The US has warned of potential sanctions risk, as India has signed a 10-year deal to manage Iran's Chabahar Port. It also said it would let the government of India speak of its own bilateral relationship with Iran.

In Short

• India signs 10-year deal to operate Chabahar Port in Iran
• Contract signed by India Ports Global Ltd and Iran's Ports and Maritime Organisation
• US warns of potential sanctions risk for businesses dealing with Iran

Hours after India signed a deal to operate the Chabahar Port in Iran for 10 years, the United States reiterated that "anyone considering business deals with Iran needs to be aware of the potential risk of sanctions."

This comes days after the US announced new sanctions on Iran targeting its unmanned aerial vehicle production after its attack on Israel.

"We're aware of these reports that Iran and India have signed a deal concerning the Chabahar port. I will let the government of India speak to its own foreign policy goals vis-a-vis the Chabahar port as well as its own bilateral relationship with Iran," Vedant Patel, deputy spokesperson of the US State Department, said while responding to a question of the agreement between India and Iran.

"I will just say, as it relates to the United States, US sanctions on Iran remain in place and we'll continue to enforce them," he added.

Further, on being asked if that would mean including sanctions against Indian firms, Patel said, "Broadly, you've heard us say this in a number of instances, that any entity, anyone considering business deals with Iran, they need to be aware of the potential risk that they are opening themselves up to and the potential risk of sanctions."

The contract between India and Iran was signed in Tehran by India Ports Global Ltd and the Ports and Maritime Organisation of Iran in the presence of Ports, Shipping and Waterways Minister Sarbananda Sonowal, according to a series of posts on X by the Indian Embassy in Iran.

This is the first time India will take over the management of an overseas port.

In April this year, the US imposed sanctions on suppliers to Pakistan's ballistic missile programme, including three companies from China.

"The sanctions were made because these were entities that were proliferators of weapons of mass destruction and the means of their delivery. These were entities based in the PRC (People's Republic of China), in Belarus, and that we have witnessed to have supplied equipment and other applicable items to Pakistan's ballistic missile programme," Patel had then said.

A couple of days later, the US slapped sanctions on over a dozen companies, individuals and vessels, including three from India, for facilitating illicit trade and UAV transfers on behalf of the Iranian military.

The US Department of Treasury alleged that these companies, individuals and vessels have played a central role in facilitating and financing the clandestine sale of Iranian unmanned aerial vehicles (UAVs) to Russia’s war in Ukraine.

THE CHABAHAR PORT

On Monday, External Affairs Minister S Jaishankar said the Chabahar Port will definitely see more investments and connectivity linkages coming out of it after India and Iran signed a long-term contract for the operation of its Shahid Beheshti Port terminal.

He also said the port will help connect India and Central Asia better.

"Right now the port has not grown. If you don't have a long-term agreement, it is difficult to invest in a port. So the very clear expectation is that part of the Chabahar that we are involved in will definitely see more investments, it will see more connectivity linkages coming out of that port," Jaishankar said.

"We believe today that connectivity is a big issue in that part. Chabahar will connect us with Central Asia," he added.

Warburg Pincus will acquire the stake through its affiliate Mango Crest Investment Ltd from all the sellers
New York-based private equity firm Warburg Pincus  will acquire Shriram Housing Finance Ltd (SHFL) in a deal valued at ?4,630 crore for equity and convertible instruments.

Warburg Pincus will acquire the stake through its affiliate Mango Crest Investment Ltd . At present Shriram Finance Ltd  holds a controlling stake in SHFL while private equity firm Valiant Partners L.P. (Valiant), Mauritius, holds the remaining ownership.

