The increase in imported photovoltaic (PV) module price level by about 15-20 per cent is likely to impact returns of solar power project developers, ratings agency ICRA said.
Accordingly, the price increase has taken place over the last 4-5 months, to around 22-23 cents per watt as on date.
"This price rise has been mainly driven by a sharp increase in the price of polysilicon, a key input for cell and module manufacturers."
As per an ICRA note, given the import dependency for PV modules for a majority of the solar power installations in India, such hardening in the price of PV modules, if sustained, remains a near-term headwind.
"This risk is especially significant for the capacity won by developers through the bidding route over the last six to nine months at tariffs ranging largely between Rs 2 per unit and 2.25 per unit; and scheduled to be commissioned over the next 12-15-month period."
"This apart, the recent surge in metal prices is also leading to upward pressure on the overall capital cost for solar power projects."
According to the note, given the PV module component comprises about 50-55 per cent of the overall project cost, such increase in the module price level by about 4-5 cents per watt if sustained, is likely to moderate the debt service coverage metrics for the project developers by about 12-14 basis points.
Alternatively, the tariff increase required to offset such a module price increase is estimated at about 20-22 paise per unit.
Besides, the impact of the basic customs duty (BCD) on imported PV modules, is likely to result in the overall bid tariff to increase by about 55-60 paise per unit for the forthcoming auctions.
Nonetheless, the solar bid tariff, after factoring in this dual impact, is still likely to remain below Rs 3 per unit.
However, given the near-term headwind related to module price levels, the credit outlook on the solar energy sector remains stable, the note added.
Fears of foreign funds exiting India pulled India's stock markets lower during per-noon trade session on Thursday.
Accordingly, the fears were triggered by US Fed statement on the eventual restart of liquidity tapering programme.
The development assumes significance as it can lead foreign capital away from EMs such as India.
On Thursday, the Fed's statement sent shock waves in the Asian as well as domestic markets.
The US Federal Reserve has projected at least two interest rate hikes in 2023, a year earlier than forecasted in the March meeting.
Around 11.55 a.m., Sensex was trading at 52,363.92, lower by 138.06 points or 0.26 per cent from its previous close of 52,501.98 points.
It opened at 52,122.25 and has touched an intra-day high of 52,523.88 and a low of 52,099.72 points.
The Nifty on the National Stock Exchange was trading at 15,754.25, lower by 13.30 points or 0.084 per cent from its previous close.
"Indian markets open lower on Thursday due to weak Asian cues post US Feb statement on Wednesday night. However, they have recovered from a lower level as the impact of the US Fed statement could be limited on emerging markets including India," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Select midcaps are back in favour as traders interest remains high."
According to Gaurav Garg, Head of Research at CapitalVia Global Research: "In morning trades, Indian equity benchmarks remained in the red, reflecting losses in index heavyweights amid a mainly negative trend in global stocks."
"Sentiment remained downbeat as the second Covid wave had a negative impact on bank deposits and currency holdings among the public, according to an RBI report, indicating a large outflow of funds for pandemic-related medical expenses."
Former Finance Minister P. Chidambaram has alleged that contrary to the claims of Finance Minister Nirmala Sitharaman, GST dues of Congress-ruled states Rajasthan and Chhattisgarh are yet to be cleared.
"More numbers on GST dues. For Rajasthan, the GST dues upto 31-3-2021 were Rs 4,635 crore. This number was mentioned in CM's letter to FM. In 2021-22, add another Rs 2,507 crore upto May. Total dues, so far, are Rs 7,142 crore
"For Chhattisgarh, GST dues upto 1-6-2021 are Rs 3,069 crore. Yet, the FM claimed that she had cleared GST dues to all states!" the former union minister said in a statement on Wednesday.
GST collection for the month of May stood at Rs 1,02,709 crore, as per the Ministry of Finance, its eighth month in a row when GST revenue has stayed above the Rs 1 lakh crore mark.
India's gross GST revenue collection reached a new record high of over Rs 1.41 lakh crore in April 2021, beating all expectations of lower collections in wake of disruptions clauses by fresh wave of Covid-19.
Accordingly, the GST revenues during April 2021 were the highest since the introduction of the tax. The same feat was achieved even in March when collections at over Rs 1.23 lakh crore was the highest since introduction of GST in 2017.
Adani Group stocks may have been on fire in recent months adding to Gautam Adanis wealth but an analysis of shareholdings reveals similar set of top FPI holdings across the stocks.
In addition, in many cases, institutional and mutual funds holdings have decreased in the March 2021 quarter. In addition, mutual fund holdings in the stocks are very low.
