Latest Developments

Asia
The Hindu BusinessLine

ADB approves $230 million loan to modernise water supply and sanitation in Chennai

The Asian Development Bank (ADB) on Friday approved a $230 million loan to modernise and expand Chennai’s water supply and sanitation infrastructure, benefiting 4.5 million residents in the Greater Chennai area. The project will construct over 170 km of water supply pipes and sewer pipes, upgrade seven water pumping stations and 38 sewer pumping stations, and strengthen water utility assets and operations management through performance-based contracts, ADB said. Chennai will become the first Indian city to implement a comprehensive ring-main solution—a closed-loop system designed to maintain balanced water pressure and deliver water efficiently across service areas—improving reliability, equity, and resilience to natural hazards in its urban water supply system, the bank said. Despite being India’s fourth-largest city and a major industrial hub, Chennai’s water supply infrastructure has not kept pace with growth. ADB’s latest investment builds on earlier projects in the city to expand access to safe and equitable water and waste management services, in line with the Government of India’s flagship urban development interventions, such as the Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund, according to the bank. “ADB’s financing will improve access to safe and reliable water supply and better sanitation services across Chennai,” said ADB Country Director for India Mio Oka. “The project will also help strengthen the city’s resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system.” ADB will help digitally transform water and sanitation services through real-time monitoring, data-driven decision-making, and improved customer responsiveness. The project will introduce advanced technologies to eliminate hazardous manual sewer inspections, make blockage detection faster and safer, enhance worker safety, and prepare distribution networks in at least two Greater Chennai zones for future investments, the bank said. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

ADB approves $230 million loan to modernise water supply and sanitation in Chennai
Asia
The Hindu BusinessLine

Farmer protests force Gujarat to switch to market-value for transmission projects

Facing mounting protests from farmers over land used for electricity transmission infrastructure, the Gujarat government on Friday overhauled its compensation policy by linking payouts for land occupied by transmission towers and power lines to the prevailing market value instead of government-notified benchmark rates. Until now, compensation was calculated at 200 per cent of the “Jantri” value—the Gujarat government’s notified minimum valuation of land used for property registration and stamp duty purposes—which farmers argued was significantly lower than actual market prices in many parts of the state. Under the revised policy, compensation for land occupied by transmission towers will instead be calculated at 200 per cent of the prevailing market value, a move expected to substantially increase payouts in several districts. The decision comes after months of protests by farmers in districts including Banaskantha, Patan, Mehsana, Sabarkantha, Aravalli and parts of Saurashtra, where landowners opposed the erection of high-voltage transmission towers, alleging inadequate compensation and damage to agricultural land. In a significant relief for farmers, the state has extended the revised compensation policy to ongoing transmission projects where compensation was assessed under the earlier framework but the projects are still under execution, allowing eligible landowners to avail of the enhanced compensation. The government has also expanded the area eligible for compensation. Earlier, payments were restricted to the actual footprint of the tower foundation. Going forward, an additional one metre on each side of the tower base will be included while calculating the compensable area. For instance, for a 765-kV transmission tower, the eligible area will increase from 625 square metres to 729 square metres. Another major change is the payment mechanism. Instead of disbursing compensation in three stages—40 per cent during foundation work, 40 per cent during tower erection and the remaining 20 per cent after stringing of transmission lines—the government will now pay the entire compensation upfront before work begins. To determine land values, the state will constitute a Market Rate Committee (MRC) comprising the district collector, representatives of affected farmers, authorised valuers nominated by landowners and representatives of transmission companies. The committee will determine the prevailing market value of land in a transparent manner. For the Right of Way (RoW) corridor under transmission lines, compensation will also be linked to the market value determined by the MRC. Farmers will receive compensation equivalent to 30% of the market value in rural areas, 45 per cent in municipal areas and 60% in metropolitan areas, replacing the earlier Jantri-linked formula. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

Farmer protests force Gujarat to switch to market-value for transmission projects
Asia
The Hindu BusinessLine

Capgemini clarifies Bengaluru daycare was operated by external provider amid abuse probe

