Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Indian markets have experienced a roller-coaster ride in the first half of 2024, with the Union Budget in July expected to be the next big trigger. Investors will closely monitor Union Budget-related announcements, government policies, and global cues for market movement this week.

BUSINESS

UK Steelworkers Strike as Blast Furnace Closure Looms

What happened

Tata Steel workers in the UK are planning for an indefinite strike starting from July 8, protesting the potential loss of 2,800 jobs due to the company's plans to close two blast furnaces. This strike, described by Unite as the first in 40 years by British steelworkers, will impact Tata's operations in Port Talbot and Llanwern in Wales. Tata Steel employs over 8,000 people in the UK and is facing challenges amid its transition to lower-carbon electric arc furnaces.

Why it matters

The strike reflects deep concerns among workers about job security and the future of steel production in Wales. Tata's decision to close blast furnaces and shift to electric arc furnaces is part of a larger strategy to reduce carbon emissions, with a significant investment of £1.25 billion supported by the local government. This move aims to cut carbon emissions by five million tonnes annually, contributing to environmental sustainability.

Zoom out

Tata Steel faces a challenging situation as it plans to close blast furnaces earlier than scheduled amid looming strike threats. The company attributes this decision to operational instability and unsustainable losses. Despite offering support packages to impacted employees, the strike poses operational risks and highlights the intricate balance between business restructuring, job security, and environmental considerations. 

The ongoing negotiations between Tata Steel and Unite, the union representing workers, will play a pivotal role in shaping the future of steel production in the UK and determining the livelihoods of thousands of workers.

BIG MONEY MOVES

Power Grid Corp greenlights ₹810 cr investments, eyes JV with RVPNL

Power Grid Corporation of India (PGCIL) is gearing up for substantial investments, with the board giving the green light to proposals worth ₹810 crore. These plans encompass upgrading facilities in Madhya Pradesh and Kurnool, as well as undertaking projects in Telangana and the eastern region.

Additionally, an in-principle approval has been granted for a joint venture with Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPNL) to develop intra-state transmission systems in Rajasthan. However, the realization of these initiatives depends on securing approvals from various authorities.

Essar prepares for $4.5 billion steel plant in Saudi Arabia

Essar Group is gearing up for a significant venture—a $4.5 billion investment in a low-carbon steel plant in Saudi Arabia. Prashant Ruia, Essar's director, expects final approvals soon, paving the way for the construction of a 4 million tonne per year steel plant and port facilities at Ras AlKhair. This move aligns with Saudi Arabia's goal of becoming a major electric vehicle manufacturing hub, targeting over 300,000 cars annually by 2030.

Essar aims to cater to the increasing demand for steel, not only for cars but also for various consumer goods. This project marks Essar Group's first foray into steel outside India, signalling global expansion.

BUSINESS

Adani Group Commits $3 Billion to Boost Clean Energy

What happened

The Adani Group has announced a major push into the clean energy sector with a $3 billion investment plan. This investment will be directed towards establishing a pumped-storage hydropower (PSH) facility. 

Adani Green Energy Limited (AGEL) plans to develop a 5 GW PSH capacity over the next five years, with a long-term goal of reaching 25 GW, thereby boosting the group's total green energy capability to 70 GW. 

*Pumped Storage Hydropower (PSH) is a type of hydroelectric energy storage. It involves two water reservoirs at different elevations. Electricity is generated when water flows from the upper reservoir to the lower one through turbines, producing power. 

Why it matters

The initial phase involves setting up PSH facilities in Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana. This move is crucial as Adani Group aims to strengthen its position in India’s rapidly growing renewable energy market, which is attracting substantial investments from the government as well as private players.

By investing in PSH, Adani not only diversifies its clean energy portfolio beyond solar and wind but also taps into an energy storage solution that supports the grid around the clock. 

Zoom out

As India, the world's third-largest carbon emitter after China and the US, advances towards its goal of net-zero emissions by 2070, PSH is playing a crucial role in this transition. The government approved eight PSH projects in January, worth ₹81,981 crore, spanning five states, as noted by the Ministry of Environment, Forest, and Climate Change (MoEFCC). 

Meanwhile, major competitors like Tata Power, NTPC, and JSW have also laid out plans to venture into the PSH sector. However, the Adani Group stands out with the most ambitious capital expenditure target, positioning itself at the forefront of India's renewable energy revolution.

BIG PICTURE

China and EU launch talks to avert trade conflict

China and the European Union (EU) have taken a step towards resolving their tariff dispute by agreeing to engage in talks. The discussions, involving China's commerce minister Wang Wentao and the EU's trade commissioner Valdis Dombrovskis, will focus on addressing the EU's proposed tariffs on electric cars imported from China.

The EU's proposal includes tariffs of up to 38% on electric cars from China, in addition to the existing 10% tariff on imported cars. This move comes amidst concerns about China's heavily subsidized electric car sector, which poses a challenge to Europe's automakers.

Dell employees favour remote work despite career growth hurdles

Dell Technologies is facing a dilemma as nearly 50% of its employees prefer working fully remotely, even at the cost of career advancement, according to a Business Insider report.

Earlier this year, Dell introduced a policy categorizing employees as either remote or hybrid. Hybrid workers must be in the office 39 days per quarter, while remote workers cannot apply for promotions or new roles. Despite these restrictions, many employees choose remote work for personal, financial, and logistical reasons. 

BUSINESS

ONGC Offers Stake in Deen Dayal Gas Field to Global Partners

What happened

After seven years and an investment of nearly $1.2 billion, ONGC is seeking partners to help develop the Deen Dayal gas field in the Bay of Bengal KG basin. ONGC has faced numerous challenges with this project, achieving limited success despite significant financial efforts. On June 12, ONGC issued a call for expressions of interest from international oil and gas firms with the required technical expertise and financial strength to collaborate on developing a viable strategy for the field.

Why it matters

The Deen Dayal gas field, which was initially touted as a major prospect with up to 20 trillion cubic feet of gas reserves, has proven to be a tough nut to crack. ONGC took over an 80% stake from Gujarat State Petroleum Corporation (GSPC) in 2017, only to discover that the field’s potential was far less than anticipated. The investment has not yielded the expected returns, with four of the seven wells drilled providing suboptimal productivity and severe technical challenges plaguing the remaining three wells.

Zoom out

ONGC’s search for a partner to rescue the Deen Dayal gas field marks a critical juncture in the project’s troubled history. With the field’s high-pressure, high-temperature reservoirs proving difficult to exploit, and existing infrastructure underutilised, ONGC needs a fresh injection of technical know-how. Bids are due by September 12, and it remains to be seen which international players will step up to the challenge. 

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