Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<keyword id="20779198" type="General" weightage="20" keywordseo="Chief-Economic-Advisor" source="keywords">Chief Economic Advisor</keyword> V Anantha Nageswaran emphasized the crucial and positive role that artificial intelligence (<keyword id="19899640" type="General" weightage="20" keywordseo="AI" source="keywords">AI</keyword>) can play for the <keyword id="22505095" type="General" weightage="20" keywordseo="Indian-demography" source="keywords">Indian demography</keyword> and <keyword id="20278114" type="General" weightage="20" keywordseo="labour-force" source="keywords">labour force</keyword> during a press conference on the <keyword id="20613906" type="General" weightage="100" keywordseo="Economic-Survey" source="keywords">Economic Survey</keyword> 2023-24. He noted that within the next decade, India is poised to become the world's third-largest economy and will benefit significantly from its demographic dividend. However, Nageswaran also acknowledged potential challenges posed by AI, particularly for India's <keyword id="20811086" type="General" weightage="20" keywordseo="business-process-outsourcing" source="keywords">Business Process Outsourcing</keyword> (BPO) sector. He stated, "The short-term challenge of generative AI could slow <keyword id="22505093" type="General" weightage="20" keywordseo="BPO-sector-growth" source="keywords">BPO sector growth</keyword>, affecting <keyword id="21300718" type="General" weightage="20" keywordseo="customer-services" source="keywords">customer services</keyword>. It is possible that the jobs related to BPO will be under threat whereas AI may actually turn out to be a booster." Furthermore, Nageswaran also pointed out that the emergence of AI might reduce annual <keyword id="21420133" type="General" weightage="20" keywordseo="productivity-growth" source="keywords">productivity growth</keyword> by approximately 0.3 percentage points in the coming years. This indicates a potential short-term dip in productivity as industries adapt to new technologies. Despite these challenges, Nageswaran added that the long-term potential of AI is promising. The broader adoption of AI could lead to significant improvements in critical areas such as healthcare and education, thereby enhancing human capital. The economic survey presented in the Parliament by finance minister Nirmala Sithraman says in the medium term Indian economy can grow at a rate of 7 per cent. The economic survey stated, "In the medium term, the Indian economy can grow at a rate of 7 per cent plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments and the private sector." Achieving a sustained growth rate of over 7 per cent will require a tripartite compact between the Union Government, State Governments, and the private sector. India's financial sector is undergoing critical transformations. During FY24, primary capital markets facilitated capital formation of Rs 10.9 lakh crore, accounting for approximately 29 per cent of the gross fixed capital formation of private and public corporates in FY23. It further adds India faces a unique blend of opportunities and challenges amid global trends such as geo-economic fragmentation, a push for self-reliance, looming climate change, the rise of technology, and limited policy space. (ANI)

