Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: The Nifty is approaching the 24,000 milestone as Dalal Street reaches record highs. Bank Nifty also surged, closing at a new peak of 52,871.

BUSINESS

MEIL Wins ₹12,800 Crore Tender from NPCIL for Nuclear Reactors

What happened

Hyderabad-based Megha Engineering & Infrastructure Ltd (MEIL) has secured a substantial contract from the Nuclear Power Corporation of India Ltd (NPCIL). The deal, worth a whopping ₹12,800 crore , involves the construction of two 700 MW electrical reactors at Kaiga in Karnataka. Competing against heavyweights like Bharat Heavy Electricals Ltd (BHEL) and Larsen & Toubro, MEIL emerged victorious by offering the lowest bid of ₹12,799.92 crore.

Why it matters

This contract marks a major milestone for MEIL, signalling its entry into the nuclear power sector. The timing couldn't be better, as the Indian government is on a mission to ramp up the country's nuclear power capacity. 

Union Minister Jitendra Singh recently announced a target to boost nuclear power generation by 70% over the next five years, increasing from the current 7.48 GW to 13.08 GW by 2029. This ambitious goal is part of India’s broader plan to install 500 GW of non-fossil fuel capacity by 2030. MEIL’s new project aligns perfectly with this national vision and highlights its technical prowess and cost-efficiency.

Zoom out

With interests spanning hydrocarbons, electric buses, defence, telecom, power, and more, MEIL is now poised to make a significant impact in nuclear energy. As India pushes for greater non-fossil fuel capacity, MEIL’s new venture could be a catalyst for the country's clean energy future. So, stay tuned as MEIL powers up Karnataka and, quite possibly, the entire nation!

BIG MONEY MOVES

Ather Energy to invest over ₹2,000 crore in new Maharashtra plant

Ather Energy is set to establish its third manufacturing unit in Bidkin, Aurangabad Industrial City (AURIC), Maharashtra, with an investment exceeding ₹ 2,000 crore. This new facility will produce electric two-wheelers and battery packs, aiming to generate employment for around 4,000 people. The plant will have an annual capacity of up to 1 million units .

Currently, Ather Energy operates two plants in Hosur, Tamil Nadu, with annual capacities of 4.3 lakh battery packs and 4.2 lakh vehicles. 

Jio and Vodafone expand spectrum holdings in India

Reliance Jio Infocomm Ltd has acquired additional spectrum in Bihar and West Bengal for ₹973.63 crore, aiming to enhance its network infrastructure. This includes 5.0 MHz paired spectrum in Bihar and 9.4 MHz paired in West Bengal, totalling 14.4 MHz paired. This boosts Jio's spectrum footprint to 26,801 MHz, enhancing its 4G and 5G capabilities.

Meanwhile, Vodafone Idea Ltd. (VIL) has invested ₹3,510 crore in acquiring 50 MHz spectrum across 11 circles, including 900 MHz in key regions like UP West and West Bengal. 

FYI : MHz, or megahertz, measures the frequency of radio waves, representing one million cycles per second. In telecom, higher MHz indicates more bandwidth for data transmission, which means faster and more reliable internet services.

BUSINESS

India's Credit Card Market Surges to 103 Million Users, ₹ 1.65 Trillion in Spending

What happened

India's credit card market has shown robust growth, with the total number of cards reaching 103 million by May 2024, marking an 18% year-on-year increase. HDFC Bank led in card additions through aggressive issuance, contributing significantly to its market dominance. However, Kotak Mahindra Bank faced challenges with a sharp drop in card issuance following RBI restrictions implemented on April 26. Total credit card spending surged by 17% year-on-year, amounting to ₹1.65 trillion.

Why it matters

The robust growth in credit card issuance and spending shows the evolving consumer behaviour towards digital payments. However, the industry continues to face challenges, including concerns over large unsecured loans and asset quality issues. 

Speaking about the numbers, we have:

• Kotak Mahindra Bank's impressive 43% growth in card spending, despite regulatory constraints.
  
  

• ICICI Bank's 31% growth and Federal Bank's robust 43% year-on-year increase in card spending. 
  

Zoom out

On top of that, credit cards on UPI have seen constant growth, with total payments increasing by 35% year-on-year since May 2024, amounting to ₹20.3 trillion . Despite the declining average ticket size of UPI credit card transactions, from ₹1,838 in FY21 to ₹1,528 in FY24, the market share of UPI remains strong at 86%.

This trend suggests the increasing penetration of UPI in everyday transactions, particularly in person-to-merchant (P2M) interactions.

BIG PICTURE

YouTube's dominance pushes media giants on alert

YouTube has emerged as a formidable force in the streaming landscape, commanding nearly 10% of all viewership on connected and traditional TVs in the U.S., surpassing even Netflix. This shift highlights YouTube's evolution from a platform primarily for user-generated content to a major player in home entertainment .

Media giants like Netflix, Disney, Warner Bros and Discovery are grappling with how to respond: some see YouTube as a complement to subscription services, while others view it as a direct threat. With YouTube's ad revenue soaring and its influence expanding, the industry faces critical decisions ahead.

JSW Steel USA to invest $110 million in upgrading steel mill

JSW Steel USA, a subsidiary of JSW Steel, has announced a $110 million investment to modernise its steel plate mill in Baytown, Texas. This upgrade, unveiled at the SelectUSA Investment Summit, aims to produce high-quality monopile steel plates crucial for renewable energy and infrastructure sectors in the US. Director Parth Jindal highlighted that the investments will bolster domestic manufacturing capabilities, reduce import reliance, and align with ' Buy America ' standards. 

BUSINESS

ISRO Arm NSIL Signs $18-Million Deal with Australian Government for Satellite Launch

What happened

In a notable step for international space collaboration, NewSpace India Limited (NSIL), the commercial arm of the Indian Space Research Organisation (ISRO), has signed an $18-million memorandum of understanding (MoU) with the Australian government. The deal involves launching a satellite inspection and observation payload aboard ISRO's Small Satellite Launch Vehicle (SSLV) in 2026. 

The payload, managed by Australian firm Space Machines, is set to be the largest Australian satellite launched to date. ISRO Chairman S. Somanath highlighted plans for 20-30 SSLV launches annually to meet the growing demand for small satellite launch vehicles.

Why it matters

India and Australia are forging closer space relations, symbolizing increased trust and collaboration between the two nations. The Australian government's decision to launch satellites from Indian soil underscores ISRO's rising global stature in the space industry. Despite regulatory challenges, ISRO continues to enhance its capabilities, with the SSLV playing a pivotal role in its commercial endeavours . The partnership also involves key Indian entities like Ananth Technologies, known for its support of ISRO missions.

Moreover, this collaboration highlights the competitive dynamics of the space sector. ISRO's move towards privatizing the SSLV, with six identified bidders for its manufacturing and operation, is expected to spur innovation and improve efficiency through private sector involvement.

Zoom out

This MoU with Australia marks a milestone in India's space sector, highlighting the country's expanding influence and capabilities in global space exploration. As ISRO and its commercial arm, NSIL, continue to forge international partnerships, the future looks promising for India's private space economy. Despite challenges, such as the downturn in domestic commercial space activities, these cross-border collaborations provide a pathway to sustained growth and technological advancement. 

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