Bharti Airtel working with DGFT for removal of name from blacklist
Bharti Airtel on Wednesday said it is working to get the company’s name removed from ‘Denied Entry List’, but added that DGFT’s latest action does not limit its ability to undertake future imports or exports.
The comment by the telecom operator came after the Commerce Ministry put Bharti Airtel in denied entry list (DEL) for non-fulfilment of export obligation under an export promotion scheme.
The Directorate General of Foreign Trade (DGFT), which is under the Commerce Ministry, has put the company under the list, commonly known as blacklist, for non-fulfilment of export obligation in respect of certain EPCG authorisation issued to it.
In a regulatory filing on Wednesday, Airtel said, “The company is working towards an expeditious closure of this matter with the office of the DGFT and for getting the company’s name removed from the DEL“.
“It must also be noted that the said action does not limit the ability of the company to undertake future imports or exports,” Airtel added. PTI
Indonesia to tax crude palm oil exports for first time in three years
Indonesia will tax crude palm oil exports from February for the first time in nearly three years, its trade ministry said on Wednesday.
The world's biggest producer of palm oil will impose an export tax of $18 per tonne of crude palm oil as reference prices have increased 15.1% from $729.7 per tonne in January to $839.7 in February, the ministry's director general, Indrasari Wisnu Warshana said in a statement.
“At this moment, the reference price of crude palm oil has increased to more than $750. Because of that, the authorities must impose a tax of $18 for the period of February 2020,” he said.
The last time Indonesia imposed a tax on crude palm oil exports was in May 2017.
Other than an export tax, Indonesia imposes a levy of up to $50 on palm exports if prices are above $619.
Tax on cocoa exports remains unchanged at 5% in February. Reuters
Sensex darts up 232 points; Nifty above 12,100
Market benchmark Sensex rallied 231.80 points on Wednesday, driven by gains in index heavyweights HDFC Bank, ITC, RIL and Infosys.
The 30-share BSE index settled 231.80 points, or 0.57 per cent, higher at 41,198.66. It hit an intra-day high of 41,334.86 and a low of 41,108.19.
Likewise, the broader NSE Nifty closed 73.70 points, or 0.61 per cent, up at 12,129.50.
In the Sensex pack, Bajaj Finance was the biggest gainer, rising 4.95 per cent, followed by Nestle India, ITC, Infosys and NTPC.
On the other hand, TCS, HDFC, Sun Pharma, ICICI Bank, Bharti Airtel and Axis Bank ended in the negative territory.
According to traders, recovery in global equities and hopes of growth-boosting measures in the upcoming Budget buoyed market sentiment. PTI
India needs to prioritise solar rooftop among residential, industrial users: Report
India needs to prioritise solar rooftop among residential and industrial users for achieving its 100GW solar energy target by 2022, a report said.
Demand aggregation mechanism’ could help accelerate energy efficiency and scale up the deployment of solar power in residential apartment complexes and MSMEs, according to the World Resource Institute (WRI) India.
“For India to achieve its 100 GW solar energy target in just two years, by 2022, and to emerge as a leader in climate action, it needs to prioritise solar rooftop photovoltaic (PV) among two key users — residential buildings and the industrial sector,” the WRI India said in a statement.
The institute released two research papers -- Assessing Clean Energy Opportunities Through Demand Aggregation in Bengaluru’s Apartment Buildings; and Implementing Demand Aggregation for Rooftop Solar Systems in Micro, Small and Medium-Sized Enterprise Clusters -- that are based on case studies in Bengaluru’s fast developing residential hubs, and the industrial clusters of Gujarat and Maharashtra.
During the study, the Technology Informatics Design Endeavor (TIDE) and WRI India worked with 10 housing societies. To get a broader perspective on the barriers to implementing clean energy projects in apartment complexes, the study also engaged with EE and solar rooftop vendors and service providers, through semi-structured interviews, meetings and interactions on different platforms.
The analysis showed that the housing societies or similar residents’ groups could play a major role in ensuring the uptake of rooftop solar in residential complexes in cities like Bengaluru. PTI
Gold drops Rs 182, silver tumbles Rs 1,083
Gold prices fell Rs 182 to Rs 41,019 per 10 gram in the national capital on Wednesday amid rupee appreciation, according to HDFC Securities.
The precious metal had closed at Rs 41,201 per 10 gram on Tuesday.
Silver prices also tumbled Rs 1,083 to Rs 46,610 per kg on Wednesday from Rs 47,693 per kg in the previous trade.
“Spot gold for 24 karat in Delhi fell by Rs 182 on overnight decline in global gold prices and rupee appreciation,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
The spot rupee was trading around 12 paise stronger against the dollar during the day, he added. PTI
IDBI Bank to raise Rs 1,500 cr via bonds
IDBI Bank on Wednesday said it proposes to raise Rs 1,500 crore from bonds to fund growth.