AI could slow BPO sector growth: Chief Economic Advisor Nageshwaran

The recently announced <keyword id="9460361" type="UNKNOWN" weightage="20" keywordseo="space-sector-reforms">space sector reforms</keyword> are not aimed at privatisation of Indian Space Research Organisation (<keyword id="6358064" type="UNKNOWN" weightage="20" keywordseo="isro">ISRO</keyword>), its Chairman and Secretary in the Department of Space, K Sivan asserted on Thursday. The space agency also stated that the draft on the proposed space activity bill is almost final and it will soon be placed before the Union Cabinet for approval. "When space sector reforms were announced by the government there were many misconceptions like it would lead to privatisation of ISRO. It is not. Again and again I'm repeating it is not the privatisation of ISRO," Sivan said. Addressing a webinar on "Unlocking of India's Potential <keyword id="7412163" type="UNKNOWN" weightage="20" keywordseo="in-space">in Space</keyword> Sector," he said the whole aim of reforms is enabling the private players to carry out the space activities which is otherwise being done by ISRO. "In fact, the activities of ISRO are going to increase and ISRO will be able to better utilise its resources in taking up developmental as well as capacity building activities of the government, rather than the routine production activity," he added. The Union Cabinet on June 24 approved participation of the private sector in the entire range of space activities, including planetary exploration missions. It had said, the newly-created Indian National Space Promotion and Authorisation Centre (IN-SPACe) will provide a level playing field for private companies to use Indian space infrastructure, by hand-holding industries in space activities through encouraging policies and a friendly regulatory environment. Also, the New Space India Limited (NSIL), a PSU under the Department of Space, will endeavour to re-orient space activities from a "supply driven" model to a "demand driven" model, thereby ensuring optimum utilisation of our space assets, it had said. Noting that the space sector reform introduced by the government is going to be a "real game changer", Sivan said private sector participation in the space sector has been increasing worldwide and it is a healthy trend, as it increases diversity. In India too space sector startups are taking developmental activities in both launch vehicles as well as in satellites, he said. However, there was no mechanism available in the country to extend technology and infrastructure support to them. Also there was no regulatory mechanism to control the private sector activities, so an institutional mechanism has been created as part of reform. The webinar was attended by Principal Scientific Advisor to government of India K Vijay Raghavan, Mahindra Group Chairman Anand Mahindra, Bharti Enterprises Chairman Sunil B Mittal among others. Further observing that with the opening of the space sector, ISRO can focus on technology development and capacity building Sivan said in addition to that it will also facilitate private sector participation in major national missions through announcement of opportunity. However, the private sector will have to do their own research and development activities, business viability studies, funding as well as finding customers for their services, he said. Pointing out that import of communication satellites is now in the embargo list under 'Aatma Nirbhar Bharat Abhiyan', the ISRO Chief said there will be a need for large number of communication satellites to be launched in the immediate future and this could be a huge opportunity for ISRO and also for the private sector. Launching a small satellite is another area where there is a huge projected demand and some startups are interacting with ISRO at an advanced stage and may launch very soon. According to ISRO officials, more than 500 industries are currently involved in activities such as production of components and more than 80 per cent of the launch vehicle and 60 per cent of the spacecraft budget is spent on industry. Scientific Secretary to ISRO, R Uma Maheshwaran said participation of the private sector in end-end space activities is definitely a strategy to expand the space economy. Noting that the private sector is much eager now, he said a lot of people are coming forward to make launch vehicles, and satellites and providing space based services. Uma Maheshwaran also said a mechanism is required regarding the indulgence of the private sector and for this, enactment of the space activity bill is a primary requisite. "It (bill) is almost in its final shape now, we have presented it to the Ministry (PMO) for inter-ministerial consultation and we feel that very soon it will be approved by the Cabinet and presented to the Parliament for making it an act. This is mandatory as India is signatory to the outer space treaty," he added. Vijay Raghavan, noting a lack of risk capital for industry to sufficiently invest in R&amp;D, said risk needs to be mitigated and for this the combination of talent and material resources, partnering with industry is needed. The opening of the space sector in India will have its impact globally, and also all sectors in India, he said adding that ".. this is an opportunity to increase volume and quality in extraordinary ways." Suggesting that space may well become the new "gold rush", Anand Mahindra said though India has an established and credible space programme, its share of the market is miniscule and he was sure that beginning now it will change with the entry of the private sector. "... it is our opportunity to level the playing field, by leveraging our competitive advantages and we have to seize it now," he said, while admitting that industry and private sector are often "uneasy bedfellows", but we have to make these reforms work as it is the best way forward". Sunil Mittal stressed on the need for the policy on participation of private sector in space programme to be "light-touch" but said it should be very strong on security, foreign policy aspects and some of the guidelines need to be very clear so that industry participants know how to operate within the policy framework. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/gmail-down-users-report-being-unable-to-send-emails-and-attach-files/articleshow/77648762.cms">Gmail down — users report being unable to send emails and attach files</a> <a href="https://www.businessinsider.in/science/space/news/kepler-supernova-exploded-400-years-ago-but-hasnt-slowed-down-and-two-pieces-of-debris-are-headed-towards-earth/articleshow/77646381.cms">Kepler supernova exploded 400 years ago but hasn’t slowed down — and two pieces of debris are headed towards Earth</a> <a href="https://www.businessinsider.in/india/news/supreme-court-rejects-prashant-bhushans-plea-to-delay-sentence-hearing-on-twitter-case/articleshow/77649463.cms">Prashant Bhushan rejects Supreme Court's offer to delay sentence but is given two to three days to reconsider statement</a>

ISRO Chairman K Sivan asserts that space sector reforms are not aimed at privatising the agency

