Daily News - Friday, 17 January 2025
India and Singapore consider renewable energy corridor (mint)
India and Singapore are exploring the creation of a renewable energy corridor, aligning with the International Solar Alliance’s ‘One Sun One World One Grid’ initiative, to facilitate cross-border clean energy cooperation. This potential corridor would enhance grid interconnections similar to India’s agreements with countries like Saudi Arabia, UAE, Bhutan, and Bangladesh, enabling surplus clean electricity sharing and addressing time diversity in solar power generation. With India targeting 500 GW of non-fossil power capacity by 2030 and Singapore aiming for net-zero emissions by 2050, the collaboration underscores both nations’ commitment to sustainability and energy transition goals.
Demand for petrol, diesel may grow in FY26 (mint)
India’s petroleum product demand is expected to hit a record 252.9 million tonnes in FY26, a 4.65% increase from the 241.8 million tonnes projected for FY25, driven by petrol and diesel consumption growth of 6.64% and 2.77%, respectively. This marks the third consecutive year of record-high petroleum consumption, positioning India as an outlier amid a global slowdown in oil demand due to economic challenges and the shift toward electric mobility. While the transition to electric vehicles is gaining momentum, its significant impact on the Indian automobile market is expected to materialize gradually over the coming years.
Cabinet approves setting up of Eighth Pay Commission (mint)
The Union Cabinet has approved the establishment of the Eighth Central Pay Commission, expected to be formed by 2026, to revise the pay and pensions of over 10 million central government employees and pensioners, including approximately 400,000 in Delhi. This move, ahead of the FY26 budget and Delhi assembly elections, follows the implementation of the Seventh Pay Commission, which raised government expenditures by ₹1 trillion in FY17 and boosted consumption and economic growth. The revisions will benefit 5 million active employees, including defence personnel, and 6.5 million pensioners, aligning salaries with inflation and enhancing the quality of life.
Hydrocarbon sector seeks cut in cess & regulatory reforms (Financial Express)
The oil and gas industry has urged for regulatory reforms, including compensation for losses incurred by downstream companies, a cut in cess on crude oil production, and the inclusion of hydrocarbons under GST to enhance ease of business. Industry leaders also seek streamlined gas pricing formulas, reduced customs duties on LNG imports (currently at 2.5%), and lower GST rates, such as the 18% on LNG regasification, to improve energy efficiency and reduce costs. The passage of the Oilfields Amendment Bill and policy measures supporting domestic exploration and green hydrogen infrastructure are expected to enhance energy security, sustainability, and collaboration between public and private entities.
India likely to maintain strong growth in 2025: WEF report (Financial Express)
The World Economic Forum (WEF) projects a subdued global economic outlook for 2025, with 56% of chief economists expecting weaker growth; however, India stands out as the fastest-growing major economy, driving South Asia’s strong performance, with regional growth expectations at 61%. While global inflation is easing, projected at 4.3% in 2025 (down from 5.8% in 2024), India’s GDP growth slowed to 5.4% in Q3 2024, the lowest in two years, leading to a downward revision of its annual forecast. US economic policies and intensifying trade dynamics, particularly with China, are expected to significantly influence global trade, migration, and fiscal strategies in the coming years, despite continued trade volume growth.
