Newspaper Summary 130326

 

Storage in 35% of key reservoirs down below 50 per cent of capacity

Our Bureau Chennai

Storage in at least 35 per cent of India’s major 166 reservoirs dropped below 50 per cent of the capacity even as the overall level dropped below 55 per cent, according to data from the Central Water Commission (CWC).

The CWC reported in its weekly bulletin on Thursday that the water level dropped to 54 per cent of the 183.565 billion cubic meters (BCM) capacity, standing at 98.913 BCM. The level dropped below 50 per cent of capacity in the northern region.

In the southern reservoirs, the level was 44 per cent (compared to 46 per cent last year) at 24.379 BCM of the 55.288 BCM capacity. Specifically, the levels were:

• Andhra Pradesh: 51 per cent
• Tamil Nadu: 50 per cent
• Kerala: 46 per cent
• Karnataka: 41 per cent
• Telangana: 37 per cent

The 11 reservoirs of the northern region were at 48.16 per cent of their 19.836 BCM capacity, at 9.554 BCM. The 27 reservoirs of the eastern region were filled to 52 per cent of the 21.759 BCM capacity at 11.386 BCM. In the western region’s 53 reservoirs, the level was....

(Note: The text provided in the sources for this article ends abruptly at this point.)

Netflix bets big on Indian AVGC opportunity

Our Bureau Hyderabad

Eyeing a growing opportunity in the animation, visual effects, gaming and comics (AVGC) industry in India, entertainment major Netflix launched Eyeline Studios, its global production and innovation studio, here on Thursday.

Inaugurating the facility, Telangana Chief Minister A Revanth Reddy said Netflix’s arrival signalled Hollywood’s presence in Hyderabad, which has a robust film production ecosystem. “Eyeline’s presence will further strengthen Hyderabad’s position as a leading hub for film, technology and the AVGC sector,” he said.

The 32,000 sq ft facility houses technology infrastructure for advanced visual effects and generative virtual effects, all supported by a hybrid cloud backbone.

The Hyderabad facility is Eyeline’s fifth global location, after Los Angeles, Vancouver, Seoul and London. Designed as a fully-integrated part of Eyeline’s global network, the studio will contribute to high-end visual storytelling worldwide.

IDEAL LOCATION

Jeff Shapiro, CEO of Eyeline Studios, said India had long played a defining role in global visual effects, not just because of its scale but because of the depth of its creative and technical talent.

“When we looked at where to establish our presence, Hyderabad stood out immediately. It brings together a strong technology backbone, world-class engineering capability and a film culture that understands ambition,” he said. “The talent in this city and across India combines artistic craft with impeccable technical precision. That’s exactly the foundation we need to build long-term capability and contribute meaningfully to global storytelling from here,” Shapiro said.

“Hyderabad has a long history in AVGC. Most major Hollywood studios already have small offices in Hyderabad. Pan-India films are being made out of Hyderabad,” Sanjay Jaju, Union Secretary, Ministry of Information & Broadcasting, said.

India activates alternative fuel options for SMEs, restaurants

Rishi Ranjan Kala New Delhi

The government on Thursday said it has activated the use of alternative fuels such as coal, kerosene and RDF pellets for small and medium enterprises (SMEs), restaurants and hotels, as more than half of its liquefied petroleum gas (LPG) requirement has been affected due to the closure of the Strait of Hormuz.

TOP-LEVEL PARLEYS

These proactive measures have accompanied top-level parleys on the emerging situation between Prime Minister Narendra Modi and senior Cabinet Ministers. The Prime Minister is believed to have asked his Cabinet colleagues to ensure that consumers do not suffer from the impact of the West Asia conflict. The Prime Minister is being regularly briefed on the crisis.

Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas (MoPNG), said alternative fuel options are being activated to ease pressure on LPG and gas channels. On a quarterly basis, the government of India allocates kerosene to the States, which is almost 1 lakh kilolitres.

