News highlights : 10 September 2016

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01. ICICI Bank deploys software robots:

The country’s largest private lender ICICI Bank on 8th Sep 2016 became the first bank in India to deploy ‘software robots, that emulate human action, in its over 200 business processes, thereby reducing the response time to customers by up to 60 per cent. “The bank is the first in the country and among few, globally, to deploy ‘software robotics’ that emulates human actions to automate and perform repetitive, high volume and time consuming business tasks cutting across multiple applications,” ICICI Bank said. “We have re-engineered over 200 business processes which are powered by software robots across various functions of the bank. We plan to more than double the software robots to over 500 by end of this fiscal,” Chanda Kochhar, MD and CEO, ICICI Bank, said. This initiative marks a milestone in the banking innovation in the Indian banking industry as it joins a select group of overseas organisations which have deployed this unique state-of-the-art robotic technology in such a large way, Ms. Kochhar said.

02. BSE files IPO papers with Sebi, may raise Rs 1,200-1,300 cr :

Moving closer to become a publicly-listed exchange, Asia’s oldest bourse BSE filed draft papers with markets regulator Sebi to raise an estimated Rs 1,200-1,300-crore initial public offering. The much-awaited public offer of BSE is expected to be entirely an offer for sale (OFS) by the existing shareholders. Sources said the exchange has filed IPO papers with Sebi and shares worth over Rs 1,200-1,300 crore could be sold in the public offer. The board of directors, at its meeting on 7th Sep 2016, approved the draft red herring prospectus (DRHP). While rival NSE has announced IPO plans, BSE has taken the lead by filing the draft papers. BSE — earlier known as the Bombay Stock Exchange — had received in-principle approval from Sebi earlier this year to list its shares.

Red Herring Prospectus is a prospectus, which does not have details of either price or number of shares being offered, or the amount of issue. This means that in case price is not disclosed, the number of shares and the upper and lower price bands are disclosed.

03. Norms for appraisal of government projects tightened :

To ensure expeditious implementation of projects, the expenditure department has come out with stringent norms for appraisal under which ministries will have to provide both financial and physical targets for current as well as future years. The concerned ministry/departments, the office memorandum said, will be required to indicate outcomes in the form of “measurable indicators” which can be used to evaluate the proposal periodically. As per the new norm, administrative ministries will have to ensure that the significant outcome of the proposed scheme should not overlap with that of the existing schemes. The government has modified the norms for appraisal of public funded schemes after a comprehensive review of the existing guidelines. As far as the funding of the scheme is concerned, the ministries will have to indicate the source of finance, whether it is budgetary support, extra budgetary support, external aid or contribution of the state. As part of the appraisal process, the ministries would be required to spell out targeted beneficiaries, social groups, and mode of delivery.

04. Plastics finished goods exports to double at $15 billion in 5 years :

The country’s export of plastics finished goods is set to nearly double to $15 billion in the next five years from the present $7.9 billion, according to a top official from the plastics industry. “The export of plastics finished goods is set to nearly double to $15 billion in next five years. The country exports $7.9 billion worth plastics finished goods. The industry is determined to play a significant role in executing government’s vision of raising exports to $900 billion by 2020,” Plastindia Foundation president K K Seksaria told reporters after the formal launch of ‘Plastindia 2018’. Plastics is one of the fastest growing industries in India witnessing a double digit growth rate annually, on an average. Initiatives like Make in India, Skill India, Digital India, Swachh Bharat Abhiyan and Start up India by government are opening up opportunities for even more accelerated growth in this industry, Seksaria said. The domestic plastics consumption is also set to increase from the current 12 million metric tonnes per annum to 20 million metric tonnes per annum by 2020 due to rapid growth of infrastructure, agri and automobile sectors. By 2020, plastics consumption in India is set to increase from the current 12 million metric tonnes per annum to 20 million metric tonnes per annum.

05. Reverse Parking Sensors To Become Mandatory On All Cars Soon :

Reverse Parking Sensors To Become Mandatory On All Cars Soon . For a number of years, Indian commuters were oblivious to the concept of seat belts in cars and the safety they offer. Until the time a law was implemented for installing aftermarket seat belts in cars that didn't have them and drivers and co-drivers were mandated to keep the seat belts fastened while on the move. The act of not fastening the seat belt still invites a fine. And now, reports suggest that the government is contemplating making reverse parking sensors compulsory on all cars plying on Indian roads. So, car owners who don't have them, first of all, don't fret. A reverse parking sensor will not cost you much and be upwards of Rs 7,000 in a mass market dealership. Some cars come with reverse parking sensors which is a boon to park one's car in tight spots. And in case you are not the 'I will get every accessory from the showroom' type, aftermarket reverse parking sensors are as reliable and can be installed with ease in the rear bumper of the car. Getting one from the aftermarket would cost you anything above Rs 3,000 and if you get a good deal, you may also get a parking camera for the same amount. However, be sure that this may void the warranty (if applicable) on your car, so do check with an authorised service centre first.

