Current Affairs 23 August 2024

India’s Telecom Sector Sees Impressive Growth in FY24: TRAI Annual Report

The Telecom Regulatory Authority of India (TRAI) has released its annual report for the Financial Year 2023-24 (FY24), showing significant growth in the telecom sector. The teledensity in India increased from 84.51% in March 2023 to 85.69% in March 2024, marking a 1.39% annual growth. The report is based on data from service providers and the Ministry of Telecommunications.

Key Highlights from the Report:

1. Internet Subscribers: The number of internet subscribers grew from 88.1 crore in March 2023 to 95.4 crore by March 2024, an 8.30% increase, adding 7.3 crore subscribers.
2. Broadband Subscribers: Broadband subscribers increased from 84.6 crore in March 2023 to 92.4 crore in March 2024, a 9.15% growth, adding 7.8 crore subscribers.
3. Wireless Data Consumption: Wireless data subscribers rose from 84.6 crore in March 2023 to 91.3 crore in March 2024, a 7.93% growth, with total data usage surging 21.69% from 1,60,054 PB to 1,94,774 PB.
4. Tele-density: Telephone subscribers increased from 117.2 crore in March 2023 to 119.9 crore in March 2024, a 2.30% growth, raising the overall tele-density from 84.51% to 85.69%.
5. Minutes of Usage (MOUs): Average MOUs per subscriber per month increased from 919 in FY23 to 963 in FY24, a growth of 4.73%.
6. Adjusted Gross Revenue (AGR): AGR increased from Rs 2,49,908 crore in FY23 to Rs 2,70,504 crore in FY24, showing an 8.24% growth.

MoSPI Creates Two Survey-Based Verticals in Recast

The Ministry of Statistics and Programme Implementation (MoSPI) has restructured its operations by creating two new survey-based verticals. This aims to increase the frequency of various surveys, such as the Periodic Labour Force Survey (PLFS), and reduce the time lag in their release. The restructuring also includes separating state and international cooperation units from its existing Intra, Inter, and International Coordination (II & IC) Unit and creating divisions for household and enterprise surveys.

SEBI Introduces New Guidelines for Borrowing by Category-I and Category-II AIFs and LVF Tenure Extension

On 19th August 2024, the Securities and Exchange Board of India (SEBI) introduced new guidelines for borrowing by Category-I and Category-II Alternative Investment Funds (AIFs). It also extended the maximum permissible tenure for Large Value Funds for Accredited Investors (LVFs). These guidelines are amendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.

Key Points:

1. Category-I and Category-II AIFs can now take loans for temporary funding and operational requirements for up to 30 days, not exceeding 10% of the investable funds.
2. Borrowing can occur a maximum of 4 times a year.
3. LVFs can extend their tenure up to 5 years with the consent of two-thirds of the unit holders by value.
4. SEBI has introduced a new framework for Venture Capital Funds (VCFs) to migrate to AIF rules.

RBI Releases Framework for SROs in Financial Markets

On 19th August 2024, the Reserve Bank of India (RBI) released a ‘Framework for Recognition of Self-Regulatory Organisations (SROs) in Financial Markets’ to enhance compliance culture and provide a consultative platform for policy-making. The framework is based on the ‘Omnibus Framework for recognition of Self-Regulatory Organisations for Regulated Entities of the Reserve Bank’ issued on 21st March 2024.

Key Points:

1. Interested entities seeking recognition as an SRO in financial markets can submit their applications via email or to the Chief General Manager (CGM), Financial Markets Regulation Department, RBI.
2. SRO financial markets must be set up as a Non-for-Profit company registered under Section 8 of the Companies Act, 2013.

NRI Deposits Surge USD 4 Billion in Q1 in Contrast with a 24% Drop in Outward Remittances: RBI Data

According to data released by the Reserve Bank of India (RBI) on 19th August 2024, Non-Resident Indians (NRIs) deposited nearly USD 4 billion into NRI deposit schemes in the first quarter (Q1) of Financial Year 2024-25 (FY25), a 79% increase compared to USD 2.21 billion during the same period of FY24. However, outward remittances under the Liberalised Remittance Scheme (LRS) dropped by 24.39%, totaling USD 6.9 billion in Q1 of FY25, down from USD 9.1 billion in Q1 of FY24.

