Below is a shortlist of all the important articles from newspapers.
Power demand tops 2020 peak in Delhi
Delhi’s power demand on Thursday surged past last year’s peak as hot and humid weather forced people to reach for their ACs even before all offices and business establishments reopened, says The Times of India.
What the situation is: The electricity consumption touched 6,499 MW — this year’s highest and comfortably past 2020’s peak of 6,314 MW.
Officials expect the city’s power demand to spike to the 7,000-7,400MW range. The figure increased by over 10% in the last 48 hours and over 40% since June 1. Delhi’s highest ever peak power demand is 7,409MW — on July 2, 2019.
A Tata Power Delhi Distribution spokesperson said that the discom successfully met the peak power demand of Thursday, the highest for this season, without any network constraint and power outage.
The company has adequately prepared for the summer season by strengthening its power network
Delhi’s power demand set to almost double in 20 years
Delhi’s population is expected to grow by more than 10 million over the next 20 years and its power needs are projected to double in the same period, says The Times of India.
The way ahead: The draft Master Plan for Delhi 2041 says the capital needs to switch to clean energy, at least to meet around 50% of the energy requirement through renewable sources of energy.
In 2016-17, Delhi per-capita power consumption was 1,561 units per annum against the national average of 1,122 and 78 % of the consumed power was purchased. The remaining comes from installed capacity within Delhi, with coal (59%) being the predominant generator, followed by gas (28%), hydro (10%) and solar power (3%).
Delhi’s state solar policy of 2016 too target meeting around 20% of power consumption from renewable sources by 2022/
The draft MPD41 plan notes that Delhi has a high potential for solar power generation and recommends strategies such as encouraging solar farms in the green development areas envisaged on the city’s periphery.
Edelweiss raising stressed assets fund of $1.5 billion
Edelweiss Financial Services is raising India’s largest distressed assets fund of $1.5 billion, says The Economic Times.
The plan is ahead of an anticipated spike in special-situation takeovers even as Covid-induced solvency challenges deflate enterprise valuations at several debt-heavy companies.
What the plan is: Canada's Ontario Teachers' Pension Plan Board, CDPQ, Swedish pension funds AP1 and AP4, Allianz Investment Management, and Florida's State Board of Administration pension funds are among the global investors in discussions with Edelweiss.
The distressed assets fund could open for subscription in the next few weeks.
The fund will focus on the revival and turnaround of stressed companies, thereby helping in debt resolution.
The fund will buy stressed loans, provide cash for last-mile funding, and advance working capital to projects and companies.
At present, India has more than $150 billion of stressed assets.
Companies in asset-heavy sectors, including infrastructure, metals, power and construction, make up the majority of bad loans in the country.
PE funds keen to grab India opportunities, Kedaara set to close $1 bn
Kedaara Capital has raised more than $1 billion for its third fund, The Economic Times It is perhaps the largest fundraising by an India-dedicated private equity firm.
How it is important: Kedaara will manage nearly $2.5 billion in assets, behind ChrysCapital and Everstone among large Indian PE firms.
The over two-decade-old ChrysCapital manages around $4 billion across its various funds, while Everstone's platform includes a large real estate asset pool.
But it returned $300 million to sponsors due to a lack of viable investment opportunities in the aftermath of the 2008 global financial crisis.
Stimulus measures may be extended and expanded
Covid-related relief programmes and stimulus measures could be extended, says The Economic Times.
How it is important: It will be given greater funding and expanded to support more businesses and sectors hit by the pandemic.
The finance ministry will push ministries for a quick rollout and frontloading of the ₹5.54 lakh crore capital spending announced in the budget.
The flagship Emergency Credit Line Guarantee Scheme, which now covers nearly 30 sectors including civil aviation and hospitals, could be expanded to more areas with easier conditions and provided higher capital support.
Income tax breaks provided to the construction and real estate sector may be extended.
The rural employment scheme could be given more funds to provide assistance until the economy opens up fully and people are able to return to regular work.
At $8.8 million, Wipro’s CEO paid more than peers at TCS, Infy
Wipro chief executive Thierry Delaporte received a total compensation of $8.8 million in the financial year 2021, says The Economic Times citing US Securities and Exchange Commission filings.
It makes him the highest paid CEO among the country’s three largest software exporters.
A one-time cash award and stock grants boosted Delaporte’s earnings.
Infosys chief executive Salil Parekh’s total compensation stood at ₹49.68 crore (about $6.78 million).
Rajesh Gopinathan, CEO of India’s largest IT services company, Tata Consultancy Services, took home a total of ₹20.3 crore (approximately $2.8 million).
Wipro chairman Rishad Premji’s compensation for FY21 rose 136% to $1.62 million compared to the previous fiscal.
The jump in Premji’s compensation is due to his foregoing variable compensation and profit-linked commission in FY20 as a “sign of solidarity” and amid business uncertainties caused by the pandemic.
Sensex at 200,000 likely in 10 years: Raamdeo Agrawal
The Sensex is likely to quadruple over the next ten years and hit the 200,000 mark, says The Economic Times quoting Raamdeo Agrawal, chairman of Motilal Oswal Financial Services.