The Adani Group stocks also have the same set of foreign portfolio investors among the big shareholders in that category. Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in Adani Group Companies were in a controversy yesterday on reports that their share accounts were frozen but was later clarified that they are active.
As per Trendlyne data, for Adani Green Energy, institutional Investors have decreased holdings from 23.09% to 21.77% in March 2021 quarter. Mutual Funds have decreased holdings from 0.13% to 0.12% in March 2021 quarter. The top FPs are Asia Investment Corporation (Mauritius), APMS Investment Fund, Elara India Opportunities Fund, LTS Investment Fund. Marshal Global Capital Fund and Polus Global Fund are not found among top FPI holders in other Adani Group stocks. The others are Vespera Fund, Albula Investment Fund. New Leania Investments is also not among the similar funds list for other stocks.
For Adani Ports, institutional Investors have decreased holdings from 33.5% to 32.8% in the quarter. Mutual Funds have decreased holdings from 3.95% to 3.55% in March 2021 quarter. Camas Investments is the top FPI while LIC holds 10.77 per cent in the domestic category.
For Adani Enterprises, institutional Investors have decreased holdings from 21.5% to 21.35% in the said quarter. Mutual Funds have decreased holdings from 1.09% to 0.73% in the quarter. The top FPIs are Elara India Opportunities Fund, Cresta Fund, Albula Investment Fund, Vespera Fund, LTS Investment Fund, APMS Fund. Apart from these funds which are similar to other Adani Group stocks, the new addition is Nomura Singapore.
In the case of Adani Power, Institutional Investors have decreased holdings from 18.88% to 18.61% in March 2021 quarter. Mutual Funds holding remains unchanged at 0.0% in the quarter. The top FPI holders are Elara India Opportunities Fund and Asia Investment Corporation (Mauritius).
For Adani Transmission, the story is different with institutional Investors have increased holdings from 22.47% to 22.84% in March 2021 quarter. Mutual Funds have decreased holdings from 0.14% to 0.12% in the quarter. The same funds are top shareholders in the institutional category and only Asia Investment Corporation (Mauritius) is added in the category.
In the case of Adani Total Gas, institutional Investors have increased holdings from 21.05% to 21.27% in the quarter. Mutual Funds holding remains unchanged at 0.02% in March 2021 quarter. The major FPIs are Elara India Opportunities Fund, APMS Investment, Albula Investment, LTS Investment, Vespera Fund, Cresta Fund, as per Trendlyne data.
The Adani Group stocks also have the same set of foreign portfolio investors among the big shareholders in that category.
Exponential rise in food prices sequentially rocketed India's retail inflation in May as the Consumer Price Index (CPI) increased by over 6.30 per cent.
According to the data furnished by the National Statistical Office (NSO), the CPI rose by 6.30 per cent last month from 4.23 per cent in April.
Region wise, the CPI Urban rose by 6.04 per cent last month from 4.71 per cent in April.
Similarly, the CPI Rural climbed by 6.48 per cent in May from 3.75 per cent in April.
As per the NSO data, Consumer Food Price Index increased to 5.01 per cent last month from a rise of 1.96 per cent in April.
The CFPI readings measure the changes in retail prices of food products.
Shares of Adani Group companies witnessed a massive drubbing in morning trade on Monday, tumbling up to 25 per cent, amid reports that the National Securities Depository Ltd (NSDL) has frozen certain FPIs accounts that have holding in some of these firms.
Adani Enterprises tumbled 24.99 per cent to Rs 1,201.10, Adani Ports and Special Economic Zone plummeted 18.75 per cent to Rs 681.50 on the BSE.
Among others, Adani Green Energy dipped 5 per cent to Rs 1,165.35, Adani Total Gas fell 5 per cent to Rs 1,544.55, Adani Transmission declined 5 per cent to Rs 1,517.25 and Adani Power slumped 4.99 per cent to Rs 140.90.
All these stocks hit their respective lower circuit limits.
According to media reports, the National Securities Depository Ltd has frozen the accounts of three foreign funds which together own shares in four Adani Group companies.
These accounts were frozen on or before May 31, the report added.
The key Indian equity indices declined on Monday morning tracking mixed cues from the Asian market along with profit booking by traders after the indices scaled new highs last week.
The across-the-board selloff was led by auto, finance and banking stocks.
Around 9.45 a.m., Sensex was trading at 52,166.60, lower by 308.16 points or 0.59 per cent from its previous close of 52,474.76.
It opened at 52,492.34 and touched a high of 52,542.66 and a low of 51,936.31 points.
The Nifty50 on the National Stock Exchange was trading at 15,676.60, lower by 122.75 points or 0.78 per cent from its previous close.
