Accordingly, the permission from Ministry of Coal has been sought to sell the excess coal.

SUKLA MISTRY BECOMES THE FIRST THE FIRST WOMEN DIRECTOR OF IOC

reaking the shackles and clearing the air, Sukla Mistry wrote a new chapter in Indian Oil Cooperation’s history by becoming IOC’s first women director. She has been selected by the Public Enterprises Selection Board (PESB) to become the next director of refineries for India’s largest state-owned oil and gas company Indian Oil Corporation Ltd (IOCL). PESB announced their recommendation after shortlisting and interviewing seven candidates for the position. Mistry was working as an executive director and refinery head at IOCL’s Barauni refinery in the state of Bihar. She is the first woman ever to be in charge of an oil refinery in India. Potentially, she can succeed IOCL’s current Chairman and Managing Director, ShrikantMadhavVaidya, when he retires in August 2023. Refinery experience is key to the selection of a candidate to the post of chairman and managing director. Both Vaidya and his predecessor, Sanjiv Singh, held the post of director for IOCL refineries before they were nominated chairman and managing director. Mistry is a qualified BE (Metallurgy) from Calcutta University. She holds an Advanced Diploma in Management from ICFAI, which is among top business schools in India,

DAWN

November 2021

ARUN KUMAR MISHRA SELECTED AS NEW CEO OF EESL

tate-owned Energy Efficiency Services Ltd (EESL), a joint venture of NTPC Ltd and Power Grid Corp. of India Ltd, has appointed Arun Kumar Mishra as chief executive officer (CEO) on deputation. This follows EESL's executive vice chairperson Saurabh Kumar resigning. The PSU, set up under union power ministry, has been allotted the demand aggregation of electric three-wheeler and electric bus component under the INR10,000 crore Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme of the central government."Mishra has been appointed to the post on a deputation basis and he will be responsible for its operations across the nation Mishra is a veteran in the energy sector, with more than three decades of experience in NTPC and Power Grid Corporation of India Limited including Policy perspective as Director of National Smart Grid Mission (NSGM), Project Management Unit (PMU) and Vice-Chair of International Smart Grid Action Network (ISGAN)”, EESL said in an official statement. Mishra is an Engineering Graduate (Electrical Engineering) from Regional Engineering College, Kurukshetra. He is a certified ISMS lead auditor. He started his career with NTPC and later moved to Power Grid. He has over 34

PSU's

years of experience in the planning, design and implementation of power systems, information and communication technology (ICT) integration in power utilities, SCADA and smart grid applications. He has also undertaken feasibility studies and requirements of load despatchcentres, besides designing their complex communication networks.

ON VIJAYADASHMI PM UNVEILS SEVEN NEW DEFENCE PSUS

EESL, an energy service company (ESCO), is among the earliest entrants in India’s energy efficiency market estimated at around INR74,000 crore and is presently running the world’s largest domestic lighting programme. With India rolling out the world’s largest electricity smart metering programme, EESL and IntelliSmart, its joint venture with India’s quasi sovereign wealth fund National Investments and Infrastructure Fund (NIIF), have been present in India's smart meter programme space. EESL’s subsidiary Convergence Energy Services Limited (CESL) aims to have 200,000 two-wheeled EVs and 300,000 three-wheeled EVs across India.

M Modi on Friday launched seven new Defence PSUs delivering a video address. The event was organized by the Defence Ministry to dedicate the seven new defence companies, carved out of Ordnance Factory Board (OFB), to the Nation. Defence Minister Rajnath Singh and MoSDefence Ajay Bhatt, among others, were present on the occasion. In order to enhance functional autonomy, efficiency and unleash new growth potential and innovation, the Government has decided to convert OFB from a Government Department into seven Defence PSUs fully owned by Government, as a measure to improve self-reliance in the defence preparedness of the country.

besides certifications in Industrial Radiography & Ultrasonic Non-destructive Testing. Mistry joined IOCL’s Haldia refinery, near Kolkata, West Bengal, as a graduate trainee engineer in 1986. She became an inspection engineer in 1987. In a 2012 magazine article, Mistry said, “Being a woman to prove my mettle, I had to work extremely hard for long hours in arduous conditions and break the trend of conventional way of work being considered for women only in India. I also worked late in the evening including night shifts to establish equal competency with men be it technical, physical or administrative.” In 2000, she was transferred to Baraunirefinery, she was involved in the execution and implementation of the Barauni Expansion Project. In 2001, she became the first woman engineer from India to be assigned to the ENOC refinery in Dubai, United Arab Emirates. After successful completion of this assignment, she was selected by Qatar Petroleum as senior inspection engineer for their LAB project. She then moved back to India in 2006, this time to Panipat refinery, in Haryana, as project in charge of her most challenging project yet, a 238 megawatt power plant for the naphtha cracker project at the refinery. She is the recipient of various national awards like the NPMP Award, Petrofed Best Woman Executive Award, Kaizen Award for Best Suggestion, PetrotechUjasini Award, etc. She also has various publications to her credit. She is an active advocate of women empowerment.

“One company would produce ammunition and explosives. Another company will manufacture army vehicles, advance weapons, troop comfort items, optical electronics or parachutes,” stated the Prime Minister at during the launch ceremony. “Our objective is that every company not only achieve expertise in this field and become a global brand. Competitive cost is our strength. Quality and reliability should be our identity,” said PM. The decision to revamp 41 ordinance factories and the launch of seven new companies is a part of this journey of the country. This decision was pending for the last 15-20 years. “I am confident that all these seven companies will become a major base of India’s military power in the coming times,” said PM Modi. According to a release by the Prime Minister’s Office, the Government has decided to convert Ordnance Factory Board from a Government Department into seven 100 per cent government-owned corporate entities, as a measure to improve self-reliance in the defence preparedness of the country. This move will bring about enhanced functional autonomy, efficiency and will unleash new growth potential and innovation, it said in a statement. The seven new defence companies that have been incorporated are Munitions India Limited (MIL); Armoured Vehicles Nigam Limited (AVANI); Advanced Weapons and Equipment India Limited (AWE India); Troop Comforts Limited (TCL); Yantra India Limited (YIL); India Optel Limited (IOL); and Gliders India Limited (GIL).

November 2021

DAWN 13

PSU's

POWER GRID GIVES ITS NOD FOR SETTING UP AN ELECTRIC VEHICLE (EV) CHARGING STATION

n order to push the usage of electric vehicles, the state-run Maharatna power conglomerate Power Grid Corporation of India Limited (PGCIL) has approved an investment of INR 14.23 crore for setting up an Electric Vehicle (EV) charging station under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicle) India Scheme Phase-II of the government at Navi Mumbai. The electric vehicle charging stationhas a commissioning schedule of 12 months for the charging station and 24 months for other infrastructure i.e. kiosks, toilets etc. from the date of agreement to be signed between Power Grid and Navi Mumbai Municipal Transport (NMMT). The company's board has also approved incorporation of wholly owned subsidiary to undertake telecommunications and digital technology business of Power Grid. Power Grid Corporation of India was established by the Government of India (GoI) as the central transmission utility of India. As of 30 June 2021, the Government of India held 51.34 per cent in the electric utility manufacturing company. The company reported a sharp spurt in consolidated net profit to INR 5,998 crore in Q1 FY22 as compared to INR 2,048 crore in Q1 FY21. Consolidated net sales grew 8 per cent to INR 10,216 crore in Q1 FY22 from INR 9,457 crore registered in Q1 FY21. Last month, PGCIL began to establish its first EV charging station at its office complex at Shillong in Meghalaya. The company is developing 11 such stations in Shillong, five of which will be in public places, while others would be in government establishments. PGCIL already operates EV charging stations in many cities like Kochi, Bengaluru, Gurugram, Ahmedabad, Delhi, Bengaluru.

GOVERNMENT RELEASE EOI TO SET UP OF 500 MW/1000 MWH STANDALONE BESS

olar Energy Corporation of India Limited (SECI) is a Government of India Enterprise under the administrative control of the Ministry of New & Renewable Energy (MNRE). One of the main objectives of the Company is to assist the Ministry and function as the implementing and facilitating arm of the National Solar Mission (NSM) for development, promotion and commercialization of solar energy technologies in the country. SECI has received interest from prospective Buying Entities across the country, to utilize energy storage systems, on a “On-Demand” basis, suited to their requirements during the peak and off-peak hours. Accordingly, SECI hereby wishes to invite proposals for setting up of ISTS-connected Pilot Projects of Standalone Battery Energy Storage Systems (BESS), for an aggregate storage capacity of 1000 MWh (500 MW x 2 hrs). The final tender document will be issued by SECI on the Guidelines issued under Section 63 of the Electricity Act, 2003. Prospective bidders were invited to review these documents and they have already submitted their comments to SECI. A pre-bid conference with stakeholders including the prospective bidders was conducted to discuss the draft Guidelines and the RfS documents.

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November 2021

BPCL LAUNCHED ‘UFILL’ AN AUTOMATED FUELLING TECHNOLOGY

he Bharat Petroleum Corporation Limited (BPCL) has launched an automated fuelling technology called “UFill”, to provide a swift, secure and smart experience to its customers at outlets by providing them with control of fuelling. The new digital technology obviates the need to look at zero or final reading or any such offline manual interventions, to give complete control to customers over Time, Technology and Transparency in fuelling experience. The technology provides the customer with control of fueling with the dispensing unit getting automatically pre-set for the value of fuel paid for by him/her in advance and eliminates any manual intervention at the point of sale. Thus, no need to check zero before fuelling or final reading, the dispensing unit will automatically dispense the exact quantity of fuel. UFill is yet another milestone in the Company's digital transformation journey that is aimed to improve customer’s turn-around time (TAT) at fuel outlets and increase transactional transparency, thereby providing an enhanced retail-like experience The company said that the UFill functionality is swift, secure and smart. For a customer looking for a change in the way he does his fueling, this is an easy and convenient solution.

PSU's

COAL POWER GENERATION CAPACITY UNDER OUTAGE REDUCES FROM 11 GW TO 6 GW: GOVT

R The UFill functionality does not need any App download, is payment app agnostic ( i.e. customer can use any payment app already downloaded on his/her phone like GPay, PayTM, PhonePeetc), offers real-time QR and voucher code through SMS and is accepted at all BPCL Fuel Stations where the functionality is enabled. According to Bharat Petroleum Corporation Limited, the new automated fuelling technology is secure, fast, and smart. The new U-Fill outlets have been launched in 65 cities and are likely to be launched soon across the country. The customers need not download any app to use the U-Fill technology. The u-fill also offers a real-time Quick response code(QR) and voucher code. Further, the BPCL added that if any advance payments made by the customer remain partially unused, then the money will be refunded with a time span of 48 hours in the customer’s account.

“In order to support the ambitious goal of achieving 450 GW renewable energy target of Ministry of New and renewable energy by 2030, it is important that it gets duly supported with installation of energy storage systems (battery energy storage system, hydro pump storage plants etc.)," union power ministry said in a statement. This comes at a time when India plans to set up a 14 GWh gridscale battery storage system at the world’s largest renewable energy park at Khavda in Gujarat and also plans to invite bids for the largest global tender for setting up a 13GWh grid-scale battery storage system in Ladakh. The government also plans to call bids for setting up around 4GWh of the grid-scale battery storage system at the regional load dispatch centres. In addition, state-run NTPC Ltd has floated a global tender for setting up 1GWh grid-scale battery storage system. According to CEA, there will be a need for 27GW of grid-scale battery energy storage systems by 2030 with four hours of storage.

ecently, the Ministry of Powercited the Power System Operation Corporation Limited (POSOCO) as reporting that the total capacity of units under outage due to low coal stocks has reduced from 11 GW on Tuesday, 12 October, to 6 GW. Further, as per PTI, the ministry said that coal-based electricity generation capacity under outage (not generating) due to shortage of the dry fuel came down to 6 GW from 11 GW on Tuesday. Amid growing concerns over the shortage of coal and subsequent power outages, Union Minister of Coal Pralhad Joshi stated that there were no threats to power supply and urged people not to panic. He said that Coal India Ltd has “22 days' stock of coal” with it. Joshi’s remarks come amid an ongoing coal crisis in the country. According to a fact sheet on power supply to the national capital provided by the ministry, the maximum demand of Delhi was 4,382 MW (peak) and 95.4 MU (Million Units of energy) on 13October. As per the information received from Delhi discoms, there was no outage on account of power shortage as the required amount of power was supplied to them. The ministry also said the discoms or power distribution companies have an allocation of 756 MW from Dadri Stage-I and were offered 9.5 MU on 13October. However, the ministry said that no power was drawn by the discoms. This power was in addition to the different allocations to the Delhi discoms provided by state-owned NTPC and Damodar Valley Corporation (DVC). The fact sheet showed that there was no energy deficit in the city from September 28 to October 13. In Delhi, 95.4 MU of electricity were available against a requirement of 95.4 MU on 13October. According to the ministry, energy availability was higher than the requirement on 11October. On that day, 101.9 MU of electricity was available whereas the requirement was 101.1 MU. It also showed that peak power demand and peak power demand met (supply) remained the same during the period till 13October. The discoms in Delhi had drawn less power than made available to them, according to the fact sheet. Further, it showed that coal plants of NTPC offered 17.04 MU of electricity to Tata Power Delhi Distribution Ltd (DDL) against the allocated 18.96 MU. But the Tata Power DDL had drawn 16.35 MU, which was 95.95 per cent of the energy made available to it by the coalbased power plants of NTPC. Similarly, power made available by Damodar Valley Corporation (DVC) and NTPC (gas) to the discoms in Delhi was more than that drawn by these utilities.

“Solar Energy Corporation of India (SECI), a CPSU under Ministry of New and renewable energy, has called for the expression of interest for procurement of 1000 MWh BESS. This will be published along with the RFS bid document and the draft comprehensive guideline for procurement and utilization of BESS as a part of generation, transmission and distribution assets and with all ancillary services," the statement added.

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PSU's

NTPC REL INKS FIRST GREEN TERM LOAN PACT OF INR 500 CR WITH BANK OF INDIA

tate-run power giant NTPC said its arm NTPC Renewable Energy Ltd (NTPC REL) has recently signed the first green term loan agreement of INR 500 crore with Bank of India. The green term loan agreement is for its two solar projects in Rajasthan and Gujarat. NTPC REL has signed its first Green Term Loan agreement of Rs 500 crores at a very competitive rate with a tenor of 15 years with Bank of India on September 29, 2021 for its 470 MW solar project in Rajasthan and 200 MW solar project in Gujarat, a company statement said. A green loan is a type of loan instrument that enables borrowers to finance projects that have an environmental impact. NTPC REL, a 100 per cent subsidiary of NTPC Ltd, currently has a renewable project portfolio of 3,450 MW of which 820 MW projects are under construction and 2,630 MW projects have been won for which PPAs (power purchase agreements) are pending to be executed. NTPC had incorporated NTPC Renewable Energy Ltd with the Registrar of Companies, NCT of Delhi & Haryana on October 7, 2020, to undertake renewable energy business. NTPC is taking various steps to make its energy portfolio greener by adding significant capacities of renewable energy sources. By 2032, the company plans to have 60GW capacity through renewable energy sources constituting nearly 45 per cent of its overall power generation capacity as per its official portal.

GOVERNMENT PLANNING TO HIVE OFF SURPLUS LANDS OF PSUS

fter unveiling the INR 6-lakh-crore asset monetisationprogramme, the government has accelerated efforts to hive off surplus land and will soon seek Cabinet approval for setting up a specialised entity (special purpose vehicle, or SPV) to undertake such transactions for state-run companies, ministries and departments. The entity will also handle land transactions of state-run firms that have closed or are facing closure. The government has been toying with multiple models to monetise land for the last four-five years but seems to have finally moved towards implementing the decision. “We are finalising the details and, in the next 10 to 15 days, we will approach the Cabinet for approval of this SPV that was announced in the Budget,” a senior government official said. In the Budget, finance minister Nirmala Sitharaman had proposed an SPV in the form of a company to monetise non-core assets, which is largely surplus land of ministries, departments and PSUs. “Monetising of land can either be by way of direct sale or concession or by similar means. This requires special abilities and for this purpose,” she had said while proposing the SPV. The official said the new entity will undertake land transactions for PSUs and other government agencies for a fee and will act as an agency where land assets will be pooled before

PSUS, PRIVATE ENTITIES NOT SPENDING 2PC OF PROFIT IN CSR ACTIVITIES IN ASSAM: ASSEMBLY PANEL

ig PSUs, including Oil India, Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Coal India, and private sector entities are not spending the mandatory 2 per cent of their annual profits on corporate social responsibility (CSR) activities in Assam, despite having their production units in the State, an assembly committee has observed. The assembly panel in its report for the Industries Department for 2021-22 suggested that PSUs and private firms with production units outside Assam should spend at least 5 per cent of their total CSR funds in the State. “The committee observes with serious note that the performance of CSR activities of the PSUs and the private sector industries in the State is very dismal,” the Departmentally Related Standing Committee on Development (A) Departments said in its report.

“… the private sector industries and the PSUs such as OIL, ONGC, IOC, NRL, IOCL(BGR), Coal India Ltd, with their production units in the State are not spending the mandatory two per cent of their annual profit(s) for gainful purpose,” it added. “The CSR activities undertaken

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November 2021

PSU's

IRCTC JOINS THE BANDWAGON BECOMES NINTH PSU OF INR 1 TRILLION

I being sold off. He said several PSUs that are on the verge of privatisation, such as Air India and BEML, are in the process of hiving off non-core assets, including land and buildings. Selling off surplus land as well as building and apartments is also being explored by two telecom PSUs BSNL and MTNL as part of the restructuring process. The official stated that under current conditions, lack of capacity in undertaking transactions linked to government land had delayed the process. The new entity will be staffed with domain experts as well as people who are trained in complex transactions. State-run NBCC had undertaken some transactions by selling off surplus land and using the proceeds to build accommodation for government employees as well as commercial space. Monetisation of land has been a contentious issue as cautious civil servants have been dragging their feet on accelerating such transactions. Several transactions have been delayed for years.

by the companies are mainly concentrated in the nearby areas of their units, while such works were not evenly distributed all over the State,” the panel said. The CSR activities undertaken by the companies are mainly concentrated in the areas neighboring their units, while this work was not distributed evenly throughout the state, the panel said. The committee further observes that PSUs and private sector industries with their out-of-state production units spend virtually no amount of CSR funds in Assam, although the state lags behind. with regard to development indices and SDG targets, ”the report said. After looking at business disruptions, the panel recommended that companies with no production units in Assam spend at least five percent of their total CSR funds in the state. “PSUs and private sector industries with their production units within the state such as OIL, ONGC, IOC, NRL, IOCL (BGR), Coal India Ltd, etc. are required to devote 2 per cent of their annual profits to CSR activities, ”“ Entities should “distribute their CSR funds evenly across the state instead of focusing only on a few neighboring districts,”stated the Assembly. The panel suggested the formation of district-level committees, comprising deputy commissioners, MPs and MPs, for the selection and appropriate monitoring of programs within the framework of CSR. “The details of the plans along with their location and the amount spent on each plan in the state over the past five years under the CSR fund by PSUs and private sector industries should be submitted to the committee (s) within six months, ”panel added.

ndian Railway Catering and Tourism Corporation Ltd (IRCTC) has become the ninth public sector entity to join the elite club of INR 1 trillion market capitalization (m-cap) with its shares surging over 300 per cent so far this year. The stock hit a record high of INR 6,287.95, gaining as much as 7.1 per cent. At 9.20 am, the scrip was trading at INR 6,283 on the BSE, up 7 per cent with its m-cap at INR 1.01 trillion. Earlier, PSU stocks such as State Bank of India, Coal India, NMDC Ltd, Indian Oil Corp. Ltd, Power Grid Corp. Ltd, SBI Life Insurance, Bharat Petroleum Corp. and SBI Cards have achieved this milestone. IRCTC listed on 14 October 2019 on exchanges and its issue price was INR 320 a share. Since then, the stock has surged over 18-fold or 1,737 per cent. So far this year, it has gained 308.1 per cent and so far this month it has advanced 58%. Analysts said IRCTC is expected to recover in a robust fashion, with covid cases coming under control and the vaccination drive continuing to remain strong as the economy unlocks across India. The impact of the third wave of the pandemic also remains uncertain. “IRCTC as a company is a pure monopoly business and the recent surge in stock prices is giving great reward to shareholders on the back of unlocking the economy and upcoming festival season which will boost the company’s revenue," said Akhil Rathi, vice president, advisory, at Marwadi Financial Services. Despite challenges from the second wave, IRCTC delivered strong numbers in June quarter as catering segment revenues improved, rail-neer segment turned EBIT positive after four quarters and internet ticketing segment continues to deliver strong margins. "Internet ticketing saw a jump in Q1 due to low base last year; we expect this segment will grow substantially higher in the second quarter at about 50 per cent compared with Q1. Also, the number of trains will increase which will increase the revenue for Rail Neer and Catering services" Rathi added. In the June quarter, the number of tickets booked per day was 63.7 million and this has already improved meaningfully in July and August. Catering segment revenues were higher than estimates which led to a beat on the revenue front. The company is also exploring e-catering options which analysts say should aid the growth of this segment in future. Ashish Chaturmohta, Director Research, Sanctum Wealth says the rail Neer is a volume game as manufacturing capacity increases coupled with margin expansion as operating leverage plays out. Catering segment will see the benefit of volumes through higher Train Side Vending, e-Catering, Food Plazas, Fast Food Units and Jan Ahaars and benefit of pricing as revised prices (in Circular of 2019) are implemented post-covid.

