Business-In-Sight

Power Grid Corporation of India Limited and Indian Bank Raise ₹5,000 Crore Each Through #Bond Sales Amid Strong #Investor Demand Power Grid Corporation of India Ltd (PGCIL) has successfully raised ₹5,000 crore by issuing 10-year bullet bonds at a 7.08% coupon rate, with the principal repayable in a single payment at maturity. Separately, public sector lender Indian Bank secured ₹5,000 crore through 10-year infrastructure bonds at a 7.12% coupon rate, according to sources. PGCIL initially targeted an issue size of ₹1,000 crore, which expanded by ₹4,000 crore through a greenshoe option, while Indian Bank’s bond issue also included a greenshoe option, increasing from ₹2,000 crore to ₹5,000 crore. Both bond offerings received a AAA #rating from domestic #credit rating agencies. The strong demand for these bonds, particularly from insurance companies like LIC and pension funds, resulted in competitive pricing. Industry experts noted PGCIL’s issuance of a bullet bond after a long gap as a key factor attracting investor interest. As a "Maharatna" company, PGCIL’s core business is power transmission, with recent diversification into telecom using its extensive national network. Sources further noted that after SIDBI(Small Industries Development Bank of India) and PGCIL’s recent bond issues, the supply of public-sector bonds could resume following #Diwali, with entities like the NABARD - National Bank for Agriculture and Rural Development preparing to raise funds. "The narrow yield spread over government securities (G-secs) in recent issuances by Power Grid Corporation, Indian Bank, and State Bank of India’s additional tier-I (AT-I) bonds reflects solid investor interest in high-quality corporate bonds," said Venkatakrishnan Srinivasan of Rockfort Fincap LLP. He attributed the strong demand to ample liquidity among insurance companies, provident funds, pension funds, and mutual funds, which are increasingly prioritizing AAA-rated bonds for their security in a low-yield environment. In related news, sources report that Bank of India, another public sector bank, plans to issue infrastructure bonds worth ₹5,000 crore soon, following a previous ₹5,000 crore issuance at a 7.54% coupon rate. State-owned banks have been increasingly turning to infrastructure bonds to meet the demand for long-term infrastructure credit, especially as #deposit growth remains #sluggish.

#Aviation Minister Urges Airbus Aircraft to Manufacture Commercial #Aircraft and Train #Helicopter Pilots in #India In a strong appeal for expanded aviation capabilities, #Aviation Minister K Rammohan Naidu called on #European aircraft manufacturer Airbus to initiate commercial aircraft manufacturing and helicopter pilot training programs in India. Speaking at the inauguration of Airbus' new South Asia headquarters in Delhi, which houses four #A320 simulators, the minister highlighted the facility’s potential to train 800 #pilots and 200 #technicians annually. “We aspire to manufacture aircraft in India to support the country’s civil aviation needs. This vision aligns with our Prime Minister’s leadership in making India a global hub for aviation,” Minister Naidu stated, emphasizing Airbus’ pivotal role. “Airbus is already making strides by manufacturing aircraft components here. Now, we look forward to designing, building, and maintaining aircraft domestically—a significant shift in mindset.” India’s airlines are fueling a rising demand: IndiGo (InterGlobe Aviation Ltd) placed a record-breaking order for 500 A320 planes last June and another order for 30 A350 widebody aircraft in July. Similarly, Air India Limited ordered 250 Airbus planes in February. Airbus has established joint ventures in India to produce C295 #military transport planes and H125 #helicopters but has not yet committed to local manufacturing of #civilian aircraft. Minister Naidu also underscored the need for an increased focus on civil helicopter operations and pilot training, citing limited infrastructure for training programs in India. “Airbus has an essential role in training more helicopter pilots to meet growing demand. With only one dedicated institute for this training in India, overcoming this bottleneck is critical,” he added. Reflecting on India’s aviation growth trajectory, Naidu noted that the current fleet of 800 aircraft is expected to grow significantly, with 1,500 planes on order and potential demand for 4,000 aircraft over the next two decades.