What the outlook is: Healthy growth in corporate profits and favourable demographics are his reasons.
Agrawal advised not to bet against India despite the challenges.
There can be speed and slowdowns...India is an amazing opportunity.
He expects corporate profits to grow at 15% on a compounded basis for Sensex to touch the 200,000-mark.
The favourable conditions are a vibrant democratic country, a burgeoning middle class, dominated by a high youth population and is moving forward towards a unified market.
He expects a K-shaped recovery in some sectors and larger businesses will recover faster.
Companies raise capital on fears of third wave
Preparing for a potential third wave of the pandemic, several corporates are raising additional capital to bolster their balance sheets, Mint said.
How it is important: The trend is more visible in consumer-facing sectors such as civil aviation, tourism, retail and automobiles.
More companies are likely to initiate fundraising efforts.
InterGlobe Aviation Ltd, which operates IndiGo, approved a plan in May to raise ₹3,000 crore by selling shares to institutional investors.
It plans to raise an additional ₹4,500 crore by securing credit lines from lenders and entering into sale and leaseback pacts with aircraft lessors.
Wadia Group-controlled Go Airlines (India) Ltd, which runs the GoFirst budget airline, plans to go for an initial public offering (IPO) to raise as much as ₹3,600 crore.
Inox Leisure Ltd, the second-biggest multiplex chain operator, launched a ₹300 crore share sale to strengthen its balance sheet.
Several automakers also are also readying contingency plans to deal with any future emergency.
Scheme to boost EV sales fails to take off
India’s ambitious scheme to promote electric mobility has hit the skids, with only 5%, or ₹492 crore, of the ₹10,000 crore allocated under its second phase spent till March, Mint said.
How it is important: Reducing vehicular emissions and dependence on fossil fuels is a crucial part of the government’s strategy to tackle climate change.
India is running the world’s largest clean energy programme and is aiming for a leadership role in tackling climate change.
The programme, Fame-2, started with a very good plan and targets, could not take off owing to limited business models.
Electric vehicles are costlier than traditional vehicles with internal combustion engines.
The Covid outbreak also impacted.
The money under Fame-2 was to be spent to subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.
Till March, only 2.4%, or 12,129, of targeted electric three-wheelers and 4.3%, or 43,184, of targeted electric two-wheelers had received subsidies under Fame-2.
Also, of the 7,090 electric buses to be subsidized, 6,265 were sanctioned to the States. Of these, supply orders have been issued for 3,118 buses by state transport utilities.
Apollo weighs credit transaction options
More than a year after ending its joint venture vehicle with ICICI Venture, Apollo Global Management is exploring multiple structures for its credit transactions, including setting up an Alternative Investment Fund, says Mint.
What the plans are: The New York-based buyout shop is also looking to strike deals in companies that have stronger, bigger balance sheets that can withstand disruptions such as a pandemic.
Focus will be to do relatively large-ticket investments through the hybrid value fund
It is in discussions to close a couple of structured equity transactions.
Apollo Global expects to deploy $400-500 million every year.
On control buyouts, it will look at deal ticket sizes above $200 million.
On the structured financing transactions, it may look at smaller transactions, but would still prefer a ticket size of $100 million.
Monsoon racing across India after arriving late
The South-west monsoon may have arrived two days late in Kerala, but it has picked up pace and swept across nearly half of the country six days ahead of schedule, Hindustan Times said quoting the India Meteorological Department.
How it is important: The early arrival of the monsoon is good news for farmers.
Almost 60% of India’s cultivated area is rain-fed, and the monsoon crop, kharif, depends entirely on the arrival and intensity of the monsoon.
In general, good monsoons bode well for the rural economy.
With experts indicating that it could cover the entire nation about a fortnight before its normal date of July 8 under favourable conditions.
The earliest the monsoon has covered the entire country in the past is June 16, 2013, nine years ago.
India recorded 21% excess rain between June 1 and 9, with the rainfall in May being the second-highest since 1901 at 107.9mm.
Applied Materials explores setting up a plant in India
US major Applied Materials Inc is planning to set up a plant in India, says Business Standard.
How it is important: This would make some of the parts and components for highly complex equipment which are used for manufacturing semiconductor chips by fabmakers across the globe.
If the plan materialises, it could provide a big push to the government´s desire to have a semiconductor industry and ecosystem in the country.
It would also integrate India into the company´s global supply chain.
Businesswise, we are hopping across boundaries of the box: Ajay Bijli
Ajay Bijli, chairman and managing director, PVR Ltd, and Gautam Dutta, CEO of PVR Ltd, in an interview with Business Standard says that though it was difficult, this has been a period of introspection and innovation.
Most affected: They say that they are one of the most affected industries.
And it has been devastating from that point of view.
There are few factors that keep them optimistic.
One of them is that the Indian market considers moviegoing as the Number 1 form of entertainment.
The movies that were released did very well.
OTT versus going to the movies is something like “utilitarian versus experiential”; like eating out of microwave versus going to a restaurant.
Bijli said the only thing that would have helped was if we had got some government support.