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COVER STORY

CSR IN INDIA

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COVER STORY

WHAT'S CHANGED RECENTLY? T

he COVID-19 epidemic has shown the importance of corporations in times of societal hardship. Companies responded to the crisis with tremendous haste in 2020 and 2021, demonstrating amazing flexibility and collaborating with national, state, and local government authorities to aid with the situation on the ground. This period has also witnessed changes to India's CSR framework, with the government providing more clarity on how businesses should handle CSR. The Companies (Corporate Social Responsibility Policy) Amendment Rules were released by the Ministry of Corporate Affairs on January 22, 2021, giving effect to the modifications in CSR made by the Companies Amendment Acts of 2019 and 2020. The purpose of this essay is to explain the most important developments and their consequences for corporate India.

Changes in definitions Administrative Overheads, International Organization, and Public Authority have all been defined, giving businesses more clarity. The administrative overheads ceiling of 5 per cent relates to expenditures incurred by the firm for general management and administration of CSR and will include items such as the company's CSR staff, office supplies, and so on, according to these definitions. However, it will not apply to project design, implementation, monitoring, and evaluation costs, or to the administrative expenditures of the Implementing Agency / NGO partner. In addition, the new regulations explicitly clarify what counts as CSR and what does not. While some COVID-related research and development activities are authorised under certain conditions, the regulations make it plain that political donations, actions that benefit workers and sponsorship of activities for marketing purposes are not permitted. Furthermore, any action carried out by the firm outside of India will be prohibited. Only Indian sportspeople representing any state or union territory at the national level or India at the international level are exempt from this rule. Activities carried out to fulfil any other statutory duties under any Indian legislation are likewise prohibited.

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However, there are a few places that require more clarification. Ongoing initiatives, for example, are ones that last for more than four years. This begs the issue of what will happen to initiatives with longer timelines. Let's say you're working on a project to help kids finish their schooling, which may take a long time. Companies may not be able to embark on such initiatives under existing standards.

Clarification on implementation The revised Rules also specify which types of entities a firm can seek assistance from in order to implement CSR. Companies can implement CSR either directly or through another company formed under Section 8 of the Companies Act, a registered public trust, or a registered society formed by the firm or the federal or state governments. In addition to the above, any entity established under an Act of Parliament or a State legislature, or a Section 8 company, registered public trust or a registered society, not referred to above but having an established track record of a minimum of three years can also be used for CSR implementation. Effective April 1, 2021, all such implementing entities wishing to engage in CSR activities must register with the Central Government by completing Form CSR-1 electronically for all CSR initiatives. For each company that submits Form CSR1, a unique CSR Registration Number will be generated. This will aid the government in maintaining a database of completed projects and provide companies with a track record of implementing agencies' performance.

Action plans and Reporting According to the New Rules, the CSR Committee is responsible for developing and submitting to the Board an annual action plan in accordance with the company's CSR policy. The Board of Directors is in charge of deciding on CSR initiatives, overseeing their implementation, and establishing the overall CSR Policy. The Board has also been granted the authority to change the yearly action plan based on the good explanation in accordance with the CSR Committee's recommendation. According to the New Rules, the CSR Committee is responsible for developing and submitting to the Board an annual action plan in accordance with the company's CSR policy. The Board of Directors is in charge

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November 2021

The revised Rules also specify which types of entities a firm can seek assistance from in order to implement CSR. Companies can implement CSR either directly or through another company formed under Section 8 of the Companies Act, a registered public trust, or a registered society formed by the firm or the federal or state governments

of deciding on CSR initiatives, overseeing their implementation, and establishing the overall CSR Policy. The Board has also been granted the authority to change the yearly action plan based on the good explanation in accordance with the CSR Committee's recommendation. Companies with an average CSR obligation of Rupees ten crore or more in the three preceding financial years must now conduct an impact evaluation of their CSR programmes through an independent agency, according to the Rules. Companies can also claim 5 per cent of overall CSR spending or INR 50 lakh, whichever is less, as a CSR Expenditure under the Rules. Overall, these improvements have improved clarity for businesses. Furthermore, the concentrated focus on effect evaluation is intriguing and has the potential to significantly alter how businesses evaluate their CSR contributions. Companies must, however, ensure that their CSR expenditures are distributed far ahead of the year's end so that partners may properly utilise the funds. Any funds that remain unspent or unallocated at the end of the fiscal year must be moved to government-designated funds, leaving firms with no oversight into how they are spent. Disbursements will also need to be staggered in the case of ongoing projects to ensure that partners may use whatever funds are released to them within the fiscal year. Anything beyond that must be deposited to the company's Unspent CSR Account and distributed to the Implementing Agency as needed for the ongoing project.

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LEAVING NO ONE

BEHIND

BUILDING THE ROAD OF PROGRESS TO THE END

ccording to the Socio-Economic Caste Census (SECC) of 2011, 8.88 crore households in India are deprived and poor from the perspective of multi-dimensional deprivations such as shelterlessness, landlessness, households headed by single women, SC/ST households, or households with a disabled member in the family. In India, the lowest of the poor were labelled as 'Antydayas,' and were designated as a target group for different welfare programmes such as wage creation, skill development, social security, education, health, nutrition, and livelihood creation. As India approaches a USD 5 trillion e c o n o m y, i t b e c o m e s c r i t i c a l t o involve the country's last remaining family in the development process. The state government of Rajasthan began the Antyodaya programme in the mid-1970s with the same goal of assisting the poorest families and lifting them out of poverty Antyodaya was the lowest man's programme, as the name implies. The program's goal was to boost the income of a group of the poorest households over the poverty threshold of INR 3,300 per year. This would be done by allowing families to acquire possessions or get jobs. The overly ambitious project was recently put on hold since the Indian economy was already slowing down when Coronavirus struck.

In India, the lowest of the poor were labelled as 'Antydayas,' and were designated as a target group for different welfare programmes such as wage creation, skill development, social security, education, health, nutrition, and livelihood creation

The lockdown, which began on March 25, 2020, wreaked havoc on the economy, halting corporate activity and stifling spending, perhaps leading to the economy's first full-year decline in more than four decades. This will only become worse when the fatal second COVID wave hits in March 2021. According to polls provided by the Centre for the Monitoring of the Indian Economy, the jobless rate increased from 8.75 per cent to 23.5 per cent in April and May. (CMIE). In the week ending May 3, the number hit a high of 27.1 per cent. However, when we reached the unlock phase, a significant improvement was recorded in June, when the jobless rate fell drastically to 17.5 per cent, then 11.6 per cent, and finally 8.5 per cent at the end of the month. Rural regions were badly impacted not just by economic hardships, but also by reverse migration of employees who chose to return to their villages when the lockdown ended. However, rural employment has increased significantly, with the jobless rate in rural India dropping to 7.26 per cent in the final

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growth is the advancement of all. 'Ekatm Manavtavad,' or Integral Humanism, was his name for it. Time has proved that India's answers originate from within, from its diverse population. The advancement of Indian society is dependent on the advancement of each of its constituents. Society will not advance until the weakest among mankind progresses. Even now, as the government tries to return to normal following the COVID, the government's power, resources, and solutions come from its own citizens and officials.

week of June, down from 8.3 per cent in the pre-lockdown week ending March 22. Though the unemployment number appears to be declining, the reality on the ground may not be as encouraging. Antyodaya's main mission was not only to improve the financial situation of the rural poor but also to improve their social status. Despite the fact that rural livelihoods have improved in terms of numbers, the Mahatma Gandhi National Rural Employment Guarantee Scheme is converting trained manpower of the poor into labour (MGNREGA). This was a unique opportunity. This indeed was also the reason for the failure of Antyodaya’s mission. However, we cannot deny that the government's Antyodaya scheme has had some long-term effects in the system, such as a strong infrastructural base, effective social capital promoting participatory planning and implementation of schemes involving a wide range of stakeholders, increased economic opportunities through diversified livelihoods, including nonfarm sector, skilling of rural youth and women, development of value chains, and enterprise promotion, and Strengthened democratic processes. In the globe, India occupies a unique position. Its difficulties, as well as its potential, cannot be compared to the problems or growth of any other country. Pandit Deendayal Upadhyaya recognised early on that India's answers must come from within, not from beyond, neither from socialism nor from capitalism. He preached the idea that the individual and society are not two conflicting identities in a human being, but that the human being himself in the society and that one's

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PM Narendra Modi unveiled a 20 lakhcrore relief and stimulus package, which incorporated previous fiscal and monetary measures made by the government and the Reserve Bank of India, to boost the growth and momentum of the programme. Furthermore, the poorest of the poor in both rural and urban settings today require basic and vital services such as health, online education, and food security.

Despite the fact that rural livelihoods have improved in terms of numbers, the Mahatma Gandhi National Rural Employment Guarantee Scheme is converting trained manpower of the poor into labour (MGNREGA). This was a unique opportunity. This indeed was also the reason for the failure of Antyodaya’s mission

Although the government is pulling all the strings at the grassroots level to assist and support the poor, our grassroots experts, our NGO, must perform the most essential role as a facilitator of the government's welfare programmes. Once the epidemic is under control, the government may encourage investments in Antyodaya's vision, which must incorporate post- Covid period adjustments to mainstream marginalised and disadvantaged communities, therefore making them economic partners. The crippling epidemic has compelled the entire globe to reconsider its future plans. In times of COVID, India's major task will be to manage its youthful population so that it may realise its true economic potential and contribute to progress. With 65 per cent of its population under the age of 25, India enjoys a tremendous demographic advantage. Institutional and policy adjustments are required to convert this demographic advantage into faster economic development. Investments in productive people, jobs and wealth development for women and youth, increased education and training, and access to reproductive health care, including maternal health and family welfare, are among them. The year 2020 will be recognised as the year that marked significant changes in response to the COVID-19 epidemic, and we are committed to making the years 2021 and beyond a decade of prosperity and development for everyone on that economic scale.

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PLANS FOR

COVID-19

RECOVERY NEED TO PUT WOMEN AT THE CENTRE

e know that the COVID-19 worldwide pandemic has disproportionately harmed women throughout the world. Many women have lost their employment at this period, or if they did not lose their careers, they have had to work from home and have had the added burden of caring for their family; including children and/or the elderly while those of us who were trapped in toxic relationships during various lockdowns had nowhere to go. In summary, anytime there is a crisis, women and children are disproportionately affected. Women in India suffered disproportionately as a result of the coronavirus pandemic, according to data collated by Bloomberg News, adding to the dangers of economic recovery. They've been affected hard, with decreased earnings, job losses, and a slower vaccination rate leading to higher mortality. They also do badly when compared to women throughout the world in areas like unpaid domestic labour.

Sustainable Development Goals (SDGs) Now that nations are resuming normal operations, it's critical to remember that

Women in India suffered disproportionately as a result of the coronavirus pandemic, according to data collated by Bloomberg News, adding to the dangers of economic recovery. They've been affected hard, with decreased earnings, job losses, and a slower vaccination rate leading to higher mortality.

women are critical to the global economic recovery from the epidemic. We can examine the progress made before the pandemic by looking at the Sustainable Development Goals (SDGs), specifically SDG5 on women/equality, and how hard-hit those achievements have been afterwards. SDG 5 focuses on eradicating all types of discrimination against women and girls, as well as achieving gender equality. Equal access to education, health care, a decent job, and participation in political and economic decision-making processes for women and girls would help to drive sustainable economies and benefit societies and humanity as a whole. SDG 5 comprises nine objectives and 14 indicators set by the UN. In each of these sectors, the pandemic has had an impact on women. Women's rights have progressed in many areas over the previous 25 years, but there are still significant inequities; the epidemic has brought these injustices into the open. One major example, and one of the requests currently on the table at the international

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level, is that women are still paid less than males for the same work in 2021. There is much more that has to be done, and we need to enlist the cooperation of men as well as women - we need to bring more men on board, particularly young men, to help bring about change. We believe that a more equitable and gender-balanced world is essential for the future. What important is that everyone is included in this discourse and action; males are the ones who are 'holding up the other half of the sky' (Kristof and WuDunn, 2008). However, to effect lasting change, males must accept the huge loss of being victims of their era(s) and the delusion of superiority. According to a United Nations estimate, the epidemic would force 96 million men and women into severe poverty by 2021. Unfortunately, more than half of them are women and girls, bringing the worldwide total of women and girls living on less than USD 2 to 435 million. What is the reason behind this? Because women labour disproportionately in the informal economy, where there is little social safety, this is the case. They also work for themselves in tiny firms, which mean they make less and save less. Women also work in industries that don't lend themselves to internetwork, such as the hotel industry. They are also burdened by unpaid household duties, which lead them to quit their paid occupations on occasion. Furthermore, many women are single mothers and are frequently excluded from decision-making roles in their homes, communities, and countries. In many developing countries, the problematic mix of informal labour, poverty, and gender prejudice is widespread,

Women also work in industries that don't lend themselves to internetwork, such as the hotel industry. They are also burdened by unpaid household duties, which lead them to quit their paid occupations on occasion. Furthermore, many women are single mothers and are frequently excluded from decisionmaking roles in their homes, communities, and countries

but given India's economy and society, it is particularly acute. Women are disproportionately affected by the country's massive informal sector, where millions of livelihoods have grown even more unstable or vanished entirely. As the globe looks beyond the current crisis to a post-pandemic future, it is critical to guarantee that low-skilled people are not left behind and have the skills they need to become self-sufficient.

Mental Health We also wish to emphasise the importance of mental wellness. Not only women's and girls' mental health but all of ours. Mental health is vital, whether it is the mental health of individuals or the mental health of communities as a whole. We are adamant about maintaining our mental wellness. According to a Deloitte poll, mental health difficulties impacted women's capacity to work in India, and the impact was more severe than it was internationally. This might exacerbate India's already significant gender divide. In India, less than a quarter of women work, which is one of the lowest rates in the world, and they earn 35 per cent less on average than males. Our individual nations' and the world's economic recovery is dependent on us, and we feel there is now a real chance for worldwide radical change. Research reveals that empowering women, by bettering their wages, has the potential to drastically enhance the global economy, with GNP estimated to be 5 per cent higher if women engaged in the workforce at the same rate as men, if made a major element of the recovery from the epidemic.

Empowering Women is Smart Economics Women play a critical role in global recovery efforts. The slogan "Empowering Women is Smart Economics" was coined by the International Monetary Fund (IMF). What is the significance of this? We all profit from it. There is more peace when there is greater gender equality: gender equality is a more dependable predictor of peace than a country's GDP or democratic status. Gender equality will boost all economies by billions of dollars. Gender diversity in leadership positions improves corporate results. Gender equality improves the lives of children, which is a topic that many of us are familiar with. Teens in nations with higher levels of gender equality are happier than teens in countries with lower levels of gender equality.

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November 2021

COVER STORY

DIGITAL INNOVATION IN INDIA

A RESPONSIBLE APPROACH

inTech, or financial technology that delivers digital financial services, is revolutionising the way financial services are provided and delivered. Digital technology, at its most fundamental level, offers speed - speed in processing information and speed in communication. Processing speed has lowered transaction costs and time, while communication speed has improved system connectedness, extending transaction reach. When taken as a whole, digital technology is transforming the way financial services and products are organised and provided. Fast payment systems like UPI and IMPS, for example, have been made possible by digital innovation. Instantaneous communication and the capacity to handle enormous datasets have enabled the adoption of Aadhaar for transaction authentication, allowing large-scale government payouts to be conducted instantly and straight into recipients' bank accounts. eKYC has improved the security of online payments. P2P Lending or Crowdfunding services are becoming more popular as a way to replace bank credit. AI/ML technology has been employed in a variety of applications,

Instantaneous communication and the capacity to handle enormous datasets have enabled the adoption of Aadhaar for transaction authentication, allowing largescale government payouts to be conducted instantly and straight into recipients' bank accounts

including financial advising, fraud detection, and help desks. The way financial markets work has altered as a result of highfrequency trading. Despite these advantages, it is critical to recognise technology's limitations. Let us break down the essence of financial intermediation – between savers in an economy (essentially families) and borrowers – to better comprehend this. Banks are responsible for the majority of this financial intermediation, receiving deposits, granting credit, and facilitating payments. Banks are at the heart of the payments system since almost all money (other than currency) is stored as bank deposits. Other institutions are layered on top of this fundamental intermediation system. Savings can be transferred directly from savers to borrowers through financial markets, circumventing banks to some extent. In financial markets, entities such as insurance companies, pension funds, and asset management firms play varying degrees of importance as alternatives to bank intermediation. All of these monies are finally deposited into a bank account.

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COVER STORY

We can define the distinguishing property of intermediation now that we understand how banks intermediate funds — banks bridge gaps in space and time between savers and borrowers. When a saver and a borrower don't know one other or are in separate places, a spatial gap arises. The temporal gap happens when the borrower's and lender's demands occur at separate times — the borrower wants money in a month, while the saver has money right now. Banks fill this latter gap by providing liquidity services, such as taking a deposit from a saver now and lending to a borrower after one month. Because banks can produce money and credit and hence operate as liquidity providers to the economy, they are well-positioned to perform this service. Similarly, banks are well-positioned in the field of payments, the area of finance where FinTech has the most influence because all digital payments transactions involve money transfers from one bank account to another. All other payment service providers permit money transfers from one bank account to another, and so serve as a support system.

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Banks fill this latter gap by providing liquidity services, such as taking a deposit from a saver now and lending to a borrower after one month. Because banks can produce money and credit and hence operate as liquidity providers to the economy, they are well-positioned to perform this service

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It is now clear why financial technology, despite improving intermediation efficiency, cannot replace the essential character of financial intermediation. In our words, it can bridge the spatial gap but not the time gap. For example, because no other organisation may produce credit or money, a bank would still be required to store the liquidity risk. In other words, any FinTech business that provides such liquidity services is essentially acting as a bank and should be subjected to the same legal, regulatory, and supervisory system as a bank. This is one of the reasons why non-bank businesses are not permitted to deal with deposits directly in practically all nations. This knowledge of technology's limits will help us better manage the changes that FinTech is bringing to banking and finance. It would also allow for a more effective approach to FinTech regulation and the fast-changing financial sector. The benefits of technology in increasing the financial system's efficiency and reach, as well as the attendant benefits for economic growth and financial inclusion, necessitate a methodical, non-disruptive use and encouragement of such technology

COVER STORY

in the financial system. FinTech provides a threat to incumbents by forcing them to adapt or modify the way financial intermediation takes place by driving down costs, schematizing goods and services, enhancing customer experience, and increasing the reach of financial services. FinTech businesses should ideally be viewed as facilitators and partners by banks and other financial institutions. Banks compete with one other, not with FinTech businesses, but with other banks that use FinTech more effectively.

Regulatory framework for FinTech The nature of regulation must adapt as FinTech transforms the financial sector. The enormous variety of activities provided by FinTech businesses needs a regulatory perimeter expansion. The regulatory strategy must also be tailored to the type of business being regulated. While identical activities should be regulated uniformly in most circumstances, when it comes to financial operations by big-tech corporations, activity-based regulation may be less successful than entity-based regulation. For everyone, Cybersecurity risks are likely to outweigh financial threats. When dealing with huge financial market infrastructure firms or big tech, systemic risks, operational risks, and competitive risks are all critical. Countries must address legal and regulatory gaps to address concerns about data privacy, security, and monetization. Regulations governing data concerns must adapt to a world in which the lines between financial and non-financial enterprises are blurring and geographical barriers are no longer a barrier.