Key Points:

1. Foreign Currency Non-Resident (FCNR) deposits increased from USD 1.12 billion in Q1 of FY24 to USD 1.68 billion in Q1 of FY25, with the total outstanding amount in such accounts reaching USD 27.41 billion.
2. Overall remittances decreased by around 44% Year-on-Year (Y-o-Y) to USD 2.18 billion.
3. The largest segment of outward remittances, International Travel, registered a 6% decrease to USD 3.8 billion in Q1 of FY25 from USD 4.07 billion in Q1 of FY24.

RBI Grants Approval to IndusInd Bank to Set up Mutual Fund Asset Management Business

The Reserve Bank of India (RBI) has granted approval to IndusInd Bank Limited to set up a wholly-owned subsidiary to undertake the asset management business of Mutual Funds (MF). The approval is subject to additional conditions that the bank must meet.

Key Points:

1. The new Asset Management Company (AMC) will handle MF operations and benefit from an equity infusion by the bank.
2. The establishment of the MF subsidiary will enable IndusInd Bank to offer a broader range of investment options to customers.
3. This move aligns with the bank’s goal of expanding its financial services portfolio and enhancing its market share in the asset management industry.

ABFL Partners with AU Small Finance Bank to Launch Co-branded Credit Card

Aditya Birla Finance Limited (ABFL), a subsidiary of Aditya Birla Capital Limited (ABCL), has partnered with AU Small Finance Bank (SFB) Limited to launch Aditya Birla Finance AU credit cards. These co-branded credit cards are powered by Visa and RuPay networks and are available in four variants to cater to a wide range of customers.

Four Variants of Co-branded Credit Card:

1. ABC AU Flex: Designed for the mass market in India.
2. ABC AU Nxt: Targeted at millennials with specialized features.
3. ABC AU Pro: A high-end card offering premium benefits for affluent individuals.
4. ABC AU Biz: Designed for entrepreneurs and business owners with features beneficial for business-related expenses.

Rewards and Benefits:

1. Various reward points across categories like lifestyle, travel, dining, education, entertainment, utilities, and insurance.
2. Unlimited fuel surcharge waiver of 1%.
3. Lifetime-free benefits for ‘Flex’ and ‘Nxt’ variants.
4. Accelerated reward points and airport lounge access for the ‘Pro’ variant.
5. Up to 30% discount across select dining partners for the ‘Biz’ variant.

Mynd IFSC Launches M1NXT in GIFT City for Global Trade Finance

Mynd IFSC Private Limited, a subsidiary of Mynd Solutions Private Limited, has received approval from the International Financial Services Centres Authority (IFSCA) to launch its ITFS (International Trade Financing Services) platform ‘M1NXT’ at the International Financial Services Centre (IFSC) in GIFT (Gujarat International Finance Tec) City, Gandhinagar, Gujarat. This platform allows Indian Micro, Small, and Medium Enterprises (MSMEs) to access global factoring services.

About M1NXT ITFS:

1. Indian MSMEs can obtain financing from foreign banks registered under M1NXT ITFS at lower costs.
2. The platform has launched commercial transactions in partnership with SBI GIFT City IBU, SBI Frankfurt, Yes Bank Limited, Union Bank of India, Drip Capital Inc., and various exporters and importers.
3. It addresses working capital needs by converting trade receivables into cash quickly, supporting global trade with transparent, cost-effective financing.
4. IndusInd Bank Limited is the first bank to participate in export financing transactions on the M1NXT ITFS platform.
5. In June 2024, M1NXT completed 17 live commercial transactions during its Sandbox testing phase.
6. It aims to play a crucial role as India targets an export goal of $1 trillion by 2030 and aims to become the third-largest economy globally.