As a part of this transaction, Valiant and Shriram Finance will completely divest its equity stake to Warburg Pincus. The existing management team of SHFL led by Ravi Subramanian, Managing Director and Chief Executive Officer, will continue to lead the business. The company has a pan-India presence with 155 branches with an AUM of ?13,762 crore, net worth of ?1,924 crore and revenues of ?1,430 crore, as of March 31, 2024.
Umesh Revankar, Executive Vice-Chairman, Shriram Finance Ltd, said,  “With the rapid growth in the consumer finance sector, both SFL and SHFL foresee tremendous opportunities in their respective operating segments. We believe that at this cusp of growth, Shriram Housing Finance is set to unlock greater value as it empowers underserved millions to own homes. This transaction aims to maximise value creation for both SFL and SHFL, as both companies independently fulfill their respective long-term vision.”

SFL will continue its business in commercial vehicle loans, two-wheeler loans, and MSME financing. YS Chakravarti, MD & CEO, Shriram Finance Ltd, added: “Shriram Finance Limited will continue to focus on growth led by the short to medium-tenor consumer finance business, while Shriram Housing Finance will now chart out its differentiated path.” 

Traction in housing fin space
The move comes at a time when the affordable housing finance segment is poised for significant growth. Housing finance companies’ AUM is seen growing 12-14 per cent in FY24 and FY25 led by continued growth momentum in housing loans coupled with an expected revival in developer loans, according to CareEdge Ratings. However, regulatory changes, tighter liquidity, continuation of elevated interest rates, delayed resolutions/ recoveries with respect to wholesale loans and competition from banks may pose downside risks.

Ravi Subramanian said, “The affordable housing finance segment is poised for significant growth. At Shriram Housing Finance, we are fully committed to creating value for all stakeholders as we establish ourselves as a new-age home finance solutions provider. Our focus on innovative customer-centric solutions, product diversification, and superior customer experience remains steadfast, supported by cutting-edge technology and analytics.”
Warburg Pincus has been investing into India over the last 25 years.  Narendra Ostawal, Head of India Private Equity, Warburg Pincus, said, “Warburg Pincus remains excited about the affordable housing finance segment in India. Warburg Pincus has a deep history of partnering with exceptional teams, particularly within financial services and we are excited to support Ravi and the management team as the company advances into its next phase of growth.” 

India’s housing finance space is seeing some restructuring over the recent six months. While Blackstone-backed Aadhar Housing Finance recently raised ?3,000 crore through an initial public offering,  Piramal Enterprises Ltd has decided to merge with its unlisted subsidiary, Piramal Capital and Housing Finance Ltd.

Lok Sabha elections: In the 4th phase of general elections on Monday (May 13), voters in 96 constituencies across 10 states and union territories exercised the right to elect representatives from their respective constituencies.

In the fourth phase of Lok Sabha elections, polling took place in 96 constituencies across 10 states and union territories, with an approximate voter turnout of 67.70%. (Image: PTI)
With the conclusion of phase 4, polling has crossed the halfway mark, with voters in 379 constituencies of 23 states and union territories having voted. (Image: PTI)
To motivate voters to participate in elections, Election Commission of India had promoted themed polling booths across the country. In the above image, in Simdega district of Jharkhand, children welcomed voters at a hockey-themed polling booth. (Image: PTI)
In the fourth phase of voting, West Bengal registered the highest voter turnout with 75.94% while Jammu & Kashmir's Srinagar had a poor turnout with 36.58%. Andhra Pradesh and Madhya Pradesh also registered a decent voter turnout of 68.63% and 68.12%. (Image: PTI)
Andhra Pradesh, Bihar, Jammu and Kashmir, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana, Uttar Pradesh and West Bengal, are the States/UTs where polling took place in this phase. A total of 1717 candidates were in the electoral fray in this phase. (Image: PTI)
In the Kashmir valley, voting took place for the Srinagar constituency. Amidst ample security, voters were seen queuing up peacefully at various polling stations in Srinagar to cast their votes, according to ECI. (Image: PTI)
In an incident, Bharatiya Janata Party (BJP) candidate from Hyderabad, Madhavi Latha was spotted checking the voter ID cards of a few women at a polling booth on Monday. Following this, a case was registered against her at the Malakpet Police Station under Sections 171C, 186, 505(1)(c) of the Indian Penal Code (IPC) and Section 132 the Representation of the People Act. (Image: PTI)
In the fourth phase, prominent candidates in the fray included TMC leader Mahua Moitra, Union Minister Giriraj Singh, Samajwadi Party chief Akhilesh Yadav, AIMIM’s Asaduddin Owaisi, Congress leader Adhir Ranjan Chowdhury, Andhra Pradesh Congress President YS Sharmila. (Image: PTI)