#MutualFund Investors Invest ₹17,100 Crore in #Equity Schemes Amid Market Downturn Indian mutual fund investors have shown strong resilience, investing nearly ₹17,100 crore into major equity schemes over recent weeks, even as markets faced a significant #selloff. Since reaching all-time highs on September 26, the #Sensex and #Nifty 50 indices have declined by nearly 7%, but investor commitment to equity investments has not wavered. Analysis of asset data shows that, despite declines in net asset values (#NAVs), inflows remained steady. Between September 26 and October 22, large-cap equity schemes reported net inflows of more than ₹2,600 crore, while mid-cap and #smallcap funds saw a combined investment of approximately ₹7,000 crore, based on estimates from the Association of Mutual Funds in India (AMFI). #Flexicap schemes garnered around ₹4,000 crore during this period. Historically, these four categories of mutual funds have attracted about ₹10,000 crore in net inflows monthly over the past year, highlighting #investors’ long-term confidence and steady commitment amid #market fluctuations.

NVIDIA and Reliance Industries Limited Join Forces to Build India’s #AI Computing #Infrastructure In a significant strategic partnership, American semiconductor powerhouse Nvidia Corporation and India’s diversified conglomerate Reliance Industries announced their collaboration to develop an advanced AI computing infrastructure in India. The initiative is positioned to establish India as a formidable player in #artificialintelligence. Nvidia’s founder and CEO, Jensen Huang, emphasized the broader vision behind this partnership, encouraging India to prioritize "manufacturing" AI capabilities over building domestic semiconductor fabrication plants. This approach, he suggested, would better align with India’s unique strengths and emerging opportunities in AI-driven sectors. Central to the collaboration, Nvidia is expected to provide its #Blackwell AI #processors, which will drive Reliance’s cutting-edge one-gigawatt data center in Jamnagar, Gujarat. Additionally, Nvidia’s advanced #Hopper #AI processors will be supplied to fuel large-scale data center expansions with key players such as Yotta Data Services Private Limited and Tata Communications. Indian IT giants Infosys, Tata Consultancy Services, and Wipro will leverage Nvidia's enterprise platform to implement tailored AI solutions, while Tech Mahindra aims to integrate a newly developed #Hindi-language AI model, Indus 2.0, as part of this initiative. Mukesh Ambani, chairman and managing director of Reliance Industries, highlighted the transformative potential of the #collaboration, underscoring the ambition to position India at the forefront of global AI development.

#HEALINRAJASTHAN #Rajasthan Government to Launch ‘Heal in Rajasthan’ Policy to Boost #Medical #Tourism The Rajasthan government is poised to unveil a new policy aimed at promoting medical tourism, according to a senior official from the state’s medical and health department. The initiative, titled ‘Heal in Rajasthan,’ seeks to establish the state as a premier destination in the healthcare sector, driving both #investment and job creation. “We have initiated the process of gathering input on the policy by organizing sessions with medical professionals and institutions from both the private and public sectors,” the official said. The policy is expected to give a significant boost to various sectors, including pharmaceuticals and hospitality, by leveraging the potential of medical value travel. It is anticipated to be a first-of-its-kind effort, recognizing the dual benefits of enhancing world-class healthcare services and promoting tourism. Rajasthan’s healthcare infrastructure is highlighted in the draft policy as robust and continuously expanding. The state is home to over 8,000 hospitals in both the public and private sectors, with more than 400 of these being multi-speciality or super-speciality institutions. Additionally, Rajasthan boasts 35 medical #colleges and 16 #dental colleges, contributing to a highly trained pool of healthcare professionals. Healthcare remains a top priority for the state government, reflected in a significant budget allocation of over ₹27,000 crore, an increase from 7.4% to 8.2% compared to the previous year. The proposed policy aims to develop hubs for medical tourism, catering to both domestic and international patients seeking secondary, tertiary, and quaternary care procedures. It also plans to establish wellness tourism hubs based on #AYUSH (Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy), blending traditional Indian therapies with Rajasthan’s rich cultural heritage.

Infosys CEO Salil Parekh Assures Freshers of #Job Offer Commitment Amid #Onboarding Delays Infosys CEO Salil Parekh has confirmed that all job offers extended to freshers will be honored, despite delays in the onboarding process. His comments come amid reports that the company has postponed the joining dates for 2,000 #engineering graduates from the #2022 batch. "Every offer we've made will lead to someone joining Infosys. While there have been some changes in the dates, everyone will eventually join the company, and our commitment remains unchanged," Parekh said in response to concerns over the delays. Infosys, which employs 315,332 people as of June 2024, has been under scrutiny after the IT and ITES union Nascent Information Technology Employees Senate - NITES filed a complaint with the Ministry of Labour and Employment, GOI . The union accused Infosys of #delaying the onboarding of 2,000 graduates selected for system engineer and digital specialist engineer roles during the 2022-23 recruitment cycle. NITES pointed out that these graduates, who received offer letters as early as April 2022, have faced ongoing delays in the onboarding process, unpaid pre-#training programs, and unexpected additional assessments. Despite meeting all the required conditions, these #candidates have been left in limbo for over two years, the union stated.

