Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The markets were closed on account of Eid-ul-Adha.

BUSINESS

NHAI Greenlights ₹ 4,000-Crore Chattergala Tunnel in J-K

What happened

Union Minister of Road Transport and Highways, Nitin Gadkari, announced on Monday that the National Highways Authority of India (NHAI) will soon kick off the construction of the Chattergala tunnel in Jammu and Kashmir, a project worth ₹4,000 crore. Gadkari chaired a review meeting on the same day, attended by Jitendra Singh, Union Minister of State in the Prime Minister's Office (PMO).

The meeting confirmed that the NHAI will start working on the Chattergala tunnel and the underpasses on the Kathua express corridor section in response to public demands.

Why it matters

This tunnel is set to be a game-changer for Jammu and Kashmir. Once completed, it will provide all-weather connectivity between Lakhanpur and Doda via Basohli and Bani, popular tourist spots. This is expected to not only cut travel time but also boost local businesses, create jobs, and generate revenue.

The proposal for this tunnel has been on the table for about six years, initially prepared by the Border Roads Organisation but stalled due to funding issues. Now, with NHAI taking the reins, the project is finally moving forward.

Zoom out

The initiation of the Chattergala tunnel project is a landmark development for Jammu and Kashmir, promising to transform the region's connectivity and economics. As the Delhi-Katra express corridor nears completion, the residents of J&K can look forward to enhanced connectivity, increased tourism, and new opportunities for economic growth. 

BIG MONEY MOVES

Ethanol blending in petrol reaches a record 15%

Ethanol blending in petrol exceeded 15% in May, driven by increased biofuel purchases. According to the oil ministry, state-run oil companies achieved an average blending ratio of 15.4%, up from April's 12.7%, blending around 670 million litres of ethanol. Since November 2023, 3.51 billion litres of ethanol have been blended, reaching a national average of 12.6% for the current ethanol supply year.

Although ethanol-blended petrol offers slightly less fuel efficiency, it significantly supports cleaner energy goals.

Advent and Abu Dhabi Fund purchase stake in Fisher Investments

Private equity firm Advent International and Abu Dhabi Investment Authority's unit are acquiring a minority stake in Ken Fisher's Fisher Investments for up to $3 billion. The investment, at least $2.5 billion initially, values Fisher at $12.75 billion. This move, part of Fisher's estate planning, secures long-term independence and operational continuity for Fisher Investments.

Fisher Investments manages $275 billion for over 150,000 clients, maintaining its private independence amid market shifts.

BUSINESS

IFC Backs Brookfield's Bikaner Solar Project with $105 Million

What happened

The International Finance Corporation (IFC) is stepping in with a hefty $105 million to help finance Brookfield Asset Management’s 550 MW solar power project in Bikaner, Rajasthan. This funding will come in the form of long-term non-convertible debentures allocated to special-purpose vehicles created for this project.

Notably, this is IFC's first investment in the Asia-Pacific region using a hybrid offtake structure, which involves selling power to both corporate and industrial (C&I) consumers and the merchant market. The project will connect to India’s green energy corridor through the inter-state transmission system.

Why it matters

Why is this a big deal? Well, for starters, it showcases the viability of large-scale renewable energy projects. IFC's partnership with Brookfield aims to set an example, proving that renewable energy can be both profitable and sustainable. This is crucial as India strides towards its ambitious climate goals. Plus, this project reflects a growing appetite for clean energy among Indian corporations.

In the past year alone, over 5 GW of renewable capacity has been added to the C&I sector. The hybrid structure also highlights innovative procurement options, making it easier to attract investments in renewables and increase market competitiveness. All these efforts are geared towards reducing the carbon footprint of India’s energy sector.

Zoom out

This partnership between IFC and Brookfield is a win-win. It not only boosts renewable energy generation but also supports India's journey to a greener future. By 2030, India’s renewable energy sector is expected to attract annual investments of $25 billion, with 20% directed towards the C&I and merchant market. So, while we might see a few more solar panels popping up in Bikaner, the broader impact is a cleaner, greener, and more sustainable energy landscape for India. 

BIG PICTURE

US Government sues Adobe over subscription plan disclosures

The U.S. government has filed a lawsuit against Adobe, alleging that the software giant, known for products like Photoshop and Acrobat, misled consumers by enrolling them in lucrative subscription plans without transparently disclosing crucial terms.

According to the complaint filed in a San Jose federal court, Adobe failed to adequately reveal substantial early termination fees, often amounting to hundreds of dollars, in its "annual, paid monthly" subscription plans.

RBI wins 'Risk Manager of the Year Award 2024'

The Reserve Bank of India (RBI) has been honoured with the "Risk Manager of the Year Award 2024" by London's Central Banking publication. This prestigious recognition acknowledges RBI's exceptional efforts in bolstering its risk culture and awareness, underscoring its crucial role in ensuring the stability of India's financial system.

RBI Executive Director Manoranjan Mishra accepted the award, highlighting RBI's prudent monetary policy during global economic challenges. 

BUSINESS

Vivo's ₹3,000-Crore Mega Factory to Boost Smartphone Manufacturing

What happened

Vivo, the Chinese smartphone giant, is set to open one of India's largest mobile phone manufacturing facilities in July. This new plant, located in Greater Noida, represents a significant investment of over ₹3,000 crore and boasts an impressive annual capacity of 120 million devices.

This move aligns with Vivo's strategy to expand its manufacturing capabilities in India, particularly after vacating its older unit, which had an annual capacity of 40 million devices. The old plant has now been taken over by Micromax Informatics' Bhagwati Enterprises.

Why it matters

Vivo's investment in this new facility highlights its commitment to the Indian market, one of the largest and fastest-growing smartphone markets globally. By increasing its production capacity, Vivo aims to meet the rising demand for smartphones in India and strengthen its position against competitors like Samsung, which also has a major manufacturing plant in the country.

Also, Vivo has also been actively seeking an Indian joint venture (JV) partner to manage its manufacturing operations. Although it held discussions with several potential partners, including the Tata Group, the Murugappa Group, and Dixon Technologies, these talks have yet to yield a successful partnership due to differences in valuation and management control. 

Zoom out

Vivo's upcoming facility represents a crucial step in India's ambition to become a global manufacturing leader. The Indian government has been encouraging Chinese smartphone brands to form joint ventures with local companies, aiming to boost domestic collaboration. However, the government has also assured that the absence of such partnerships won't threaten the significant investments these brands have already made in the country. 

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