“Today, the order has been released and another 48,000 kilolitre of kerosene will be released to State governments. The role of State governments is very important in terms of identification of beneficiaries and distribution. Coal Ministry has issued a letter yesterday (Wednesday), and directions have been issued to CIL and SCCL to allot higher quantities of coal to States so that supplies can be made to the small, medium and other consumers,” she added.

USE OF BIOMASS

The Environment Ministry has advised State pollution control boards to permit the use of biomass, RDF pellets, kerosene or coal as alternative fuel for hospitality and restaurant segments for one month, which will enable a wider range of establishments to switch and free up the LPG for priority consumers, Sharma said.

Regarding commercial LPG, Sharma informed that certain sectors such as hospitals and educational institutions have been prioritised. For the rest, a 3-member committee of Executive Directors of Oil Marketing Companies (OMCs) has been formed. They have received certain representations. They have gone through it and a major decision has been taken.

“It has been decided that some commercial cylinders will also be released, but here the role of State government is going to be very important. State governments have been requested through the OMCs to identify the list of beneficiaries so that delivery of the commercial cylinder can be made on a priority basis. This is important as we want to avoid hoarding or black marketing,” the senior government official said.

India consumed over 33 million tonnes (mt) LPG in FY25, of which about 90 per cent was in households for cooking. It produced 12.79 mt and imported 20.67 mt during the same period.

In a first, Liberia-flag crude carrier transits Hormuz Strait to reach Mumbai

Our Bureau New Delhi

A foreign-flagged tanker delivered geopolitically sensitive crude oil at Mumbai on Wednesday, transiting the Strait of Hormuz, which is a first after shipping traffic turned into a trickle on the world’s most critical energy choke point following the Iran war.

GOES ‘DARK’

Sources said that the Liberia-flagged Shenlong, carrying around 1.35 lakh tonnes of Saudi Arabian crude oil, left Ras Tanura on March 1 and entered the Strait on March 8. The Suezmax switched off AIS tracking while crossing the high-risk zone, re-appeared on March 9, and docked at the Mumbai port on March 11.

This is the first India-bound crude shipment to clear the Strait since the conflict began, according to sources. Suezmaxes are the largest vessels that can transit the Suez Canal, with a capacity of 1,20,000 to 2,00,000 dwt (deadweight tonnage). A senior government official suggested the vessel may have transited the Strait with Iranian permission, though this could not be immediately confirmed.

Sources also noted that the Shenlong has started discharging crude oil believed to have been sourced by a PSU oil marketing company (OMC). Crisil Ratings highlighted that West Asian countries account for roughly 30 per cent of global crude oil and 20 per cent of liquefied natural gas (LNG) production. Much of this volume is transported through the Strait of Hormuz. India imports approximately 85 per cent of its crude oil and half of its LNG requirement; of these totals, 40-50 per cent of crude oil and 50-60 per cent of LNG arrive via the Strait.

Most vessels have stopped using this route since March 1 due to the increased risk of passage. Any prolonged disruption to this route is expected to impact global crude oil and LNG availability, as well as their market prices.

Grew Energy to bring in Chinese engineers to set up solar cell unit

Avinash Nair Ahmedabad

Gujarat-based Grew Energy Pvt Ltd is bringing in around 40 engineers from China to help install and commission its upcoming solar cell manufacturing plant in Madhya Pradesh.

“Because of the current geopolitical situation it is difficult to have direct tie-ups with Chinese companies. However, equipment manufacturers in China transfer the know-how to us and will also provide the engineers who will come and set up the plant,” Vinay Thadani, Director and CEO of Grew Energy, told businessline in an exclusive interaction.

As part of the contract, the engineers from Suzhou, a key centre for solar equipment manufacturing in China, are expected to stay in India for nearly two years to help run the machines, train local manpower and ensure production lines meet the required performance benchmarks.

