Shares of companies whose business is related to railways will be in focus ahead of Railway Budget 2015-16 today, 26 February 2015. The Railway Budget 2015-16 will be tabled in the parliament by the rail minister Suresh Prabhu today, 26 February 2015. This will be the first full railway budget of the Narendra Modi government and hopes are already running high that the document will contain innovative and out-of-the-box plans to turnaround railways and modernise the network and its supporting infrastructure.
The Rail Budget will mainly look at issues such as dynamic revenue earning model, freight and fare rationalisation, and capacity augmentation, report said. Although, the Rail Ministry has several plans for the fiscal year 2015-2016 to improvise the condition of Railways, there seem to be no relief for the passengers this year. Prabhu had some time back said that reduction in passenger fares is unlikely to happen although diesel prices have come down. The budget is expected to be inspired by Narendra Modi's Swachh Bharat Mission, Make in India initiative and hi-end technology.
With 'Swachh Bharat' expected to be the keyword in the Railway Budget, Prabhu may announce major steps to improve cleaning efforts comprising installation of bio-toilets in trains and stations, provisioning dustbins across all types of coaches. Introduction of Wi-Fi services on station premises might be introduced as another major highlight of the budget this year. The Railway Budget might explore the possibilities of Information Technology (IT) to enhance the security of railway passengers and to curb growing incidents of crimes against women commuters. The North-East is also expected to get priority in the upcoming budget as an announcement for introduction of local services to improve connectivity in the region is on the anvil. Proposals for innovative funding for infrastructure projects are also on the anvil. The cash-strapped Railways has a challenge of completing more than 300 pending projects requiring an investment of around 1.7 lakh crore. Prime Minister Narendra Modi's ambitious plan of Diamond Quadrilateral - connecting metros with high speed trains - would also be tabled at the Rail Budget session. To run semi-high speed trains on several corridors, the budget is likely to propose indigenously built coaches or trains that can run upto 200 km per hour speed. All the proposals are expected to be in tune with government's 'Make in India' initiative, report added.
The government had last year, notified the liberalised foreign direct investment (FDI) norms for rail infrastructure, allowing 100% FDI through automatic route in the sector. FDI beyond 49% in sensitive areas will require Cabinet approval on a case-to-case basis.
According to media reports, the fall in diesel prices and a pick-up in freight earnings have given the Railways an opportunity to embark on rail investment splurge.
Power distribution companies supplying power to Delhi will be in focus after the AAP government fulfilled campaign promises yesterday, 25 February 2015, halving power tariffs for families consuming up to 400 units a month. The power subsidy will be effective from next month and is expected to cost the state government Rs 70 crore in March and Rs 1427 crore in the fiscal year ending 31 March 2016 (FY 2016).
NTPC said that its board has accorded the investment approval for the Khargone Super Thermal Power Project (2x660 megawatts) in Madhya Pradesh at an appraised current estimated cost of Rs 9870.51 crore, subject to Environment Clearance of Ministry of Environment and Forests.
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Further, the board has also accorded approval to the proposal for NTPC's commitment to Government of India for setting up 10000 megawatts of renewable energy projects during the next five years, NTPC said in a statement.
The Union Cabinet chaired by the Prime Minister, Narendra Modi, yesterday, 25 February 2015, gave its approval for the implementation of the scheme for setting up of 15,000 MW of Grid-connected Solar PV Power projects under the National Solar Mission through NTPC/ NTPC Vidyut Vyapar Nigam (NVVN) in three tranches namely, 3000 MW under Tranche-l under mechanism of Bundling with Unallocated Coal based Thermal Power and fixed levellised tariffs, 5,000 MW under Tranche-ll with some support from Government to be decided after getting some experience while implementing Tranche-l and balance 7,000 MW under Tranche-Ill without any financial support from the Government.
Successful completion of additional 15,000 MW capacity of Grid-connected solar PV power generation projects, mainly in the private sector, with largely private investment, under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand.
It is estimated that implementation of Tranche-l of the scheme will entail total investment of over Rs 18000 crore, all of which will be met by project developers, mainly private.
Telecom stocks will be in focus as the Telecom Regulatory Authority of India (TRAI) has yesterday, 25 February 2015, issued 6th Amendment to the Telecommunication Mobile Number Portability Regulation, 2009 which will facilitate Full MNP (PAN India Portability) in the country w.e.f. 3rd May, 2015.
Accordingly, in this Amendment, apart from facilitating Pan-India Portability, a few changes have also been made in the porting process as well, which include, in case a post-paid subscriber who has ported his number defaults in the payment of his previous bill which was due to the Donor Operator(previous service provider from whom the subscriber has ported out), the Donor Operator has to give a notice within a period of 30 days of due date of payment of its outstanding bill. After a lapse of 60 days from the due date of payment of the outstanding bill, the Donor Operator will not be entitled to raise non-payment disconnection requests with the Recipient Operator. For a post paid subscriber who has defaulted payment to the Donor Operator, the Donor operator will request the Recipient operator to disconnect the ported number. The Recipient Operator in turn will give a notice of 15 days for making such payment, failing which the outgoing services of such subscriber will be debarred for a period of 15 days. In case the subscriber fails to make payment within these 15 days, his mobile number will be disconnected permanently by the Recipient Operator.
