#1. Adani Group to invest $3 billion to set up pumped storage hydropower in four states
The Adani Group plans to invest between Rs 25,000 and Rs 27,500 crore ($3 billion) to set up pumped storage hydropower facilities, the Mint reported. Adani Green Energy will set up such capacity of 5GW in the next five years. To start with, it will set up pumped storage hydropower generation facilities in the four states of Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana.
Why it’s important: Adani is looking to sharpen its edge in India’s rapidly accelerating clean energy transition, where top businesses like Reliance, Tata, Vedanta, and JSW are pumping in billions of dollars.
#2. Corporate India cut back on dividends in 2023-24 despite booking record profits
Despite a boom in corporate profitability, listed firms in 2023-24 reduced dividend payout, which declined 4.7 percent on an annualized basis to Rs 4.03 lakh crore from the record high of Rs 4.23 lakh crore in the preceding financial year, according to an analysis by Business Standard. Combined net profits) of all firms in the sample rose 29.9 percent to a record Rs 14.75 lakh crore from the Rs 11.36 lakh crore earlier.
Why it’s important: It was the first cut in dividend payout by India Inc. in the past five years, which could be due to skewed growth in corporate earnings, forcing top firms in many sectors to conserve cash internally.
#3. Jamshyd Godrej and sister planning family council after business realignment in April
The families of Jamshyd N Godrej and Smita V Crishna will establish a family council following the business realignment in April, the Economic Times reported. The Crishna branch will also set up a family office comprising Smita Crishna and her daughters Freyan and Nyrika. In April, the conglomerate was split into two — the Godrej Enterprises Group going to siblings Jamshyd and Smita, and the Godrej Industries Group to brothers Adi and Nadir.
Why it’s important: The old family council has been dismantled following the split. The family branches are now expected to work on a charter to mandate how wealth is utilized and invested, besides laying out a road map for future business and growth.
#4. Government may reallow Chinese corporate investment in India via joint ventures
The federal government may approve investments by Chinese firms in India, the Economic Times reported, which has prompted some Indian companies to resume their pursuit of government approval for joint ventures with Chinese partners. These approvals will be given on a case-by-case basis.
Why it’s important: India tightened rules for Chinese investment following border tensions. It might be looking at easing the strictures provided the Indian partner in a joint venture has a majority shareholding.
#5. Delays in payouts in production-linked incentives flagged by review committee
A high-level government panel has raised concerns over continued delays in payment to companies in the production-linked incentive schemes, the Business Standard reported. The committee has called for corrective steps across departments for the smooth implementation of the central government’s flagship scheme to boost local manufacturing.
Why it’s important: The payment delays are undesirable. The cabinet secretary has already asked the NITI Aayog to review the functioning of project management agencies involved in the schemes on account of considerable delays in processing incentive claims. Some action on the front is expected soon.
#6. India may extend ownership checks on unlisted local businesses of six multinationals
After LinkedIn and Samsung, Indian authorities may expand their ownership checks to the domestic arms of more MNCs, the Mint reported. About six unlisted Indian units of multinationals are under the radar of registrars of companies, who are scanning company disclosures and publicly available shareholding information of group firms.
Why it’s important: India has been intensifying regulatory action against alleged non-disclosure of beneficial owners. The registrars of companies have been proactive in the recent past in removing defunct firms from the registry and in detecting shell companies.
#7. Brookfield Asset Management aims for $10 billion in investments in India’s renewables sector
Canada’s Brookfield Asset Management is looking to more than triple investments in India’s renewable energy sector to over $10 billion in the next 3-4 years, the Economic Times reported. It’s also looking at acquisitions in the segment besides exploring opportunities in electric vehicles and green hydrogen.
Why it’s important: Brookfield is the second-largest investor in India’s green energy assets. The country‘s ambitious energy transition targets is attracting both local and overseas funds.
#8. Insurers breathe signs of relief as reinsurance and coinsurance, not under the GST ambit
Reinsurance and coinsurance are not the supply of a service and are not liable to GST, according to a decision by the Goods and Services Tax Council, the Economic Times reported. The Directorate General of Goods and Services Tax Intelligence last year issued notices to about 20 insurance companies raising tax demands of about Rs 12,000 crore for non-payment of GST on coinsurance and reinsurance premiums.
Why it’s important: The decision provides a significant breather to insurance companies facing thousands of crores in tax demands. Insurers had contended that the levy of GST on all firms in the chain amounted to double taxation. The tax authorities have seen reason in their stance.
#9. Government to propose global trade promotion agency for small and medium enterprises
The central government may propose a global trade promotion body focused on boosting exports by small and medium companies in the upcoming budget, the Mint reported. The new global trade promotion organization is being conceptualized on the lines of the Japan External Trade Organization and the Australian Trade and Investment Commission. It will have branch offices in major economies.
Why it’s important: The proposed move comes against the backdrop of India's rising trade deficit and the urgent need to boost exports.
#10. Entry-level management job market under stress as B-schools reach out to more recruiters
The stress in India’s business job market is impacting entry-level positions and the placement experiences of B-school graduates, the Business Standard reported. For the first time in five years, 2024 projected salaries for fresh MBAs are experiencing a drop of 5 to 10 percent across tiers, according to The Deloitte Campus Workforce Trends 2024 survey.
Why it’s important: Even premier management schools are feeling the effects of stress in hiring and placements. The expectation of salary by outgoing campus students is also seeing a decline.
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