The major losers on the Sensex so far were State Bank of India, HDFC and NTPC, while the top gainers were Infosys, Tata Steel and Tata Consultancy Services.
The 44th meeting of the GST Council, the second this year in the midst of the second wave of Covid pandemic, began on Saturday morning through video conferencing.
The meeting is being chaired by finance minister Nirmala Sitharaman and is being attended by finance ministers of all states and union territories. Senior officers from the Centre and States are also present in the meeting.
The meeting is taking place after the 43rd meeting of the Council on May 28 announced a series of duty concessions on Covid relief items in addition to relaxation of compliance measures for taxpayers.
At the last meeting of the Council, it was decided to form a group of ministers (GoM) to examine the need for further reductions and decide on any new rates for medical equipment and vaccines.
The meeting is expected to consider recommendations of the GoM while offer more compliance relaxation to taxpayers.
It may also announce few measures to correct the inverted duty while discuss the compensation cess dues arising in 2021-22 due to a possible shortfall in cess collections.
Two other important items including lowering of GST rates for two wheelers and bringing natural gas into the indirect tax fold may also be included in the agenda for discussion.
Sources said certain states like Punjab have sought GST duty cut on essential medical supplies meant for Covid treatment. The council may accordingly discuss some of the measures like reducing GST or exempting from duty of Corona virus related items like hand sanitisers, face masks, gloves, PPE Kits, temperature scanners, oximeters, certain Covid medicines and ventilators among others based on suggestions of the GoM.
The meeting is also to take political colour with few opposition ruled states like West Bengal, Punjab have been pushing for exempting Covid vaccine from GST. The finance ministry has been opposing such a move that would deny the benefit input tax credit for producers.
Also, the GST compensation for FY22 is expected to dominate the discussions of the Council with States seeking higher compensation in the wake of fall in tax revenue expected this year due to pandemic related disruptions and lockdowns in various parts of the country.
The US budget deficit soared to $2.1 trillion during the first eight months of fiscal year 2021, which ends on September 30, the Treasury Department reported.
Federal revenue for the eight-month period ending in May rose to $2.6 trillion, while total outlays rose to $4.7 trillion, driven by payments for jobless benefits and Covid-19 relief programs, Xinhua news agency reported citing the Department as saying on Thursday.
"While the final payment of individual taxes for calendar year 2020 were shifted into May 2021, greater outlays associated with the pandemic response still resulted in a deficit this year," the Treasury added.
The White House last month unveiled a $6 trillion budget proposal for fiscal year 2022, drawing backlash from Republican lawmakers and budget watchers.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, has urged the administration to take stock of its unsustainable fiscal outlook and put an end to further government borrowing.
"We're borrowing even more this year than we did last year, and with nearly $2.1 trillion in deficits so far this year, our debt is rapidly approaching a new record. Once we are through the Covid-19 crisis, policymakers will need to work together to get our growing debt under control and secure our endangered trust funds," MacGuineas said in a statement.
"It's time to put an end to further government borrowing. Going forward, legislation should be fully paid for and reconciliation instructions should be budget neutral, if not deficit reducing."
New Delhi, June 10 (IANS) Tata Digital Limited, a 100 per cent subsidiary of Tata Sons Private Limited, will acquire a majority stake in digital health company 1MG Technologies Private Limited (1MG).
The investment in 1MG is in line with the Tata Group's vision of creating a digital ecosystem that addresses consumer needs across categories in a unified manner, a company statement said.
E-pharmacy, e-diagnostics, and teleconsultation are critical segments in the present ecosystem and have been among the fastest-growing segments in this space, as it enables access to healthcare during the pandemic, it said.
The overall market is around $1 billion and is expected to grow at ~50 per cent CAGR, driven by increased health awareness among the consumers and greater convenience. This category will form a key element of the Tata Digital ecosystem offering, the statement said.
Commenting on the investment, Pratik Pal, CEO of Tata Digital, said, "The investment in 1MG strengthens Tata's ability to provide superior customer experience and high-quality healthcare products and services in the e-pharmacy and e-diagnostics space through a technology-led platform."
Prashant Tandon, Co-founder and CEO, 1MG, said, "We are delighted to join hands with one of India's most iconic and respected conglomerates. This marks a significant milestone in 1MG's journey to make high-quality healthcare products and services accessible to the customers across India."
Earlier this week, Tata Digital entered into a Memorandum of Understanding (MoU) for an investment of up to $75 million in CureFit Healthcare Private Limited (CureFit), subject to completion of diligence process and other approvals.
CureFit Founder and CEO Mukesh Bansal will join Tata Digital in an executive role as President, Tata Digital Limited. In addition, Bansal will continue in his leadership role at CureFit.