The nature of regulation must adapt as FinTech transforms the financial sector. The enormous variety of activities provided by FinTech businesses needs a regulatory perimeter expansion. The regulatory strategy must also be tailored to the type of business being regulated

The fast-changing FinTech sector makes it nearly hard for legislation to catch up. Regulation must adapt to guarantee that the financial system absorbs digital innovation in a non-disruptive way until legislation catches up. Regulating change is sometimes defined as the act of allowing a system to adapt and evolve. When a well-regulated financial service expands to incorporate non-financial enterprises in a continually reconfiguring financial value chain, the regulator's job becomes more difficult. Similarly, getting acclimated to financial regulation might be difficult for a non-financial company. All parties — regulators, established financial businesses, and developing FinTech organisations – must understand the social advantages of new technology or its influence on customers. Slowing down the pace of change – which has been accused of suffocating innovation – is frequently the greatest approach to safeguard customers. Because public policy encourages digitalisation, the industry is frequently marked by the growth of dominant enterprises, whether big tech or infrastructure. This increases the likelihood of competition and concentration. There is no obvious solution as to how such difficulties should be handled — market share constraints, for example, might open up the market to new competitors but simultaneously suffocate incentives for innovation. Regulators must also improvise to handle single-point-of-failure concerns posed by market concentration, as well as be aware of new sites of failure posed by moving value chains.

India's Experience The Reserve Bank's approach to regulation has been to foster an atmosphere conducive to digital innovation. To begin, this entailed taking the effort to establish the fundamental infrastructure companies – IDRBT and NPCI, to name two – that provided the rails on which creative goods might operate. Non-banks (e.g. mobile wallets issued by non-banks) were aggressively encouraged to participate in the regulation, which aimed to enhance interoperability across different payment systems. Customers are more likely to participate if transactions are straightforward and convenient, expenses are kept low, and consumer risks are minimised (2FA or AFA, positive confirmation, user-friendly switch-onswitch-off facility on card-not-present or on-line transactions etc). The purpose of data storage regulations is to improve data security and privacy.

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COVER STORY

Customer data is safeguarded against cybercrime by reducing weak access points in the system and supporting tokenization. The RBI's regulatory focus is turning to the next phase of changes as the digital payments industry matures. Upscaling supporting infrastructure like RTGS and NEFT to be accessible 24 hours a day, 7 days a week not only enhances options for customers and companies but also increases non-bank availability and lowers satellite payment system settlement risk. Unique developmental initiatives include a consumer protection framework with restricted responsibility for clients, online dispute resolution, and a digital ombudsman programme, among others. Our payment methods have also been compared to worldwide best practices. As a result of these efforts, India now has one of the lowest rates of digital payment fraud in the world. The Reserve Bank of India has released an enabling framework for the Regulatory Sandbox to support orderly and responsible innovation in financial services, boost efficiency, and benefit consumers. The Reserve Bank Innovation Hub (RBIH) was established to foster financial sector innovation by building an enabling environment that brings together academics, technology, finance, and regulators. The banking sector's rapid technological revolution has created certain unique obstacles. A degree of friction in compliance can be seen, which is not typical of a wellregulated financial sector. Regulatory measures, particularly those aimed at improving customer convenience or safety, are frequently met with criticism. The justification of consumer convenience is used to justify resistance to change. When the Reserve Bank of India adopted 2FA over a decade ago, there was a considerable backlash, but it is now widely regarded as a remarkable success story in India's payment evolution. Nonetheless, there is a continuing propensity to reject consumer-friendly reforms, such as the use of tokenization to restrict card credentials storage places for customer protection, or the use of 2FA for recurring transactions. We will only be able to achieve a robust and mature payments system if all stakeholders prioritise longterm rewards above short-term profits and internalise mature practices such as informed consent and data usage openness over time. Despite these snags, we've gone a long way in terms of encouraging digital advancements. For a country the size of India, the JAM trinity has achieved

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unprecedented levels of financial inclusion. Small companies and vendors have begun to accept electronic payments. However, digital penetration is mostly restricted to cities and metro areas. We need technology ways to reach the large segments of the population that are unbanked and do not own a smartphone. The sandbox process has discovered promising solutions, and efforts are underway to mainstream such technologies. While digital transfers within the country have become instantaneous, the framework for cross-border payments has remained mostly unchanged for decades. The following considerations

The sandbox process has discovered promising solutions, & efforts are under-way to mainstream such technologies. While digital transfers within the country have become instantaneous, the framework for cross-border payments has remained mostly unchanged for decades

November 2021

are frequently mentioned: the necessity for currency rates, time-zone variances, various regulatory and legal needs between jurisdictions, and so on. FinTech has the potential to eliminate these frictions; platform-based solutions can enable real-time pricing discovery even for small transactions. If both nations have CBDCs, they may eliminate time zones by substituting bank settlements with money delivery, which can happen even if the payment systems are down. Another area where FinTech offers potential is in the prevention of digital scams, which has become obvious as the rate of digital adoption has outpaced awareness growth. Digital Frauds1: During the epidemic, the number of cases of digital fraud has increased. According to TransUnion, an American consumer credit reporting bureau, fraudsters are increasing their efforts in the financial services business. The organisation discovered that between the last four months of 2020 (Sep 1 – Dec 31) and the first four months of 2021 (Jan 1 – May 1), the percentage of suspected digital fraud attempts coming from India against financial services businesses surged by 89 per cent. Financial services fraud attempts grew by 149 per cent globally. To guarantee that FinTech innovation continues to promote India's economic progress, both regulators and other stakeholders must perform their respective responsibilities properly. To summarise, the FinTech environment may be summarised in Dickensian terms: we are living in the best of times, with the promise of technological innovation in finance, as well as the hope of significant efficiency benefits, improved customer experience, and increasing societal welfare. But, for the spring of optimism to not turn into the winter of sorrow, we must also address risks of online fraud, compromise of client credentials, and data privacy and security.

COVER STORY

CORPORATE SOCIAL RESPONSIBILITY

BENEFITS THAT ARE HIDDEN

n the business sector, the notion of corporate social responsibility, or CSR, has gained traction in recent decades. Many businesses are now engaging in some type of social and environmental responsibility to contribute to society's overall well-being. CSR (corporate social responsibility) is a prominent issue these days, especially in the wake of the recent epidemic. It has become an integral aspect of how a corporation conducts its commercial operations and the potential influence it has on society. Companies can now demonstrate social responsibility in a variety of ways, including donations to education, underprivileged children, animal welfare, art, culture, employee volunteering, environmentally safe processes, fundraising, eradicating poverty, malnutrition, and hunger, and improving health care, among others. CSR can also be done passively by participating in activities such as animal rescue, dog adoption, and crowdfunding that directly advance social goals, or by avoiding engaging in socially destructive behaviour. Following an amendment to the Companies Act, 2013, in April 2014, India became the first country in the world to make corporate social responsibility (CSR) mandatory. According to a National Geographic poll of 17,000 customers in 17 nations, Indians are the world's most environmentally conscious consumers. Consumers were polled on energy consumption and

CSR (corporate social responsibility) is a prominent issue these days, especially in the wake of the recent epidemic. It has become an integral aspect of how a corporation conducts its commercial operations and the potential influence it has on society

conservation, transportation options, food sources, the relative use of green vs traditional products, attitudes toward the environment and sustainability, and understanding of environmental concerns, and India came out on top. However, as compared to worldwide metrics, CSR engagement in particular areas is relatively low. Animal care, for example, is not supported in India, but overseas organisations receive grants and cash from both government entities and people. There is an organisation that receives donations from kind individuals all across India who contribute to pets and frequently visit their shelters to adopt a puppy. Corporate social responsibility not only provides a wide range of benefits to a firm, but it also contributes to society's well-being and improvement. Social initiatives, large or little, reveal a lot about a company. Companies that continuously demonstrate their commitment to CSR activities recognise their power to serve the community and take action based on that understanding. Organizations strike a balance between generating a profit and giving to society by participating in Corporate Social Responsibility. Social responsibility is a method of managing a corporation by balancing long-term aims, analysing a company's decisions, and behaving per societal values, norms, and

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COVER STORY

expectations. An organization's moral responsibility in establishing universal ethical standards with private and public companies is known as social responsibility.

Apart from enhancing the organization's reputation and giving back to society, the following are some of the most important CSR benefits to be aware of: 1. Help in attracting investors Organizations with a strong sense of social responsibility have a stronger reputation in society and among stakeholders. CSR will enhance not just consumer involvement but also investor interest in the corporation since investors are more willing to back a respectable company. Many professional investors choose to invest in a company's stock that is recognised for its social responsibility, seeing such activities as a sign of more openness and honesty in operations and financial reporting, resulting in lower risk. 2. Retaining and finding the talented staff The well-being of employees and the employee experience are two areas that CSR addresses. We all know that an organization's most valuable asset is its people, and when a firm is socially responsible and respected, it fosters employee trust, helps to keep existing personnel, and attracts new talent. Employees may be more inclined to stay longer if the company is responsible and sustainable, avoiding the expenses and disruption of recruiting and retraining.

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Organizations with a strong sense of social responsibility have a stronger reputation in society and among stakeholders. CSR will enhance not just consumer involvement but also investor interest in the corporation since investors are more willing to back a respectable company

November 2021

3. Encourage professional and personal growth When businesses embrace a corporate social responsibility culture, they may easily encourage employee volunteerism and motivate people to give to a good cause. As a result, employees may advance professionally and personally while also developing a corporate social responsibility habit. Employees who are aware that their employer is dedicated to improving society and global communities are more likely to be productive and creative on their own. Working for a good cause may boost empathy abilities, and employees who participate in CSR projects might feel more meaningful. 4. Sustainability Sustainability is a long-term advantage for a company that assists it in being more sustainable. Many businesses are taking social responsibility for reducing carbon emissions and switching to renewable energy sources. Companies can urge employees to turn off gadgets when not in use and to turn off lights and air conditioning when they leave the office. By promoting this, the firm may save a significant amount of money on its electricity expenses while also gaining recognition as a socially responsible organisation. 5. Reputation Management Organizations spend a significant amount of money on marketing to promote their products and services to get more momentum for their business. The media, on the other hand, is more than eager to cover CSR initiatives when

COVER STORY

they are organised and carried out by organisations. Such news is a significant bonus in establishing an organization's longterm reputation in both home and foreign markets. That is why most businesses have teams dedicated to disseminating their CSR initiatives and communicating their accomplishments to a wider audience.

6. Indirect advertisement Any publicity, it is widely believed, is good publicity. When your organisation launches a CSR campaign, it will immediately receive a certain amount of publicity. This form of publicity may also be referred to as advertising. Just make sure that all of your

products and services are in line with your CSR efforts. CSR actions boost a company's public image by showcasing the efforts it makes to better society, and they help it become a more appealing brand in the eyes of consumers. When a company is active in any type of social work, it helps them stand out from the competition. Participating in any CSR activity may be beneficial these days, as it allows you to satisfy the demands of the present generation without jeopardising the needs of future generations. Corporate social responsibility isn't only about giving money or performing charity; it may also include a variety of contributions in areas such as animal welfare, forest preservation, and water conservation. To further their CSR mission, several corporations have religiously participated in animal welfare activities, clean-up plastic

trash initiatives, or the construction of renewable energy systems. Consumers are becoming increasingly concerned about the ethics of the goods and services they buy, and they want to know where the ingredients come from and if they were sourced ethically, as well as whether these businesses support community-building initiatives. The overarching goal for businesses is to have a beneficial influence on society by improving the production of shared value for the company's owners, workers, shareholders, and other stakeholders. The

CSR will enhance not just consumer involvement but also investor interest in the corporation since investors are more willing to back a respectable company. The well-being of employees and the employee experience are two areas that CSR addresses

advantages of CSR go well beyond what is stated in this essay. Social actions help not just the business, but also the community and society as a whole.

Final Words CSR (corporate social responsibility) is a prominent issue these days, especially in the wake of the recent epidemic. It has become an integral aspect of how a corporation conducts its commercial operations and the potential influence it has on society. Companies may now show social responsibility in a variety of ways, including

donations to education, impoverished children, animal welfare, art, culture, employee volunteerism, ecologically friendly procedures, fundraising, and more. CSR can also be implemented passively by participating in initiatives such as animal rescue, dog donation, and crowdfunding that directly achieve social goals, or by refraining from enacting certain policies. CSR will enhance not just consumer involvement but also investor interest in the corporation since investors are more willing to back a respectable company. The well-being of employees and the employee experience are two areas that CSR addresses. Encourage workers to create a corporate social responsibility habit in their life and to thrive professionally and personally. It assists organisations in being socially responsible in terms of carbon emissions reduction and the use of renewable resources. CSR news has become a significant asset in enhancing an organization's long-term image in both local and international markets.

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SPECIAL STORY

SUSTAINABILITY EDUCATION FOR EMPLOYEES MUST BE MANDATORY IN COMPANIES

mployees are inextricably linked to the success of businesses. Employees have a greater opportunity to contribute to the sustainability journey. Without the active engagement of its employees, no organisation can be successful in terms of sustainability. To involve its workers in the sustainability journey, the firm must develop a strategy and procedure. Companies must also include sustainability management criteria in employee evaluations so that ethical, social, and environmental principles are ingrained in their operations.

Fundamental of Sustainability The mother of all resources is the Earth. All prosperity is entrusted to Earth. The earth's nature is prosperous. Prosperity is a treasure that may be used to improve one's life. First and foremost, there is the Earth. Our first concern is for the environment. The first course must be served. Humans have the greatest duty to care for the environment. Humans' ultimate purpose is to nurture the world. The greatest loss is the destruction of ecology and the environment. Throughout the lifespan of a product, we must try to reduce its environmental impact. As a firm, we must adhere to the green management concept, creating and delivering environmentally responsible goods in order to pave the way for a cleaner future for everybody. Sustainability activities should be viewed as an investment in the communal future by a firm. Sustainability

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is all about not torturing the environment any longer. Environmental imbalances are caused by irresponsible behaviour and behaviours. Any advancement or development that is not beneficial should be avoided. Problems arise as a result of a lack of direction in the growth process. All development activities should be carried out with the environment in mind. Putting man at the heart of progress will show to be extremely detrimental in the long run.

Reduce ecological and environmental footprint Embedding In a continuously changing corporate environment, sustainability management in business functions must be an integral element of organisational governance. Companies must consider sustainability at every stage of the product development process, including planning, designing, manufacturing, and marketing. The primary goal of corporate sustainability, in our opinion, is to decrease the company's ecological and environmental impact. We believe that all businesses should have a solid strategy in place for implementing a required sustainability education programme for their staff. Organizations actively seek sustainability management based on corporate sustainability governance. It is recommended that all workers have a thorough grasp of their company's

November 2021

sustainability goal as well as their role and duties, all of which should be incorporated into day-to-day work. Small changes in the workplace will eventually lead to true growth and development.

The Art of Inquisition "I can't wait to see the future of a firm that considers its social and environmental obligations," every employee must ask himself. What might they look like in the next years? That's the company I'd like to work for in the future." “I believe we should be more aggressive in informing people about - Caring for the planet is the highest duty of humans,” every employee must understand. "My firm has increased its sustainability efforts in recent years," a sustainabilityconscious employee believes, "but given the company's worldwide significance, we need to work more and do better."

Align Thoughts & Actions Companies must set a goal to concentrate their human resources and technological resources to develop greater products and services while also contributing to a better global community. Business principles may aid in the development of specific sustainability action plans as well as the establishment of a Sustainability Code of Conduct for workers to follow. As a firm continues to expand and contribute to society, its thoughts and actions must represent its fundamental values and

SPECIAL STORY

The Sustainability Management Office is a pillar in the management of company sustainability. It will put a major emphasis on environmental management

core competencies. In a fast-changing, uncertain business world, sustainability management is a critical need for a company's survival and success. A good attitude boosts the company's bottom line, improves competitiveness, and builds the groundwork for a brighter, long-term future for everyone. It's past time to think of every effort as an investment in the future.

Need of Sustainability Management Office The Sustainability Management Office is a pillar in the management of company sustainability. It will put a major emphasis on environmental management. Sustainability Management Offices have the potential to alter the game. Sustainability Management Offices are responsible for ensuring that sustainability practices are implemented throughout the organisation and that the approach to sustainability is continually improved. Key strategies and actions in each business division, as well as across the company, are discussed in the Sustainability Management Offices. The Sustainability Management Offices are notified when a major decision is made. Furthermore, organisations must make every effort to establish a strong compliance culture, which is critical to sustainability management.

Sustainability objectives Companies that are sustainability empowered will allow their consumers to actively contribute to a more sustainable society and the environment by developing new goods and pursuing mutual growth with key stakeholders. Companies must set strong objectives for sustainability management while continuing to work toward their goal and communicating their progress to stakeholders in a transparent manner.

Circular Economy Every firm, regardless of size, should have strategies in place to reduce environmental impact throughout the product lifecycle, including product development, raw material procurement, production, manufacturing, distribution, consumption, and trash disposal. Companies must research possible dangers and possibilities, as well as take proactive actions to prevent climate change, which necessitates a swift global reaction. To aid and promote the circular economy, every firm must implement a series of "Reduce Reuse Recycle" initiatives. Final Words Companies in developing economies are required to track various threats, including those related to climate change, at their worksite locations around the world in accordance with their risk management process and manuals for a variety of topics, including environmental and ecological protection, energy use, and policy enforcement, in accordance with their risk management process and manuals. Employees at each worksite must report any issue that might be harmful to the environment. Companies review climate change concerns on a regular basis and debate the next steps before passing decisions on sustainable governance. Companies should assess climate change risks and opportunities and prioritise issues based on their relevance and influence on business, reflecting on them during the decision-making process.

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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

GEMS AND JEWELLERY EXPORTS JUMPS

BACK TO NORMAL

FOXCONN, NOKIA, 29 OTHERS GET DOT NOD FOR

TELECOM PLI

he Department of Telecommunications (DoT) on Thursday approved productionlinked incentive (PLI) scheme proposals of 31 companies including global conglomerates such as Foxconn, Jabil, Nokia, Rising Star and Commscope for production of telecom and networking products in India. Domestic micro, small and medium enterprise (MSME) companies such as Coral Telecom, STL, Lekha Wireless Solutions, Systrome, Synegra’s plan for the telecom equipment manufacturing PLI were approved, while the plans submitted by Dixon, Tejas Networks, VVDN Technologies, among others, were given the go ahead in non-MSME sector.

fter witnessing a sluggish demand due to the outbreak of COVI-19, gems and jewellery exports are slowly and steadily coming back to normal. During April to September 2021, the overall gross exports of gems &jewellery recorded a growth of 136.95 per cent to $18.98 billion as compared to USD 8.01 billion in April-September 2020 as demand picked up across the world. According to the Gem and Jewellery Export Promotion Council (GJEPC), exports of cut and polished diamonds jumped 124.9 per cent to USD 12.37 billion from USD 5.50 bill in the same period of last year. Diamond exports rose by 20.24 per cent and total gem and jewellery exports gained 5.13 per cent from the April-September 2019 period before the pandemic hit the country. Colin Shah, chairman, GJEPC, said, “The sector has already achieved nearly half (46 per cent) of the USD 41.66 billion exports target set by the government. The sentiment in the industry is incredibly positive with markets opening up and demand gradually returning to normal.” “GJEPC successfully concluded the International Gem & Jewellery Show (IGJS) in Dubai recently. We have received particularly good feedback from the exhibitors and buyers. Moreover, with the festive season coming up, we are

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optimistic to achieve the export target by the end of the financial year,” Shah said. Being a labour-intensive industry and looking at the growth potential the sector, the government has declared gems and jewellery sector as a focus area for export promotion. The space transfer policy announced on October 11, 2021 by the Department of Commerce will significantly facilitate of ease doing business in Special Economic Zones (SEZ), which account for a 30 per cent share in India’s total gem and jewellery exports. During September 2021, overall gross exports of gems &jewellery have shown a decline of 0.99 per cent to INR 23,259.550 crore (-4.03 per cent in dollar terms to USD 3162.25 million) as compared to INR 23,491.20 crore (USD 3294.87 million) in September 2019. Cut & polished diamond exports have registered a growth of 1.12 per cent to INR 14,028.04 crore, down 1.97 per cent in dollar terms to USD 1907.3 million, in September 2021 as compared to Rs 13,872.63 crore (USD 1945.68 million) in September 2019. In September 2021, gold jewellery exports declined 19.32 per cent to INR 5,656.32 crores — decline of 21.85 per cent in dollar terms to USD 768.96 million — as compared to Rs 7,011.07 crore (USD 983.89 million) in September 2019.

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The government expects an investment of INR 3,345 crore in the PLI scheme over the next 4-5 years, with incremental sales of up to INR 1.82 lakh crore during this period, which are likely to create 42,000 job opportunities, an official release by the DoT said. Earlier this year in February, the Union Cabinet had approved a INR 12,195-crore PLI scheme for domestic manufacturing of telecom and networking products such as switches, routers, radio access network, wireless equipment and other internet of things (IoT) access devices.