New Delhi [India], May 12 (ANI): India received foreign institutional inflows worth USD 26.6 billion into <keyword id="6354553" type="General" weightage="20" keywordseo="real-estate" source="Orion">real estate</keyword> during the six-year period from 2017 to 2022, a three-fold rise from the preceding six-year period, according to Nasdaq-listed investment management company Colliers. <keyword id="396143" type="General" weightage="20" keywordseo="foreign-investments" source="Orion">Foreign investments</keyword> in India have been on the rise over the last few years as the industry underwent an overhaul, with major structural, policy reforms inducing transparency and ease of business operations, according to Colliers' 'India- High on Investors' Agenda' report. The report delves into the factors that make India a preferred choice for global investors and how it has stepped ahead of other emerging economies. According to the report, foreign investments accounted for a sizeable share of 81 per cent of the total investments in real estate during 2017-22. "The country's investor-friendly FDI policies, increased transparency in deal structures, and higher investment limits through the direct route have encouraged global investors to invest in India's real estate sector," Colliers said. Institutional investments in real estate continued to remain upbeat in January-March 2023 as well, rising by 37 per cent year-on-year at USD 1.7 billion, led by the office sector. "India's favourable demographic indicators, deep digital talent pool, developmental government policies, infrastructure advancements and competitive costs have made it one of the top choices for global enterprises, fueling real estate demand in India. The strong economic and business fundamentals are enhancing institutional investors' sentiments; forging strategic partnerships to expand their portfolios," said Sankey Prasad, Chairman and Managing Director at Colliers India. From the perspective of global and Asia Pacific investors, the Indian property market currently offers attractive pricing, better valuations, and higher yields on assets. At the Asia Pacific level, India has become a preferred investment destination as Indian cities offer higher yields compared to other cities in the region at relatively lower pricing points. Major Indian cities like Bengaluru and Mumbai occupy the second and third positions, respectively, in terms of commercial yield on real estate assets across the region.

Indian real estate saw 3x  rise in foreign institutional investments during 2017-22: Colliers

<ul class="summary-list"><li><keyword id="11892695" type="UNKNOWN" weightage="60" keywordseo="cryptocurrency" source="Orion">Cryptocurrency</keyword> poses a threat to legacy finance, according to '<keyword id="12216947" type="UNKNOWN" weightage="60" keywordseo="big-short" source="Orion">Big Short</keyword>' author <keyword id="13122305" type="UNKNOWN" weightage="60" keywordseo="michael-lewis" source="Orion">Michael Lewis</keyword>.</li><li>"A separate financial structure is being built alongside the old legacy financial structure," Lewis told <a href="https://finance.yahoo.com/news/cryptocurrencies-may-all-come-crashing-down-author-michael-lewis-143033771.html">Yahoo</a>. </li></ul>The decentralized nature of cryptocurrency is reshaping the traditional financial sector, but great uncertainty remains in the space, according to "The Big Short" author Michael Lewis. These days, Lewis explained, the Securities and Exchange Commission is responsible for a shrinking portion of the financial industry thanks to the rise in decentralized finance and cryptocurrency."A separate financial structure is being built alongside the old legacy financial structure, and it eliminates middlemen," Lewis told <a href="https://finance.yahoo.com/news/cryptocurrencies-may-all-come-crashing-down-author-michael-lewis-143033771.html">Yahoo</a> Wednesday. He added that retail traders on <keyword id="11893898" type="UNKNOWN" weightage="60" keywordseo="crypto" source="Orion">crypto</keyword> exchanges today deal directly with the exchange, rather than a broker, which helps level the playing field for everyday investors. "The mechanisms that are being built [in crypto]...are far more egalitarian, more equal," he said. "The participants in the marketplace are not privileged in relation to one another in the same way they are in the stock market."So far, Lewis said the cryptocurrency model has proven that it can be effective as a market, and the traditional financial system may look to parts of crypto to improve its own framework. Decentralized finance may "end up being persuasive" in reforming legacy finance, he noted.But, like the dollar and gold, Lewis pointed out that cryptocurrency is based on faith, and there's no telling how long people can sustain that faith for a relatively new technology. "The whole thing may come crashing down," Lewis said. "But the longer it goes on, the more of a threat it poses to the existing financial order."