In May, Tata had acquired a majority stake in Supermarket Grocery Supplies Private Limited (BigBasket) – India's largest e-commerce player in the food and grocery segment.
E-grocery has been one of the fastest-growing segments in the consumer e-commerce space and its growth is propelled by India's rising consumption and digital penetration.
The current pandemic has further accelerated its adoption as consumers seek the convenience of ordering quality groceries delivered safely at home.
BigBasket was founded in 2011 in Bengaluru and has expanded its presence to 25+ cities across India since then.
In the e-grocery space, BigBasket provides one of the largest assortments (50,000+ SKUs) and provides customers the convenience of home deliveries on preferred dates and time slots.
It also operates a farm-to-fork supply chain with over 12,000 farmers and several collection centers across India.
India's agriculture exports (including marine and plantation products) have beaten the pandemic registering a growth of 17.34 per cent to $ 41.25 billion in 2020-21, a top commerce ministry official said on Thursday.
Speaking to the media, commerce secretary Anup Wadhawan said that excellent growth of Agri exports in FY21 has come after it remained stagnant for the past three years (USD 38.43 billion in 2017-18, USD 38.74 billion in 2018-19 and USD 35.16 billion 2019-20).
In rupee terms, the increase is 22.62 per cent with exports during 2020-21 amounting to Rs 3.05 lakh crore as compared to Rs 2.49 lakh crore during 2019-20.
India's agricultural and allied imports during 2019-20 were USD 20.64 billion, and the corresponding figures for 2020-21 are USD 20.67 billion. Despite COVID-19, the balance of trade in agriculture has improved by 42.16% from USD 14.51 billion to USD 20.58 billion.
For agriculture products (excluding marine and plantation products), the growth is 28.36% with exports of USD 29.81 billion in 2020-21 as compared to USD 23.23 billion in 2019-20. India has been able to take advantage of the increased demand for staples during the COVID-19 period.
Huge growth has been seen in export of cereals with export of non-basmati rice growing by 136.04% to USD 4794.54 million; wheat by 774.17% to USD 549.16 million; and other cereals (millets, maize and other coarse gains) by 238.28% to USD 694.14 million.
Other agricultural products, which registered a significant increase in exports as compared to 2019-20, were oil meals (USD 1575.34 million -growth of 90.28%), sugar (USD 2789.97 million - growth 41.88%), raw cotton (USD 1897.20 million - growth 79.43%), fresh vegetables (USD 721.47 million - growth 10.71%) and vegetable oils (USD 602.77 million- growth 254.39%) etc.
The largest markets for India's agriculture products are the USA, China, Bangladesh, UAE, Vietnam, Saudi Arabia, Indonesia, Nepal, Iran and Malaysia. Exports to most of these destinations have registered growth, with the highest growth being recorded for Indonesia (102.42%), Bangladesh (95.93%) and Nepal (50.49%).
Export of spices like ginger, pepper, cinnamon, cardamom, turmeric, saffron etc., which have known therapeutic qualities, has also grown substantially. During 2020-21, export of pepper increased by 28.72% to USD 1269.38 million; cinnamon by 64.47% to USD 11.25 million; nutmeg, mace and cardamom by 132.03% (USD 189.34 million vs USD 81.60 million); and ginger, saffron, turmeric, thyme, bay leaves etc. by 35.44% to USD 570.63 million. Export of spices touched the highest ever level of around USD 4 billion during 2020-21.
The organic exports during 2020-21 were USD 1040 million as against USD 689 million in 2019-20, registering a growth of 50.94%. Organic exports include oil cake/meals, oil seeds, cereals and millets, spices and condiments, tea, medicinal plant products, dry fruits, sugar, pulses, coffee etc.
Exports have also taken place from several clusters for the first time. For instance, export of fresh vegetables and mangoes from Varanasi and black rice from Chandauli has taken place for the first time, directly benefitting farmers of the area. Exports have also taken place from other clusters viz. oranges from Nagpur, bananas from Theni and Ananthpur, mangoes from Lucknow etc. Despite the pandemic, export of fresh horticulture produce took place by multimodal mode and consignments were shipped by air and sea to Dubai, London and other destinations from these areas. Handholding by the Department for market linkages, post-harvest value chain development and the institutional structure such as FPOs, enabled North East farmers to send their value-added products beyond the Indian borders.
Cereal exports have done well during 2020-21. The country has been able to export to several countries for the first time. For example rice has been exported to countries like Timor-Leste, Puerto Rico, Brazil, for the first time. Similarly wheat has been exported to countries like Yemen, Indonesia, Bhutan and other cereals have been exported to Sudan, Poland Bolivia.
( Courtesy IANS )