BUSINESS OUTLOOK

Eligible MSMEs will get an incentive of 7 per cent for the first and the second year, followed by an incentive of 6, 5, and 4 per cent in the third, fourth and fifth year, respectively. Other companies, which do not fall under the MSME category but are eligible, will receive an incentive of 6 per cent for the first two years, 5 per cent for the next two years and 4 per cent in the fifth and final year.

SEBI GIVES NODE TO NYKAA, ADANIWILMAR, STAR HEALTH,

THREE OTHERS TO FLOAT IPOS

The minimum investment threshold for MSMEs has been kept at INR 10 crore, while for other companies it has been kept at INR 100 crore. The scheme, which will be operational from April 1, will run over the next five years with a total outlay of INR 12,195 crore for providing these incentives. In April last year, the Central government had for the first time notified the PLI scheme for mobile phones and allied component manufacturing. As part of the scheme, companies that set up new mobile and specified equipment manufacturing units or expanded their present units would get incentives of 4 to 6 per cent, with the total outlay for the scheme amounting to INR 41,000 crore. In November, the PLI scheme was expanded to include 12 more sectors such as automobile and automobile components, pharmaceutical drugs, textile products, food products, high efficiency solar photovoltaic modules, white goods such as air conditioners and LED bulbs, and speciality steel products. Finance Minister NirmalaSitharamanhadsaid in the Budget for 2021-22 that the total outlay for PLI schemes in these 13 sectors over the next five years would be INR 1.97 lakh crore.

s many as six companies, including Nykaa, AdaniWilmar and Star Health & Allied Insurance, have received capital markets regulator Sebi’s go-ahead to launch initial share-sales. Apart from these, Penna Cement Industries, Latent View Analytics and Sigachi Industries too received Sebi’s clearance to raise funds through the initial public offerings. These six companies, which filed their preliminary IPO papers with Sebi between May and August, obtained its “observations” during October 11-14. Going by the draft papers, the IPO of FSN E-Commerce Ventures Ltd, which runs online marketplace for beauty and wellness products Nykaa, comprises fresh issue of equity shares worth INR 525 crore and an offer for sale (OFS) of 43,111,670 equity shares by promoter and existing shareholders. Those selling shares in the OFS are — promoter Sanjay Nayar Family Trust and shareholders, TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Lighthouse India III Employee Trust, Yogesh Agencies & Investments, J M Financial and Investment Consultancy Services and some individual shareholders. According to merchant banking sources, the initial share-sale is expected to fetch INR 3,500-4,000 crore valuing the company in the range of USD 5 billion to USD 5.5 billion. AdaniWilmar’s proposed IPO will be in form of fresh issue of equity shares for an amount of up to INR 4,500 crore (approximately USD 600 million). There will not be any secondary offering. The company, which sells cooking oils under

the Fortune brand, is a major player in the edible oil industry. AdaniWilmar is a 50:50 joint venture company between the Adani group and the Wilmar group. Star Health and Allied Insurance Company ’s IPO comprises fresh issue of equity shares worth INR 2,000 crore and an offer for sale of up to 60,104,677 equity shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP). Those offering shares through the offer for sale are promoter and promoter group Safecrop Investments India LLP, Konark Trust, MMPL Trust; and existing investors Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, VenkatasamyJagannathan, SaiSatish and BerjisMinoo Desai. Star Health, leading private health insurer in the country, is owned by a consortium of investors like Westbridge Capital and RakeshJhunjhunwala. The Hyderabadbased Penna Cement’s IPO comprises fresh issue of equity shares worth INR 1,300 crore and an offer for sale of up to INR 250 crore by the promoter, as per the DRHP. Latent View Analytics’ IPO consists of fresh issue of equity shares worth INR 474 crore and an offer of sale of equity shares to the tune of INR 126 crore by a promoter and existing shareholders. As a part of the offer for sale, promoter Adugudi ViswanathanVenkatraman will offload shares worth INR 60.14 crore, shareholder Ramesh Hariharan will sell INR 35 crore shares and Gopinath Koteeswaran will off-load INR 23.52 crore shares among others.

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BUSINESS OUTLOOK

INDIA’S BILATERAL TRADE WITH CHINA

GROWS 49.4 PER CENT DEFYING SELF-RELIANCE PUSH

espite India’s efforts to reduce dependence on Chinese imports amid an increased emphasis on self-reliance as well as escalating tensions along the border, the country’s bilateral trade with China has grown 49.4 per cent in the first nine months of 2021 as against the same period in 2020, as per Chinese government data.

India’s imports from China rose to USD 68.46 billion in the first nine month of 2021, up 51.5 per cent from the corresponding period in 2020, which was impacted by Covid-19 related restrictions, according to data from the China General Administration of Customs. Imports were up 21.6 per cent over the same period in 2019, which was not impacted by the pandemic. The sharp

uptick in imports has pushed India’s trade deficit with China to USD 46.55 billion in the first nine months of 2021, up from USD 29.86 billion in the year-ago period and USD 42.96 billion in the corresponding period in 2019. India’s official statistics on bilateral trade with China are updated only till July 2021. India’s total trade with China was USD 90.38 billion in the January-September period, and is on track to cross USD 100 billion by the end of the year. According to Commerce Ministry data, China was India’s top trading partner in

TATA UNVEILS THE PUNCH STARTING AT

INR 5.49 LAKH

ata Motors recently introduced its much-awaited sub-compact SUV – Tata Punch at a starting price of INR 5.49 lakh (ex-showroom Delhi). The new mini SUV is India’s first subcompact SUV. It is the recipient of the Global NCAP 5-star rating (16.453) for adult occupant protection and 4-star rating

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the April-July period, followed by the US, UAE, Saudi Arabia and Singapore. Some of India’s key imports from China include components for smartphones and automobiles, telecom equipment, plastic and metallic goods, active pharmaceutical ingredients (APIs), and other chemicals. Experts said that even though imports from China have increased, it was important to note whether the rise was due to intermediate or finished goods. Vinod Sharma, managing director of Deki Electronics and chairman, CII national ICTE manufacturing committee said that India would need to boost the manufacture of components and share of electronic goods designed in India to boost self reliance and potentially cut imports.

BUSINESS OUTLOOK

FESTIVE SEASON WILL NOT BE A

JOYFUL RIDE FOR THE AUTO SECTOR

the lowest this time as against other years. Normally, dealers stock huge inventories of more than a month in the run-up to the festival months.

Sales around Diwali, generally referred to as festival season sales, are big for automakers as around 30 per cent of their annual sales happen around this period. However, supply side constraints are going to play spoilsport now.Auto dealers had last month stated that retail sales during the festival season are going to be lacklustre because of chip shortage, which has slowed down the supply of popular models. They had said the inventory of variants that are in demand, such as Baleno, Ertiga, Brezza, Creta, etc, is continuing to dip. In fact, the inventory is

Dealers said, “ With manufacturers drastically cutting down productions due to unavailability of semiconductors and ABS chips, shortage of containers and high metal prices, customers for the first time may not get a vehicle of their choice and lucrative schemes during this festive season.” Manufacturers and dealers said whatever little discounts will be on offer would be on some entry-level models, where the offers are anyway not very attractive since the prices are comparatively low. Basic entry-level models do not have many electronic components so chip shortage has not affected their output in a major way. The wholesale despatches of passenger vehicles by Maruti Suzuki India, Hyundai Motor and Mahindra and Mahindra were severely hit in September due to the shortage of semiconductors.

onsumers who generally wait for Diwali to purchase new vehicles at attractive discounts and other freebies may be in for disappointment this year. With shortage of semiconductors, almost all major passenger vehicle manufacturers have resorted to production cuts, which has led to long waiting for popular models. As a result, manufacturers and dealers are in no position to offer attractive discounts this Diwali.

(40.891) for child occupant protection, the automaker said in a statement. Bookings for the new Tata Punch had already begun earlier this month for an amount of INR 21,000. Designed across Tata Motor’s studios in India, the UK and Italy, the new Tata Punch has been developed to herald an entirely new category – the sub-compact SUV, to address a growing customer need for a small in size but large in space, safety, performance and features. The new Punch is the first SUV from the ALFA (Agile Light Flexible Advanced) architecture. Tata Motors said that it offers

the agility of a hatchback with the DNA of an SUV. Tata Punch has an ARAI-certified fuel efficiency – 18.97 km per litre on manual transmission and 18.82 km per litre on automatic transmission, the Indian automobile giant informed. The new mini SUV comes has recently earned the 5-star safety rating of 16.453 points from Global NCAP, which is the highest adult occupant protection rating points any vehicle has received in India. Tata Punch would sit below Nexon in the company’s product line-up. It features a 1.2-litre petrol engine and is available in both manual and automatic transmissions.

AUTO SECTOR NOW FOCUSES MORE ON

RECYCLING PARTS AND BATTERIES

rom ageing electric batteries to old engines NSE 6.50 per cent to rearview mirrors, the auto industry is revving up its recycling efforts as it faces pressure to reduce its colossal carbon footprint. The world's automakers are investing in facilities to salvage old parts but the industry is also looking to recycle the millions of electric batteries used for the cars of the future. While electric cars are cleaner than their fossil fuel forebears, the raw materials needed for their batteries are extracted from mines in Africa that are often accused of environmental damage and using child labour. "As demand for these materials increase, the pressures on these (economically marginalised) regions are likely to be amplified, risking the goals of a socially and ecologically sustainable renewable energy system," according to the Institute for Sustainable Futures at University of Technology Sydney. How the auto industry will manage its electric transition is likely to be among the hot topics at the two-week COP26 climate summit hosted by Britain starting October 31. The sector produces more greenhouse gas emissions than the entire European Union, with 20 percent of it coming from manufacturing, according to the World Economic Forum. Batteries can account for as much as half the price of electric cars, with a life expectancy ranging between eight and 15 years. Recycling them could have a considerable impact. It could reduce demand for lithium by 25 percent, cobalt by 35 percent, and nickel and copper by 55 percent in 2040, the Institute for Sustainable Futures said in a report in April. But new mining projects are under way, with "the potential for adverse impacts on local environments and communities, including pollution of soil, air and water, human rights abuses and unsafe working conditions," the Australian institute said. It is technologically possible to recover over 90 percent of the metals used in batteries, but the effort is "limited by the lack of a strong economic driver or policy that could encourage the use of recycled materials," the report said. The European Commission wants to require that 12 percent of the cobalt, four percent of lithium and four percent of nickel used in electric batteries be from recycled material from 2030.

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TOP STORY

TOP 10 CSR COMPANIES OF INDIA

On April 1, 2014, India became the first country to legally mandate corporate social responsibility. The new rules in Section 135 of India’s Companies Act make it mandatory for companies of a certain turnover and profitability to spend two percent of their average net profit for the past three years on CSR. Here, we are featuring Top 10 Companies that have been contributing immensely in the CSR India. Have a look!

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TOP STORY

RELIANCE INDUSTRIES Year

2019-2020 2018-2019 2017-2018

Actual CSR

908.71 Cr

849.32 Cr

745.04 Cr

Prescribed CSR

874.95 Cr

811.16 Cr

703.08 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 889.38 Cr

he Company is always dedicated towards CSR activities and has spent more than the prescribed CSR budget in last three financial

years.

Reliance Industries Limited (RIL), through Reliance Foundation, has significantly contributed to and made measurable progress toward its vision of an inclusive India. Moving well beyond its business activities, the RIL Group contributes to a positive societal impact through diverse community engagement initiatives. Led by Nita M Ambani, Reliance Foundation was set up in 2010 to provide impetus to various philanthropic initiatives of RIL. The efforts of the group have already touched the lives of more than 12 million people across India in more than 10,500 villages and 50 urban locations. The Foundation has a comprehensive development approach. Its prime objective is to create and support meaningful

activities through innovative institutions to address some of India’s most pressing developmental challenges. Reliance Industries is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. The company operates in five major segments: exploration and production, refining and marketing, petrochemicals, retail and telecommunications. The group is present in many business sectors across India including petrochemicals, construction, communications, energy, health care, science and technology, natural resources, retail, textiles, and logistics. RIL is the second-largest publicly traded company in India by market capitalisation and is the second largest company in India by revenue after the state-run Indian Oil Corporation. The company is ranked No. 99 on the Fortune Global 500 list of the world's biggest corporations, as of 2013 and contributes approximately 14 per cent of India's total exports.

TATA CONSULTANCY SERVICES Year

2019-2020 2018-2019 2017-2018

Actual CSR

602.00 Cr

434.00 Cr

400.00 Cr

Prescribed CSR

600.00 Cr

542.00 Cr

497.00 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 764.18 Cr.

CS has set up TCS Foundation as CSR project implmentation arm in 2015. Directors of Tcs Foundation are ChandrasekaranNatarajan, MukundGovindRajan, BarindraSanyal, RoopaPurushothaman and Ajoyendra Mukherjee. t is classified as Non-govt company and is registered at Registrar of Companies, Mumbai. Its authorized share capital is INR 40,000,000 and its paid up capital is INR 10,000,000. Established in 1968, Tata Consultancy Services a member of the Tata Group has grown to its current position as the largest IT services firm in Asia based on its record of outstanding service, collaborative partnerships, innovation, and corporate responsibility. It was founded by Jamsetji Tata in 1848 and it is one of India’s most respected institutions today. Their mission reflects the Tata Group's longstanding commitment to providing excellence. To help

customers achieve their business objectives by providing innovative, best–in–class consulting, IT solutions and services, and to actively engage all stakeholders in a productive, collaborative, and mutually beneficial relationship. TCS' ability to deliver high–quality services and solutions is unmatched. They are the world’s first organization to achieve an enterprise– wide Maturity Level 5 on both CMMI and P–CMM, using the most rigorous assessment methodology – SCAMPISM. Additionally, TCS’ Integrated Quality Management System (iQMS) integrates process, people and technology maturity through various established frameworks and practices including IEEE, ISO 9001:2000, CMMI, SW–CMM, P–CMM and 6–Sigma. It is largest IT employer in India. It provides services to wide range of segment like banking & financial services, energy, resources & utilities, government, telecom, media & information services, etc.

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TOP STORY

OIL & NATURAL GAS CORPORATION LTD (ONGC) Year

2019-2020

2018-2019

2017-2018

Actual CSR

606.96 Cr

614.63 Cr

503.42 Cr

Prescribed CSR

571.81 Cr

480.21 Cr

487.04 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 594.76 Cr

NGC’s leadership is rightly abide by Government’s mandate of 33 per cent of the CSR budget spent on Swachh Bharat projects. Further, 65.90 per cent of the projects in the last three years were implemented in the priority focus area of Education and Health Care. As per directives of NitiAyog, ONGC has identified 20 aspiration districts and is committed to raise the social and economic condition of these districts by implementing strategic CSR projects. Projects worth more than INR 31 Cr has been successfully implemented till FY 2018-19. In the year 2018-19 alone, ONGC has implemented more than 4000 projects covering every nook and corner of the country. ONGC was set up under the visionary leadership of PanditJawaharLal Nehru. Pandit Nehru reposed faith in Keshav Dev Malviya who laid

the foundation of ONGC in the form of the Oil and Gas division, under Geological Survey of India, in 1955. A few months later, it was converted into an Oil and Natural Gas Directorate. The Directorate was converted into Commission and christened Oil & Natural Gas Commission on 14th August 1956. This largest natural gas company ranks 11th among global energy majors (Platts). It is the only public sector Indian company to feature in Fortune’s ‘Most Admired Energy Companies’ list. Acclaimed for its Corporate Governance practices, Transparency International has ranked ONGC 26th among the biggest publicly traded global giants. It is the most valued and largest E&P Company in the world, and one of the highest profit-making and dividendpaying enterprises.

INDIAN OIL CORPORATION LTD (IOCL) Year

2019-2020 2018-2019 2017-2018

Actual CSR

602.00 Cr

434.00 Cr

400.00 Cr

Prescribed CSR

600.00 Cr

542.00 Cr

497.00 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 359.97 Cr.

lthough the company incurred loss in the FY 2019-20, it has spent INR 0.24 Cr for CSR activities in that year. Indian Oil Foundation is a non-profit Trust which was formed in the year 2000 with an initial corpus of INR 25 crore and a recurring annual contribution of INR 10 crore to protect, preserve and promote national heritage monuments in collaboration with the Archaeological Survey of India (ASI) and National Culture Fund (NCF) of the Government of India. The foundation has also undertaken initiatives to promote community development in these sites. Following sites have been identified for developing tourist friendly facilities in the monument complex. Konark Sun Temple, Odisha in Eastern Zone, Vaishali, Bihar in Eastern Zone,Kanheri caves, Maharashtra in Western Zone,Khajuraho, Madhya Pradesh in Central Zone, Warangal Fort, Andhra Pradesh in Southern Zone. Indian Oil Corporation (IndianOil) is India's largest commercial enterprise, with a sales turnover of INR 3,99,601 crore (USD 61 billion) and profits of INR 10,399 crore (USD 1,589 million) for

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the year 2015-16. They are ranked 161st among the world's largest corporates (and first among Indian enterprises) in the prestigious Fortune ‘Global 500’ listing for the year 2016. As India's flagship national oil company, with a 33,000-strong work-force currently, they have been meeting India’s energy demands for over half a century. With a corporate vision to be 'The Energy of India' and to become 'A globally admired company,' their business interests straddle the entire hydrocarbon valuechain – from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, marketing of natural gas and petrochemicals, besides forays into alternative energy and globalisation of downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the UAE, the Corporation is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa. It has also formed about 20 joint ventures with reputed business partners from India and abroad to pursue diverse business interests.

TOP STORY

HDFC BANK LTD Year

2019-2020 2018-2019 2017-2018

Actual CSR

535.31 Cr

443.78 Cr

374.54 Cr

Prescribed CSR

534.00 Cr

439.20 Cr

365.00 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 540.24 Cr

DFC ERGO actively contributes to the economic progress of the community at large. HDFC pledges to empower social change, promote education, and create a sustainable environment. While taking into consideration the interest of all its stakeholders, like Customers, Business Partners, Reinsurers, Shareholders, Employees, and Society we actively ingrain our philosophy of SEED i.e Sensitivity, Excellence, Ethics and Dynamism into its business decisions. The sole purpose behind this initiative is to bring a smile and light up a million faces. Bank aims in helping to transform lives of millions of Indians through its social initiatives. These initiatives come under the umbrella of ‘Parivartan’ and they aim to contribute towards the economic and social development of the country by sustainably empowering its communities. Parivartan has been a catalyst in making a difference

in the lives of people through its interventions in the areas of rural development, education, skill development and livelihood enhancement, healthcare & hygiene and financial literacy. With a lot already done, the bank continues to bring about the change keeping with its philosophy of Sustainability and Innovation. HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It is the fifth largest bank in India by assets, incorporated in 1994. It is the largest private sector bank in India by market capitalization as of 24 February 2014. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. According to the Brand Trust Report 2014, HDFC was ranked 32nd among India's most trusted brands. HDFC was ranked 45th on the list of top 50 Banks in the world in terms of their market capitalization.

INFOSYS LIMITED Year

2019-2020 2018-2019 2017-2018

Actual CSR

359.94 Cr

342.04 Cr

312.60 Cr

Prescribed CSR

359.56 Cr

340.35 Cr

310.25 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 402.08 Cr.

nfosys Foundation is a not-for-profit initiative which aims to fulfil the social responsibility of Infosys Ltd and creates opportunities and strives towards a more equitable society. The Foundation supports programs and organizations devoted to the cause of the destitute, the rural poor, the mentally challenged, and the economically disadvantaged sections of the society. The Foundation also helps preserve certain cultural forms and dying arts of India. The Infosys Foundation prides itself on working with the poorest of the poor, selecting projects with infinite care and working in areas that are normally overlooked by the larger society and has subsequently covered in Andhra Pradesh, Tamil Nadu, Maharashtra, Orissa, Rajasthan, Kerala, and Punjab in a phased manner. Infosys is a global leader in technology services and consulting. They enable clients in more than 50 countries to create and execute strategies for their digital transformation. From engineering to application development, knowledge management and business process management, they help their clients find the right

problems to solve, and to solve these effectively. Their team of 199,000+ innovators, across the globe, is differentiated by the imagination, knowledge and experience, across industries and technologies, that they bring to every project they undertake. Their effort is to deliver the most extraordinary software projects, on the basis of extreme advances in technology, especially in areas such as Automation and Artificial Intelligence, to equip their clients to take advantage of the best opportunities of current times. Whether it is capturing the know-how of retiring talent into knowledge-based AI systems to facilitate smart maintenance through generations of making, building sensor-enabled connected automoiles that ‘care’ about driving safety, renewing legacy landscapes with knowledge-based automation or enabling predictive maintenance of mission-critical equipment, they want to be able to create a new future. A future where businesses can channel intelligent, open platforms, software and services to innovate and realize the advantages of digital transformation.