The alleged abuse took place in a creche for children of employees working at IT firm Capgemini in Bengaluru. File photo Capgemini on Friday clarified that the day-care facility at the centre of child abuse allegations at its Bengaluru campus was operated by external provider Little Scholars. In an updated statement, the company said, “The situation reported at the daycare facility in Bengaluru, operated by the external provider Little Scholars, is being treated with the utmost seriousness. Our first thoughts are with the children and their families. We are extending all our support to them.” The IT services company said it had temporarily closed the daycare facility on July 1 pending a review following media reports alleging abuse of children at the centre. It added that it was extending full cooperation to the authorities to clarify the facts. Capgemini also said it is providing support to affected families, including access to a helpline facility, dedicated counselling through its Employee Assistance Program, and flexible work-from-home options. The company highlighted that its daycare providers undergo rigorous due diligence and compliance checks. “These facilities support our employees, who entrust their children to these centres. This is an important part of our commitment to our team members.” The updated statement comes as Bengaluru Police continue to investigate the allegations. According to a media report by The Hindu, Bengaluru City Police Commissioner Seemant Kumar Singh announced a review of all daycare centres, including those run by companies, to check for compliance with norms. He also said a special team led by a Deputy Commissioner of Police (DCP) had been formed to probe the case. The FIR was registered following a call to the Child Helpline, and police have collected CCTV footage from the campus for analysis. The Hindu reported that HAL police have issued notices to five staff members of the daycare facility for questioning and sent video clips allegedly showing the abuse to the Forensic Science Laboratory for verification. According to media reports, an FIR was registered on June 29 against five caregivers under the provisions of the Bharatiya Nyaya Sanhita and the Juvenile Justice Act. The complaint alleges that children at the daycare facility inside Capgemini’s Brookefield campus were subjected to physical and mental abuse. The allegations came to light after videos purportedly showing the incidents were circulated on WhatsApp and reported to the Child Helpline.

Capgemini clarifies Bengaluru daycare was operated by external provider amid abuse probe
Asia
The Hindu BusinessLine

Why reviving the stock exchange on Lyons Range is a tall ask

The defunct Calcutta Stock Exchange (CSE) on Lyons Range hogged the limelight last month, thanks to the Bharatiya Janata Party-led new government proposed reviving the 118-year-old bourse. Recently in his Budget speech, the West Bengal Finance Minister, Swapan Dasgupta, said CSE is on the verge of closure due to several hurdles, and the State government would support its revival to reclaim Kolkata’s place as a financial hub. The revival of the CSE would have multifarious advantages, including easier access to capital for Eastern India, lower costs of listing and trading and creating new jobs, said the Minister on the floor of the Assembly while presenting his Maiden Budget. The proposal also envisages the listing of profitable State-owned enterprises (PSUs) on the CSE to unlock corporate value and boost State revenues. Trading on the CSE was suspended in April 2013, following regulatory non-compliance with the exchange failing to set up or tie up with a clearing corporation. CSE members continued to trade directly on the National Stock Exchange (NSE) platform. However, this service stopped in 2024. While CSE members remain enthusiastic about reviving the exchange, bringing the bourse back to life will be an uphill battle. An exchange cannot survive without broad stakeholder support. While the government may extend assistance, the real test lies in attracting market participants. Winning over traders will be particularly difficult, as the NSE and BSE already offer superior infrastructure — from trading platforms and clearing corporations to depository services and market surveillance. Even if the CSE upgrades its infrastructure, its relatively lower liquidity would translate into higher impact costs, reducing trading efficiency and investor returns. Companies seeking to raise capital are also likely to favour the larger exchanges because of their wider investor base, deeper liquidity and more advanced market ecosystem. The challenges are evident from the experience of Metropolitan Stock Exchange of India Ltd (MSEI), which, despite backing from banks and marquee investors such as Groww and Zerodha’s Rainmatter Investments, continues to struggle for market share. More recently, NCDEX received regulatory approval to launch equity and derivatives products and plans to begin with mutual fund offerings before expanding further. There have also been suggestions that the CSE should focus on attracting small and medium enterprises (SMEs) from East India. However, following a series of scams on the NSE SME and BSE SME platforms — particularly those involving the siphoning of funds by promoters — this can prove quite risky. The exchange also faces a credibility deficit. It needs a significant image makeover to restore investor confidence and market relevance. In 2017, SEBI identified 145 of the CSE’s 331 listed companies — nearly 45 per cent — as shell companies. Such entities typically have little or no genuine business activity and are often used for money laundering, tax evasion and concealing beneficial ownership. Government backing alone will not be enough to revive the CSE. The road ahead remains challenging, and a successful turnaround will require sustained regulatory reforms, strategic direction, and broad-based market participation. It is widely accepted that healthy and efficient markets require robust competition. However, given the current market dynamics, this exercise is likely to prove futile.