06. Surge pricing for Rajdhani, Shatabdi fares positive for aviation: SpiceJet

SpiceJet CMD Ajay Singh feels that the recent introduction of flexi-pricing in Rajdhani and Shatabdi fares will positively impact the aviation sector. Indian Railways has introduced the system of surge pricing for premium trains. The base fares will increase by 10% with every 10% of berths sold subject to a prescribed ceiling limit. There will be no change in the existing fare for 1AC and EC class of travel. The model is in line with what the aviation sector already follows, but with air travel becoming increasingly cheaper these days, the SpiceJet CMD’s view may` actually turn out to be true. Talking about SpiceJet’s growth plans, Singh said, “We plan to grow our share but not at the expense of revenue or profits. We do not wish to get into the race of diluting fares.” “The plan is to order aircraft and hopefully the process will be complete in a few weeks. The target is to maximize margins, profits and not run after market share,” he said. “The focus remains on profitable growth,” he reiterated. According to Singh, there is need to have sustainable fares in the market. “This last minute drop is not a good phenomenon,” he said. “I cannot give you a quarterly guidance, the company is growing responsibly and profitably. The unit revenue and unit fares have dropped marginally by 2%. The load factor is up by 2.5% and that has neutralised the impact on revenue,” he said.

07. No polythene in 100 metre radius of national monuments from October 2:

The central government has decided to ban use of polythene in 100 metre radius of national monuments from October 2 taking forward Prime Minister Narendra Modi’s idea of a ‘Clean India’. According to a report, Union Tourism Ministry in its directive has asked the authorities concerned to ensure there is no use of polythene at these heritage places. “A clean India would be the best tribute India could pay to Mahatma Gandhi on his 150 birth anniversary in 2019,” Modi had said as he launched Swachh Bharat Abhiyan. Earlier, the government banned the manufacturing of plastic bags of below 50 microns as thinner bags currently pose a major threat to environment due to its non-disposability. PM launched the Swachh Bharat Abhiyan on October 2 in 2014 to accelerate the efforts to achieve universal sanitation coverage covering 4,041 statutory cities and towns across the country. The government had made a budgetary allocation of Rs 11,300 crore for both rural and urban areas for Swachh Bharat Abhiyan, Central government’s biggest drive to improve sanitation and cleanliness across the country.

08. Indian e-commmerce market could reach $28 bn by FY2020: Report

Indian e-tailing market could reach USD 28 billion by 2019-20, registering a compounded annual growth rate of 45 per cent over the next four years, says a report. According to domestic brokerage firm Kotak Institutional equities, this growth will largely be driven by an increase in number of buyers and annual average online spend. Other factors like steady increase in household incomes and shift in consumption towards discretionary spends could also boost India’s retail demand. “We estimate that the Indian e-tail market size could reach USD 28 billion by fiscal 2019-20, led by an increase in number of buyers to 110 million (assuming one person per urban household to shop online), and stable annual spends of around USD 260 per consumer,” Kotak Institutional Equities said in a research note. According to the report, though the growth of e-tail market in India is often compared to that of China, given the broad similarities in population and mobile internet penetration, in the near-term in India may not mirror China completely due to various economic and other differences between the two countries. The report noted that the e-commerce sector is expected to see steady growth and is likely to register a 45 per cent annual growth over financial year 2017-2020.

09. After US FAA, Indian regulator DGCA bans the use of Samsung Galaxy Note 7 on flights:

Concerned over the growing battery explosion fears in Samsung’s premium device Galaxy Note 7, DGCA on 9th Sep 2016 banned use/carriage of the phone on flights. It also said that if it has to be carried, it has to be in switch-off mode. This comes after the US Federal Aviation Administration (FAA) issued a warning not to charge or switch on Note 7 on board aircraft. “In light of recent incidents and concerns raised by Samsung about its Galaxy Note 7 devices, the Federal Aviation Administration strongly advises passengers not to turn on or charge these devices on board aircraft and not to stow them in any checked baggage,” the FAA said in a statement.

10. Train travel costs less than apples, brooms and sugar, says Indian Railways:

Suresh Prabhu-led Indian Railways has come out with an interesting way to counter criticism for the newly introduced flexi-pricing or surge pricing in Rajdhani, Duronto and Shatabdi trains. Stating that this pricing system for premium trains does not affect the common man, the Indian Railways has tweeted out a chart that compares the train travel cost (non-premium) between two cities to the cost of brooms and apples! Sample this, according to Railways it takes Rs 45 to travel between Lucknow and Kanpur (73 km at Rs 0.62 per km) from a general class train – the same as the cost of 1kg sugar! Similarly, New Delhi to Agra train fare (194 km at Rs 0.44 per km) for the general class is Rs 85, and you can buy 1 kg of apples in the same amount! The ‘costliest’ item that Railways has spoken of is a broom, comparing the Lucknow to Jhansi journey cost of Rs 100 to it (293 km at Rs 0.34 per km). The comparison has been made for train travel of less than 300 kilometres and Railways has also compared the relative fares of general class trains, sleeper class trains and buses. Indian Railways has also come out in strong defence of its flexi-pricing policy for the premium trains, stating that it is being introduced on an experimental basis. Railways has also said that such a system is internationally followed.