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TOP STORY

ITC LIMITED Year

2019-2020 2018-2019 2017-2018

Actual CSR

326.49 Cr

306.95 Cr

290.98 Cr

Prescribed CSR

326.17 Cr

306.55 Cr

290.47 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 363.08 Cr.

t is ITC's Policy to direct its CSR Programmes, inter alia, towards achieving one or more of the following - poverty alleviation; promoting education and skill development; promoting healthcare including preventive healthcare; providing sanitation and drinking water; ensuring environmental sustainability; enabling climate resilience; rural development projects; creating livelihoods for people, especially those from disadvantaged sections of society; protection of national heritage, art and culture; preserving and promoting music and sports; and providing relief and assistance to victims of disasters and calamities. ITC Limited is an Indian multinational conglomerate company headquartered in

Kolkata, West Bengal. Established in 1910 as the 'Imperial Tobacco Company of India Limited', the company was renamed as the 'India Tobacco Company Limited' in 1970 and later to 'I.T.C. Limited' in 1974. The dots in the name were removed in September 2001 for the company to be renamed as 'ITC Limited' where 'ITC' would no longer be an initialism. The company completed 100 years in 2010 and as of 2012–13, had an annual turnover of USD 8.31 billion and a market capitalization of USD 52 billion. It employs over 30,000 people at more than 60 locations across India and is part of Forbes 2000 list.

NATIONAL THERMAL POWER CORPORATION LTD (NTPC) Year

2019-2020 2018-2019 2017-2018

Actual CSR

418.87 Cr

304.92 Cr

285.46 Cr

Prescribed CSR

278.57 Cr

252.68 Cr

237.01 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 285.56 Cr.

TPC Foundation was registered in December 2004, striving to serve and empower the physically challenged and economically weaker sections of the society. The Foundation carries out focused CSR activities in identified niche areas to help the physically handicapped and other marginalized communities. The focus areas of foundation are: Education, Livelihood and Rural Development. NTPC Limited (also known as National Thermal Power Corporation Limited) is an Indian Central Public Sector Undertaking (CPSU) under the Ministry of Power Government of India, engaged in the business of generation of

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electricity and allied activities. It is a company incorporated under the Companies Act 1956 and a "Government Company" within the meaning of the act. The headquarters of the company is situated at New Delhi. NTPC's core business is generation and sale of electricity to state-owned power distribution companies and State Electricity Boards in India. The company also undertakes consultancy and turnkey project contracts that involve engineering, project management, construction management and operation and management of power plants.

TOP STORY

HINDUSTAN ZINC LIMITED Year

2019-2020 2018-2019 2017-2018

Actual CSR

127.04 Cr

130.18 Cr

92.18 Cr

Prescribed CSR

212.76 Cr

203.93 Cr

189.65 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 208.95 Cr.

ZL’s CSR focuses on Education; Sustainable Livelihoods; Women’s Empowerment; Health, Water & Sanitation; Sports & Culture; Environment & Safety; and Community Development including Community Assets Creation. The initiatives are targeted to improve the quality of life of communities which are best suited for companycommunity collaboration for long term outcomes and impacts. HZL proactively seeks to encourage and involve its own employees in CSR initiatives.

Hindustan Zinc Limited was incorporated from the erstwhile Metal Corporation of India on 10 January 1966 as a Public Sector Undertaking. They are India's largest and the world's second largest integrated zinc-lead producer; and also one of the lowest cost zinc-lead producers in the world. They have mining, smelting and power operations in multiple locations throughout India. Their principal products are refined zinc metal and refined lead metal. In addition they also recover silver and cadmium as by products.

TATA STEEL LTD Year

2019-2020 2018-2019 2017-2018

Actual CSR

192.99 Cr

314.94 Cr

231.62 Cr

Prescribed CSR

173.53 Cr

82.40 Cr

85.62 Cr

Estimated Prescribed CSR Budget FY 2020-21: INR 196.50 Cr.

ata Steel Rural Development Society (TSRDS) was established in 1979 to engage in various social development programmes in the rural areas within which Tata Steel operated its business, specifically the mines and collieries spread over Jharkhand (until 2000, a part of the state of Bihar) and Orissa. Both states are located in eastern India. Among the stated objectives of TSRDS are: to create a self-sustaining process of integrated rural development and to network with agencies (government and non-government) for bringing best available resources and practices to the rural community it works with. The Society is actively involved in the spheres of livelihood generation, health and hygiene, and people empowerment. In addition, it has identified the advancement of education, sports and self-reliance as tools to ensure a better quality of life for the people it works with.

Tata Steel founded India’s first industrial city, now Jamshedpur, where they established India’s first integrated steel plant in 1907. The Jamshedpur Works currently comprises of a 9.7 MTPA crude steel production facility and a variety of finishing mills. Mines and collieries in India give them a distinct advantage in raw material sourcing. Looking further into the future, they plans to continue to increase its capacity significantly through both brownfield and greenfield developments. The first phase of the 6 million tonnes per annum greenfield project in Kalinganagar, with stage-wise commissioning expected to start in Financial Year 2015-16. They are focussed not only on the execution of the plant facilities but also on addressing the socio-economic infrastructure needs of an industrial enterprise of this scale. They have plans for two new Greenfield steel projects in the states of Jharkhand and Chhattisgarh.

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TRENDS

COVID-19 CHANGES THE LANDSCAPE OF

CSR IN INDIA

hough there is no universally accepted definition of Corporate Social Responsibility (CSR), the core of the concept however, is structured around the belief that businesses have a sense of responsibility towards society and the people from whom they derive their success. In countries such as India, where economic integration and social inclusion are imperative forces that drive the masses towards growth and development CSR has become an integral and impactful part of corporate landscape. A total of INR 71, 277 Cr have been spent on 1,05,358 CSR projects till FY2019. The top three domains receiving maximum funding are education, health and rural development. Another area receiving signifcant funding is environmental sustainability. Another interesting trend is that signifcant amounts of funding go to higher industrialised states. Since FY 2015, Maharashtra, Karnataka,

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A total of INR 71, 277 Cr have been spent on 1,05,358 CSR projects till FY2019. The top three domains receiving maximum funding are education, health and rural development.

Gujarat and Tamil Nadu have received more than 30 per cent of the total CSR spend. Government of India declared the novel coronavirus outbreak in the country a “notifed disaster” to enable state governments to mobilise resources from the State Disaster Response Funds (SDRF). Following the notifcation, the Ministry of Corporate Affairs (MCA) clarifed that spending of funds for COVID-19 relief would be a permissible activity under CSR. Again, the MCA advised that the activities should be interpreted liberally so as to capture the essence of the activities permitted under the Schedule. The government has also set up the ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES) to respond to the COVID-19 crisis and provide relief to those affected. Further, Schedule VII was amended to include contributions to PM CARES as CSR along with the existing Prime Minister’s National Relief Fund.

TRENDS

Tapping into its vast network and relationships, Invest India set up a CSR specifc assistance cell to assist corporates to channel their CSR funding into various governmental and non-governmental organisations as well as central and statelevel funds set up for the specifc task of COVID-19 relief. To support contributions to relief funds across both the centre and states, Invest India created an online repository of 30+ relief funds as well as developed a pipeline of INR 163 Cr in donations and CSR contributions from corporates. This enabled corporates and volunteers to locate and connect with organisations needing monetary or other support in their activities. Another key enablement function for Invest India’s COVID-19 response was the facilitation of donations of essential supplies, over 10,86,100 pieces of PPEs, critical care equipment and other commodities to frontline organisations. To shed light on an aspect of corporate India that is often overlooked Invest India has written this report. It presents a broad overview of the changing landscape of CSR in India especially during COVID-19 along with learning from our engagements and insights into key trends. It also features the role of CSR for technological incubators as an instrumental stride in the battle against COVID-19. This report is based on our analysis from primary research, through a survey of companies and government incubators. The secondary data was collected through

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TRENDS

company annual reports, MCA notifcations, and reports on CSR in India.

Contribution by the corporate sector: According to the Report of the HighLevel Committee on Corporate Social Responsibility 2018, the number of reporting companies that carry CSR obligation has steadily increased in 2014-15 to 2016-17 and then declined in the year 2017-18. The total CSR expenditure by these companies increased substantially by 44 per cent from 2014-16 and thereafter marginally declined in 2016-17. This has been highlighted in the table below. It has also been observed that the average spend by a government enterprise on CSR varied between INR 8-10 Cr per company between 2014-15 to 2017-18 whereas the average spend by a private company steadily increased from INR 72 Lakh per company in 2014-15 to INR 95 Lakh per company in the year 2017-18.

Changing trends after the outbreak of COVID-19 COVID -19 has been considered a global pandemic by the World Health Organization (WHO). The contagious disease tremendously disrupted socioeconomic circumstances of the planet. Social-distancing played a pivotal role in mitigating the spread of this deadly infection. The Government of India and state governments announced lockdowns throughout the country in March 2020 in order to promote social distancing, which basically directed the public to maintain distance both socially and physically. Extended lockdowns worsened economic troubles. Heavy population and a lack of awareness (due to a lack of education) added to the problems. Here comes the importance of CSR, which played a crucial role in the times of this pandemic, when people are trying their level best to get through the challenging times. CSR is a ‘self-regulating business model’ that implies the procedures of interaction by a company with its stakeholders and the general public at large, creating a scenario of being socially responsible. According to Section 135 of Companies (CSR) Rules, 2014 and Schedule VII of Companies Act 2013: Every company with a net worth of INR 500 crore or more or turnover of INR 1,000 crore or more or net profit of INR 5 crore or more during the immediate preceding financial year, must have a CSR committee and spend at least 2 per cent of average net profits earned

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CSR is a ‘selfregulating business model’ that implies the procedures of interaction by a company with its stakeholders and the general public at large, creating a scenario of being socially responsible during three immediate preceding financial years to CSR activities. In the present era of COVID-19, the Government of India is inspiring companies to provide social support. According to a March 23, 2020 Ministry of Corporate Affairs circular, all expenditures incurred on activities related to COVID-19 would be added as permissible avenues for CSR expenditure. Funds may be spent for various activities related to COVID-19, under the following items of Schedule VII: • Eradicating hunger • Poverty • Malnutrition • Promoting healthcare, including preventive healthcare • Sanitation, including contribution to

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the Swachh Bharat Kosh set up by the Centre for promoting sanitation and making available safe drinking water • Disaster management, including relief, rehabilitation and reconstruction activities Further, A general circular (No. 21/2014, dated June 18, 2014) mentioned that the items in Schedule VII are broad-based and may be interpreted liberally for the purpose of donations being made with respect to COVID 19. This announcement from the ministry was welcomed by Corporate India. It created a win-win situation for companies with existing CSR obligation and funds at disposal who wanted to contribute to relief and meet statutory requirements of The Companies Act at the same time. The response to the government’s call to support COVID-19 efforts has been overwhelming. Crores have been donated to various government funds. Considering the huge sum of funds at stake for the relief efforts, corporates are struggling not just in finding a reliable implementing partner but also in figuring out a way to monitor and track the use of the donated funds and assessing their impact. With the announcement by the government that any amount donated by companies in support of the fight against COVID-19 will qualify as CSR, a majority of the companies either contributed to the PM CARES Fund or for various other purposes that contributed to protecting health and preventing hunger of the affected. Such activities were ethically and morally correct, but the companies broadly interpreted the circular in a way that would reap indirect benefits to their operations or simply contribute to the existing fund. The banking, financial services and

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insurance (BFSI) segment is the primary driver of a nation’s economy. Companies in the financial services industry manage money. However, the contribution of this sector has always been under-rated in comparison with other sectors, especially the manufacturing segment. Over the years, BFSI companies have been seen participating in CSR activities that do not garner visibility. Hence in order to highlight the importance, contribution and existence of the BFSI segment and to boost its morale, this paper focuses on the actions of BFSI companies in times of COVID-19. Today’s customers are highly attuned to whether the brands they prefer are ‘socially responsible’. Many CSR projects may not be in tune with laid guidelines of the government, but may be morally right. Such companies have put forward an argument in their defenceexplaining why at times it is important to reach out to the section of people – in and around whom they operate. This is with the sole motive of creating a positive brand image while executing their moral obligations. Effective CSR gives a company the power to stand out in today’s saturated market and connect with customers on a level that ensures long-term loyalty and potentially even brand advocacy. (Ray SK, 2020) The pandemic gave them a chance to connect and create market visibility for themselves. CSR is more than just a tool for exceptional public relations or a strategy to outsmart competition.

Companies believe that by showing customers that they stand for something, they establish that their business exists for reasons that are bigger than ‘making profits’

Companies believe that by showing customers that they stand for something, they establish that their business exists for reasons that are bigger than ‘making profits’. The support and donations extended by most of the corporates in times of the pandemic portray the fact that CSR programs work best when they look and feel authentic. While the companies need to be careful to select a cause that the community can get behind, the companies also need to build

a social responsibility program that reflects the identity of their brand and is their unique selling propositions. There is no point in just tagging corporate responsibility on the end of brand-messaging. Making it an inherent part of the company’s vision and mission is what defines the company. Ultimately, the most important thing to keep in mind is that when a company uses corporate social responsibility to build and improve its brand — sincerity is the key. There needs to be truth in every claim the company makes. The organisation needs to really show to its customers that it is devoted to a cause. (Ray, 2020) Some companies performing CSR by promoting social awareness for social-distancing: Notably, McDonalds, Audi, Coca-Cola, Volkwagen and many more. McDonalds sent a message to the society by bifurcating its ‘M’ logo into ‘n – n’ to represent social distance. Similarly, Audi separated the four rings in its logo and explored a tagline to keep distance. Volkswagen also presented a new logo with a gap between V and W. Coca-Cola also introduced spaces between letters in its logo with a message “staying apart is the best way to stay united”. The way customers interact with brands today is changing. For companies to engage and connect with today’s evenmore empowered consumer, they need to ensure that their identity, and their behaviours they engage in, has the right impact.

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TRENDS

In a world where the target audience demands a business that not only delivers exceptional products and services, but also contributes to the community, becomes more transparent and takes an active role in addressing universal issues, corporate social responsibility has become a mandatory requirement for any organization in India. Almost half the reputation of a company comes from public response to what it does to support the current environment. (Thorpe D, 2013) The companies with the best practices operate coordinated and interdependent programmes across the CSR portfolio. Some initiatives indeed create shared value; some, though intended to do so, create more value for society than for the organisation and some are intended to create value primarily for society. Yet all have one thing in common: They are aligned with the company ’s business purpose, value for an company’s important stakeholders and the needs of the community in which the companies operate. These companies of course, stand in contrast to those that are focused solely on creating value for their shareholders. (KasturiRangan, 2015).

Corporates in India, as they draw up their CSR budgets this year, are trying to strike a balance between taking stock of emerging health care requirements and their traditional social focus areas

Chalking new paths to draw this year’s CSR policy Corporates in India, as they draw up their CSR budgets this year, are trying to strike a balance between taking stock of emerging health care requirements and their traditional social focus areas. SudhaMurty, chairperson of the Infosys Foundation, tells Forbes India that outlays for the coming financial year will be prioritised around Covid-19 relief, followed by the construction of infrastructure for the Bengaluru Metro, as the Karnataka state government has given a go-ahead for the project and it provides livelihoods to many workers. “Out of our INR 275 crore budget, we are spending INR 90 crore on Covid-19 this year. This can increase depending on the situation. Our first priority is Covid relief… we adjust [focus among causes] and keep adapting.” The Foundation had allocated Rs 110 crore to Covid relief last year, taking the total Covid-related contribution to Rs 200 crore over the past two years. Murty says apart from establishing a 50-bed Covid hospital in Bengaluru last year, they are now supporting health care infrastructure by giving ventilators, oxygen concentrators, PPE kits and masks. The Foundation is also helping construction workers with food kits, apart from conducting awareness programmes

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around vaccinations to remove vaccine hesitancy.

Making Sense of New Regulations Companies are also trying to shift operational guidelines as per the framework of the new CSR Rules that the MCA notified in January, which has introduced significant changes to monitoring and evaluation of CSR activities, and utilisation of CSR expenditure. India’s CSR expenditure for FY20 stands at INR 17,885 crore, down from INR 18,655 crore the previous year. CSR constitutes 28 per cent of India’s total philanthropic giving, but is expected to further decline by 5 per cent this year, according to the India Philanthropy Report 2021 by Dasra and Bain & Company.

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“Domestic corporations have seen a decline in profitability during the past year. Listed companies’ profitability declined by 62 percent in the months immediately following India’s initial Covid-19 lockdowns,” the report says, adding that the challenge faced by the social sector will be compounded by the shift away from other traditional funding areas (like education, rural development, environment etc) toward Covid-19 relief. “Currently, companies are just worried about impact on their profits due to lockdowns in various parts of the country and lasting impacts of the second wave of the pandemic. But during this time, the entire nature of CSR has undergone a fundamental change,” says Bharat Vasani, corporate partner at law firm Cyril Amarchand. He explains that the new Rules mete out serious punishment for non-compliance, which is a long way from the social responsibility regulation that was initially voluntary for companies. Not only do the new Rules prescribe greater obligations for the Board and the CSR Committees of companies to monitor and report on CSR activities through annual action plans, but also require certification of the CFO on fund disbursal and utilisation. Capital assets that companies have created or acquired through CSR cannot be held directly by them, but by the NGOs or project beneficiaries, including a Section 8 company, registered trust or society. “So if companies acquire movable or immovable assets like ambulances or construction of school buildings, for example, they have to transfer it to the CSR entity within six months. A lot of companies are concerned as they do not have their own CSR Foundations and

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partner with [third-party] NGOs that do their CSR activities,” says Vasani. There are other changes to the Rules that both companies and nonprofits are likely to find challenging as they go about CSR activities this year. One is a provision that states transfer of unspent funds to a designated “Unspent CSR account” or to a fund specified in Schedule VII of the Companies Act within prescribed timelines. “This creates a lot more pressure on spending as opposed to using it judiciously,” says AakashSethi, CEO, Quest Alliance, a Bengaluru-based nonprofit that works on education and skilling and has collaborations with 14 corporate donors, including Accenture India, IBM, Cisco, JP Morgan, HSBC and Godrej. That said, Sethi also points out that Amendments are likely to restructure grant cycles of corporates this year, in a way that aligns with an NGO’s budgeting cycle of April to March. “Grant cycles varied from company to company. For some it was August to July, for some December to March. So it was a nightmare to keep track of funds and budget for them. We used to juggle with reporting deadlines and timelines, which would be different for different funders,” he says. “With the amendment, it is likely that the grant cycle will stick to the April-March cycle, which will help us get a realistic estimate of fund inflow and outflow, plan better, and streamline review and reporting.” The compliance requirements and emphasis on impact assessment in the new CSR Rules will trigger a greater focus on accountability for CSR, believes Srikrishna Sridhar Murthy, co-founder, Sattva, a social enterprise working with NGOs and corporates to

Experts in the social sector point out that there are still a lot of challenges, exacerbated by the pandemic and the recent amendments, which need to be ironed out

implement CSR projects. “NGOs that come under the CSR law have to register on the MCA portal, so you can track them. All of this is leading to better data collection and accountability.” He agrees with Sethi with regards to the timelines for CSR activity. “The planning cycle will move up a few quarters because of the annual project plan requirement that will force companies to plan for CSR right from the beginning of the year. So far, bulk of disbursement and compliance happens in the second half of the year.” Experts in the social sector point out that there are still a lot of challenges, exacerbated by the pandemic and the recent amendments, which need to be ironed out. Sethi of Quest Alliance says non-profits still struggle to find growth capital. “NGOs do not get money to strengthen people skills, governance, tech capabilities, ability to fundraise etc. As a growing organisation, I need money for that to be able to make a significant difference,” he explains. “But most organisations, including the amendments, consider these expenses as simply overheads of an NGO. This creates a vicious cycle. If you can’t invest in the growth of your non-profits, you can’t deliver a better quality of impact. CSRs demand outcomes, but are not investing cash in those line items that are important to organisations.” While Mishra of Smile Foundation points out that many smaller grassroots NGOs need support to be compliant to the new legislation and go digital during the pandemic, Naik of Samhita points out that the smaller NGOs are likely to be at the losing end. She says the Rules specifically say that implementation of CSR projects has to be undertaken by entities in the social sector that have a track record of at least three years undertaking similar activities. This will impact new NGOs.