Why reviving the stock exchange on Lyons Range is a tall ask
Asia
The Hindu BusinessLine

Chinese firms crash India’s power party as Nifty hits three-day high

Markets extended their winning run to a third consecutive day on Friday, but a policy shift rattled the country’s power equipment stocks. The government allowed four Chinese manufacturers to bid on critical domestic power projects, bypassing the security clearance norms in place since 2020. Shares of GVT&D, Power India, and CG Power fell sharply, unwinding gains built on India’s infrastructure boom story. “...the competition just got real,” noted Sarvam Goel, Founder of Pocketful, adding that while the two-year exemption is limited in scope, one of the key pillars of the domestic power sector’s re-rating, the exclusion of Chinese competition, has developed a crack. Against that backdrop, the Nifty 50 closed at 24,270.85, up 95.15 points or 0.39 per cent, while the BSE Sensex rose 261.79 points or 0.34 per cent to 77,763.91. The index opened with a gap-up above 24,200 but gave back intraday highs in the second half as profit booking trimmed gains. India VIX fell 3.7 per cent, signalling easing volatility. IT sector was the showstopper. HCL Technologies surged 5.74 per cent after winning a $1.14 billion AI-led transformation contract with a Fortune Global 50 company, a deal that shifted the narrative for a sector that had been under pressure. The Nifty IT index rebounded nearly 2 per cent, extending its two-day gain to over 6 per cent. Realty, healthcare, and pharma also outperformed. On the other hand, PSU banks remained under pressure. Union Bank of India shed over 7 per cent after reporting slower-than-expected loan growth in its June quarter business update, compounded by an ex-dividend trading day. SBI fell 1.01 per cent and Axis Bank dropped 1.51 per cent. Broader markets were mixed. The Nifty Midcap 100 declined 0.19 per cent, while the Nifty Smallcap 100 edged up 0.04 per cent. For the week, the Nifty gained 0.89 per cent and the Sensex added 663 points, with the Realty index the standout performer, up 7.20 per cent, while the Energy index lost 1.40 per cent. The macro backdrop was supportive. Weaker-than-expected US jobs data reinforced expectations that the Federal Reserve will hold interest rates steady at its next meeting, with rate futures pricing in just an 18 per cent probability of a hike, down from roughly a third earlier in the week. Crude oil hovered near $69 per barrel on Friday, close to pre-Middle East conflict levels, as shipping through the Strait of Hormuz continued to recover amid progress in US-Iran negotiations, a relief for India’s import bill. The rupee traded around 95.39 against the dollar, firming alongside regional peers on the back of the softer US labour market data, with near-term resistance seen at 95.80 and support at 94.95. TRADING ECONOMICSInvesting.com India Looking ahead, markets are expected to maintain a gradual upward bias, but the focus will quickly shift to stock-specific action as the June-quarter earnings season kicks off. Investors will also keep a close eye on the southwest monsoon. June rainfall came in 40 per cent below the Long Period Average, and while the IMD forecasts July at 94 per cent of normal, it has revised its full-season outlook down to 90 per cent due to El Niño conditions. The Defence Acquisition Council meeting, where procurement proposals worth over ₹1 lakh crore are expected to be tabled, could also keep defence stocks in play next week. “...buy on dips” remains the recommended strategy, say analysts, with 24,150 as the immediate support level and 24,500–24,700 as the next resistance zone for the bulls. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Chinese firms crash India’s power party as Nifty hits three-day high
Asia
The Hindu BusinessLine

Gujarat’s Kharif sowing slows sharply as 82% rain deficit keeps farmers off fields