Big achievement for Tata Steel, Tata Steel becomes the first Indian steel company to demonstrate full capacity on B24 biofuel for raw material shipment from Australia to India.
Jamshedpur: Tata Steel has become the first Indian steel company to travel at full capacity from the east coast of Australia to India, powered by B24 biofuel blend with Very Low Sulfur Fuel Oil (VLSFO). This voyage sets a new benchmark for sustainable shipping practices in India and will mark a new milestone in the country's maritime sector. Cape Vessel “MV Cape XL” departs Gladstone Port after loading coal. It successfully reached Kalinga International Coal Terminal Paradip Private Limited (KICTPPL) port to discharge 1,48,500 MT of coal. During its cargo voyage from Gladstone to Paradip, MV Cape XL used B24-grade biofuel which was loaded from its ballast port in Guangzhou, China. Carbon emissions for this fully laden voyage were approximately 565 tonnes less, which is 20% less than a conventional Cape vessel using VLSFO, in line with the company's ambitious Scope 3 reduction targets. (Also read below)

Piyush Gupta, Vice President, TQM Group Strategic, Tata Steel, said that through the use of biofuels in its marine operations, Tata Steel not only reiterates its commitment to reducing carbon emissions but also ushers in a new approach to sustainability in the industry. Also sets standards. By choosing a biofuel blend for our journey from Australia to India, we were able to reduce carbon emissions by 20%, making a significant contribution to our Scope 3 reduction targets. We will strive to make more such shipments for import via ships powered by alternative fuels, and will continue to associate ourselves with global efforts towards climate change. Despite facing challenges in fuel availability, Tata Steel successfully executed this historic shipment in collaboration with its partners, Cargill and Banel Energy International Limited.
The B24 blend, the current benchmark grade for marine biofuel, combines 24% used cooking oil methyl ester with 76% very low sulfur fuel oil. Earlier in December 2021, Tata Steel deployed the first bio-fuel-powered ship MV Frontier Sky, the first such attempt by any Indian steelmaker. The company continued the decarbonization drive with 7 biofuel shipments in FY2013 and 22 biofuel shipments in FY2014, also becoming the first Indian company to import cargo on bulk carriers using LNG as fuel instead of conventional VLSFO. It became. Tata Steel is also the first steel producer in the world to join the Sea Cargo Charter (SCC) to align its chartering activities with responsible environmental behavior in line with the policies and ambitions of the International Maritime Organization.

China has boosted its imports of coal and natural gas so far this year, as it looks to stockpile fuel for the power plants ahead of the summer amid international prices that were half last year’s levels in the first four months of 2024.

Chinese imports of natural gas jumped by 21% between January and April compared to a year earlier, while imports of coal rose by 13%, according to data reported by Bloomberg on Monday.

The Asian benchmark LNG prices averaged a little over $9 per million British thermal units (MMBtu) in the first quarter of 2024, compared to an average LNG price for delivery into north Asia of $18 per MMBtu in the first quarter of last year, per Bloomberg’s estimates.

The price of coal has also slumped, to an average of $127 per ton for the Newcastle coal futures in Australia, a key exporter of coal, in the first quarter of 2024. That’s nearly half compared to the average price of $236 per ton in January-March 2023.

China’s increased coal imports so far this year are defying earlier expectations that Beijing would see flat coal purchases in 2024.

In March, an executive at China’s state-run utility Guangdong Energy Group said that Chinese coal imports this year were expected at around the record levels of 2023.

However, data showed last month that China’s seaborne coal imports jumped by 17% in the first quarter.