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A LOOK AHEAD AT THE INDIAN REAL ESTATE MARKET AT THE END OF Q3, 2021 By Shashank Vashishtha, Managing Director of eXp India

eports suggest that the third wave of the Coronavirus is set to hit India in the last quarter of 2021. The real estate market in India has seen a sudden spike after the second wave with sales in June 2021 accounted for around half of all sales in the second quarter of 2021. With the demand for second homes, and residential properties going up, Shashank Vashishtha, Executive Director of eXp India provides some insights on the various segments of Indian Real Estate before the approaching third wave.

Residential Vs. Commercial According to Vashishtha, there is anincreased demand for bigger and more spacious residential properties of the “ready to move in” kind.As learning from the first lockdown, Buyers are keen to upgrade their lifestyle and make their homes a safe space in which they can both live and work in. Thus, a good absorption rate is seen in the residential real estate segment. On the other hand, commercial real estate has seen a decline with little to no influx of rent, and tenants renegotiating or even backing out of their agreements. The Work from Home model has caused a change in the need for office spaces with employees being hesitant to work in close proximity with one another. Commercial real estate has seen plans to open up under hybrid models to increase transactions. “It is expected that we can see a slow trickle of employees coming in

on a roster system into fully managed work spaces,” comments Vashishtha.

Second Homes The new normal has brought forth the concept of Working from Home which has been quickly embraced by millennials. Developers have taken advantage of this opportunity and launched projects in Goa, Mahabalipuram, Nainital, Kodaikanal, etc. The popularity of these spots increased as employees preferred to work away from the hustle and bustle of the metros. Young parents are also investing in homes in remote areas as they are able to get a bigger and more spacious house for the same price of a standard 2 or 3 BHK close to their first homes. Vashishtha adds “Living and working from a remote location in a tier II or III city means saving money while still spending quality time with your family in a vacation setting.” Senior Living NRI’s who are unable to make it into the country due to a scarcity of flights, young professionals who have moved to Tier I cities for their jobs, and other people who have moved out of their native places for various reasons now prefer to have their senior parents living close to them,while also having their own space. Senior citizens themselves have become more open to the concept of assisted living. With opportunities to socialise, and facilities like food and medical help being available at a moment’s notice, senior living has

found more acceptance as a “hassle free aging experience”, especially during the pandemic.

Resale and Pricing: Macro-economic factors have led to the pricing of real estate properties going down after the first wave, and staying the same after the second. Moreover, clients are unable to come to a decision as a number of them have lost their near and dear ones, and are facing financial and physical loss. Developers have also reached a threshold and are now trying to maintain the prices by offering freebies like car parks, removal of PLC’s, apartment furnishings, etc. Vashishtha says, “Some developers in metros now give vouchers. For example, an INR 50 lakh voucher that can be used for interior decoration once the sale is made. Similarly, the industry is seeing a surge of benefits without compromising the price.” “When it comes to resale, there is a good demand for independent bungalows or plots in all metro cities,”he continues. The sector is frequently seeing high ticket transactions (estimated at 4000 crore) such as D-Marts and farmhouses. The Real Estate Sector in India is undergoing a vital transformation that will make it one of the biggest contributors to the GDP in a short time.All of these ups and downs will only serve to make it reach that stature. “We have exciting things to look forward to for the sector as a whole, and the pandemic and the likely third wave is but a small challenge that we will overcome,” says Vashishtha.

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November 2021

MAKING GREEN CEMENT A PRIORITY Spokesperson: Mr. Pawan Kumaar Ahluwalia, Vice Chairman and Director KJS Cement (I) Limited

ement production accounts for 5 per cent of the world’s human-produced carbon dioxide emissions. Booming economies such as India and China are consuming cement to build infrastructure, and rising construction activity is driving carbon emissions to unsustainable levels. Rising environmental concerns and intensifying fuel costs have led many countries to subtract the resources required to produce cement and effluents, including dust and exhaust gases.

cent in CEM type-II that saves fossil fuel and emits lesser CO2. The cementing properties of green cement are as good as normal cement or even better. Several cement companies are experimenting globally, some are making cement utilizing superheated steam, which revises the cement particles and makes them authentic and chemically reactive. The method also separates carbon dioxide, making it simpler to seize the gas and hold it out of the atmosphere.

Green cement is an environment-friendly product that minimises carbon footprint in the process of cement manufacturing. Producing green concrete mandates technical expertise in new concrete mix design, raw materials, and awareness about its properties.

Looking into the benefits of green cement and cement produced as per EN -197:2011, the Govt. of India should also develop an Indian standard for cement equivalent to EN -197; by adopting this standard large amount of fossil fuel can be saved and also the CO2 emissions into the environment will be lesser. Such futuristic initiatives will make our planet greener.

Green cement is up to 35 per cent stronger than normal concrete. In India, 5 per cent limestone addition is permitted by BIS for a specific product type as a performance improver. The use of limestone as per EN -197:2011 as a cementitious material saves a large amount of fossil fuel. Green cement matters because it makes use of industrial waste such as silica fume, fly ash, blast furnaces slag as per Indian standards, and EN standard permits use of Limestone up to 6 to 35 per

Most European countries like the United Kingdom, Norway, Poland, Spain, Sweden, Switzerland etc have already implemented the standards EN-197:2011 that permits the addition of Limestone up to 6-20 per cent and 21-35 per cent for their CEM type II (Portland Limestone Cement) in 32.5 and 42.5 grade of cement, the addition of limestone up to 35 per cent that protects environments by not emitting large amount of CO2 gas (it may be noted

Green cement is an environment-friendly product that minimises carbon footprint in the process of cement manufacturing.

that for every 100 MT of decarbonisation of CaCo3, 44 MT of CO2 gas is emitted in the environment). As mentioned above, in India, if the 5 per cent limestone addition which is permitted by BIS, is extended, will be a good step towards environmental protection as adopted by EN standards. Thus, green cement has great potential and offers price and quality advantages. It is specially formulated for strength and performance during the service life of structures and buildings. It has a lower carbon footprint per unit of concrete produced and has potential for commercialization by delivering contractors and developers with an alternate concrete that is environmental-friendly and in line with global policies for insurance.

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FINANCE

INDIA-U.S. FINANCIAL DIALOGUE SHIFTS FOCUS TO CLIMATE CHANGE

he eighth Ministerial meeting of the US-India Economic and Financial Partnership brought together Finance Minister Nirmala Sitharaman and her American counterpart, Treasury Secretary Janet Yellen. Federal Reserve Chair Jerome Powell and RBI Governor Shaktikanta Das were also there (attended virtually). According to a joint statement, the Ministerial convened a session dedicated to climate financing for the first time. India has been pressing for rich nations to achieve their Paris Accord climate financing promise of USD 100 billion per year in the run-up to the UN Climate Change Conference (“COP26") in Glasgow at the end of the month. The two sides "reaffirmed the collective developed nation aim of mobilising USD 100 billion yearly from public and private sources for developing countries, in the framework of effective mitigation efforts and openness on implementation," according to the statement. The holding of such a meeting highlighted the “critical” role of climate financing in attaining global climate objectives, as well as the two parties' resolve to make “urgent progress” in combating climate change, according to the statement.

"As India prepares to host the G20 in 2023, the US stands ready to assist India in organising a successful and fruitful year," the statement added

"We intend to engage further on climate change between our two ministries, as well as through the Finance Mobilisation pillar of the recently launched Climate Action and Finance Mobilisation Dialogue (CAFMD) under the U.S.-India Climate and Clean Energy Agenda 2030 Partnership," it said, referring to a partnership launched in April this year following a visit to India by US Climate Envoy John Kerry. The p a r tie s als o d is cu s s e d g lo b al measures to raise climate ambition and each country's attempts to fulfil stated goals at the summit. India has been pressed by the United States and the United Kingdom to increase its Paris pledges, particularly by setting a timeframe for reaching 'Net Zero' emissions. India has not made any further climate action commitments (beyond i t s Pa r i s - r e l a t e d t a r g e t s ) a n d h a s maintained that poor nations need room to expand and that developed countries must move toward 'net negative' obligations in addition to meeting their climate financing promises. Topics of discussion included economic recovery from the pandemic, anti-money laundering and financing of terrorism

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(AML/CFT), bilateral lending and debt sustainability, as well as international taxation, in line with themes from the week's discussions so far around the World Bank IMF annual meetings. India and the United States also reaffirmed their support for "debt sustainability and transparency in bilateral financing," likely in response to China's Belt and Road Initiative lending practises, which have driven borrowing nations into unsustainable debt situations.

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In terms of international taxes, the two nations praised the OECD (Organisation for Economic Co-operation and Development, a collection of rich countries) tax accord and pledged to cooperate with others to implement the agreement's two pillars by 2023. Pillar one entails the distribution of taxing rights (tax on multinationals) across countries, whereas Pillar Two entails a worldwide minimum tax of 15 per cent on selected businesses. The two sides also discussed the United States' FATCA law, which requires foreign nations to supply the US with information on Americans' financial assets. In order to combat offshore tax evasion, “the two sides should continue to participate in talks on a complete reciprocal arrangement on FATCA,” according to the joint statement. In terms of anti-money laundering and counter-terrorist financing, the two sides agreed on "the significance of combating financial crimes and the proper implementation of the Financial Action Task Force standards to protect our financial systems from misuse." India will be the President of the Group of 20 (G20) in 2023, according to the announcement. "As India prepares to host the G20 in 2023, the US stands ready to assist India in organising a successful and fruitful year," the statement added.

FINANCE

SMART FINANCE AND ONLINE SALES HOLD HUGE POTENTIAL FOR SUZUKI

HERE'S WHY

ustomers will be able to finance their automobiles more easily than previously, according to Maruti Suzuki India Limited. Maruti Suzuki clients may get finance choices online on an integrated platform for a one-stop solution with Smart Finance. MSIL has partnered with 14 financiers to provide Arena and Nexa clients’ attractive interest rates through its online Smart Finance platform. The software also includes loan status tracking in real-time, old car exchange price integration, and co-applicant financing possibilities. Maruti Suzuki launched a Smart Finance trial project in Gurgaon, Haryana, in May 2020. Only three banks — HDFC, ICICI, and Yes Bank – were on board at the time. In December 2020, it was then rolled out to a select number of cities. With a current roster of 14 financiers on board, the feature is now available across the country. Maruti Suzuki claims to have disbursed 1.16 lakh loans using its Smart Finance solution since its launch. The most difficult part of setting up Smart Financing, according to Shashank Srivastava, Senior Executive Director (Marketing & Sales), MSIL, was connecting the platform with all of the numerous digital platforms used by banks and financiers. It was then followed by the creation of a customer-friendly interface. MSIL was able to establish the Smart Finance platform with the aid of its in-house staff as well as outsourced software engineers after extensive conversations with banks. Customers would profit greatly from Smart Finance, according to Srivastava. MSIL

services in the future by adding additional financiers, structured financing solutions, and improving the customer experience. Srivastava further stated that the Smart Finance platform handles around 26 per cent of all financed purchases, with 26,00028,000 transactions each month.

In today's digital environment, the automobile sector has been trying to provide consumers with online sales platforms. This is a global problem, not just in India.

Maruti Suzuki also claims to be assisting consumers who may have chosen thirdparty lenders who may have provided them with bad deals with hidden fees. Customers will benefit from the Smart Finance platform, according to Srivastava.

thinks that by providing clients with clear and complete financial offers, it will be able to assist them in selecting the proper finance partner, selecting the best-suited loan package, completing all finance-related procedures, and disbursing the loan. The entire procedure would be carried out via a digital platform. The car exchange estimate and coapplicant financing option, which are both incorporated into the platform, round out the package. At the moment, the carmaker employs 14 bankers. Srivastava stated that the carmaker will extend its

In today's digital environment, the automobile sector has been trying to provide consumers with online sales platforms. This is a global problem, not just in India. According to Srivastava, Maruti Suzuki began its online product sales platform in 2016. The percentage of online conversion was just 3 per cent at the time, but it increased to 16 per cent in 2019. However, as a result of the Covid-19 epidemic, the industry pushed for a more digitised platform, the pace of conversion increased rapidly to about 35-38 for MSIL. Srivastava agrees that the epidemic has boosted the performance of the online sales platform. He does believe, though, that it is an irreversible phenomenon, and that online vehicle sales will continue to rise over time. Maruti Suzuki has identified 26 touchpoints in the customer's buying cycle, 24 of which have been digitised. Vehicle test drives and product delivery, of course, are two aspects that cannot be digitised. Maruti Suzuki claims to have digitised three major parts of the financing journey with Smart Finance.

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FINANCE

A SLOWER INCREASE IN CAPEX FOR SMALL,

MIDSIZED FIRMS COMPARED TO LARGE MANUFACTURERS

cent reduction in overall CAPEX. "As the economy improves, small firms' confidence is lower than that of large enterprises." They generally have smaller and weaker balance sheets. As the economy recovers, there will be a lag between when major firms begin to invest in CAPEX and when small businesses begin to do so. Large firms are increasingly reliant on a robust SME supplier base, therefore such investments are vital for SMEs," Shashank Tripathi, Partner, PwC India, explained. The private industrial CAPEX cycle was somewhat subdued even before Covid, from FY2013 and 2017, due to poor demand, high supply, and leveraged financial sheets, according to the agency. Though there was a recovery from FY2018 to 2020, it was mostly due to regulatory CAPEX in the oil and gas, automobile (emission standards compliance), and big metal industries. "It would also be fascinating to examine other categories that may require CAPEX that aren't your typical land and machinery expenditures, etc."

fter nearly a decade of relatively muted private industrial capital expenditure (CAPEX), new growth drivers such as production-linked incentives (PLI), pandemic-induced digitisation, commodities up cycle, rising merchandise exports, and more are expected to boost industrial CAPEX for large firms in the coming years, according to Crisil, an S&Powned ratings and research agency. Capex by small and mid-sized firms, on the other hand, may take longer to improve. On the agency's data and analytics platform Quantix, major enterprises accounted for 350 of the almost 15,000 non-infrastructure listed and unlisted manufacturing companies, while small and mid-sized businesses accounted for the remaining 14,650. "Because major players have profited from CAPEX they have conducted in a previous couple of years, it will take some time for mid and small businesses to ramp up their existing capacity." Large players have benefited from a higher share of exports or a higher share of the domestic market, and this phenomenon was also highlighted during the pandemic year because they had a better supply chain and thus could garner more market share in comparison to mid and small businesses," said Isha Chaudhary, Director, Crisil Research. Importantly, the large 350 businesses spend 62-65 per cent of the INR 3.2-3.5 lakh crore spent yearly by these about

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To enhance growth, businesses will need to spend heavily on technology as well as other digital initiatives. As the country recovers from the Covid impact, we may see a shift in the types of CAPEX SMEs invest in the future," a senior member of a market research firm said.

Large businesses, on the other hand, have been functioning at a high utilisation rate across industries such as steel, cement, pharma, and FMCG between FY16 and FY21, allowing an opportunity for investment in the future. For example, in FY21, steel utilisation was over 80 per cent, cement utilisation was over 70 per cent, pharma utilisation was over 55 per cent, and FMCG utilisation was over 80 per cent, compared to utilisation rates of 65 per cent, 52 per cent, 53 per cent, and 69 per cent by small and mid-sized enterprises across four sectors. "In compared to mid and small players, the use of large players has grown. This isn't only because of Covid; it's been going on fundamentally since FY16. As a result, small and mid-size businesses will need to enhance their use of present assets, and if they do, the investment cycle for them will quicken up. Despite government incentives, it would take 2-2.5 years across industries," Chaudhary remarked.

15,000 enterprises, while over 1,400 businesses spend 20-22 per cent, and over 13,000 businesses spend only 1518 per cent. According to Crisil, the 350 largest buyers postponed investment last year owing to Covid, resulting in a 14 per

For example, the PLI plan has the potential to produce 2.2 lakh crore in CAPEX over the next 3-4 years, yet there is no direct benefit for MSMEs or small businesses in any of the 13 industries except telecom. The MSME play will emerge, for example, when a major company establishes a capacity unit and establishes backwards or forward sections of the value chain, according to Chaudhary.

November 2021

FINANCE

REAL ESTATE

TURNING THE CORNER? NEW LAUNCHES & RESIDENTIAL SALES GROW IN Q3 2021

cent on a sequential basis, with just 15,968 units sold in the April-June quarter of this year (Q22021), according to the data. Units priced under INR 45 lakh contributed the most to quarterly sales, accounting for 40 per cent of total sales, followed by the INR 45-75 lakh ticket-size bucket, accounting for 28 per cent of total sales. After a lengthy period of decline, new supply in India's eight main residential markets increased by 228 per cent to 65,211 units in Q3, compared to 19,865 units released in these eight major real estate markets in Q3 2020. The sequential rise in new supply was also impressive—a total of 21,836 units were launched in the second quarter of the calendar year, signifying a 199 per cent increase in the third quarter. In Q3, 33 per cent of the total units released were in the INR 45-75 lakh price range, the largest number of launches in any category during the quarter. The cities with the most quarterly launches were Mumbai (33 per cent) and Ahmedabad (21 per cent).

ven though India's real estate developers anticipate that the current festive season would provide the much-needed boost to residential real estate's recovery, growth indicators for the industry have already begun to show a gradual improvement. Home sales and new launches both showed a significant improvement in the period between July and September 2021, according to Real Insight (Residential): July – September (Q3) 2021, a quarterly industry report by PropTiger.com, indicating that a turnaround for the real estate sector might be around the corner. "It is now a well-known truth that, in the aftermath of COVID and its influence on the way people live and work, the concept of property ownership has gained substantial currency." Even as this has aided in the development of a favourable consumer attitude toward residential real estate, government and banking sector support measures have set the stage for a positive shift in the industry's momentum. "These two variables worked together to help drive both demand and supply indicators higher in the JulySeptember quarter of 2021," stated Dhruv Agarawala, Group CEO, Housing.com, PropTiger.com, and Makaan.com. "The stage is now prepared for the festive season to provide the sector that muchneeded boost that it has been yearning for and working so hard for," Agarawala remarked. Home sales in India's eight major markets improved significantly during

Home sales in India's eight major markets improved significantly during the July-Sep. (Q3)2021 period, according to Real Insight – July-Sep. (Q3)2021 as demand for dwellings rose following the second wave of the coronavirus epidemic.

the July-September (Q3)2021 period, according to Real Insight (Residential) – July-September (Q3)2021, as demand for dwellings rose following the second wave of the coronavirus epidemic. During the three months, a total of 55,907 new housing units were sold in these areas, representing a 59 per cent increase over the same time in 2020. Home sales increased by 250 per

Builders in India reported an unsold stock of 7,20,519 home units as of the end of September in the top eight residential marketplaces. Even though the new supply increased the total number of units available for purchase in the eight housing markets (unsold stock was 7,11,215 in Q2 2021), the inventory overhang fell to 44 months (3.6 years) in Q3 2021 from 48 months the previous quarter. This decrease in inventory overhang — the projected time it will take builders in a given market to sell all their unsold stock at current sales velocity — may be ascribed to a surge in demand throughout the quarter, which is expected to continue in Q4. This might result in a further decrease in inventory overhang throughout the holiday season. The NCR has the longest inventory overhang at 62 months, while Hyderabad has the shortest at 25 months. As supplyside constraints continued to have a detrimental influence on the cost of developing housing developments in the aftermath of the pandemic, average prices of flats and villas increased in all property markets studied. On a pan-India basis, the weighted average price was INR 6,200– INR 6400 per sq ft., up 5 per cent year on year. The biggest increase in average flat prices was in Ahmedabad, which increased by 8 per cent YoY to INR 3300 - INR 3500 per sq ft. (PSF) in Q3 2021. Hyderabad came in second with a 6 per cent YoY change in weighted average price, followed by Delhi NCR with 5 per cent, Pune and Bengaluru with 4 per cent, Mumbai and Chennai with 3 per cent, and Kolkata with 2 per cent.

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FINANCE

SHOULD YOU APPLY FOR A

SECOND CREDIT CARD?

n today's society, credit cards have become indispensable financial instruments. The convenience of interest-free short-term borrowing via credit cards not only enhances our lifestyle, but prudent use of this tool also aids in the development of positive credit history and score. Additional incentives, such as cash backs, reward points, or discounts, provide for more savings. Using credit cards may be convenient and profitable no matter what the expenditure is, from buying for household necessities offline or online to pay bills and utilities, to fees and subscriptions. Given how lucrative cards can be, and how various cards give different types of advantages, the topic of how many cards you should possess comes up frequently. Is there a magic number of cards to play with? Should you go for them if there is? Let's have a look at some of the solutions to these questions.