An 82 per cent rainfall deficit has brought Kharif sowing in Gujarat to a crawl, with farmers postponing planting amid the delayed advance of the southwest monsoon. By the end of June, only 12.71 lakh hectares had been sown—62 per cent lower than the 33.9 lakh hectares covered during the same period last year—raising concerns over the pace of the sowing season if widespread rains do not arrive soon. The area sown so far is just 15 per cent of Gujarat’s normal Kharif acreage of around 85 lakh hectares, highlighting the extent to which weak monsoon activity has disrupted farm operations. While scattered showers have been reported in some parts of the state, most farmers are waiting for sustained rainfall before taking up large-scale sowing. The biggest setback has been in Gujarat’s key cash and oilseed crops. Farmers have sown only 4.29 lakh hectares under oilseeds so far, nearly five times lower than the corresponding period last year. Groundnut, the state’s largest Kharif crop, has been planted on 4.12 lakh hectares, a steep 73% decline from a year ago, while soybean acreage has plunged 87 per cent to just 15,406 hectares. Cotton, another major Kharif crop, has fared little better. Farmers have covered only 6.83 lakh hectares, down 51 per cent from the area sown by the end of June last year, reflecting widespread caution amid uncertain rainfall. Among cereals, however, sowing has bucked the broader trend. Farmers have planted 38,874 hectares, about 7 per cent more than during the same period last year. Pulses, on the other hand, have seen a sharp decline, with sowing limited to just 5,479 hectares, nearly one-fifth of last year’s coverage. The uneven progress of the monsoon is evident across the state. While Surat and Tapi in south Gujarat received heavy showers over the past 24 hours, large parts of Gujarat continue to remain dry, delaying field preparation and planting. The situation is most acute in Saurashtra, where Devbhumi Dwarka continues to record a 100 per cent rainfall deficit. Nine other districts in the region are also grappling with rainfall deficits of more than 90 per cent, leaving farmers reluctant to begin sowing until there is greater certainty over moisture availability. There is, however, some relief in sight. According to the India Meteorological Department (IMD), conditions have become favourable for the further advance of the southwest monsoon into more parts of Gujarat.

Gujarat’s Kharif sowing slows sharply as 82% rain deficit keeps farmers off fields
North America
Yahoo Finance

Wall Street is getting trampled by an AI sell-off. South Korean market plunges 10%

Currency dealers monitor exchange rates as a screen shows South Korea's benchmark stock index (KOSPI) in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on Tuesday. Jade Gao/AFP/Getty Images Tech news Investing Economy Stocks See all topics Facebook Tweet Email Link Threads Link Copied! Follow Volatility has returned to the stock market, and AI is once again the culprit. The tech-heavy Nasdaq dropped 2.21% and the S&P 500 fell 1.44% Tuesday as investors sold semiconductor chip stocks and other AI-related shares. The Dow, which has less exposure to tech, was down about 0.1%. The S&P and Nasdaq each had their worst day in about two weeks. The declines came after steep sell-offs in Asia. Nerves about AI quickly spiraled into full-on panic trading in South Korea on Tuesday, where the Kospi index tumbled 10%, tripping a circuit breaker that led to a 20-minute cooling-off session. SK Hynix and Samsung, two of the world’s leading memory chipmakers, tumbled more than 12%, dragging the rest of South Korea’s stock market down with them (the two chipmaking giants make up about half of the Kospi’s total market value). “These big moves are part of a growing trend of rising volatility in tech stocks generally,” James Reilly, senior markets economist at Capital Economics, said in a note. “This volatility is, in our view, evidence of excessive froth and calls into question the sustainability of this rally.” US markets kicked off the week on a down note, with the Nasdaq falling 1.3% Monday before extending losses Tuesday. The mild US tech-sell off Monday spilled into Asian trading hours, and then the sell-off intensified Tuesday. Traders’ fear isn’t about anything specific, and there wasn’t any obvious catalyst to lead to such enthusiastic selling. But those nerves continued in the United States, where tech stocks had a rough day. Some investors might be taking profits after strong rallies. Some market analysts pointed to jitters sparked by Google (GOOG) and SpaceX (SPCX) falling somewhat sharply Monday. But Google’s 5% decline was mostly because of a high-profile AI leader defecting to Anthropic, and SpaceX – which dropped 16% Monday – has some post-IPO jitters that are typical for companies whose stocks boom right out of the gate. Google fell less than 1% Tuesday, while SpaceX gained about 1% after fluctuating in volatile trading. Nvidia (NVDA) was about 4% lower, weighing on the broader market. Oracle (ORCL) fell more than 5.5%, putting it down about 27% this month. Other analysts suggested the markets were reacting to the likelihood that the Federal Reserve may raise interest rates later this year. But that’s not exactly new information: New Fed Chairman Kevin Warsh held his first press conference last Wednesday to announce that the Fed would double down on its mission to get inflation under control – a promise that prompted a market sell-off as traders interpreted Warsh’s words as a pledge to raise interest rates later this year. Semiconductor chip stocks, which have led the market rally this year, fell sharply Tuesday: Micron Technology (MU) dropped 13%. Marvell Technology (MRVL) sank 9%. Traders are awaiting Micron’s quarterly earnings results on Wednesday. Whatever the cause, with AI companies’ sky-high valuations and incredible growth trajectories, it doesn’t take much to set off investors. The Kospi is up more than 90% this year, so when the wind blows in an unexpected direction, it can lead traders – and, often more consequentially, trading algorithms – to head for the exits. They fear the top of the Jenga tower could tip over.