Coal output in China has wobbled this year after authorities in the northern province of Shanxi, the top coal-producing region, ordered in February miners to reduce production and carry out safety inspections between March and May, following several fatal incidents at mines in China in recent months.

Weaker coal prices and demand and mine closures due to safety checks are set to reduce coal output in the Shanxi province by 4% this year, for the first time in seven years, according to a plan announced by the provincial government.

By Tsvetana Paraskova for Oilprice.com

Asian shares crept to 15-month highs on Monday in a week where inflation figures could make or break hopes for earlier US rate cuts, while Chinese activity data will test optimism about a sustained recovery in the world's No. 2 economy.

Beijing has already reported a welcome pickup in inflation to an annual 0.3 per cent in April, helping to soothe worries about a slide into prolonged deflation. Forecasts favour further gains in April retail sales and industrial output due on Friday.
 

Chinese authorities are also set to sell 1 trillion yuan($138.24 billion) in longer-dated bonds to help fund stimulus spending at home.

The improved sentiment has helped lift Chinese blue chips to a seven-month high. The index was 0.1 per cent softer on Monday with some sectors pressured by reports the White House was about to release details of new tariffs on Chinese goods.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent, after rallying for three weeks straight.

Japan's Nikkei was flat, still saddled with speculation further losses for the yen could lead the Bank of Japan to raise rates in the next few months.

The central bank sent a hawkish signal to markets on Monday by cutting the amount of Japanese government bonds it offered to buy in a regular operation, so pushing yields up.

Globally, much now depends on whether the US April inflation report will show a moderation after three months of upside surprises. Median forecasts are for core consumer prices to rise 0.3 per cent in the month, compared to 0.4 per cent in March, pulling the annual rate down to 3.6 per cent.

So crucial are the data that rounding to the second decimal place could make all the difference.

"Our unrounded core CPI forecast at 0.27 per cent m/m suggests larger risks for a dovish surprise to a rounded 0.2 per cent increase," noted analysts at TD Securities.

A low number would likely boost bets the Federal Reserve could ease as soon as July, which is currently priced at only a 25 per cent chance. Equally, a high inflation print could push a rate cut out past September and challenge pricing for 42 basis points of easing this year.
 

Also due are figures on US producer prices, retail sales and jobless claims, along with final reports on European inflation that should reinforce expectations for a June rate cut from the European Central Bank.

There are a host of Fed speakers this week to update markets on their thinking, including Fed Chair Jerome Powell who appears with the head of the Dutch central bank on Tuesday.

Upbeat us earnings

EUROSTOXX 50 futures were steady, while FTSE futures dipped 0.2 per cent. S&P 500 futures and Nasdaq futures were both little changed early on Monday, after rallying last week as company earnings came in strong.

With 80 per cent of the S&P 500 having reported results, companies are on track to have increased earnings by 7.8 per cent, well ahead of the April expectation of 5.1 per cent.

Once Nvidia reports on May 22, Magnificent Seven quarterly earnings are on track to jump 49 per cent, according to Tajinder Dhillon, senior research analyst at LSEG.

Companies reporting this week include Walmart, Home Depot and Cisco.

Global share indices have also bounced to record highs in recent weeks, even as markets have scaled back some of their more aggressive wagers for rate cuts this year.

"A straightforward interpretation of financial market performance is that there is more underlying strength in the global economy than had been anticipated and higher interest rates are reflecting rather than impeding global growth," says Bruce Kasman, head of economic research at JPMorgan.

"We lean in this direction as our 2024 growth and policy rate forecasts both move higher."

The relative outperformance of the US economy continues to underpin the dollar, while only the threat of Japanese intervention is stopping it from re-testing the 160 yen barrier.

The dollar was holding firm at 155.92 yen on Monday, while the euro was flat at $1.0770 having faced resistance around $1.0791 last week.