'The Big Short' author Michael Lewis says crypto is 'more egalitarian' and could reform legacy finance &mdash; or the whole space could come crashing down

Chennai, June 25 (IANS) The proposed Indian National Space Promotion and Authorisation Centre (IN-SPACe) could be turned into the sectoral regulator once necessary legal structure are there, according to K. Sivan, Secretary of the Department of Space (DoS) and Chairman of the Indian Space Research Organisation (ISRO). On Wednesday the Union Cabinet, chaired by Prime Minister Narendra Modi, gave its nod for opening up the space sector and for setting up of IN-SPACe to promote private sector's participation. The IN-SPACe will also ensure a level-playing field for private firms to use Indian space infrastructure. It will hand hold, promote and guide the private industries in space activities through encouraging policies and a friendly regulatory environment. Speaking to IANS, Sivan said, "We are on the job of getting ready the Space Activities Bill. It will define the space activities, liabilities and other aspects." According to Sivan, a new navigation policy is also being proposed. Suitable changes in the remote sensing data policy as well as SATCOM policy are on the anvil to align them to an open and inclusive space sector. Pointing out the role envisaged for IN-SPACe and the demand for a sectoral regulator, when queried whether the proposed body could be converted into the space sector regulator, Sivan said, "IN-SPACe could be turned into a regulatory body when the necessary laws and regulations are in place." Speaking to IANS earlier, Narayan Prasad, Chief Operating Officer, satsearch said, "The best is to establish an independent regulator -- Space Regulatory Authority of India (SRAI) -- which will create a level-playing field for many of the emerging players." Establishing an independent regulator could allow a systematic review and reforms on a continuous basis rather than one-off announcements, Prasad said. According to Sivan, IN-SPACe will have its own directorates for technical, legal, safety and security, monitoring as well as activities promotion for assessing the private sector's needs and coordination of the activities. IN-SPACe would have a board and representatives from industry, academia and the government, Sivan said. "Initially, IN-SPACe will be manned by people from the existing space setup. Later, people from outside will be taken in. It will have its funds from the budgetary allocations for the DoS. The new body may not need big financial allocations," Sivan said. No estimataion on the private investment the sector will attract after the opening-up has been done. "We will have an industry meet with the private sector in two weeks. Then we may get an estimate on investment potential," he said. Stressing that the ISRO's importance will not diminish with the entry of IN-SPACe, Sivan said all the existing centres - manufacturing, services, rocket launch centres - would continue to be with the ISRO. "The ISRO will be involved in research and development in advanced technologies, human space missions. It will also share its technological expertise with the private parties. The proposed new body will not disturb the existing ones. It will be another autonomous body," Sivan said. On the impact of Covid-19 on the ISRO launch missions, Sivan said, "All our missions were affected. The actual impact will have to be studied once the situation improves. The private industries manufacturing items for the ISRO were not functioning due to the lockdown. Our own officials were not able to travel." --IANS vj/pcj