Grew began constructing an 8 GW solar cell manufacturing facility in April 2025 at Narmadapuram in Bhopal, Madhya Pradesh, where it has been allotted 60 acres land. Phase-1 of the project involves building a 3 GW plant with an investment of around ₹2,000 crore, with trial runs expected to begin in April 2026. The company has also begun construction of phase-2, which will add another 5 GW at an estimated cost of ₹3,600 crore, with commissioning targeted by March 2027.

WILL REPEAT MODEL

“We will repeat the same model, bring in Chinese technicians for the proposed ingot and wafer plant (in Madhya Pradesh) as well,” Thadani said.

The company has already acquired 65 acres of land for the project and plans to build a 3 GW ingot and wafer facility in phase-1 by the second quarter of the next fiscal year, involving an estimated ₹1,800 crore investment.

Alongside on-site training in India, the company is also sending Indian engineers to China to build operational expertise.

‘Shadow fleet’ tankers with Russian oil divert to India after US import waiver

T E Raja Simhan Chennai

India could see some near-term easing in crude oil supplies as several tankers carrying Russian crude, including vessels from the so-called “shadow fleet”, are altering course and heading to Indian ports following a US waiver on imports from Russia.

Shadow fleets — or dark or ghost fleets — consist of tankers operating outside the conventional regulatory framework governing most global maritime traffic, often transporting sanctioned oil cargo. Vessel-tracking data from UK-based maritime analytics firms Lloyd’s List Intelligence and Vortexa indicate that at least four tankers have already diverted towards India. These include two sanctioned Aframax vessels, one sanctioned Suezmax and a non-sanctioned very large crude carrier (VLCC) that is part of the shadow fleet.

According to a Lloyd’s report, the Aframax tankers Oasis and Noble Walker, which are sanctioned by the EU and the UK but not by the US, were originally bound for China after loading crude from Russia’s Far East. Both vessels have since altered course. Another vessel, the EU- and UK-sanctioned Suezmax Indri (Sierra Leone registered with nearly 80,000-tonne capacity), was initially sailing towards Singapore before abruptly changing course on March 4. The tanker discharged crude, originating from Russia’s Baltic region, at Gujarat’s Sikka port on March 9.

RUSSIAN OIL AT SEA

Similarly, data from Vortexa show that about 60 million barrels of Russian crude are currently at sea, having been loaded before March 6 — the date the waiver was announced — and are within a typical 30-day sailing distance to India. Of this, around 24 million barrels are on non-sanctioned vessels, while the remaining 36 million barrels are on sanctioned tankers.

Delia He, associate freight analyst at Vortexa, said the tanker Sarah (Hong Kong registered with 1.6 lakh tonne capacity) may have moved into floating storage near Singapore while awaiting a buyer before redirecting its voyage. The vessel had sailed past Sri Lanka heading east when it began drifting on March 5. It completed its turnaround on March 8 and subsequently signalled Mundra in Gujarat as its next destination.

MORE DIVERSIONS AHEAD

Industry analysts expect more such diversions in the coming weeks. “We expect to see Russian crude oil in transit or in floating storage redirected to India,” said Mary Melton, senior tanker analyst at Braemar, quoted by Lloyd’s List.

Braemar said it has tracked six tankers — one VLCC and five Aframax/LR2 vessels — diverting from East Asian destinations, where the cargo was originally expected to be discharged in China, and are now signalling India as their next port of call.

High-level panel on banking may suggest review of CRR, SLR, licensing norms

Shishir Sinha New Delhi

The proposed High-Level Committee on Banking for Viksit Bharat is likely to examine issues ranging from reserve ratio requirements and bank licensing to improving India’s credit-to-GDP ratio and the transition framework for small finance banks and NBFCs, according to indications given to a Parliamentary panel.

Finance Minister Nirmala Sitharaman in her Budget speech had proposed setting up the committee to comprehensively review the banking sector and align it with India’s next phase of growth while safeguarding financial stability, financial inclusion and consumer protection. The government is expected to announce the terms of reference (ToR) for the committee soon.