“The bank has decided to issue Basel III Compliant Tier 2 Bonds for aggregate total issue size of Rs 1,500 crore, with a base size of Rs 500 crore and a green shoe option to retain oversubscription up to Rs 1,000 crore,” IDBI Bank said in a filing.
The bids for the above issuance would be invited on electronic bidding platform (EBP) of BSE Bond and bidding window shall remain open on January 31, it said.
Last month, Parliament approved Rs 9,300 crore capital infusion in IDBI Bank. PTI
Lamborghini sees double-digit sales growth in India in 2020
Italian carmaker Lamborghini on Wednesday said there has been a slowdown in its order intake in India due to the ongoing economic slowdown although it expects sales to grow in double digits in 2020.
The company, which on Wednesday launched its HuracᮠEVO Rear-Wheel Drive priced at Rs 3.22 crore (ex-showroom pan India), had posted a growth of 15 per cent in India last year.
“We ended 2019 on a very positive note despite whatever challenges we are having in the market. We were aiming higher but due to various challenges we could not reach there,” Lamborghini India Head Sharad Agarwal told PTI.
He further said, “our 2020 goal is very clear. We want to continue with this growth momentum. ...we want to grow faster than the industry and that’s what we will aim at. Definitely we are looking at a double-digit growth year.”
While declining to put a number, he said, “I am not trying to put a strong number here, because while we have internal plans of where we want to go, we also want to see how the market is behaving.” PTI
Virus worries knock Hong Kong stocks to 7-week low after Lunar New Year break
Hong Kong's stock market tumbled almost 3% on Wednesday in the first trading session since the spread of a virus in China accelerated over the Lunar New Year holidays.
The Hang Seng index hit a seven-week low, with shares of China-exposed stocks, financials and the travel and tourism sectors leading declines as investors braced for the economic impact from the epidemic, which originated late last year in Wuhan in central China.
Transport has been all but shutdown in parts of the country, travellers have cancelled bookings and some shops, restaurants, cinemas and tourist sites have closed.
The Hang Seng ended down 791.99 points or 2.83% at 27,289.55. The Hang Seng China Enterprises index fell 3.38% to 10,650.43.
Macau casino operators Galaxy Entertainment and Melco International Development each fell more than 5%. Airline Cathay Pacific dropped 3%. Reuters
Oil rises as markets wait on virus impact
Oil prices rose for a second day on Wednesday, recouping some losses after a five-day rout on talk that OPEC could extend oil output cuts if a new coronavirus hurts demand, while data showing a decline in U.S. stockpiles helped steady prices.
Brent crude rose 58 cents, or 1%, to $60.09 a barrel by 0730 GMT. U.S. crude was up 55 cents, or 1%, at $54.03 a barrel.
Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China.
“Price action since last Tuesday does suggest that the market is pricing in a fairly sizeable demand impact,” ING Research said in a note.
“The big unknown for markets is for how long will travel restrictions be in place, and could these get even stricter,” the bank said. Reuters
Green tech for mass adoption to be Maruti’s focus at Auto Expo: Ayukawa
The country’s largest carmaker Maruti Suzuki India will focus on greener technologies for mass adoption in its exhibits at the upcoming Auto Expo, company Managing Director and CEO Kenichi Ayukawa said on Wednesday.
Among the main attractions at the auto expo, which will be held from February 5-12 is the global premiere of Concept Futuro-e -- a futuristic electric coup魳tyle concept vehicle, the company said.
Besides, Maruti Suzuki India (MSI) will also introduce BS-VI emission norm compliant version of its compact SUV Vitara Brezza along with upgraded compact car Ignis.
“The key highlight of the 15th edition of the Auto Expo is our resolve to bring greener technologies for mass adoption... It reflects our efforts for the customers as well as environment and showcase Suzuki’s commitment to the Indian market,” Ayukawa said in a statement.
He further said the company’s theme of ‘Mission Green Million’ at the Auto Expo is in line with its commitment to introduce newer, greener and customer friendly technologies for the Indian customers.
“Having successfully introduced key technologies such as Auto Gear Shift, SmartPlay, Smart Hybrid, and S-CNG, we are committed to accelerate our efforts to bring new technologies that bring convenience to customers,” he added. PTI
EIU predicts another quarter of lacklustre growth
The economic performance across G7 nations and leading emerging markets is expected to be muted in Q4 of 2019 owing to global trade tensions and sharp deceleration in real GDP growth in the US, China and India, The EIU said in a report on Wednesday.
The report forecasts that the real GDP grew by 1.6 per cent quarter-on-quarter in India, but noted that this uptick was largely owing to base effect.
”... this apparently strong headline figure was artificially boosted by the dismal performance of the Indian economy in the previous quarter amid weak consumer sentiment and tepid investment,” the report said.
The report, however, noted that series of government stimulus measures and a low interest rate environment are likely to spur demand and investment in 2020.
Following which a rebound in full-year real GDP growth, to 6.1 per cent (up from an estimated 4.9 per cent in 2019) is likely, it added.
According to The EIU, on a year-on-year basis, India’s real GDP growth for the October-December 2019 period stood at 4.6 per cent, and for the January-March quarter of 2020 it was 5.5 per cent.