Bajaj Auto Ltd Auto Poised to Launch New Clean-Energy #Vehicles, Targets 100,000 Monthly Sales Bajaj Auto is gearing up to expand its clean-energy vehicle lineup with several key launches, including a new motorcycle powered by compressed natural gas (#CNG) and the introduction of ethanol-powered motorcycles and three-wheelers next month. The company also plans to unveil a new #Chetak platform early next year as it aims to achieve monthly sales of 100,000 clean-energy vehicles by the upcoming festival season. In an interview with media, Bajaj Auto Managing Director Rajiv Bajaj outlined the company's ambitious goals, stating, "We stand on the cusp of monthly sales and production of 100,000 clean energy vehicles by this festive season." Bajaj Auto recently introduced the #Freedom 125, the world’s first CNG-powered motorcycle. The bike, equipped with a 2-kg CNG tank and a 2-liter petrol tank, offers a range of up to 330 km. Around 2,000 units have already been dispatched, and the company aims to deliver 8,000-9,000 units in August, with a target of reaching 40,000 CNG motorcycles per month by January. Additionally, Bajaj confirmed plans to launch an electric rickshaw next financial year and to showcase ethanol-powered motorcycles and three-wheelers next month, with a full launch expected in FY25. The company also plans to expand its #electric scooter offerings, introducing both affordable and premium models later this fiscal year, with a new #Chetak platform expected early next year. When asked about the potential for electric motorcycles, Rajiv Bajaj noted that the traditional advantages motorcycles held over scooters in the internal combustion engine (#ICE) format no longer apply in the electric vehicle (#EV) market, where scooters now offer greater potential. Rajiv Bajaj also advocated for a reduction in #GST on CNG motorcycles, arguing that if electric vehicles are taxed at 5 percent, CNG vehicles, which use a relatively cleaner fuel, should not be taxed at 28 percent. Bajaj Auto currently holds an 18 percent share of the electric two-wheeler market, where its Chetak e-scooter competes with TVS Motor Company’ iQube. The company is also the market leader in the electric three-wheeler segment, with a 36 percent market share, and is aiming to increase that share to 80 percent. Bajaj Auto's electric vehicle business is already #profitable, positioning the company as a strong player in the growing clean-#energy vehicle market

NFRA to Seek Public Feedback on Revised International #Auditing Standard The National Financial Reporting Authority (NFRA) is set to invite public comments on the revised International Standard on Auditing 600 (#ISA 600), which is being considered for adoption by publicly listed #companies and non-public-sector banks, according to sources familiar with the matter who spoke to Business Standard. This decision, which represents a "graded approach" to adopting the new standard, was made during a meeting of various financial sector regulators at NFRA’s board meeting on Monday. The revised ISA 600 is aimed at addressing gaps in the current auditing practices by ensuring auditors are held accountable, particularly in cases where they have previously relied on audit reports signed off by subsidiary #companies. The adoption of ISA 600 is intended to enhance the rigor of audit processes in India, following several high-profile audit lapses in recent years. However, it was decided during the meeting that auditors of public-sector banks, their branches, and public-sector undertakings will not be required to adhere to the new standard, sources said.

#RBI to Roll Out Unified Lending Interface, Set to Transform Lending Sector The Reserve Bank of India (RBI) is preparing to launch the Unified Lending Interface (ULI) nationwide, with the goal of transforming India’s lending sector much like the Unified Payments Interface (#UPI) revolutionized the #payments landscape. Governor Shaktikanta Das made this announcement on Monday at the Global Conference on #Digital Public Infrastructure and Emerging #Technologies. The ULI platform will allow #lenders to access customers' financial and non-financial data, including land records, through a consent-based #digital system. This access will be crucial in providing smoother credit, particularly to farmers and micro, small, and medium #enterprises (#MSMEs). Currently, the credit appraisal process is hindered by data being scattered across various platforms, including central and state governments, local authorities, banks, and identity authorities. The ULI aims to streamline this process, reducing the time needed for credit assessments, especially for smaller and rural borrowers. "Building on our efforts to digitalize banking services, last year we introduced a pilot platform for frictionless #credit. We now plan to call this the ULI," said Das.