LIC Housing Launches ‘Griha Rakshak’ Home Loan Scheme for Armed Forces

Life Insurance Corporation of India (LIC) Housing Finance Limited (LIC HFL) has launched ‘Griha Rakshak,’ a special home loan scheme dedicated to the Indian armed forces. It offers discounted interest rates and benefits to both serving and retired personnel.

About Griha Rakshak Scheme:

1. Eligible candidates with a Credit Information Bureau India Limited (CIBIL) score of 750 or above can apply for home loans up to Rs 2 crore at an affordable 8.4% annual interest rate.
2. Processing fees for this loan have been eliminated under a limited period offer available until September 30, 2024.
3. The offer is open to all active and retired personnel from the Indian Army, Indian Navy, Indian Air Force, Indian Coast Guard, and paramilitary forces.

BoB Secures Loan Deal of Rs 5,000 Crore with SAIL

Bank of Baroda (BoB) has secured a Rs 5,000 crore loan deal with Steel Authority of India Limited (SAIL), offering a 7.49% interest rate for a five-year period linked to the 364-day treasury bill. The loan will be used to fund SAIL’s capital expenditure and working capital requirements.

Key Points:

1. The interest rate offered by BoB is significantly lower than its average yield on advances, indicating a strategic decision to prioritize market share and relationship building with SAIL.
2. The acquisition of this loan strengthens BoB’s position as a top lender in the Indian market.
3. The loan has a lower margin compared to previous deals, but banks find it attractive due to the reduced risk associated with lending to a state-owned company.

India Approves Additional 251 MW Power Exports from Nepal

India’s Designated Authority (DA) for Cross-Border Trade (CBT) has approved an additional 251 MegaWatt (MW) of power exports from 12 hydropower projects in Nepal to India. Following this approval, Nepal will now be exporting 941 MW of hydropower from 28 projects, up from the previous 690 MW from 16 projects.

Background:

1. The decision was made during bilateral talks between Nepalese Foreign Minister Arzu Rana Deuba and India’s External Affairs Minister S Jaishankar on 20th August 2024.
2. The meeting was held during Arzu Rana Deuba’s 5-day official visit to India from 18th to 22nd August 2024.

India-Nepal Power Trade Agreement:

1. During Prime Minister Narendra Modi’s visit to Nepal in 2014, an India-Nepal Power Trade Agreement (PTA) was signed, allowing the sale of Nepal’s surplus electricity to India.
2. In October 2021, India approved just 39 MW of electricity exports from Nepal. India has also granted access to the Real-Time Market since then.
3. The Nepal Electricity Authority (NEA) has signed medium-term power sales agreements with distribution companies in Haryana and Bihar.
4. In January 2024, Nepal and India signed an agreement to export 10,000 MW of electricity to India over the next decade.

Key Points:

1. This is the first year of the long-term agreement signed in January 2024, with around 1000 MW exports already reached.
2. It strengthens Nepal’s position as a net electricity exporter and marks the first instance of Nepal supplying power to Bihar under a medium-term sales agreement.
3. An agreement for the sale of 40 MW of power to Bangladesh has also been finalized and is yet to be signed.
4. India has incentivized Nepalese power purchases by allowing hydropower imports to count towards Hydropower Purchase Obligation (HPO) for Indian buyers.

Ather Energy Turns Unicorn after USD 71 Million Funding from NIIF

Bengaluru-based electric scooter manufacturer Ather Energy Private Limited has achieved unicorn status after raising Rs 600 crore (USD 71 million) in a fresh round of funding from the National Investment and Infrastructure Fund (NIIF), India’s infrastructure-focused Sovereign Wealth Fund (SWF). Post-funding, Ather’s valuation stands at USD 1.3 billion, making it the 5th startup to reach unicorn status in 2024 and the 2nd in the mobility sector.

Note: Ather Energy, founded by Tarun Mehta and Swapnil Jain in 2013, is a pioneer in Lithium-ion (Li-ion) battery-powered scooters in India.