Gold eased a touch to $2,358 an ounce, after rising 2.5 per cent last week on demand from momentum funds and talk of persistent buying by China. [GOL/]

Oil prices faded late last week as US gasoline and distillate inventories rose ahead of the start of the summer driving season. [O/R]

Brent was down another 22 cents at $82.57 a barrel, while US crude dipped 17 cents to $78.09 per barrel.

Indian renewable energy firm SAEL Ltd. is planning an inaugural dollar bond sale targeting up to $500 million, according to people familiar with the matter, joining other borrowers to fuel Asia’s hottest high-yield market in five years.  

The company, which develops sustainable energy projects such as solar plant constructions, aims to launch the debut offering by end of June, with proceeds to be used for business expansion and debt refinancing, the people familiar said. The company is in talks with a group of foreign banks to arrange the bond sale, seeking a tenor in the range of five to seven years, the people added.

SAEL’s planned note sale is set to add to a recent issuance boom in Asia and worldwide. Issuers globally rushed to tap the dollar debt market last week on lower borrowing costs and risk-on sentiment. Indian corporates in particular, have led Asian junk dollar bond sales to its first revival in five years, with strong investor appetite.

A spokeswoman from SAEL declined to comment when reached by Bloomberg News.

The offering also comes amid India’s push to ramp up the renewable energy sector. India aims to nearly triple its clean energy capacity by the end of the decade to decarbonize its fossil fuel-driven economy.

N Chandrasekaran, the chairman of Tata Sons, is set to assume the additional role of chairman at Tata Electronics. This transition comes as Tata Electronics earmarks around $14 billion towards venturing into the semiconductor industry. Chandrasekaran will succeed Banmali Agrawala, who has served in this post for the past few years, pending regulatory approvals. Agrawala, a key figure within Tata Sons, will now take on an advisory role within the group.

Chandrasekaran's appointment underscores the strategic significance that the semiconductor business holds for the conglomerate, industry insiders told The Economic Times (ET). 

His influence was pivotal in convincing Randhir Thakur, a former executive from Intel Foundry Services, to join Tata Electronics as CEO and MD in 2023. Additionally, Srinivas Satya, previously the country president of the semiconductor products group at Applied Materials, was appointed as Tata Electronics' chief supply chain officer and president of the components business earlier this year.

These strategic hires, coupled with Chandrasekaran's focused leadership, position Tata Electronics at the forefront of India's electronics manufacturing landscape. The company has bolstered its team by recruiting 50-60 senior-level expatriates with expertise in semiconductor technology, strategic planning, and design.

"The board of Tata Electronics now has the management width and heft to scale up the business. It is now wooing top tier global clients and may surpass growth expectations. The challenge earlier was talent and technology, and the company is chasing both aggressively to drive growth," an executive close to the company was quoted as saying by ET.

"Since this is a completely greenfield territory for Tata, Tata Electronics will need a more strategic, measured and bold approach moving towards the 'One Tata' vision laid out by Chandrasekaran," said Counterpoint Research vice president Neil Shah. "From semiconductor fabs to finished goods, electronics factories are a double digit billion-dollar opportunity and to ensure it has a strong pipeline will warrant a greater involvement from Mr Chandrasekaran himself," he added.

Established in 2020, Tata Electronics is the sole Indian vendor assembling iPhone enclosures for Apple. The company plans to scale up its existing facility in Hosur, Tamil Nadu and has acquired a facility in Karnataka previously operated by Taiwan's Wistron. Furthermore, reports suggest that Tata Electronics is looking to acquire Pegatron's facility in Tamil Nadu to expand its production capacity further.

Amidst supply chain disruptions exacerbated by the Covid-19 pandemic and evolving geopolitical dynamics, Indian entities like the Tata Group are seizing opportunities to diversify and cater to changing market demands, particularly as renowned brands seek alternatives to manufacturing in China.

Mumbai: Demand for daily groceries, essentials and household products will likely be muted in the current quarter, global research firm Kantar said, but it indicated a rural-led recovery in the second half of FY25 even though urban consumption could remain a relative straggler.