Wall Street is getting trampled by an AI sell-off. South Korean market plunges 10%
Europe
BBC Business

Could you handle a 20-plus hour flight? This airline is banking on it

On a stage at the Airbus headquarters in Toulouse, the chief executive of Australian airline Qantas declares: "The tyranny of distance has finally been conquered". Vanessa Hudson was in the French city last week to announce the world's first 20-plus hour flight route. The airline first flew what it named the Kangaroo route between London and Sydney in 1947. At the time, it was an odyssey spanning seven stops and four days. Those stops have been gradually reduced, with Qantas now stopping only once, in Singapore, on the way through. But 80 years after that 1940s venture, the first non-stop flight between the two cities is set to take off from October 2027. Using specially designed ultra-long-haul Airbus planes, Qantas expects to shave about four hours off the current journey time. It is expected to last around 22 hours. The much anticipated - and delayed - breakthrough comes after a turbulent few years in the airline's history, and bosses are banking on customers embracing the premium but marathon flight. "We feel really confident that this is going to be a success," Hudson tells the BBC. Some analysts say it is a major milestone in aviation history. But is it really what people want? The flight will save money on landing fees by eliminating a stop, but Hudson admits the longer flight has a higher relative fuel bill. There are also fewer seats, nearly half of which (40%) will be premium economy, business, or first class. To counter the increased risk of issues such as deep vein thrombosis which can occur from flying for such long periods, Qantas has increased the legroom in economy and also created a dedicated "wellness" space where passengers can follow stretching exercises on a screen and have a little more room to move about.

Could you handle a 20-plus hour flight? This airline is banking on it
Europe
BBC Business

Three unusual things about the King's tax bill

Image source, Getty ImagesByMitchell LabiakBusiness reporterPublished4 hours agoKing Charles has made history by revealing his £12.9m tax bill, but the payment is far from ordinary. The announcement comes alongside the Royal Household publishing its annual financial report. Here's what the document tells us – and doesn't tell us – about the King's unique tax situation. King Charles is not legally required to pay income tax, capital gains tax, or inheritance tax. The MoU came about in 1993 following public pressure over the cost of running the Royal Family and is occasionally updated, most recently in 2023 to reflect the change of monarch following Queen Elizabeth II's death. The fact that some of the King's taxes are voluntary is not the case for regular taxpayers, and some argue this means that it is not a tax at all. HMRC defines tax as "money that individual people and businesses are legally required to pay to the government". Dan Neidle, founder of Tax Policy Associates, told the BBC: "If it's voluntary, it's not tax." Meanwhile, the report says King Charles pays VAT, employer taxes, and local rates "in line with requirements". While the Royal Household describes releasing the King's tax bill as part of its "commitment to transparency", it's not clear how it has been figured out. So although we know that the King has agreed to pay tax on personal income, income from the Privy Purse not spent on official duties, and capital gains tax on private property sales, we don't know what proportion of those taxes make up the £12.9m paid. It mostly comprises income from the Duchy of Lancaster, an estate that belongs to whoever is the ruling monarch and owns – among other things – the Savoy Hotel in London.

Three unusual things about the King's tax bill