Daily News - Friday, 9 August 2024

Policy framework for carbon capture, utilisation, storage (Financial Express)

The Indian government is developing a policy framework for implementing Carbon Capture, Utilization, and Storage (CCUS) technology to help achieve its net-zero targets by 2070. The initiative, which will involve capturing CO2 from large-point sources, is likely to include financial incentives such as viability gap funding, carbon pricing mechanisms, and production-linked incentives (PLI) to attract private sector investment. The mission, coordinated by NITI Aayog and other key agencies, will focus on technology development, setting up pilot plants, and leveraging B2B collaborations, with a broader aim to parallel global efforts in this area, similar to those in the US, Japan, and Germany. 

IBBI issues new norms for creditor panels (Financial Express)

The Insolvency and Bankruptcy Board of India (IBBI) has issued new guidelines for the Committee of Creditors (CoC) to improve the efficiency and transparency of the corporate insolvency resolution process (CIRP) and maximize asset value. These guidelines emphasize objectivity, impartiality, and timely decision-making, with provisions for proper representation, sharing of critical reports, and addressing late claims, aiming to reduce delays that currently erode asset value. If adhered to, the guidelines are expected to enhance confidence in the system, reduce litigation, and help the CIRP conclude within the standard 330-day timeline, thus improving recovery rates for creditors. 

‘RBI can’t ignore food inflation’ (The Hindu)

RBI Governor Shaktikanta Das emphasized that the central bank cannot ignore food inflation when shaping monetary policy due to its potential to undermine policy credibility through spillover effects. He highlighted that food inflation, which accounts for about 46% of the Consumer Price Index (CPI) basket, contributed over 75% of headline inflation in May and June, with continued pressures from high food prices in July despite a softening in core inflation. Das also noted the importance of vigilance by the Monetary Policy Committee (MPC) to prevent secondary effects from persistent food inflation and maintain the credibility of monetary policy, while considering whether to delink food inflation from the inflation-targeting framework based on upcoming survey results. 

‘Mid-size firms must step up to accelerate India’s growth’ (mint)

The FY25 Union budget focuses on long-term, sustainable economic growth rather than short-term consumption boosts, according to senior banker Sanjay Nayar. He emphasized that beyond the top 10 conglomerates, the next 100-200 companies must increase their investments to drive India's economic growth, boost consumption, and create jobs, particularly through support for small and medium enterprises (SMEs). Nayar highlighted early signs of private capital expenditure recovery and stressed the importance of revitalizing investment across all sectors to achieve 8-10% economic growth over the next decade. 

Chemicals, Auto, Pharma in Critical Sectors List to Cut Import Dependence (The Economic Times)

India has initiated an exercise under the Indo-Pacific Economic Framework (IPEF) to identify critical sectors such as chemicals, automobiles, pharmaceuticals, advanced technology, electronics, and critical minerals, where dependence on imports poses risks to supply chain stability and national security. As part of the IPEF Supply Chain Resilience Agreement, India and other member nations aim to reduce reliance on single suppliers, particularly China, and enhance supply chain resilience by encouraging industry to share data on critical imports and production capacities. The focus is on leveraging this agreement to integrate Indian industries into the global production network, with further discussions set for the first in-person meeting of the supply chain council in Washington this September.