IN-SPACe could be sectoral regulator once laws are in place: Sivan

NewSpace India Limited (<keyword id="7835598" type="General" weightage="20" keywordseo="nsil" source="Orion">NSIL</keyword>) launched GSAT-24 in its first "demand-driven" communication satellite mission post space sector reforms, leasing the entire capacity on board to Direct-to-Home (DTH) service provider <keyword id="13033014" type="General" weightage="20" keywordseo="tata-play" source="Orion">Tata Play</keyword>. Built by Indian Space Research Organisation for NSIL, the satellite was successfully placed into geostationary orbit by the Ariane 5 rocket, operated by French company Arianespace, from Kourou in French Guiana (South America) on Thursday. GSAT-24 is a 24-Ku band communication satellite weighing 4180 kg with pan-India coverage for meeting DTH application needs. NSIL, incorporated in March 2019, is a Central Public Sector Enterprise (CPSE), under Department of Space (DOS) and is the commercial arm of ISRO. As part of "space reforms" announced by the Government in June 2020, NSIL was mandated to undertake operational satellite missions on a "demand driven" model, wherein it has the responsibility to build, launch, own &amp; operate satellites and provide services to its committed customer. The entire satellite capacity on-board GSAT-24 will be leased to its committed customer Tata Play, the DTH business of Tata Group, for meeting their DTH application needs. The Ariane 5 has successfully placed two satellites into geostationary orbit: MEASAT-3d for the Malaysian operator MEASAT, and GSAT-24, Arianespace said after launching them on-board Ariane-V VA257 flight from the Guiana Space Centre, Europe's spaceport in Kourou. GSAT-24 is configured on ISRO's proven I-3k Bus with a mission life of 15 years. "'Demand-driven' mode basically means when a satellite is launched, one will know who the end customers are going to be and what's the kind of utilisation and commitment so that you have very effective utilisation of this satellite capacity once it goes into orbit", an NSIL official explained. "Earlier, the mode was more supply driven, with capacity being leased after the launch with largely no firm commitment by customers before hand", the official noted. "The entire mission is fully funded by NSIL -- satellite, launch, launch campaign, insurance, transportation, in-orbit maintenance and support. Once the satellite is up in orbit, this will be fully owned and operated by NSIL," NSIL Chairman and Managing Director Radhakrishnan Durairaj told PTI. "So, we will be the satellite operator for this particular satellite," he said. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/apple-has-dropped-the-second-developer-beta-update-for-ios-16-with-revamped-message-filtering/articleshow/92404124.cms">Apple has dropped the second developer beta update for iOS 16 with revamped message filtering</a> <a href="https://www.businessinsider.in/business/news/half-of-the-earnings-of-indian-companies-ceos-at-risk/articleshow/92403167.cms">CEOs are paid more now but half of the earnings are 'at risk'</a>

Tata Play rents the entire capacity of the newly launched GSAT-24 satellite

<ul class="summary-list"><li>The <keyword id="60973" type="UNKNOWN" weightage="60" keywordseo="biden" source="Orion">Biden</keyword> administration turned to <keyword id="11900744" type="UNKNOWN" weightage="60" keywordseo="tesla" source="Orion">Tesla</keyword> for help with renewable fuel policy reform: Reuters.</li><li>The Biden administration contacted Tesla on its first day in office, per Reuters.</li></ul>The White House sought advice on renewable fuel policy reform from Tesla despite Joe Biden's public bickering with its founder and chief executive <keyword id="11897862" type="UNKNOWN" weightage="60" keywordseo="elon-musk" source="Orion">Elon Musk</keyword>, <a href="https://www.reuters.com/business/environment/biden-administration-leans-tesla-guidance-renewable-fuel-policy-reform-2022-06-23/" target="_blank" rel="noopener">Reuters reported.</a>The administration contacted the electric car maker on its first day in office, <a href="https://www.reuters.com/business/environment/biden-administration-leans-tesla-guidance-renewable-fuel-policy-reform-2022-06-23/" target="_blank" rel="noopener">according to emails seen by the news agency</a>, leading to a series of meetings with Tesla and other <keyword id="11938291" type="UNKNOWN" weightage="60" keywordseo="electric-vehicle" source="Orion">electric vehicle</keyword> makers in the following months.Tesla did not immediately respond to Insider's request for comment.The emails show the administration trying to involve the company changing rules to allow electric vehicles to benefit from lucrative renewable fuel subsidies, per Reuters. Biden has since <a href="https://www.businessinsider.com/biden-executive-order-electric-cars-evs-2030-target-half-2021-8?r=US&amp;IR=T" target="_blank" rel="noopener">set a target</a> of one in two new vehicles sold in the US having zero emissions by 2030.That transition is one of Biden's key <keyword id="11896311" type="UNKNOWN" weightage="60" keywordseo="climate-change" source="Orion">climate change</keyword> policies. The transport sector was the largest producer of greenhouse gasses in the US economy, accounting for 27% of total emissions in 2020, according to the <a href="https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions" target="_blank" rel="noopener">Environmental Protection Agency.</a>When Biden first took office, Musk was supportive of the administration and its commitment to <keyword id="11896309" type="UNKNOWN" weightage="60" keywordseo="sustainability" source="Orion">sustainability</keyword>. He <a href="https://futurism.com/the-byte/elon-musk-fan-climate-joe-biden" target="_blank" rel="noopener">told Fortune in January</a> last year that he was "super fired up" to have an administration focused on tackling climate change. But since then Musk and Biden have traded a <a href="https://www.businessinsider.com/joe-biden-elon-musk-feud-tesla-union-republican-06-2022?r=US&amp;IR=T#it-wasnt-always-this-way-3" target="_blank" rel="noopener">series of public jabs</a>. Most recently, Biden appeared to mock Musk's interest in space travel, while Musk referred to the President as a "damp sock puppet," <a href="https://www.businessinsider.com/joe-biden-elon-musk-feud-tesla-union-republican-06-2022?r=US&amp;IR=T#it-wasnt-always-this-way-3" target="_blank" rel="noopener noreferrer">Insider reported.</a>Musk now says he plans to vote Republican.

