UPA rushes through big-ticket deals

May 14, 2014

New Delhi, May 14: The last “working” Cabinet meeting of the outgoing UPA government on Tuesday saw several big-ticket decisions—ranging from FDI in the pharma sector to appointment of the new Army chief and approval to sell 4.66 per cent stake in the state-owned Bharat Heavy Electricals Ltd through a block deal.

Big-ticket_dealsOvercoming his initial hesitation over mega decisions at the fag end of his term, Prime Minister Manmohan Singh got the Cabinet to approve a $400-million proposal by global equity major KKR to acquire stake in two Indian pharma firms in a deal touted as the largest private equity in India’s health sector. This is among the deals fiercely opposed by the BJP on the ground that the outgoing government should not take any crucial decision when its tenure ends in two days.

As cleared by the Cabinet Committee on Economic Affairs (CCEA), KKR will buy a 38 per cent stake in Hyderabad-based Gland Pharma, which develops and manufactures generic injectables, primarily in the cardiovascular and orthopaedic segment. In the second transaction, KKR will buy 29.4 per cent share in Gland Celsus Bio Chemicals from an existing investor.

Currently, the government allows 100 per cent FDI in both greenfield and brownfield drug manufacturing companies. Investments in greenfield are allowed through automatic route and those in brownfield or existing facilities require approval of the Foreign Investment Promotion Board (FIPB).

Originally cleared by the Competition Commission of India in January, the KKR deal was stuck because of differences between the Finance and Commerce ministries. The Department of Policy and Promotion under the Commerce Ministry raised objections to the proposal as it believed several clauses of the deal did not adhere to the FDI policy on brownfield projects.

That also saw the Health Ministry joining the Commerce Ministry in advocating a lower cap on investment in the existing drug making units along with various safeguards for acquisition of domestic critical care pharma companies by multinational firms.

But the Finance Ministry and the Planning Commission wanted faster clearance to keep investors’ sentiments intact in the Indian market. The Prime Minister, however, was against the deal being cleared by the outgoing government. In the last Cabinet meeting on May 8, it was not given a nod even though Finance Minister P Chidambaram pitched for it.

On Tuesday, the CCEA also gave post-facto approval to sale of 4.66 per cent stake in state-owned Bharat Heavy Electricals Ltd through a block deal, Heavy Industries Minister Praful Patel said after the Cabinet meeting. “It is post-facto, the Cabinet has cleared it,” he told reporters when asked about the decision on the BHEL stake sale.

The government had divested 4.66 per cent in the heavy engineering major through a block deal on March 3. As the original approval by the Cabinet was for divestment through a follow-on public offer, the department of disinvestment had sought a post-facto approval for the block deal. The government currently holds 63.06 per cent stake in BHEL.

Meanwhile, official corridors were abuzz with talk of Chidambaram not approving a proposal from the Prime Minister’s Office to appoint Indu Shekhar Chaturvedi, a 1987 IAS Jharkhand cadre officer, as executive assistant in the World Bank in Washington.

Apparently, Singh spoke to the finance minister to clear it. In turn, Chidambaram got his personal assistant M A Siddique, a Tamil Nadu IAS cadre officer, also cleared by the Appointments Committee of the Cabinet, for placement with the World Bank.

The appointment of Muralidharan Nair as secretary to the outgoing prime minister was cleared on Tuesday.

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News Network
July 18,2020

New Delhi, Jul 18: The Covid-19 lockdown-led reduction in air pollution levels across five Indian cities, including Delhi and Mumbai, may have prevented about 630 premature deaths, and saved USD 690 million in health costs in the country, according to a new study.

Scientists, including those from the University of Surrey in the UK, assessed the levels of harmful fine particulate matter (PM2.5) from vehicles and other sources in five Indian cities -- Delhi, Mumbai, Kolkata, Chennai and Hyderabad -- since the beginning of the lockdown period.

The study, published in the journal Sustainable Cities and Society, compared these lockdown PM2.5 figures from 25 March up until 11 May, with those from similar periods of the preceding five years, and found that the measure reduced pollution levels in all these places.

According to the scientists, during this period, the levels of these harmful air pollutants reduced by 10 per cent in Mumbai, and by up to 54 per cent in Delhi.

"The percentage reduction for the other cities ranged from 24 to 32 per cent, which was slightly smaller than the measured values for Delhi and Mumbai," the scientists noted in the study.

"While the reduction in PM2.5 pollution may not be surprising, the size of the reduction should make us all take notice of the impact we have been having on the planet," said Prashant Kumar, a co-author of the study from the University of Surrey.

The scientists said these reductions in PM2.5 were comparable to those reported in other cities across the world, such as in Austria's capital Vienna (60 per cent), and Shanghai (42 per cent) in China.

They also calculated the monetary value of the reduced mortality due to air pollution and found that the lowered levels of PM2.5 may have saved 630 people from premature death, and USD 690 million in health costs in India.

Coronavirus India update: State-wise total number of confirmed cases, deaths on July 17

According to the researchers, the present lockdown situation offers observational opportunities regarding potential control systems and regulations for improved urban air quality.

They said an integrated approach might help in understanding the overall impacts of Covid-19 lockdown-style interventions and support the implementation of relevant policy frameworks.

"This is an opportunity for us all to discuss and debate what the 'new normal' should look like - particularly when it comes to the quality of the air we breathe," Kumar said.

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News Network
January 22,2020

Jan 22: Microsoft Corp’s chief executive officer said he worries that mistrust between the US and China will increase technology costs and hurt economic growth at a critical time.

Using the $470 billion semiconductor industry as an example of a sector that is already globally interconnected, Satya Nadella said the two countries will have to find ways to work together, rather than creating different supply chains for each country.

“All you are doing is increasing transaction costs for everybody if you completely separate,” Nadella said in an interview with Bloomberg News Editor-in-Chief John Micklethwait at Bloomberg’s The Year Ahead conference in Davos. That’s a concern as the executive said the world is on the cusp of a revolution around technology and artificial intelligence.

“If we take steps back in trust or increase transaction costs around technology, all we are doing is sacrificing global economic growth,” he said.

The agreement signed last week between the US and China was “not sufficient,” said Nadella, but represented “progress” on the issue of intellectual property protections for US technology companies working with China.

Nadella said he worries about the development of two separate internets, noting that to some degree they already exist “and they will get amplified in the future” with massive technology companies already in place in China.

The viewpoint clashes with Microsoft co-founder Bill Gates, who has been sceptical about the idea that ongoing US-China trade tensions could ever lead to a bifurcated system of two internets.

China and the US are the two leading AI superpowers, however the cooling political relations between them have slowed the international collaboration.

Nadella also warned that countries that fail to attract immigrants will lose out as the global tech industry continues to grow. The CEO has previously voiced concern about India’s Citizenship Amendment Act, calling it “sad.”

“However, Nadella said he remained hopeful.

“The fact that there is a 70-year history of nation-building, I think it’s a very strong foundation. I grew up in that country. I’m proud of that heritage. I’m influenced by that experience.”

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Agencies
February 10,2020

New Delhi, Feb 10: After an hour-long standoff between the security forces and the students on Monday, the police resorted to a lathi-charge on the protesters near Holy Family hospital which is within walking distance of Jamia Millia Islamia.

A scuffle ensued when police confronted the protesters who tried to push forward towards Parliament. The lathi-charge was made to push back the protesters.

In the melee that ensued, many from both sides fainted.

Some security forces personnel resorted to the lathi-charge while others pushed back the protesters when they threw water pouches at the security forces and abused them.

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