Bharti Airtel said before market hours it has decided to sell up to 5.5 crore shares (with an upsize option of up to 1.75 crore additional shares) of its subsidiary company Bharti Infratel today, 26 February 2015 through stock exchanges. The transaction is subject to market conditions. The company will provide further updates, as necessary, upon consummation of the transaction.
With respect to the recent media reports on "Corporate Espionage" referring to information leakage of classified documents from the petroleum ministry. The said media reports have referred to investigation being currently carried out in the matter and action initiated against certain corporate executives Essar Oil clarified after market hours yesterday, 25 February 2015, that one of its employees has been arrested by the authorities. Essar Oil is a law abiding corporate following a zero tolerance policy towards acts which are against the law of this land. The company reiterated that it has directly nor has it authorised anybody to conduct any acts not in compliance with law. The company will also launch an internal probe to investigate the matter and in the meanwhile are extending full cooperation to the authorities.
Pharma stocks will be in focus after the Union Minister of Chemicals & Fertilizers Ananth Kumar has assured the pharmaceutical industry that appropriate decisions will be taken soon so that India becomes self-sufficient in the Bulk Drugs. Speaking at the launch ceremony of 2015 - Year of Active Pharmaceutical Ingredients yesterday, 25 February 2015, he said that the government is committed to usher in reforms and good governance, and promote the concept of Make in India.
He said that the government had set up Katoch Committee to look into various issues concerning the bulk drugs, and its recommendations have been received which will be implemented expeditiously after taking the Cabinet's approval. Ananth Kumar said that the bulk drugs constitute the backbone of the pharmaceutical industry and the sector needs to be incentivized so as to take on the challenge from cheap imports.
The Minster said that there can be no compromise with the quality, environmental requirements or regulatory necessities but the issues hampering the growth of the industry have to be addressed. He said over-dependence on imports from one country for bulk drugs is detrimental to the country's interest and hence, paradigm shift is necessary. He said the government is committed to support the bulk drug industry and revival of Public Sector Undertakings of the sector is on the anvil.
Gas distribution firms will be in focus after the Minister of State (I/C) for Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply yesterday, 25 February 2015, that Piped Natural Gas (PNG) forms part of the City or Local Natural Gas Distribution (CGD) network.
Petroleum & Natural Gas Regulatory Board (PNGRB), has been established under PNGRB Act, 2006. PNGRB grants authorization for City and Local Area Natural Gas Distribution Networks (PNG is a part of CGD network) in accordance with the provisions of the said Act and the PNGRB (authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Network) Regulation, 2008.
PNGRB has identified 8 Districts/Geographical Areas (GAs) in Bihar viz. Barh Bihar, Begusarai, Gaya, Gopal Ganj, Patna, Saran, Siwan and West Champaran for inclusion in the future bidding rounds for grant of authorization to develop CGD networks, depending on the natural gas pipeline connectivity/natural gas availability. Natural gas pipeline connectivity/ gas availability for Bihar is envisaged through the Central Government authorized GAIL's Jagdishpur-Haldia pipeline (JHPL).
The Minister of State (I/C) for Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply yesterday, 25 February 2015, that Petroleum and Natural Gas Regulatory Board (PNGRB) has submitted its recommendations to Ministry of Petroleum & Natural Gas (MoP&NG) on 20 January 2015
PNGRB has recommended a range of Rs 150-200 per 1000/SCM (Standard Cubic Meter) as a marketing margin for domestic gas being supplied to fertilizer & LPG plants. The recommendations of PNGRB are under examination in MoP&NG. After a decision is taken in the matter, the same will be intimated to the Department of Fertilizers.
Yes Bank said after market hours yesterday, 25 February 2015, it has successfully issued India's FIRST ever Green Infrastructure Bonds raising an amount of Rs 1000 crore. The issue launched on 16 February 2015 for Rs 500 crore plus green shoe option witnessed strong demand from leading investors including Insurance companies, pension & provident funds, foreign portfolio investors, new pension schemes and mutual funds, resulting in a total subscription of Rs 1000 crore and was closed on 24 February 2015. The bonds are for a tenor of 10 years.
The amount raised will be used to finance Green Infrastructure Projects in Renewable Energy including Solar Power, Wind Power, Biomass, and Small Hydel Projects. KPMG, India will be providing the Assurance Services annually, on the use of proceeds in accordance with the Green Bond principles.
At the 1st Renewable Energy Global Investors Meet & Expo hosted by the Ministry of New and Renewable Energy, Govt. of India, Yes Bank was the first Bank to have made a commitment of funding 5000 MW of Renewable Energy projects and the funds raised via this bond issue will be utilized towards meeting this commitment. Yes Bank was the sole Knowledge Partner to this conference. Yes Bank has also made a commitment of funding Clean Energy projects at the United Nations Climate Change Summit 2014.
Castrol India's net profit rose 4.60% to Rs 132 crore on 4% increase in total income to Rs 870.10 crore in Q4 December 2014 over Q4 December 2013.
Net profit fell 6.70% to Rs 474.50 crore on 5.43% increase in total income to Rs 3440.40 crore in the year ended December 2014 over the year ended December 2013.
Moil turns ex-dividend today, 26 February 2015, for an interim dividend of Rs 5 per share for the year ending March 2015.
Neyveli Lignite Corporation turns ex-dividend today, 26 February 2015, for an interim dividend of Rs 1.80 per share for the year ending March 2015.
Chambal Fertilisers & Chemicals said it has decided to voluntarily wind up its Cayman Islands-based wholly owned subsidiary, CFCL Overseas.
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