Daily News - Friday, 14 February 2025

⁠Adani pulls out of wind projects in Sri Lanka (Financial Chronicle)

Adani Green Energy has withdrawn from its $1 billion wind power and transmission projects in Sri Lanka after the newly elected government, under President Anura Kumara Dissanayake, sought to renegotiate the power tariff from $0.0826 to below $0.06 per kilowatt-hour, making the project financially unviable. Originally planned for 484 MW capacity with a $740 million investment, the project faced environmental opposition and legal challenges before the new administration initiated a contract review, partly due to allegations of bribery against Adani executives in a U.S. court. Despite exiting the wind energy sector, the Adani Group remains invested in Sri Lanka through a $700 million terminal project at Colombo Port and has expressed willingness for future collaborations. 

Brazil nixes BRICS common currency idea for global trade (Financial Chronicle)

Brazil, during its BRICS presidency, will not push for a common currency but aims to facilitate international payments in local currencies, reducing reliance on the U.S. dollar without directly challenging its dominance. This agenda, which includes exploring blockchain and linking payment systems to lower transaction costs, aligns with multilateral financial standards and will be discussed at BRICS and G20 meetings. While some BRICS leaders previously suggested a shared currency, Brazil’s focus is on trade efficiency rather than replacing dollar reserves, with no immediate plans for a new global currency.

⁠India, Philippines may sign $200 mn missile agreement (Financial Express)

⁠India is set to finalize a defense deal worth over $200 million with the Philippines for the sale of Akash short-range surface-to-air missiles in the upcoming fiscal year, marking its second major defense export to Manila amid rising tensions with China. The Akash system, which has a range of 25 km, was previously sold to Armenia in a $230 million deal, and the Philippine purchase is expected to exceed that value, though the exact number of missiles and radar systems remains undisclosed. India’s Bharat Dynamics, the missile manufacturer, showcased its capabilities at Manila’s defense exhibition, while Philippine officials have acknowledged their military’s need for such systems but have not confirmed details of the procurement. 

Budget aims to boost private investments, growth: Sitharaman (Financial Express)

⁠Finance Minister Nirmala Sitharaman emphasized that Budget 2025-26 is designed to accelerate growth, boost private investment, and enhance household spending power, with key measures including raising the income tax exemption limit to ₹12 lakh from ₹7 lakh, leaving ₹1 lakh crore in taxpayers’ hands. The government lowered the fiscal deficit estimate to 4.8% of GDP for 2024-25 and projected a further decline to 4.4% in 2025-26 while ensuring that social sector spending remains intact, reallocating ₹1.6 lakh crore in unspent state funds to improve fiscal efficiency. Sitharaman highlighted the transparency reforms in Budget-making, including bringing ₹1.2 lakh crore of Food Corporation of India borrowings onto the Budget since 2020-21 and settling ₹81,000 crore in dues to states, while estimating an effective capital expenditure of ₹19.08 lakh crore for FY26 despite global uncertainties.

No extension of duty-free import of yellow peas (Financial Express)

The Indian government will end duty-free imports of yellow peas after February 28, with a Group of Ministers (GoM) considering imposing a 15%-20% import duty to protect domestic farmers from cheap imports, mainly from Canada and Russia. The India Pulses and Grains Association (IPGA) had urged against continuing zero-duty imports, citing concerns over excessive dumping, as 3 million tonnes of yellow peas were imported in 2024, affecting chana prices, which accounts for 50% of India’s pulse production. With yellow peas landing at ₹32/kg and processed dal selling at ₹40/kg—far below the MSP range of ₹56-85/kg—the move aims to stabilize prices as chana arrivals begin, with mandi rates currently around ₹5,650/quintal in Maharashtra and Karnataka.