Biden turned to Tesla for help with electric car policy reform despite his feud with Elon Musk, report says

Mumbai, Jan 26 () As warehousing is fast becoming an integral part of integrated logistics network due to technological advancement and the reform-led policy measures, the sector is expected to add around 40 million sq ft space across the top eight cities this year, a recent survey said.
 According to the study by global property consultant Savills, warehousing space absorption across eight cities like Mumbai, Pune, Chennai, Bengaluru, Hyderabad, Ahmedabad, Delhi and Kolkata, is expected rise to 35 million sq ft in 2020.
 In 2019, the total supply of warehousing space was 37.94 million sq ft while the absorption stood at 33 million sq ft.
 "Warehousing industry in India has come a long way and it's going to continue to mature as a favourable real estate asset class. The sector has witnessed a massive participation from institutional investors and developers amid raising demand from across the sector like ecommerce, retail, FMCG, 3PL (third-party logistics) , cold storage, pharma and manufacturing," Savills India Managing Director, Industrial Warehousing and Logistics Srinivas N said.
 As per the study, Mumbai and Delhi are expected to see a significant addition of around 8 million sq ft each in 2020, followed by Bengaluru and Kolkata.
 Last year, Mumbai witnessed an addition of 5.7 million sq ft while Delhi added 8.1 million sq ft.
 "Delhi NCR, Bengaluru and Mumbai followed by Kolkata will be the front runners in absorbing majority of occupiers since these are sourcing and consumption hubs," the report said.
 As per the study, Pune and Chennai will lead in servicing manufacturing clients' needs, followed by Delhi-NCR and Ahmedabad.
 "Government initiatives like make In India, GST, FDI policy, corporate tax reduction, improved infrastructure of road, port, rail and airports has and will continue to impress the growth," Srinivas said.
 He further said that compliance, quality and improved specifications offerings will be the need of the hour with growing requirements at tier-II locations from organised developers.
 Srinivas added that tier-II locations like Guwahati, Coimbatore, Lucknow, Jaipur, Patna, Bhubaneshwar, Ludhiana, Vapi, Nagpur and Vizag / Vijayawada cumulatively will see a total addition in excess of 6 million sq ft of additional absorption.
 Last year, manufacturing sector absorbed around 6 million sq ft pan-India, while e-commerce and 3PL leased around 20 million sq ft. SMEs and electronic components manufacturers and auto sector leased significantly in few cities.
 "It's also important to note that there is in excess of 800 million sq ft of Grade 'C' and Grade 'D' stock across India which will start migrating to Grade 'A' and 'B' over the next 3 to 5 years," Srinivas added. PSK ABM
ABM

Warehousing sector to add 40 mn sq ft space across top 8 cities this year: Report

More than a month has passed since the cabinet gave its approval to the Ujwal DISCOM Assurance Yojana or <keyword id="9140" type="PERSON" weightage="80" keywordseo="Uday">UDAY</keyword> for short. The scheme has certain salient features that will help India's growing power sector face one of its most challenging problems. 
 The scheme comes forth at a time when DISCOMs have seen accumulated losses soaring to 3.8 lakh Crores and an outstanding debt of approximately Rs. 4.3 lakh Crore (as on March 2015). Just to put these numbers in perspective, the outstanding debt is close to twice the defence budget of the country at present. A question that naturally arises is what made things come to such a pass? The fact is DISCOMs have been facing problems for a long time now. However, the financial problem that DISCOMs have been facing became acute in the past 4-5 years as they began funding their operational losses by taking on more debt. Debt restructuring for DISCOMs have happened in the past but this time, it appears the government is keen on finding a long-term solution to the problem. Debt at present comes with <keyword id="6371181" type="UNKNOWN" weightage="80" keywordseo="interest-rates">interest rates</keyword> hovering as high as 15%. This high interest cost has trapped DISCOMs in a vicious debt cycle. Due to this the banks, have seen their NPA's rise that is a cause of concern for both the banks and the RBI. 
 