Overall volumes, which indicate the number of products consumers bought, expanded 5.2% in the March quarter, unchanged from the three months to December. Sales volumes in rural markets climbed 5.8%, and in cities by 4.7%, from a year earlier, data from Kantar showed. Kantar monitors branded and unorganised products, including unpackaged voluminous commodities. Nielsen, on the other hand, tracks primarily branded retail sales.

"There was significant inflation that led to shrinkflation, or consumers downgrading. But the worst is behind us and there is visibility of better growth," said Saugata Gupta, managing director, Marico. "There will obviously be volume improvement although there will be some pricing growth as well. We definitely see a double-digit revenue growth."

Shrinkflation refers to reduction in pack sizes without lowering prices. India's price-sensitive consumer industry has faced a demand crunch after companies raised sticker prices by almost a quarter in the past two years to offset the impact of input costs, which first climbed in the immediate aftermath of global supply chain disruptions spawned by mobility and business curbs deployed to contain the spread of the coronavirus.

Subsequently, record low policy rates in the world's richest countries and the Ukraine conflict caused commodity prices to spike.

However, in the past three quarters, companies have been slashing prices amid visible consumer preference for cheaper products, helping them regain some of the lost market share.

"We expect the growth to be muted for another quarter at least, led by urban's slowdown. However, rural seems certainly on a path of revival and if we see a solid performance from rural, it is likely to bring back growth toward the second half of the year," said K Ramakrishnan, managing director, South Asia, Worldpanel division, Kantar. "The marathon that the snacking category has been on since the beginning of the pandemic is finally appearing to slow down."

India's FMCG market expanded 6.4% in the year ended March, compared with 1.2% a year ago, with the rural markets struggling to drive volumes. However, most companies including Hindustan Unilever, Britannia and Dabur have forecast a demand revival in India given the above-normal monsoon forecast, boosting agriculture income. This will be aided by higher spending that's expected to be made by the new government in rural areas.

Bhilai Steel Plant (BSP), the Chhattisgarh-based arm of the state-run Steel Authority of India Limited (SAIL), will install the state's first 15-megawatt (MW) floating solar project in its Maroda-1 reservoir to improve its carbon footprint. The steel major is undertaking various projects to reduce carbon emissions, conserve energy, and promote renewable energy.

“In a major step towards this, Bhilai Steel Plant has taken up the project of installation of a 15 MW capacity floating solar plant in its Maroda-1 reservoir,” a BSP spokesperson said. The project is being implemented through NTPC-SAIL Power Supply Company Limited (NSPCL), a 50:50 joint venture company of National Thermal Power Corporation (NTPC) and SAIL. The solar plant will be set up in Durg district.

The Maroda reservoir is spread across 2.1 square kilometers with a water storage capacity of 19 cubic milimetres (MM3). The water stored in the Maroda-I reservoir not only feeds the plant but also the township.

The spokesperson said the project was the first floating solar plant in Chhattisgarh. Total green power generation estimated from this plant is likely to be about 34.26 million units annually, which will be consumed by Bhilai Steel Plant as captive power. The project is expected to reduce the CO2 emission of BSP by 28,330 tonnes annually.

NTPC, the consultant for the project, floated the tender for the project in January this year. The tender process has been completed and the Engineering, Procurement, and Construction Contract (EPC) is likely to be awarded shortly, officials said, adding, the project is scheduled to be completed by next year.

The first solar project of NSPCL will open avenues of green energy portfolio for NSPCL while helping SAIL in green steel production.

Another solar power plant of 35 MW is also proposed by SAIL-Bhilai Steel Plant through NSPCL in the next phase, for which DPR has already been prepared and the tender process is likely to start soon.

The foreign portfolio investors (FPIs) continued to offload Indian shares, having sold shares worth $2.2 billion in five days through Friday. The selling continued on Friday as well, marking their biggest selling in 16 weeks.

Earlier, a five-day selling of this magnitude was seen during the week ended January 19, 2024, when they sold shares worth $2.4 billion, as shown by Bloomberg data.