Ram Charan Awarded ‘Ambassador of Indian Arts and Culture’ at Indian Film Festival of Melbourne 2024

Indian actor Konidela Ram Charan Teja, who works predominantly in Telugu cinema, was honored with the prestigious title of “Ambassador of Indian Arts and Culture” during the 15th edition of the Indian Film Festival of Melbourne (IFFM 2024) held at the Palais Theatre in St. Kilda, Melbourne, Australia.

Key Points:

1. IFFM 2024 was held from 15 to 25 August 2024, backed and presented by the Victorian Government in Australia.
2. In addition to being the Guest of Honour, Ram Charan also hoisted the Indian national flag at Melbourne’s iconic Federation Square during the IFFM 2024.
3. Established in 2010, the IFFM highlights the rich diversity and creativity of Indian filmmaking, featuring films from Bollywood to regional language cinema.

CCI Approvals on 20 August 2024

The Competition Commission of India (CCI) approved the following proposals on 20 August 2024:

1. Acquisition of 60% shareholding in each of Invesco Asset Management (India) Private Limited (Invesco AMC) and Invesco Trustee Private Limited (Invesco Trustee) by IndusInd International Holdings Limited (IIHL).
2. Acquisition of a shareholding in Shriram Housing Finance Limited by Mango Crest Investment Ltd.
3. Acquisition by Advent International, L.P. (Advent) through Rasmeli Limited (Rasmeli) in Apollo Healthco Limited (AHL/Apollo Healthco), the acquisition by AHL/Apollo Healthco in Keimed Private Limited (Keimed), and the merger of Keimed into AHL/Apollo Healthco.

About the Competition Commission of India (CCI):

• CCI is a statutory body established in 2003 under the Competition Act of 2002 and has been operational since 2009.
• Chairperson: Ravneet Kaur
• Headquarters: New Delhi, Delhi

International Day Commemorating the Victims of Acts of Violence Based on Religion or Belief 2024 – August 22

The United Nations (UN) International Day Commemorating the Victims of Acts of Violence Based on Religion or Belief is observed annually on August 22. This day condemns violence and acts of terrorism against individuals of religious minorities based on or in the name of belief or religion. The 22nd of August 2024 marks the 6th observance of this day.

Key Points:

1. The United Nations General Assembly (UNGA) adopted the resolution A/RES/73/296 on 28th May 2019, designating 22nd August as the International Day Commemorating the Victims of Acts of Violence Based on Religion or Belief.
2. The first-ever observance was on August 22, 2019.

About the United Nations (UN):

• Secretary-General: António Manuel de Oliveira Guterres
• Headquarters: New York, United States of America (USA)
• Founded: 24 October 1945

Singapore-based Sembcorp to Invest Rs 36,238 Crore for India’s 1st Green Ammonia Plant in Thoothukudi, TN

Singapore-based Sembcorp Industries will invest Rs 36,238 crore to establish a green hydrogen/green ammonia manufacturing unit in Thoothukudi, Tamil Nadu (TN). TN will be the first state in India to roll out commercial production of large-scale green hydrogen molecules.

About the Facility:

1. The foundation stone for the unit was laid by TN Chief Minister M.K. Stalin during the Tamil Nadu Investment Conclave 2024 held on 21st August 2024 in Chennai, Tamil Nadu.
2. The facility, spread over 160 acres, will initially produce 200,000 metric tonnes of green ammonia per annum for export to Japan.

Tamil Nadu Investment Conclave 2024:

1. The CM laid the foundation stone for 28 industrial projects with a collective investment of Rs 51,157 crore and inaugurated 19 additional projects with an investment of Rs 17,616 crore, totaling 47 projects.
2. The TN government, in association with Tamil Nadu Industrial Development Corporation Limited (TIDCO) and TATA Technologies, will establish the Tamil Nadu Engineering and Innovations Centre (TN ENGINE) in Coimbatore with an investment of Rs 400 crore.