The convenience of interestfree short-term borrowing via credit cards not only enhances our lifestyle, but prudent use of this tool also aids in the development of positive credit history and score

Multiple cards can be beneficial in a variety of ways. The following are the main reasons why they could be a good idea.

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November 2021

Higher Credit Limit You may get a significantly greater credit limit by using many credit cards. A standard no-frills card could have a maximum of INR 1 lakh. However, if you have two of them, your available maximum rises to INR 2 lakh. Even if they offer lesser credit limits, such as INR 75,000, they give you a total credit limit of INR 1.5 lakh. This can be useful in situations like unexpected hospitalisation or large-ticket purchases worth thousands of dollars. Having a bigger credit limit frees you from having to come up with the needed huge corpus from your resources or borrow from friends and family on short notice.

Lower Card Utilisation Ratio In general, one should not use more than 30-40 per cent of one's credit card limitations. However, maintaining this ratio with only one credit card is not always simple. You may receive an alert message from the issuer if you exceed 80-90 per cent of your credit limit. From the issuer's standpoint, high utilisation indicates that you are a

FINANCE

high-risk customer, which might result in a worse credit score. A greater credit limit is associated with having an extra card. So, with a little planning, you can make sure you don't go over the 30 per cent use ratio limit.

Better Credit Score Your credit score improves when you have a low credit limit utilisation ratio, making you eligible for larger loans in the future. A higher credit score simply implies you have an excellent credit history, which might help you get a decent financial offer. Furthermore, effectively handling two or more credit cards by spreading purchases and payments provides you with enough expertise to manage numerous lines of credit at the same time in the future. Easier Re-payments Your re-payment time span is likewise spread out by roughly a fortnight due to different billing cycles. As a result, while you use both cards in the same month, the repayment is stretched out over two months. This management ensures that you are at rest when it comes to credit card bill payments. So, do you think you should go ahead and apply for the second card right away? While there are numerous advantages to having multiple credit cards, they do not always imply that you should apply for another one right now. Here are a few scenarios in which a second credit card might exacerbate rather than solve your problems: a) If you're in debt: If you already have a mountain of debt to pay off, adding another credit card will simply add to your debt

products so that your eligibility is greater. Additionally, applying for a new credit card might lower your credit score, reducing your chances of obtaining a house loan.

Your re-payment time span is likewise spread out by roughly a fortnight due to different billing cycles. As a result, while you use both cards in the same month, the repayment is stretched out over two months.

c) If you believe you are not financially disciplined: Your first credit card should have given you an understanding of your financial behaviour, credit capacity (or lack thereof), and payment discipline. If you are unsure about your ability to maintain financial discipline or have been unable to do so due to unforeseen events, it is advisable to avoid taking up another credit card. The credit utilisation ratio (CUR) is the percentage of your entire credit card limit that you have used. Because lenders often see applicants with a CUR of more than 30 per cent as credit-hungry, credit bureaus will lower your credit score by a few points if you exceed this threshold.

load. It is preferable to prevent such a circumstance. Furthermore, given your debt stress, you may not meet the eligibility requirements. b) If you plan to apply for a house loan soon: You'll need to keep your credit score in good shape to have a home loan (or any other large-ticket loan) approved. If you want to apply for a house loan, you should wait a while before applying for any new credit

As a result, credit card users should always try to keep their card spending under 30 per cent of their total credit limit. Those who often exceed their credit limit of 30 per cent might ask their current card issuers to extend their credit limit. You may also add a second credit card to your account. Increased credit limits can lower CUR if you don't raise your credit card spending after getting a larger credit limit. When you apply for a loan or a credit card, the lender pulls your credit report from the credit bureaus to determine your creditworthiness. Such credit report inquiries conducted by a lender are referred to as hard inquiries, and each one might lower your credit score by a few points. As a result, if you make many credit inquiries in a short period of time, your credit score may suffer a big drop. Multiple credit cards should be avoided for a variety of reasons. It might be tough to keep track of various billing and payment periods. Monitoring spending across different instruments, as well as routinely scrutinising those invoices, may be tough. A second credit card, on the other hand, might imply a greater credit limit, lesser use, and better rewards, as well as a crash lesson in financial management. So, if you are confident that you satisfy all of the eligibility requirements and that you are a responsible credit card user, there is no reason why you shouldn't apply for that second card.

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DAWN 59

BIZ TIPS

RESTORING THE OFFICE ENVIRONMENT AFTER

REMOTE WORKING

Let's look at why going back to work after doing remote work may be advantageous to everyone involved.

n early 2020, most businesses were caught off guard by the concept of remote working. Because of technology advancements and creativity, each firm was able to manage expectations and work patterns during the pandemic in its way. Many organisations have continued to encourage the trend of remote working because they feel it increases productivity while allowing employees to have more flexibility in their schedules. Is it, however, a ruse that harms your team's culture, or does it truly make your staff more productive?

The rise of remote working According to estimates, one out of every four American workers will continue to work remotely through the end of 2021, with 22 per cent of the workforce working entirely remotely by 2025. During Covid-19, the need for remote working grew as a substantial part of the workforce worked from home for the first time.

While it may seem like a dream to not have to commute or attend meetings in person while still fulfilling your job obligations, it might have a detrimental influence on the rest of your organisation and your health.

Remote employees also discovered certain benefits, such as saving an average of 40 minutes per day on a daily commute and saving an average of USD 500 per month by working remotely.

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November 2021

BIZ TIPS

The disadvantages of remote working While statistics make remote working appear enticing, there are several instances in which remote working has harmed businesses and employees, which is why it is critical to returning to the office when it is safe to do so. The following are some of the drawbacks of remote working: Decreased collaboration Remote working has resulted in a 23 per cent reduction in team cooperation, implying less collaboration and development on given projects. This is especially damaging to younger team members who are unable to collaborate with the rest of their colleagues and gain the necessary skills to succeed and advance in their field. With remote working, you're confined to virtual meetings or Slack discussions, unlike in the office, where you may approach others in person with queries.

Employees must return to the workplace since remote working can lead to overworking, diversions, a lack of relationships with coworkers, and loneliness

Decreased productivity While remote working seems appealing since it allows you to work wherever and whenever you want, our thoughts often stray. Working remotely, whether it's checking emails, surfing the web for "research," or performing other things that aren't the greatest use of your time, productivity might suffer when compared to working in an office.

A lack of motivation When you're surrounded by people all day, every day, that atmosphere may provide a lot of inspiration. When, on the other hand, everyone is working remotely and you can't see your coworkers or surroundings. It's easy for employees' creative levels to dwindle while they're working independently. Lack of work/life balance Because you can't determine when your day at work is ended, remote working can make it very simple to overwork yourself. Because no one is keeping track of it for you, many employees wind up working over their normal hours without understanding they should have stopped far sooner. Employees experience a loss of work-life balance, increased stress, and burnout as a result of this. Increased distractions Employees who work from home are more likely to lose attention and become distracted. While working from home, several things might divert attention, such as domestic chores or errands, reducing productivity. In an office setting, everyone

can concentrate on the task at hand rather than being distracted by non-work-related issues.

Reduced relationships with coworkers Remote working may also lead to a lack of interpersonal interactions, which is especially detrimental to managers who miss out on opportunities to hone their leadership abilities and forge deeper links within their teams. Relationships are difficult to form through text messages, emails, or video chat. Isolation While remote working may appear to be a wonderful idea since it allows you to work from anywhere, the absence of human interaction can make employees feel alienated and alone. This is especially true for people who do not have family or friends to spend time with while they are not at work. Furthermore, being alone makes it easier to lose concentration and feel as if there is no use in working since you can't see the fruits of your labour. The future of working: remote as needed Returning to the workplace after remote working is, without a doubt, the greatest choice for both employers and workers. While there are several advantages to being able to work from anywhere, it's important not to overlook the value of in-office cooperation. After all, in every organisation, information exchange across teams is critical so that everyone has the opportunity to learn new skills and grow their talents. Remote working may still be given on a need-to-know basis to give your staff the flexibility they need to go to the doctor, care for a sick child, or deal with any other unforeseen circumstances. Allowing workers to work from home on particular days of their choosing or supporting a flexible work remote policy are two simple methods to do this. This gives employees more flexibility and control over their schedules while still allowing them to interact, develop new skills, and build deeper team connections. Furthermore, by working together in an office setting, team members can build lifelong relationships and develop great leaders in the future. Conclusion Employees must return to the workplace since remote working can lead to overworking, diversions, a lack of relationships with coworkers, and loneliness. Remote working will continue to be offered on a need-to-know basis in the future because, while it has numerous advantages, in-office cooperation is also necessary. Teams will be able to cooperate, gain new skills, grow as leaders, and form deeper intercompany connections with their coworkers in this manner.

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BIZ TIPS

STARTING A NEW BUSINESS?

WE'VE GOT 8 TIPS FOR YOU

eople often claim they're sick of trying to make someone else's dream a reality, and they're ready to take charge of their own lives and futures. So why don't they simply go ahead and do it? One of the most typical reactions is that they don't know where to start. We can see why they are upset. Starting a new business is a huge and intimidating task. Starting a new business, on the other hand, may feel secure and controllable if you take a longterm view and break the process down into a series of little tasks. Where do you begin once you've decided to move forward? We recommend that budding entrepreneurs follow eight critical steps to get their firm off the ground and create a strong foundation.

Define your service or product The sort of individual that decides to become an entrepreneur is usually highly creative and has a lot of company ideas. With so many fantastic alternatives to select from, it may be difficult for a novice entrepreneur to know where to start.

Choose a concept that you are enthusiastic about, one that aligns with your core competencies, and one that is financially realistic. You may need to start by making a list of your talents and interests and cross-referencing them with your ideas. It's a winner if anything fits into all three categories. If you have more than one

concept, use other essential variables for success to filter them down, such as if you have prior expertise and/or a strong network in the selected sector. Then you can get started. Many people are on the lookout for the "silver bullet" solution to their business problem. That brilliant concept would lead to unfathomable wealth and success. The fact is that coming up with the perfect concept will almost certainly never happen, and you may find yourself pondering about how to grow your business for the next 20 years without taking any action.

Join a trade organisation Almost every sector on the globe has a trade organisation that may help you network with individuals who are already where you want to be with your company. These organisations may provide you with help and valuable contacts, such as attorneys, consultants, and company owners.

Choose a name for your business You've come up with a name for the product or service you want to sell to the rest of the world, but what will you call it? You may require step-bystep guidance on naming your company, incorporating creativity, research, analysis, and professional assistance. Find a name that encapsulates your business and the product you're attempting to market. You might have a brainstorming session with your friends, family, or coworkers.

Once you've decided on a company name that you like, consult a trademark attorney to discover if anybody else has trademarked it and is using it in commerce. It would be a good idea to trademark it to avoid any future issues. Ensure that the associated social media accounts are secured (Instagram, Twitter, Facebook, Linked In, etc.). Purchase a domain name for your website. If the. com domain you want is already taken, you should think twice about investing thousands of dollars. Other URL formats, such as.biz, can be equally beneficial.

Form a legal company entity Working with an accountant and a lawyer to form your legal business entity is a good option at this point in your entrepreneurial journey.

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November 2021

BIZ TIPS

idea to obtain legal counsel on your general responsibility or risk. Before you start, you should consider several options for what to study, evaluate, and observe in your company and its industry. It's a big list, but it's critical to move cautiously and spend ample time evaluating how risk may affect you or your organisation. Expert assistance might be very beneficial in this situation. Find a lawyer who specialises in the industry in which your company operates. He or she is more likely to know the ins and outs of the dangers in your sector and, as a result, will be more able to assist you in navigating it.

Almost every sector on the globe has a trade organisation that may help you network with individuals who are already where you want to be with your company

Make your logo Working with a designer to build your logo and brand identity is a fun and crucial stage in the startup process. Your company's logo serves as a visual representation of what it stands for. Consider the golden arches of McDonald's or the Nike swoosh - these two powerful emblems perfectly represent their respective firms. However, many businesses continue to overlook this crucial aspect of their brand. It's an opportunity to crystallise your company's vision and give it a visual representation. When an entrepreneur sees their final logo for the first time, something magical happens. It not only energises the entrepreneur but also gives them the impression that their business is legitimate. It offers motivation and excitement for taking the next step in the journey. Just wait till you see your new business cards with your name as CEO of "NewCo Inc." on them for the first time. It will be a proud time for you.

Prepare your goods or service for sale The actual construction of your first product is probably the most thrilling stage and one that entrepreneurs adore. We recommend that you start your business with one or two goods and/or services. You're starting a new business, and you need to devote all of your energy and time to make your new product successful. We encounter a lot of entrepreneurs who believe they need to start their business with a comprehensive product range to compete with well-known brands. They end up overstretching themselves, becoming overwhelmed and failing. Begin with a limited number of items or services, improve them over the competition, and deliver perfectly. Positive customer feedback will assist propel your business ahead. We hope you find this article useful as you embark on your business path. Although it is difficult to cover every stage of establishing a new business in a single article, we hope that it provides you with a clear grasp of the major activities that are crucial in creating a solid foundation for your company.

You've probably recognised that you're going to have some costs to start this business, and it's a good idea to get these allocated to your business organisation so you can save money on taxes. It's doubtful that you'll make money in your first year, but by forming a company organisation, you can keep track of your costs. Your tax advisor and a lawyer can also assist you to choose the right business structure for your liability risk and long-term objectives. It's probably a good idea to avoid naming your legal company organisation the same as your product or service. You can't anticipate the future, and you could wind up changing the name of your product several times you don't want to have to constantly alter the name of your company organisation in the process.

Open a bank account for your business Open a business banking account as soon as your legal business organisation is created. This will make tracking costs and earnings much easier while keeping your accounts clean and tidy. All of your business-related payments may be made using a business credit card and a business checking account. Before committing to a particular account, think about your company needs: whether you'll need a business loan, how much freedom you'll need, and which accounts provide the greatest features for you.

Seek legal counsel Although we've already indicated that getting legal help with the formation of your legal company organisation is a good idea, it's also a good

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BIZ TECH

ow difficult has it been to locate and retain qualified personnel recently? It's nearly impossible if you're like the majority of professionals. Even if we weren't dealing with a global health catastrophe, it always feels like there aren't enough people to get the job done. You're just concerned about getting it done with half the workforce you had before now that you need twice as many employees to keep up with the task, right? In my years of dealing with small businesses, I've seen this problem wreak havoc on their operational efficiency and, as a result, their financial health. In many situations, production is reduced and mistake rates are increased. Both can happen at the same moment. In either case, dissatisfied consumers raise their hands and demand recompense, which typically takes the form of refunds, credits, or replacement products, all of which add up and have an impact on the bottom line. For example, according to a recent statistic I saw, over 40 per cent of small firms are paying significantly higher rates for workers as a result of labour shortages. Given the increased demand for products and services, as well as the somewhat fragmented fulfilment model that small companies – and, really, all businesses – are working with right now, employees are expected to accomplish more on the job each day. As the country struggles to recover from a public health catastrophe, a new labour market is forming. Companies are effectively competing for a restricted quantity of people who can start tomorrow. However, money isn't the only method to attract and retain competent and bright employees.

Technology has the potential to be more powerful than money People don't want to work anymore than necessary, especially when they know there are digital tools available to help them. As a result, technology has the potential to be as powerful as, if not more powerful than, money. As a colleague put it the other day, we've reached the "era of change," and many people will now choose less worry over more money. You must decide on a corporate leader. You may invest today in technology that will make it simpler and faster for your staff to complete each work, allowing them to do more tasks in the future. Alternatively, you may stick with the tools and procedures you have now and suffer the consequences in terms of productivity and production. Just bear in mind that you may have to spend more to attract and retain employees, and you may see more turnover as competing

DAWN

BEFORE INVESTING IN NEW TECHNOLOGY,

THINK ABOUT THESE 3 THINGS firms increase the ante with technology and other benefits. If you're considering investing in technology to improve the employee experience, you're making the correct decision. In warehousing, retail, and a variety of other industries, technology helps onboard, keep, and recruit employees. But don’t go shopping just yet. Yes, updating your gear and software might have a positive impact on your company. This decision, however, has a lot more to it than meets the eye. We understand you may be worried about labour issues and want answers right away, but we promise you'll make a much better and more educated decision if you do these three steps first.

Recognize your existing workforce requirements When looking for technology to meet your company's specific demands, it's critical to

November 2021

keep your employees' satisfaction in mind. That is what draws fresh talent to your firm and entices existing employees to stay. Happiness is frequently gained from productivity. If employees know what they need to accomplish but lack the resources to complete it efficiently, they will become discouraged, and consumers will complain about their poor experience. As they go through assignments, pause and analyse why they're having difficulties. Consider what you, your workers, and everyone else involved would want to be better or easier. Then consider how technologically advanced you are. If you give a new employee a mobile device that allows them to do a full inventory count without making a single error, they will feel powerful when they leave the office. They'll tell their friends, family, and (if you're lucky) social media

BIZ TECH

Even seemingly little events might end up causing you a lot of pain if you aren't adequately prepared or supported. Who on your team can take on extra work if orders double overnight or half the staff calls in sick? And what will they require to do all of their tasks without falling behind or making mistakes? You may not be able to anticipate every difficult situation, but you can forecast your technological skills.

Employees must return to the workplace since remote working can lead to overworking, diversions, a lack of relationships with coworkers, and loneliness

Consider your company from the perspective of your consumers Employees aren't the only ones that suffer when things aren't going as planned. Customers are also affected. If you run a coffee shop and are out of your most popular blends and don't have the means to notify customers before they arrive, you'll have a lot of unhappy customers. Retailers and warehouse operators are in the same boat. When items don't come on time, online orders are inconvenient. Consider whether technological solutions can assist you in anticipating and avoiding difficulties that you know would irritate consumers and, by definition, your workers. Give your employees a means to notify consumers right away if you don't think you'll be able to offer them what they want – or when they want it. Also, consider what technologies your team will require and how you may implement alternate solutions on the fly. Will they need to add credit to the client's digital loyalty card or redirect an order from the manufacturer to the consumer rather than via your distribution centre?

It's fun to go to work Even if the unemployment rate is decreasing, there are still a lot of outstanding applicants searching for firms to hire them. Determine how you may be the employer who enables employees to both pay their expenses and enjoy going to work. Consider how you can be the type of establishment that people want to visit. about their great experience. It won't take long for word to travel about how fantastic it is to work for your firm. And all of a sudden, you've got a devoted employee and prospective brand ambassador on your hands, as well as a slew of eager, bright candidates responding to your job postings. To pull off this commercial accomplishment, you or your team won't need a computer engineering degree — just a contemporary mobile computer.

Make an effort to comprehend your future business requirements Getting your business to grow begins

with understanding what you require to improve operations. You haven't met your tech sweetheart yet if the front-end tech currently linked with back-end technologies isn't making inventory counts a breeze, improving staff connection, or giving them more time to serve customers. From delivery driver shortages interrupting planned supply chain flow to unforeseen swings in customer demand, the on-demand economy brings new business problems. These are facts that your company should be able to deal with.

Go shopping once you've figured out what your employees and consumers require. Meet with a technology solution provider to determine what it will take to become the firm that everyone wants to work for. You'll be able to put together the perfect solution - matching the right mobile computer with the right software – to make workers' tasks simpler and help them perform at their best, especially during stressful times. As a result, your staff will be able to improve the lives of consumers every day.