On Friday, FPIs sold equities worth $254 million, and they remained net sellers during the last seven days. However, domestic institutional investors have absorbed most of it by acquiring shares worth a little over $2 billion during the week.

Apart from the concerns surrounding election results, the outperformance of Chinese and Hong Kong markets also weighed on FPI selling. The benchmark index of the Chinese equity market — Shanghai Composite — has gained as much as 4.5% during the last one month. Similarly, the Hang Seng of Hong Kong has rallied 13.4% over the last one month. That compares with a 2.1% drop clocked by the benchmark Nifty50 during the same period.

“So long as this outperformance of the Chinese and Hong Kong market continues, FIIs are likely to sell,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Moreover, the valuation gap between India and other equity markets have also widened off late. According to Bloomberg data, Nifty50 currently trades at 19.2 times its one-year forward earnings, whereas Shanghai Composite Index commands a valuation of 11.1x. Further, Hang Seng trades much cheaper at 9.2 times its 12-month forward earnings.

The ownership of FPIs has declined from its peak on the back of sustained selling and underperformance of some pockets due to cautious investment stance.

“Despite nominal capital inflows recently, FII have displayed a conservative approach, particularly toward sectors, such as the BFSI, where there has been significant retraction. Conversely, there is a slight increase in allocation toward commodity-oriented sectors albeit maintaining an underweight position,” wrote Elara Capital in a strategy note.

The Nifty50 closed Friday’s session at 22,055.20 points up 0.4%. The index has come off almost 2% during the weak to mark its biggest weekly fall in eight weeks.

India’s industrial production grew 4.9 per cent in March this year, according to official data released on Friday.The factory output measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 1.9 per cent in March 2023.

India’s Index of Industrial Production grew by 4.9 per cent in March 2024, an official statement said.The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output grew 5.2 per cent in March 2024 against 1.5 per cent in the year-ago month.In March this year, mining production rose 1.2 per cent, and power output increased 8.6 per cent.

Reliance Industries Ltd on Wednesday said it has acquired a step-down subsidiary engaged in the manufacture of petrochemicals and hydrogen, for Rs 314.48 crore.

In a stock exchange filing, the firm said Reliance Chemicals and Materials Ltd (RCML) is a step-down wholly owned subsidiary of the Company through Reliance Projects & Property Management Services Ltd (RPPMSL).
"It is proposed to make RCML a direct wholly owned subsidiary and hence, the company has today, at around 3:15 p.m., acquired a 100 per cent equity stake of RCML from RPPMSL for an aggregate consideration of Rs 314.48 crore," it said.
RCML was incorporated in India on November 2, 2022, to undertake the business of manufacturing petrochemicals, vinyls, hydrogen & its derivatives, rare and industrial gases, bio-energy products and carbon fibre.
"The transaction is between the company and its wholly-owned subsidiary and hence a related party transaction. It is on arm's length basis," Reliance said adding no governmental or regulatory approvals were required for the above transaction.

Tata Power has planned a 66 per cent higher capital expenditure of Rs 20,000 crore in this fiscal compared to a year ago, which will mainly focus on projects supporting energy transition and India's net-zero emission target by 2070.
 
During the year ended March 2024, the capex (capital expenditure) was around Rs 12,000 crore, the company's CEO Praveer Sinha said during a post earnings conference call.
"This year we are targeting to spend around Rs 20,000 crore," he said in reply to a question on company's planned capex.
Sharing the breakup of the investment plant, Sinha said about 50 per cent will be on renewables (projects). The remaining will be mix of transmission, distribution and conventional projects.
The company will fund the capex through internal accruals and some debt, Sinha said.
 
Tata Power on Wednesday posted an 11 per cent rise in its consolidated net profit to Rs 1,046 crore in the March 2024 quarter compared to the year-ago period, mainly on the back of higher revenues.
 
The consolidated profit stood at Rs 939 crore in the quarter ended on March 31, 2023, a BSE filing showed.
 