Some indication of the possible scope emerged from a report of the Standing Committee on Finance tabled in the Lok Sabha on Thursday.

FINANCIAL REFORMS

According to the report, Financial Services Secretary M Nagaraju told the panel in his oral submission that the last two high-level committees on banking were set up in 1991 and 1998. Chaired by M Narasimham, those panels made recommendations that led to major financial sector reforms.

Explaining the rationale for a fresh review, Nagaraju said bank-led credit growth had been the strategy followed by most developing economies that later became developed. Taking note of a member’s observation that India’s credit-to-GDP ratio stands at about 57 per cent, he said: “We are among one of the lowest”.

Highlighting the need to expand lending capacity, he said banks must first be adequately capitalised. “We want to lend to everybody, but unless the banks have capital and deposits, they will not be able to lend. Therefore, we need to take a look at this. That is the one point,” he said.

SIGNIFICANT CHANGES

He also noted that the regulatory architecture has undergone significant changes over the past three decades and requires a comprehensive review.

Another area that could come under scrutiny is the statutory reserve requirements maintained by banks. Currently, banks must keep a portion of their deposits as reserves through instruments such as the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR).

“Almost 21 per cent of the total capital of the bank is kept in reserves in different forms. This means that for every ₹100, they can lend the rest of the amount, but ₹21 has to be kept as capital for different instruments such as SLR and CRR. Do we need to maintain these ratios? That is also a consideration,” he said.

The committee may also look at licensing norms for banks. Nagaraju noted that over the past decade, the Reserve Bank of India has issued a banking licence to only one entity.

FUTURE TRAJECTORY

However, he indicated that more players may be needed to support credit expansion. “Credit growth cannot happen on its own, in a vacuum. Thus, there are several issues involved in this,” he said.

The panel could also examine ownership structures and the future trajectory of smaller financial institutions. “Regarding bank ownership, how do we transition or graduate small finance banks? How do we look at NBFCs? These are all inter-related issues. Therefore, we wanted a high-level committee to review this and suggest actionable steps for the government,” he said.

Retail inflation rises to 3.21% in Feb on pricey food, bullion

Shishir Sinha New Delhi

Food and precious metals pushed up retail inflation based on the Consumer Price Index (CPI) to an 11-month high of 3.21 per cent in February, the government reported on Thursday. Experts expect the inflation to rise further in the coming months on account of the West Asia war and the resultant fuel crisis.

This is the second print in the new CPI series with the base year of 2024. Retail inflation was recorded at 2.74 per cent in January.

HIGH FOOD INFLATION

The uptick in retail inflation was largely driven by higher food inflation, with major contributions from coconut, tomato and cauliflower. At the same time, prices of silver and gold/platinum jewellery rose sharply by over 160 per cent and 48 per cent, respectively, in February.

According to Vikrant Chaturvedi, Associate Director (Research) at Brickwork Ratings, core inflation, excluding food and energy, is estimated to be near 3.4 per cent, signalling contained demand-side pressures in housing, health and communication. All eyes are now on the Gulf war and its impact on the retail inflation.

PETROLEUM COSTS

DK Pant, Chief Economist at India Ratings, noted that despite the rising crude and petroleum costs, prices at the pump have remained stable and are expected to stay that way in the near term.

LPG prices have increased by ₹60/cylinder, however. “Factoring in the continuing increase in food product prices/inflation in March, the LPG price hike and the evolving currency movement, India Ratings expects March retail inflation to rise to 3.7 per cent,” he said, adding the RBI will remain vigilant, likely maintaining a prolonged pause on policy rates.

OTHER HEADWINDS

There are some other risks. “A higher probability of an El Nino weather event in FY27 could adversely impact food inflation. Given these risks, it will be important to closely monitor the trajectory of geopolitical tensions in West Asia and the weather events. To support the kharif sowing, the government will continue to ensure fertilizer affordability and availability, despite the impact of the West Asia conflict,” said Rajni Sinha, Chief Economist with CareEdge.