Daily News - Tuesday, 28 January 2025

Govt puts privatisation plans of 9 state-run firms on hold (Financial Express)

The Indian government is injecting about $1.5 billion into state-run firms in 2025, including $230-350 million for helicopter operator Pawan Hans and $1.3 billion for debt-laden steel producer RINL, after failed privatization attempts and decisions to halt or delay the privatization of nine other companies, such as MMTC and NBCC. This shift marks a retreat from the 2021 privatization program, which saw limited success with only three sales, the largest being Air India to Tata Group, as ministries resisted privatization, and the government aimed to overhaul firms for dividend income. Additionally, 80 billion rupees ($966 million) were allocated for bond repayments of struggling state-run telco MTNL, reflecting a growing reliance on financial rescue over privatization to stabilize key public-sector enterprises.

⁠Modi to open Odisha investment meet today (Financial Express)

Prime Minister Narendra Modi will inaugurate the two-day “Utkarsh Odisha - Make in Odisha Conclave 2025” in Bhubaneswar, where the state government aims to attract investment proposals worth ₹5 lakh crore. The event will host 7,500 delegates, including representatives from 17 countries such as Singapore, Australia, and Malaysia, and will showcase Odisha’s achievements in industrial development while promoting investments in sectors like renewable energy, green hydrogen, and semiconductors. The conclave is expected to boost Odisha’s position as a preferred investment destination and generate significant employment opportunities for the local population. 

⁠Projects worth ₹10L cr unveiled at UP investor meet on track: Minister (Financial Express)

Of the ₹33.5 lakh crore investments committed during the Uttar Pradesh Global Investors Summit 2023, work has begun on projects worth ₹10 lakh crore, with ₹2.6 lakh crore projects already in commercial production, spanning manufacturing, infrastructure, and renewables. Uttar Pradesh has emerged as India’s third-largest economy, growing at 11% annually, contributing over 8% to GDP, and aims to increase its export share from 5% to 7.5% through a new five-year export policy and initiatives like the Defence Industrial Corridor, which has attracted ₹28,175.58 crore in investment proposals. The state boasts India’s largest rail network, 38% of expressways, 13 operational airports (including the soon-to-be-operational Jewar airport), and over 30 sector-specific policies fostering growth in solar energy, IT, EVs, tourism, and textiles.

Tax Rebate for Scrapping Vehicles may be Doubled (The Economic Times)

The Ministry of Road Transport and Highways has proposed doubling the motor vehicle tax rebate from 25% to 50% for buyers scrapping BS-II or older vehicles and purchasing new ones, aiming to reduce vehicular pollution. The rebate will apply to all BS-I-compliant vehicles and medium to heavy BS-II vehicles, with scrapping certificates tradable for benefits on new vehicle registrations, as part of the broader vehicle scrapping policy. However, experts believe this increase will have a limited impact on incentivizing large-scale scrapping, as the motor vehicle tax is only a small component of the overall vehicle cost.

⁠India may Add 8 GW of Thermal Power s Capacity in FY25 against 15 GW Target (The Economic Times)

⁠India is expected to add only 8,000 MW of thermal power capacity in FY25 against a target of 15,000 MW, with delays attributed to land acquisition, material supply, and other execution challenges, while the under-construction capacity of 30 GW is expected to be commissioned over the next 4–5 years. Despite aiming for 50% of its power capacity from non-fossil fuels by 2030, India’s growing energy demand (rising 7.4% in FY24 and 4.4% in FY25 till November) necessitates reliance on coal-based and nuclear power for base load, with thermal power still comprising 52.9% of installed capacity. However, thermal power’s share is projected to drop to 31.6% by FY32 due to increased clean energy capacity, aligning with India’s renewable energy goals of 500 GW by FY30.