Daily News - Friday, 10 January 2025
'Odisha Plans ₹4K cr Ship Recycling Hub Near Paradip Port’ (The Economic Times)
The Odisha government plans to develop a ₹4,000-crore ship recycling hub near Paradip Port, along with two new private-sector-driven ports in Inchuri and Bahuda, each with a 40-million-tonne capacity, while also promoting hydrogen manufacturing facilities expected to commence production by late 2026. Additionally, the government is preparing policies for data centers and global capability centres, allocating 250 acres near Bhubaneswar for an electronic city, and investing in key railway projects, including doubling the Haridaspur-Paradip line to enhance mineral and coal evacuation. The state emphasises collaboration with the Paradip Port Authority and private entities to boost infrastructure, aiming to attract major investments and strengthen connectivity.
Russia, US Curtail Crude Exports to India on Increased Demand at Home (The Economic Times)
In December, India’s crude imports saw a 17% decline in share from Russia, the US, Venezuela, and Brazil due to increased domestic refining demand in these countries, with Russia’s share dropping to 33.4% (1.5 mbd) from 41.3% (1.75 mbd) in November. Middle Eastern and African suppliers, including Iraq (23.2%), UAE (10.9%), Angola (5%), and Nigeria (4.6%), collectively gained a 19% share, offsetting the reduced supply from distant suppliers like Venezuela (share dropped to 0%) and Brazil (0.7%). Despite lower Russian imports due to reduced Indian state refiner demand and competition from China, India remains reliant on discounted spot-market Russian crude, with a long-term supply deal by Reliance Industries expected to commence in 2025. (Source: The Economic Times)
Pressure on rupee to ease, India to grow at 6.6%: UN (The Indian Express)
India’s economy is projected to grow by 6.6% in 2025, driven by robust private consumption, investment, and a strong capex push, with easing inflation and stable policy rates (currently at 6.5%) supporting growth; the rupee, under pressure from the US dollar (hitting ₹85.93), is expected to stabilize as global monetary conditions shift. India’s foreign exchange reserves fell to $640.28 billion in December, while services exports, manufacturing expansion, and favorable monsoon conditions for 2025 agricultural output are expected to sustain economic momentum. Despite advancements, substantial gender disparities persist in the labor market, and India’s untapped reserves of critical minerals (e.g., rare earth elements) offer long-term opportunities for leveraging global production gaps.
ONGC sees additional revenue of up to $10.3 bn from BP partnership (The Indian Express)
ONGC’s partnership with BP aims to boost production at Mumbai High, India’s largest oil and gas field, potentially increasing crude oil output by 44% (from 45.47 million tonnes) and gas production by 89% (from 24.94 bcm) over the 10-year contract, contributing an estimated $10.3 billion in additional revenue. The production increase, expected to begin in FY26 and reach full scale by FY28, could add up to $5 billion to government revenues through levies, royalties, and cess. BP, already a significant energy player in India, will receive a fixed fee initially and a share of incremental hydrocarbon revenue, marking a key collaboration to rejuvenate declining output at Mumbai High.
Disparity in gold import numbers resolved, say officials (mint)
The Indian government resolved data discrepancies related to gold imports caused by incomplete migration from NSDL to ICEGATE, leading to a reduction in the November trade deficit from $37.8 billion to $32.8 billion. The error involved double counting of gold shipments to SEZs and DTAs, highlighting interoperability issues between data collection systems, which will be addressed in the mid-January trade data revision. The Commerce Ministry emphasized that data corrections and revisions are standard statistical practices to ensure accuracy, balancing data quality and timeliness while reflecting updated and additional information.
