Daily News - Tuesday, 13 August 2024
Thermal power share to fall to 67% by FY26 (Financial Express)
The share of thermal power in India's overall electricity generation is projected to decrease to 67% by FY26, down from 73% in FY24, as the government intensifies its push for renewable energy (RE) capacity expansion. This shift will see the share of RE rise to 20% by FY26, driven by a significant addition of over 50 gigawatts of RE capacity in the next two years, which will outpace the growth of thermal power despite its continued importance for base load requirements. While thermal power plant load factors (PLFs) will experience a slight decline, they are expected to remain robust at over 65% by FY26, ensuring that the business risk profile of thermal power players remains stable.
Factory Output Growth at 5-month Low in June (The Economic Times)
India's industrial production growth slowed to 4.2% in June 2024, a five-month low, primarily due to a significant decline in manufacturing growth, which fell to 2.6% from 5% in May, while electricity and mining sectors showed stronger performance with growth rates of 8.6% and 10.3%, respectively. The overall industrial output in the first quarter of FY25 grew by 5.2%, slightly better than the 4.7% growth seen a year earlier, but concerns remain as consumer non-durable goods contracted by 1.4%, reflecting ongoing rural demand stress and capital goods growth dropped to a low 2.4%, signalling muted investment activity. With a slowdown in government capital expenditure and continued weakness in manufacturing, industrial production growth is expected to ease further to 2.5-4.5% in July, raising concerns about the stability of industrial recovery amid upcoming elections.
China test-flies biggest civilian cargo drone as low altitude economy takes off (The Indian Express)
China has successfully conducted the maiden flight of its largest unmanned cargo aircraft, capable of carrying a 2-tonne payload, marking a significant step in the country's push to develop autonomous aerial vehicles (UAVs) for civilian use, which could eventually transport goods and passengers. This test, conducted by Sichuan Tengden Sci-tech Innovation Co., highlights China's broader ambition to build a "low-altitude economy," with the government projecting a fourfold expansion of this sector by 2030, potentially reaching a value of 2 trillion yuan ($279 billion). The test flight follows other UAV advancements, including the recent launch of a 700 kg payload drone by AVIC and the issuance of China's first production certificate for a passenger-carrying drone by EHang Holdings, signalling rapid growth and innovation in the UAV industry.
Bharti Global to acquire 24.5% in Britain’s BT Group for around $4 bn (The Indian Express)
Bharti Global, the international investment arm of Bharti Enterprises, is set to acquire a 24.5% stake in the UK's largest broadband and mobile company, BT Group, from Altice UK, with the deal estimated at around $4 billion, making it one of the largest outbound investments by an Indian company. Sunil Bharti Mittal, chairman of Bharti Enterprises, highlighted the attractiveness of BT's substantial revenue base of $25 billion and $10 billion in EBITDA, noting the similarities between BT's operations and Airtel's, though clarifying that Bharti Airtel is not involved in this investment. The acquisition, structured through Bharti Televentures UK, will see Bharti Global gradually acquire the stake in BT, with no immediate plans for a full takeover or a board seat, and has been positively received by BT's existing stakeholders and the Indian government as a testament to India's growing economic influence.
‘Goods exports in Q2 to rise to $112 bn’ (mint)
India's goods exports are projected to reach $111.7 billion in Q2 FY25, marking a 4.2% year-on-year growth, driven by a strong 6.26% increase in non-oil exports, reflecting the resilience of India's trade performance amid robust economic activity and government initiatives like 'Make in India' and 'Atmanirbhar Bharat (Self Reliant India)’. The positive forecast is supported by favorable global conditions, including expected global monetary easing and improving demand in key trading partners, though risks such as geopolitical tensions, global supply chain disruptions, and fluctuating oil prices could pose challenges. Despite these uncertainties, India’s merchandise exports achieved a record $433.09 billion in FY24, and the Export-Import Bank of India remains optimistic about continued growth, with a new forecast for Q3 FY25 expected in November.
