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Rs. 17,000 crore IT hardware PLI

In the next two weeks, the government will spend Rs. 17,000 crore IT hardware is planning to release the list of eligible companies for Production-Linked Incentive (PLI) scheme. The government has sought clarifications from some companies regarding the proposals submitted by them. After this clarification, the list of approved applicants will be announced. All necessary details of investment schemes and commencement of production under the scheme will be mentioned. About 40 companies submitted their proposals under the second phase of the IT hardware PLI, which was approved in May with double the cost of the first phase of the scheme. Among the 40 applications, 33 are local companies and seven are global companies. IT PLI Scheme 2.0 aims to promote local manufacturing of laptops, tablets, all-in-one PCs, servers and ultra small form factor devices. With a tenure of six years, the scheme will provide an average incentive of 5 per cent on net incremental sales of electronics manufactured in India, calculated in the base year.

New Incentive Scheme for Battery Parts

After rolling out incentives for electric vehicles (EVs) and their components, the government is said to be working on an entirely new incentive scheme that will be for companies engaged in battery manufacturing for electric vehicles. Although the government has pushed towards the localization of electric vehicles, especially for the battery which typically accounts for 40-50% of the cost of the vehicle, the industry is still dependent on imports of battery cells and battery packs. Most of such imports come from China, which controls more than 70% of global battery supply for electric vehicles. In this segment, the government wants to give incentives to increase domestic production. This new scheme will be in addition to existing schemes like Production Linked Incentive (PLI) and Faster Adoption and Manufacturing of Electric and Hybrid Vehicles. It will take some time to come up with a plan for the downstream industry. Discussions will be held with the industry for this new scheme.

Transfer to Churchill's War Office Luxury Hotel

The old war office of Britain's World War II-era Prime Minister Winston Churchill is set to open as a brand new luxury hotel on September 26. The Hinduja group, which acquired the landmark building eight years ago, collaborated with Raffles Hotels to transform it into a hub of luxury residences, restaurants and spas. Sanjay Hinduja, who oversees the project, said, “When we arrived at the building in Whitehall, we were overwhelmed by the size and beauty of this magnificent building. No stone is left unturned to bring it back to its former glory and pay tribute to its legacy. Originally completed in 1906, the building was designed by British architect William Young. Formerly the site of the original Palace of Whitehall, the building has witnessed world-shaping events as leaders such as Chachal and David Lloyd George held office in the United Kingdom. Not only this, the building also served as the backdrop for James Bond films and the Netflix series 'The Crown'. Renovated with the help of hundreds of artisans, the building features 120 guest rooms and suites, entertainment spaces including a ballroom. The former offices of political and military leaders are the most historic parts of the building. The history of the age-old War Office, its grand architecture and grand heritage look lives on even today.

The rupee will come under pressure

The rupee may come under pressure in the coming days as the strong crude oil market continues to hurt India's macroeconomic stability, with India's current account deficit a key barometer of macroeconomic stability for foreign investors, particularly vulnerable to oil price shocks. With crude oil touching the $93 mark last week, expected to add $50 billion to India's import bill, the government needs a permanent currency flow to stem a potentially widening current account deficit. These currency inflows can come in the form of foreign direct investment in equity and foreign portfolio investment (FPI). Unfortunately, foreign investors are showing signs of exiting India due to a number of adverse factors. So the current account deficit issue has increased concern. According to market estimates, India saw permanent foreign currency inflows to the tune of $45 billion in 2018-19, a level not seen since 2012-13. The rupee has depreciated by more than 2% against the US dollar this month. The Reserve Bank of India had to intervene in the forex market. Even earlier in 2013, investors were spooked by India's high current account deficit as fears of an attack on Syria boosted oil prices. At that time, the rupee had depreciated by more than 21 percent between June 3 and August 28, 2013.

The Ministry of Highways lowered the expenditure target

As the pace of highway construction has slowed, the Ministry of Road Transport and Highways has reduced the pace of capital expenditure and now aims to spend 80 per cent of its budgeted expenditure by December from the previous target of 91 per cent. The Ministry's capital expenditure in the April-August period was Rs. 2.58 trillion against an overall expenditure of Rs. 1.12 trillion. During the same period last year, the ministry spent Rs. 1.87 trillion against the budget allocation of Rs. 1.09 trillion was spent. When the estimates were presented in Parliament in February this year, the ministry's allocation was later increased to Rs. 2.06 trillion was made. Last year also, the ministry had spent 80 percent of the budget allocation till December 2022. For the entire year, the ministry has set a target of 13,800 km of highways, which is 33 percent more than 2022-23. The Ministry is confident of achieving this goal. Last year also it managed to complete 5744 km of highways by December and thereafter the speed increased and by the end of March the total length was 10331 km. However, as this year is an election year, analysts say the pace of awarding new highways and contracts is likely to slow down in the final months of the fiscal year.