15 November
NewsWala aaya, taaza khabre laya! Good morning!
 | Today, Your NewsWala Delivers:
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And also read about a bomb threat at the TCS office! 🤯
Chalo chalein!
The reading time is 6 minutes.
MARKETS
Markets: Well, the markets have decided to take a day off, probably sipping on some financial tonic and practicing yoga for that perfect bull pose.
BUSINESS
Government unleashes coal frenzy
What happened
In a bold move aimed at powering India's energy needs, the Union coal ministry unveiled plans on Monday to supercharge the country's coal production. Their ambitious goal is to rev up production to a staggering 1.404 billion tonnes by 2027, with an even bolder eye on reaching 1.577 billion tonnes by 2030.
Currently, India churns out about a billion tonnes of coal annually, but the ministry is cranking things up to ensure a robust domestic supply for the insatiable appetite of the thermal power plants.
Why it matters
The coal ministry's announcement comes hot on the heels of some impressive numbers. Coal stocks at thermal power plants have been on the rise since October 16, boasting a hefty 20 million tonnes. Mines are not lagging; their stocks have surged to 41.59 million tonnes.
The ambitious goal is predicted to support an additional 80 GW of thermal capacity by 2030.
If things go as planned, the power sector will boom and gradually benefit the industries that rely on it.
FYI: Coal India's share price surged to an electrifying eight-year high.
Zoom out
In summary, the coal ministry's 2027 and 2030 plans go beyond meeting domestic requirements. With seamless coordination between the coal, power, and railway ministries, the stage is set for a smooth supply of coal.
This development aligns with a robust 13.02% annual growth in coal production, outpacing the 8.99% growth in power generation from domestic coal-based plants.
The coal ministry's strategic moves are not just about power; they're about empowering the nation.
BIG MONEY MOVES
Jaiprakash Associates moves 18.9 crore shares to ICICI
Jaiprakash Associates, a key player in the Jaypee Group, has entered a settlement pact with ICICI Bank to transfer over 18.9 crore shares as part of its ongoing debt reduction strategy. While the specific transfer value remains undisclosed, it will be determined based on the prevailing trading price at the National Stock Exchange.
Mineral Mania: India's auction blitz for 20 blocks
The Indian government plans to auction 20 critical mineral blocks, including lithium and graphite, within the next two weeks. Recognizing the economic and national security importance of critical minerals, the government recently approved royalty rates for lithium, niobium, and rare earth elements. India's focus on lithium and REEs aligns with its commitment to energy transition and achieving net-zero emissions by 2070.
BUSINESS
India contemplates tax cuts to lure tesla
What happened
In a strategic move, India is mulling over tax cuts on the imports of fully assembled electric vehicles (EVs), particularly eyeing industry giant Tesla Inc. The government is reportedly working on a comprehensive EV policy that would grant international car manufacturers the privilege of importing battery-powered vehicles at concessional duty rates. However, the catch is that these manufacturers must commit to eventually establishing production facilities within India.
Last year, Tesla sought duty cuts on EV imports, aiming for a reduction to 40% from the current 70%-100% range based on import values.
Why it matters
India sees Tesla's potential entry into its electric vehicle market as a significant opportunity. The move aligns with the government's goals of increasing the manufacturing share in the country's GDP and generating employment. Currently, India's electric car market is in its early stages, constituting a mere 1.3% of total passenger vehicles sold in the previous year.
Tesla's investment in India could catalyze the adoption of cleaner transport, addressing environmental concerns in a country grappling with air pollution. To support this shift, the Indian government launched a $3.1 billion incentive program in 2021 to encourage local EV production.
Zoom out
India's consideration of tax cuts on EV imports signals a proactive step toward fostering a sustainable automotive landscape. The potential entry of Tesla, a major player in the electric vehicle sector, could not only accelerate the adoption of cleaner transportation but also boost India's manufacturing sector and job market.
Meanwhile, Indian car enthusiasts waiting for Tesla are like:
BIG PICTURE
🔏 EU targets China in subsidy investigation
The European Commission launched an "anti-subsidy investigation" into Chinese car firms on September 13, suspecting foul play. If found guilty, these firms could face tariffs surpassing the current 10% on Chinese imports. Chinese EVs are gaining ground in Europe, comprising 8% of battery car sales. This move, driven by China's global carmaking ambitions, could impact European manufacturers and potentially lead to higher prices for European car buyers.
⚓️ Thailand Proposes $28B Route Bypassing Malacca Strait
Thailand is proposing a groundbreaking Landbridge project to slash shipping times between the Indian and Pacific oceans by bypassing the congested Malacca Strait. With the potential to reduce travel time by four days and cut shipping costs by 15%, the $28 billion initiative involves constructing seaports on each side of Thailand's southern peninsula, connected by highway and rail networks. The project aims to address the Malacca Strait's future capacity challenges and offer a more efficient, economical, and secure alternative route.
BUSINESS
Govt secures $400M urban boost from ADB
What happened
In a bid to enhance urban infrastructure and governance, India sealed the deal on Monday, signing a $400 million policy-based loan agreement with the Asian Development Bank (ADB). The finance ministry, in a statement, revealed that the funds will be directed towards creating high-quality urban infrastructure, improving service delivery, and fostering efficient governance systems.
The focus is on a holistic transformation, encompassing legal, regulatory, and institutional reforms to create a robust urban ecosystem.
Why it matters
This financial infusion is a strategic move to reshape India’s urban landscape. The program, divided into sub-programmes, targets national-level policies (Sub-programme 1, financed at $350 million in 2021) and investment planning at state and urban local body levels (Sub-programme 2).
The reforms align with the government’s urban sector strategy, emphasizing the creation of livable cities that act as hubs for economic growth.
The initiative spans from ensuring water security to modernizing building bylaws
Incentivize cities to become financially robust by enhancing revenues through property taxes and user charges,
Facilitate innovative financing avenues like municipal bonds and public–private partnerships.
Zoom out
By addressing critical aspects of urban development, including water security, climate resilience, and financial sustainability, India is gearing up for a transformation. The urban centers are set to become not just economically vibrant but also environmentally resilient.
MIRCH MASALA
🤯 TCS Bengaluru office faces a bomb threat from a laid-off employee
🤔 Read: Solve the investing dilemma: SIP or Lumpsum
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👀 The epic transformation of the world's largest steel mill into a wind turbine