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DAWN 65

GLOBAL BUSINESS CONCLAVE 2021 HELD IN DUBAI Many Industrialists and Media Persons of the Country in Attendance

otel tourism and air trade suffered the most due to the Corona pandemic, but now the situation is improving rapidly. Big events are taking place in the country and abroad and life is once again back on track. In this scenario, India-UAE Business Conclave-2021 was organized in Dubai on 22 October, in which many businessmen, politicians, media persons from India and Dubai participated. This business conclave has been organized at Hotel Oberoi, Dubai, in which global awards were also presented. It is believed that after this event, the business relationship will increase between India and Dubai in the fields of pharmaceuticals, dry fruits, garments and other sectors. The grand event of the Global Business Conclave & Awards-2021 was held on 22 October at the five star Hotel Oberoi in Dubai. The event took place under the patronage of His Highness Sheikh Mohamed Ahmed bin Hamdan bin Mohamed Al Nahyan, who hails from the Royal Family of Abu Dhabi. In which eminent personalities and successful businessmen of the country and abroad were honoured. The Chief Guest in the program was former MP KC Tyagi.

was awarded the Humanitarian Award of the Year. Richi Bansal was awarded for Business Excellence in Manufacturing of the Year. CA Sahitya K Chaturvedi received the award for Entrepreneurship and Social Service. Abdul Wahab was awarded the Business Personality of the Year. Deva Solanki was awarded the Photography and Cinematography Award. Dr S. Ganesia got the award for social service and Firdous Naseem Qureshi Mohd. Naseem Qureshi also got the award for social service. Anuradha Vobbilisetty received the award for OutStanding Extra Career Service in Legals to Humanity. Faqar Siddiqui was awarded the Best Trading Company UAE 2021. Harsh Raj Dwivedi received the Educationist of the Year award. Dr Rizwan Adatia was given the award for International Business and Community Service. Mobeshera Shaik & Wahid Shaik were awarded for Most Eco-Friendly Food Packaging Products Company. Nitish Arora and Gagan Neet Kaur were given the award

for Best Advertising and Marketing Agency. In the list of awards, Naresh Bhavani was given the award for International SuperMarket, Real Estate and Community Service. Nilesh Jain received the award for Business Management and Ugadi Purashkar Graheeta was selected for Outstanding Extra Career Service in Legals to Humanity. Som Mandal has been selected for the Most Trusted Name in Legal Service Globally. Dr Ghanshyam Patel was given the award for Investigative Journalism and Social Worker. The leadership Award was given to Sudhir Chauhan. Sumit Arora received the Young Turk of the Year award and Tapas Paul was adjudged Business Excellence of the Year for Software and Blockchain. Abdul Subhan was adjudged Business Excellence of the Year. Chandu Kumar Agarwal and Rajesh Singh were awarded Social Activists of the year. Dr Prashant Goenka was awarded an emerging journalist award. St. Antony's Public School was awarded Most Innovative

Special guests included former Union Minister Rajiv Shukla, Observer, Dawn Editor-in-Chief Dr Hariom Tyagi, Supreme Court Bar Council Vice President, Dr Pradeep Rai, Umm Al Quwain His Highness Sheikh Majid Rashid Al Mulla, Ahmed Elmetwali, Global Business Federation Chairman Chandrashekhar Bhatia and President Sanjeev Bansal. More than two hundred eminent political, business and policymakers attended this event. Among the special people whose names were included in the award list, Mayur Bansal got the Entrepreneur of the Award. CA Dr GR Mehta was given the award for Community Service and Information Business. Er Maulana Masood Ur Rehman

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November 2021

MR. RICHI BANSAL, Executive Director of RAMA STEEL TUBES LIMITED received the Business Excellence of the Year Award in Manufacturing. Rama Steel Tubes Limited manufactures steel products and markets its products worldwide.

Mr. Som Mandal Managing Partner FOX MANDAL (After Receiving the Award)

School. Samir Tripathi was awarded for Power Management and Consultancy Services. Apart from these, awards were given to many eminent businessmen and distinguished guests. Many eminent personalities including Former Union Minister and presently Vice President of BCCI Rajeev Shukla, Vice President of Supreme Court Bar Association and Senior Advocate Dr Pradeep Rai, Well known Chartered Accountant Sahitya K Chaturvedi, Social Activist Rajesh Singh, CI of Redancus Limited, UK Dr Renu Raj, Chairman of UAE's BU Abdullah Group, Dr BU Abdullah along with businessmen and several dignitaries attended. Before the Global Business Conclave 2021 was held in Dubai, Senior Advocate Pradeep Rai, Vice President, Supreme Court of India Bar Council, also attended the National Day of Lithuania as a special guest. He was especially honoured by the Minister of Equality Mr Sheikh Al Nehan on the occasion.

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DEFENCE

FINALLY, DEAL CLEARED

FOR LCA TEJAS MK.1A FIGHTERS

e’d told you this deal would be signed by December 2020. Okay, so we’re about two weeks off the mark, but finally, after months of procedural prevarication, the Indian government has cleared the decks for its biggest ever deal for indigenous equipment — a INR 45,696 crore deal for 73 LCA Tejas Mk.1A fighters and ten LCA Mk.1 trainers. In doing so, the government has shortened what were expected to be two separate orders for 83 Mk.1A jets and 18 Mk.1 trainers, for a total of 101 aircraft, almost definitely to meet budgetary plans on the program. In a statement today, the MoD said, “Light Combat Aircraft Mk-1A variant is an indigenously designed, developed and manufactured state-of-the-art modern 4+ generation fighter aircraft. This aircraft is equipped with critical operational capabilities of Active

Electronically Scanned Array (AESA) Radar, Beyond Visual Range (BVR) Missile, Electronic Warfare (EW) Suite and Air to Air Refuelling (AAR) would be a potent platform to meet the operational requirements of Indian Air Force, IAF.

infrastructure at respective bases.” The LCA Mk.1A is an improved configuration of the baseline LCA that bridges the capability gap towards the planned LCA Mk.2, which will be a substantially more different and powerful jet.

It is the first “Buy (Indian-Indigenously Designed, Developed and Manufactured)” category procurement of combat aircrafts with an indigenous content of 50 per cent which will progressively reach 60 per cent by the end of the programme.

The Mk.1A will be mid-air refuellable, sport an updated internal Radar Warning Receiver (RWR) — likely in-house kit from the DRDO’s DARE laboratory — an external Self Protection Jammer (SPJ) pod to enhance survivability and an AESA radar. The Mk.1A needs to be able to fire different types of BVR and close combat air to air missiles. The meat of the Mk.1A, though, will be a slew of major improvements in the LCA’s squadron-level maintainability contours. It is difficult to overstate just how much importance the IAF has placed on ramped up no-nonsense maintainability, more than a milestone away from the admittedly unwieldy maintenance architecture built into the Mk.1.

The Cabinet has also approved infrastructure development by IAF under the project to enable them handle repairs or servicing at their base depot so that the turnaround time would get reduced for mission critical systems and would lead to increased availability of aircraft for operational exploitation. This would enable IAF to sustain the fleet more efficiently and effectively due to availability of repair

DRDO CLEARED TO CONVERT

6 AIR INDIA A320S INTO IAF AEW JETS

t’s the latest in India’s meandering search for more airborne early warning (AEW) aircraft. Six Airbus A320 airliners operated by India’s national carrier Air India will be modified, integrated with sensors and delivered to the Indian Air Force as new airborne early warning & control (AEW&C) aircraft as part of a new plan cleared today. The Ministry of Defence today approved a INR 10,500 crore (INR 1.4 billion) program in which India’s Defence R&D Organisation (DRDO) will integrate radars and sensor

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November 2021

DEFENCE

ROLLS-ROYCE AND HAL INK DEAL FOR ADOUR ENGINE PARTS TO BE ‘MADE IN INDIA’ FOR GLOBAL MARKETS

olls-Royce and Hindustan Aeronautics Limited (HAL) have signed an agreement to ‘Make in India’ engine parts for Adour engines, to support Rolls-Royce's international defence customer base. The agreement was exchanged between . B Krishna Kumar, Executive Director (Engine & IMGT), HAL and .Abhishek Singh, Senior Vice President – Defence, India and South East Asia, RollsRoyce.

Through this partnership, Rolls-Royce aims to strengthen the ecosystem for Adour engines in India by building on HAL’s existing capabilities for manufacturing and supporting the Adour engines for Indian customers over several decades. This follows the Memorandum of Understanding (MoU) signed by RollsRoyce and HAL during the Aero India 2021 event to establish an Authorized Maintenance Centre for Adour at HAL to support international military customers and operators.

to follow. We look forward to working with Rolls-Royce to build on this capability to serve global markets for supply of spares and O of Adour engines. This new partnership will create avenues for the two companies to expand the defence sourcing footprint in India.”

On the occasion, R Madhavan, Chairman and Managing Director (CMD), HAL said, “With over 30 years’ experience of supporting repair and maintenance services for the Adour engines in India, HAL has the capability and capacity to support a large defence customer base. This is the first order for supply of spares for the Adour Global Supply chain. We plan to be a key player in the supply chain of Adour Engines and expect more orders

Commenting on the partnership with HAL, KishoreJayaraman, President, Ro l l s - Ro y c e I n d i a a n d S o u t h A s i a said, “Our valued partnership with HAL has grown from strength to strength over the last few decades and this is a significant step towards strengthening the defence manufacturing ecosystem in India, and to help catapult India’s vision for the defence sector to ‘make in India’ for the world.”

on six Airbus A320 commercial airliners from national carrier Air India’s current fleet. The six aircraft are to be sent to France, where they will be refurbished and modified to Indian Air Force/DRDO specifications.

The A320 based AEW&C platform will sport a derivative of the dorsal antenna system fitted on the Netra jets, and not likely a radome solution as has been speculated since the news broke Wednesday. This, however, is still unclear. In the words of a scientist familiar with the program, it will involve “trying past experience with additional features”.

If plans remain on track, the six aircraft will join the IAF to add AEW muscle to the pair of Embraer-DRDO AEW&C Netra jets in service and three older PHALCON AWACS jets. It is not clear if this new move, revealed in the Indian press on Wednesday, supplants earlier plans by the DRDO to deliver an Airbus A330 based AWACS system — though the two systems are significantly different in capability and scope.

In 2015, the Indian MoD cleared aRs 5113 crore program to build an Airbus A330 based AWACS system. While work on the dorsal radome has made progress at the DRDO’s Centre for Airborne Systems (CABS) in Bengaluru, a contract for the aircraft platforms has remained elusive five years after the DRDO was cleared

Alex Zino, Executive Vice President – Business Development and Future Programmes (Defence), Rolls-Royce said, “We are excited to expand our long-standing partnership with HAL to support long term sustainment of our Adour engines for both Indian and global customers. We believe that HAL’s expertise in manufacturing and supporting Adour engines will pave the way for several of our customers to successfully operate the Adour engines for many more years. This is our first defence supplies agreement in India and creates an opportunity for India to increase its defence exports given the robust demand forecast for high precision components in this sector.”

to begin procurement procedures. The indigenous AWACS program itself has had an odd journey, with the IAF in 2018 asking the DRDO to ensure the AWACS platform it delivers can also double as a mid-air refueling tanker. The request was part of the frustrations the IAF was experiencing in trying to nail down a tanker purchase after a series of contest aborts. That separate quest for tankers has left the IAF exasperated enough to consider junking an outright purchase attempt and seriously look at the option to least mid-air tankers for the medium term.

November 2021

DAWN 69

DEFENCE

DRDO DEVELOPS ADVANCED CHAFF TECHNOLOGY FOR INDIAN AIR FORCE

efence Research & Development Organisation (DRDO) has developed an Advanced Chaff Technology to safeguard fighter aircraft of the Indian Air Force (IAF) against hostile radar threats. Defence Laboratory Jodhpur, a DRDO laboratory developed the advanced Chaff material and chaff cartridge-118/I in collaboration with High Energy Materials Research Laboratory (HEMRL), a Pune based laboratory of DRDO, meeting qualitative requirements of IAF. The Indian Air Force has started the process of indu¬¬ction of this technology after completion of successful user trials. In today’s electronic warfare, survivability of fighter aircraft is of prime concern because of advancement in modern radar threats. To ensure survivability of aircraft, Counter Measure Dispensing System (CMDS) is used which provides passive jamming against Infra-Red and radar threats. Chaff is a critical defence technology used to protect fighter aircraft from hostile radar threats.

The importance of this technology lies in the fact that very less quantity of chaff material deployed in the air acts as decoy to deflect enemy’s missiles for ensuring safety of the fighter aircraft. The technology has been given to the industry

The Indian Air Force has started the process of induction of this technology after completion of successful user trials for production in large quantities to meet the annual rolling requirement of the Indian Air Force. RakshaMantriRajnath Singh has lauded DRDO, IAF and the industry for indigenous development of this critical technology, terming it as one more step of DRDO

towards ‘AatmaNirbhar Bharat’ in strategic defence technologies. Secretary Department of Defence R&D and Chairman DRDO Dr G Satheesh Reddy congratulated the teams associated with the successful development of this advanced technology that will further strengthen the Indian Air Force.

TATA BOEING AEROSPACE DELIVERS 100TH FUSELAGE

FOR THE AH-64 APACHE COMBAT HELICOPTER

ata Boeing Aerospace Limited (TBAL) today announced the delivery of the 100th fuselage for the AH-64 Apache combat helicopter to Boeing from its state-of-the-art manufacturing facility in Hyderabad. The fuselage will be transported to Boeing’s AH-64 Apache manufacturing facility in Mesa, AZ, for integration into the final assembly line. KT Rama Rao, Minister for Municipal Administration & Urban Development, Industries & Commerce, and Information Technology of Telangana; and senior officials from Boeing and Tata Advanced Systems (TASL) were present to mark the delivery milestone. KT Rama Rao, Minister for Municipal Administration & Urban Development,

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November 2021

DEFENCE

MAHINDRA AEROSTRUCTURES TO MANUFACTURE BOEING 737 INLET OUTER BARREL COMPONENTS

ahindra Aerostructures Pvt. Ltd. (MASPL) has been awarded a contract for manufacturing and supply of the Boeing 737 inlet outer barrel components and sub-assemblies, the legendary single-aisle family of airplanes, at the state-of-the-art MASPL facility in Narsapura, near Bengaluru, India. Production begins in 2023. Commenting on the new contract, Mr. S P Shukla, Member of the Group Executive Board of Mahindra Group, and Group President, Defence, Aero &Agri sector, observed, “We are privileged to be awarded this prestigious contract for the 737, which is another step in our journey with Boeing to support the Atmanirbhar Bharat initiative of the Indian Government.” “Boeing demands the best, and this contract award is a testament to our delivery and quality performance which was sustained even during the pandemic,” said Mr. Arvind Mehra, Managing Director & CEO of Mahindra Aerostructures. He added,

“We thank Boeing for this recognition of our performance and look forward to creating even more opportunities to add value to Boeing.” Under the new contract, MASPL will supply these parts and subassemblies for the 737, directly to Boeing facilities in the United States. Deliveries will ramp-up in synchronisation with Boeing’s planned increase in 737 production.

Mahindra Aerostructures represents the Mahindra Group’s interests in aerospace manufacturing Industries & Commerce, and Information Technology of Telangana, said, “This is a proud moment for Telangana, and a noteworthy step in the growth of India’s aerospace and defence manufacturing. Our government is committed to providing all support necessary to make the state a preferred destination for global aviation and defence manufacturers. I congratulate Boeing and Tata for this milestone.” SalilGupte, president, Boeing India, said, “Tata Boeing Aerospace Limited is an example of Boeing’s commitment towards Aatmanirbhar Bharat and the co-development of integrated systems in aerospace and defence not just for India, but for the world. We have quadrupled our sourcing from India in the past two years to more than $1 billion. Skilled talent, robust infrastructure, ease of doing business, and a highly responsive government administration –make Telangana an ideal destination for

the high-end manufacturing work that the aerospace and defence industry demands.” Sukaran Singh, Managing Director and Chief Executive Officer, Tata Advanced Systems Limited (TASL), said, “The achievement of 100th fuselage delivery for AH-64 within three years of the facility being operational reflects our strong ability to industrialize and ramp up complex aerospace programs and deliver with highest levels of quality. This accomplishment places the Telangana facility as part of the global supply chain for Apache helicopters. Further, it underlines

We have quadrupled our sourcing from India in the past two years to more than $1 billion.

Mahindra Aerostructures represents the Mahindra Group’s interests in aerospace manufacturing. It operates a 250,000sq.ft. (25,000sq.m.) plant near Bangalore, India, which is equipped with comprehensive capabilities to produce detail parts and assemblies (hard & soft alloys), with inhouse facilities for sheet metal, machining, heat treatment, surface treatment and painting as well as welding and pipe bending. The business is approved to AS9100D and holds 5 NADCAP certifications alongside numerous customer accreditations and delivers to industry leaders in India, North America, Europe and the UK.

our indigenous manufacturing capability to produce cutting-edge technology and quality defence equipment in the country, and promote the Indian aerospace and defence manufacturing ecosystem, globally.” Tata Boeing Aerospace, Boeing’s first equity joint venture in India, is the result of a 2015 partnership agreement with TASL. Spread over 14,000 square meters, the state-of-the-art facility has been producing aero-structures for Boeing’s AH64 Apache helicopter, including fuselages, secondary structures and vertical spar boxes for customers worldwide. Recently, Boeing announced the addition of a new production line to manufacture complex vertical fin structures for the 737 family of airplanes. Customers globally operate more than 1,200 Boeing-made Apache helicopters. The helicopter has been fielded or selected for acquisition by the armed forces of 16 countries, including India.

November 2021

DAWN 71

DEFENCE

SEVERNOYE DESIGN BUREAU: 75 YEARS AND GOING STRONG!

he manufacturer of Talwar-class frigates, Russian Severnoye Design Bureau (SDB), was established in USSR in 1946 for designing destroyers and patrol ships. In the course of time, the scope of tasks has expanded significantly. The company has developed almost the entire ocean-going surface fleet of the Soviet Union of which many projects became true milestones. The development of a modern ship involves work and intellectual activities of many teams and thousands of specialists in various industries. However, it is the Severnoye Design Bureau that plays the key role as an integrator. Over 75 years of work, 550 ships and vessels were built to SDB designs. The company is credited with the world’s first ships equipped with anti-ship missiles and the first large warships where gas turbines were used as part of the propulsion system. The Bureau developed anti-submarine ships and destroyers featuring ‘exceptional’ seaworthiness, also ships described as ‘aircraft carrier killers’ and heavy nuclearpowered missile cruisers, the pride of the Russian Navy.

of the Russian Federation and another one is undergoing trials.

The design bureau has been also proud to develop Pr.11356 frigates for the Indian Navy

Since 1998, SDB has been developing projects using an automated threedimensional numerical modeling system. In 2015, the company enabled to exchange project data via a secured channel between the Bureau and a shipyard. Presently, SDB continues to support construction of Pr.22350 frigates for the Russian Navy. These ships are featuring completely new capabilities. Multipurpose Pr. 22350 frigate is equipped with stateof- the-art integrated systems and weapons, which enable to provide high accuracy managing of a wide task scope. These ships are able to reinforce surface action groups significantly. The leading Pr.22350 frigate named Admiral Gorshkov was delivered to the Russian Navy in 2018, while the second vessel Admiral Kasatonov entered the Navy in 2020. The third frigate Admiral Golovko became the first ship of this programme to be equipped with a propulsion plant of Russian origin. Now six frigates are under construction at the Northern shipyard in St.Petersburg. In 2019, Admiral Gorshkov together with Russian Northern Fleet ships and support vessels made a round-the-world voyage, that achievement was marked in the Russian Armed Forces’ Book of Records. In 2020 the frigate successfully fired a new Zircon hypersonic cruise missile. SDB has also established Pr. 22160 offshore patrol

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vessels being under construction for the Russian Navy at Zelenodolsk Shipyard. This is the first Russian ship designed using a modular weapon concept. Part of the armament is to be mounted at the construction stage and is not changed throughout the entire service life. The remaining reserved areas and spaces can be used to accommodate additional weapons during repairs or upgrades. In addition, there are special places for accommodating various removable modules, which can be replaced during operation, depending on missions at hand. To date, three ships of this series have already joined the Russian Navy, and three more are in various stages of construction. SDB is also proud to present its Pr.22460 Rubin-class border guard ships that have been under construction since 2007. Thirteen ships have already been commissioned by the Border Guard Service

November 2021

The armament of the border ships consists of one 30 mm sixbarreled AK-306 automatic gun and two 12.7 mm Kord machine guns. Rubin-class ships can be operated both in equatorial waters and in thin and broken ice, while the design of its steel hull ensures that themission will be completed even after a collision with an intruder vessel. Defence cooperation with the Indian Navy and Indian industry is particularly noteworthy for SDB. The work started from Pr.61ME frigate. For the first time in the history of Russian shipbuilding, ships of such displacement and characteristics were designed and built for a foreign customer. Five ships of that series were delivered to India. While cooperating with the Indian Navy, SDB also has worked as a system integrator. Following the request of the Indian Government, the company experts together with the representatives of the Navy defined weaponry and technical equipment to be installed on the ships designed in India. Consequently, Pr.15, Pr.15A, Pr.16, Pr.16 A, Pr.25 and Pr.25A ships were built with indigenous and Russian weaponry installed at the customer’s shipyard. Pr. 17 Shivalikclass were also created with technical assistance of SDB. The design bureau has been also proud to develop Pr.11356 frigates for the Indian Navy. Severnoye Design Bureau is in constant search for new technical solutions for implementing them in its products. The company offers its experience to India and looks forward to further beneficial and fruitful cooperation.

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