In the renewable energy segment, Tata Power's 4.3 GW Cell & Module manufacturing facility in Tirunelveli, Tamil Nadu has commenced production and commercially produced around 130 MW of modules.
 
During FY24, the company won two projects worth Rs 2,300 crore under Tariff-Based Competitive Bidding (TBCB) process –- the Interstate Transmission System (ISTS) - Bikaner III Neemrana II Transmission Ltd and the Intrastate Transmission Scheme in Uttar Pradesh through SPV Jalpura Khurja Power Transmission Ltd.
 
The company is on an accelerated growth trajectory of transitioning to green energy and aiming for around 70 per cent of capacity from non-fossil-based fuels by 2030.
 
As of March 31, 2024, the company has 4.5 GW of renewable capacity operational and another 5.5 GW of projects under implementation, taking the total green energy portfolio to over 10 GW.
The company has 6,277 Ckm (circuit kilometres) of transmission lines portfolio including 1,651 Ckm capacity in pipeline. 

L&T to set up 2 floating solar plants in India, power grid projects in UAE, Kuwait, Oman
The PT&D business of L&T has won orders from Kuwait, UAE, and Oman for various power grid system projects and RE projects within India

Summary:

• L&T has bagged orders to establish two Floating Solar Plants in India
• L&T has also received orders to establish 765 kV Transmission Lines and a Gas Insulated Substation to integrate Solar Energy Zones
• The company has secured another order in Kuwait to build a 400kV Gas Insulated Substation
• L&T has received orders to build a 400 kV Overhead Transmission Line and two 400 kV Grid Stations in Oman
• L&T will has construct two 132 kV Substations with associated works in the UAE

Mumbai: The Power Transmission & Distribution (PT&D) business of Larsen & Toubro (L&T) has won orders from Kuwait, the United Arab Emirates (UAE) and Oman for various power grid system projects and renewable energy (RE) projects within India, said the company in a statement on Wednesday. “The Power Transmission & Distribution (PT&D) business of Larsen & Toubro has won multiple orders in India and abroad which stand testimony to its dominant position in the region’s clean energy space. The business has bagged orders to establish two Floating Solar Plants in India. The orders comprise a cumulative floating solar capacity of more than 150 MWac, in addition to a ground-mounted Solar PV of 120 MWac capacity,” said the statement.

Floating solar projects involve mounting solar modules on structures that float in a water body, typically a reservoir/ lake/ abandoned quarry. Compared to ground-mounted solar plants, floating solar plants do not require land acquisition and typically involve less civil works. There are other site-specific merits too, besides reduction of water evaporation.

L&T has also received orders to establish 765 kV Transmission Lines and a Gas Insulated Substation to integrate Solar Energy Zones in Rajasthan and Karnataka. These crucial links will enable the evacuation of Renewable Energy to load centres in various parts of the country.

L&T secures orders from Kuwait, Oman & UAE

The company has also secured another order in Kuwait to build a 400kV Gas Insulated Substation. This substation will be instrumental in powering the residential clusters being developed as part of South Sabah Al-Ahmad City project.

The Sultanate of Oman is integrating its multiple standalone electricity networks into a 400 kV national grid. As part of the interconnection and grid strengthening, PT&D has received orders to build a 400 kV Overhead Transmission Line and two 400 kV Grid Stations, said L&T.

Then, in the United Arab Emirates, the business has secured orders to construct two 132 kV Substations with associated works, the statement added.  
Commenting on the development, T Madhava Das, Whole-Time Director & Sr Executive Vice President (Utilities), Larsen & Toubro, said, “Reliable, clean energy is the preferred form for electricity in propelling the growth of both traditional and emerging industries. It is heartening to see that the region makes substantial investments in both renewables and grid infrastructure in a timely manner. Also, solar power and related hybrid technologies witness rapid innovations that are not limited to cell technologies but also encompass project formulation, application areas, design & engineering and construction methods. We are proud to be at the forefront of implementing such technologically advanced projects of critical nature.”