Ambuja Cements has earmarked Rs6,000 crore for investment in renewable power projects. The Adani group is targeting 1,000 MW of capacity across solar and wind power by FY26. It will also enhance its waste heat recovery system capacity to 376 MW by FY28. The investments by Ambuja will include a 600 MW solar project and a 150 MW wind project in Gujarat, as well as a 250 MW solar project in Rajasthan. Renewable capacity will rise from 84 MW to 294 MW by FY24 and further to 640 MW by FY25 and 1090 MW by FY26.
Net direct tax collections (net of refunds): 20.66% till December 17, 2023, to Rs 13.7 trillion in FY24. This was on the back of 20% growth in advance tax revenues. The direct tax collections in FY24 have already achieved more than 75% of the full-year target, with another three-and-a-half months to go. This is much higher than the budget estimate of 11.57% growth in direct tax collections in FY24. The direct tax inflows for the government broadly include corporate taxes, personal taxes, and securities transaction tax (STT).
Exchange-traded funds (ETFs), a key vehicle in India for passive investors, are set to lag behind the overall MF industry in terms of AUM growth for the first time in 10 years. The AUM of ETFs has gone up 17% in calendar 2023 so far, compared to 23% growth in overall MF AUM. The last time the ETF growth trailed the MF industry growth was in 2013, when the ETF AUM had actually fallen by 11%. Passive funds, which include index funds and ETFs, have grown AUM rapidly post-COVID from Rs1.85 trillion to Rs6.3 trillion.
The government cut windfall profit tax on crude oil produced in the country as well as on exports of diesel in the tepid crude oil prices. The windfall tax was introduced more than a year ago to prevent oil producers from profiteering amidst rising global crude prices. The Special Additional Excise Duty (SAED) on domestically produced crude oil has been reduced from Rs5,000 to Rs1,300 per tonne. Similarly, SAED on the export of diesel was halved to Rs0.50 per liter, while the levy on ATF was hiked to Rs1 per litre from zero levels.
Aditya Birla Group is in advanced talks with Nebras Power in the Middle East to induct a strategic investor and scale up the renewable energy business of Grasim. Currently, the renewable energy initiatives of the group are housed under their holding company, Grasim. Nebras may invest up to $400 million in the 51:49 joint venture. The Aditya Birla group has a target to hit 4.5 GW of installed capacity by FY26, and it needs to urgently raise growth capital. Grasim is talking to other Japanese and Canadian investors about the same.
The government is likely to cut its capital infusion into the PSU oil marketing companies (OMCs) from the budgeted estimate of Rs 35,000 crore for FY24. Profits in the first half of FY24 were robust for OMCs in the light of subdued crude oil prices. As of now, there is no clarity on how much capital will be infused in the OMCs, but the quick back of the envelope estimate is that it should be much smaller than Rs 35,000 crore. A final decision on this matter will also factor in a cut in petrol and diesel prices ahead of 2024 elections.
The National Highways Authority of India (NHAI) raised Rs 9,384 crore via the monetisation of two bundles of highway stretches. These entail a total length of 273 km using the Toll-Operate Transfer (TOT) model. Highways in this bundle have been awarded to IRB Infrastructure with a bid of Rs 1683 crore, while the next bundle has gone to Cube Highways and Infrastructure with a bid of Rs 7,701 crore. In October 2023, the NHAI raised Rs 6,584 crore by monetising Bundles 11 and 12. The latest monetization refers to Bundles 13 and 14.
There is some good news for Vodafone Idea. The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has instructed DOT to adjust the excess of Rs 755.52 crore received by it from Vodafone Idea towards the license fee and spectrum usage charges. This excess amount, ruled by TDSAT, refers to the sum collected by DOT from Vodafone Idea at the time of the merger of Vodafone and Idea in 2018. The TDSAT accepted the contention that Vodafone’s spectrum liability then was only Rs 3,171 crore, not Rs 3,926 crore.