The scheme thus comes at an opportune time and tries to resolve these legacy issues of the Power sector in the next 2-3 years by a four-pronged approach. 
 
First, it seeks to improve the operational efficiencies of the power DISCOMs. It is proposed to be done through proper metering, up-gradation to energy efficient modes like usage of LED's the prices for which have already seen a tremendous downward spiral. Prices of LEDs have seen a tremendous downward spiral due to the removal of supply-side bottlenecks and with that economies of scale bringing prices further down. The measures to improve operational efficiency are done with a view to reducing the average AT&amp;C losses from the present 22 percent to a target of 15 percent by 2018-19. 
 
Second, the scheme proposes a reduction in the cost of power. It is a step that would require improvements across the upstream side of value chain right from the fuel supply to improvements in generation technologies and betterment in the existing and addition of new transmission line infrastructure. The government is keen to bring in improvements in these. In the previous year, the power sector has seen the highest production growth in coal sector as well as the highest capacity addition in the generation and highest ever transmission line additions. 
 
Third, the scheme seeks to reduce the interest cost of DISCOMs. It is to be done by asking states to take over 75 percent of the debt of DISCOMs as on 30 September 2015. The 75 percent debt is in line with the recommendations of the Fourteenth Finance Commission. The scheme proposes it to be done in 2 Phases- the first 50 percent to be taken over in 2015-16 and the rest 25 percent to be taken over by 2016-17. It is expected that this will reduce the interest cost by an estimated 6-7 percent thus disrupting the debt trap in which the DISCOMs seem to be stuck at present. 
 Finally, the scheme seeks to enforce financial discipline in DISCOMs by aligning them with states' finances. The initial years will see the fiscal space remaining the same for states even when they take over the debts. It is to be done by ensuring that for the initial two years evaluation of debt in the <keyword id="6365485" type="UNKNOWN" weightage="80" keywordseo="fiscal-deficit">fiscal deficit</keyword> does not take place. Also, the scheme proposes to make the states accountable by giving them the power to take over and fund at least 50 percent of the future losses (if any) of the DISCOMs in a graded manner. 
 
The scheme is optional and has so far seen has seen enrolment by nine states according to the official Twitter handle of the Power Minister. The scheme overall seems well thought through and is not just a restructuring package but a major reform that will help secure power for all citizens. In the process, it is hoped it will forever change the dynamics of DISCOMs in the country. Other sectors need to bring in such ‘reforms’ to make the states and well as India globally competitive. 
 
The article is co-authored with Sankalp Sharma, Senior Researcher at the Institute for Competitiveness, India. Amit Kapoor is Chair, Institute for Competitiveness &amp; Editor of Thinkers. The views expressed are personal. Amit can be reached at <a href="mailto:amit.kapoor@competitiveness.in">amit.kapoor@competitiveness.in</a> and tweets @kautiliya)

You Searched For "space sector reforms" and got 9 results

AI could slow BPO sector growth: Chief Economic Advisor Nageshwaran

ANI

ISRO Chairman K Sivan asserts that space sector reforms are not aimed at privatising the agency

PTI

Indian real estate saw 3x rise in foreign institutional investments during 2017-22: Colliers

ANI

'The Big Short' author Michael Lewis says crypto is 'more egalitarian' and could reform legacy finance or the whole space could come crashing down

Phil Rosen

IN-SPACe could be sectoral regulator once laws are in place: Sivan

IANS

Tata Play rents the entire capacity of the newly launched GSAT-24 satellite

PTI

Biden turned to Tesla for help with electric car policy reform despite his feud with Elon Musk, report says

Beatrice Nolan

Warehousing sector to add 40 mn sq ft space across top 8 cities this year: Report

PTI

Power Sector Reforms: The story of UDAY so far

Amit Kapoor

Popular Keywords

Buying Guides