For China, the world’s second-largest economy, the report forecasts up to 1.5 per cent growth pick-up in the fourth quarter of 2019, from 1.3 per cent in the third quarter, as the conclusion of a first-phase of US-China trade deal at the end of last year helped to alleviate part of the uncertainty that businesses and consumers were facing.
In Asia, India recorded, the best rate of quarterly growth in October-December, while Japan had the worst, as per the report. PTI
Govt to propose mandatory mid-career training for highway engineers: Gadkari
Mid-career training is likely to be made mandatory for highway engineers for getting promoted to higher levels, Union Minister Nitin Gadkari has said.
A proposal has been submitted by a committee that was constituted to recommend ways for transforming Indian Academy of Highway Engineers (IAHE) into a world class premier institute.
“Mid-career training should be mandatory for promotion of highway engineers to next higher levels,” the road transport minister Gadkari said on Tuesday.
The committee has also recommended exclusive training programme for engineers working with contractors and consultants in the sector.
To maintain the country’s massive road network in efficient, environment-friendly and safe manner at economical costs, Gadkari said there is a strong need for enhancement of knowledge, skill and expertise of the engineers.
The report says, there is need to improve existing training infrastructure, content and training methodology, establish linkages with world-renowned international institutes and carry out applied research and related works.
The committee has proposed a “one-year foundation training for assistant executive engineers of the ministry and deputy managers of National Highways Authority of India simultaneously, including 15 days foreign training. Successful completion of foundation training will be a must for continuation in service”.
Further, the proposal includes training programmes for quality control, assistant quality control engineers of consultants and contractors on material testing processes and such training requirements to be made mandatory through appropriate guidelines. PTI
JSW Infrastructure plans Rs 300 crore investment to develop
JSW Infrastructure on Wednesday said it has signed a concession agreement with New Mangalore Port Trust (NMPT) to develop and operate its first container terminal project at the port for 30 years.
The infrastructure company, part of the USD 14 billion JSW Group, is investing nearly Rs 300 crore to develop the terminal which will have a capacity of 400,000 TEUs (twenty- foot equivalent units), it said.
As part of the proposed investment, JSW Infrastructure will undertake mechanisation of berth number 14 for handling containers and other cargo on Design, Build, Finance, Operate and Transfer (DBFOT) basis, the company said in a statement.
The container terminal will have a quay length of 350 metres and accommodate vessels up to 9000 TEUs.
It will have a backup storage area of 15.5 hectares for storage of container.
Joint MD & CEO of JSW Infrastructure Arun Maheshwari said the concession agreement with NMPT is part of the company’s strategic direction to achieve 200 MTPA cargo handling capacity over next couple of years.
“Container terminal at NMPT will enable us to expand our footprints in container segment and diversify our cargo mix.
We expect to commission the terminal by mid of next year,” he said.
Senior Vice President of JSW Infrastructure, Devki Nandan, added: “We plan to introduce main line vessels connecting to key destinations worldwide.” PTI
Cargo traffic at non-major ports grew 4.8% to 447.21 million tonnes in Apr-Dec
Cargo traffic at India’s non-major ports jumped 4.8 per cent in April-December period of the current fiscal to 447.21 million tonnes (MT), a Shipping Ministry report has said.
These non-major ports had recorded a cargo traffic of 426.53 MT in the April-December period of 2018-19.
During the April-December 2019-20, Directorate of Ports at Odisha recorded highest growth in traffic at 64.2 per cent followed by Ports of Tamil Nadu Maritime Board (34.1 per cent), Directorate of Ports, Puducherry, 27.7 per cent) and Ports Management Board, Andaman & Nicobar Islands (25.4 per cent) against the corresponding period of the previous fiscal, as per the report.
Directorate of Ports, Karnataka, recorded a growth of 25 per cent while Gujarat Maritime Board recorded a growth of 4.1 per cent.
Negative growth was seen at Goa, Kerala Maritime Board, Maharashtra Maritime Board and Directorate of Ports, Andhra Pradesh (2.1 per cent).
However, when it came to handling cargo, Gujarat Maritime Board handled the maximum cargo of 304.99 MT with a share of 68.2 per cent followed by Directorate of ports, Andhra Pradesh (17 per cent), Maharashtra Maritime Board (6.8 per cent) and Directorate of Ports, Odisha (5.7 per cent), the report said. PTI
Fed likely to keep interest rates on hold, focus on balance sheet
The Federal Reserve will conclude its latest policy meeting on Wednesday with interest rates almost certainly to remain on hold but officials likely to discuss possible changes to how they manage the U.S. central bank's key overnight borrowing rate.
Since the Fed cut rates in October, its third and final reduction in borrowing costs in 2019, policymakers have agreed to keep their target policy rate in the current range of 1.50% and 1.75% until there is some significant change in the economic outlook.
U.S. data since the Fed's last policy meeting in December have done little to shift expectations for continued economic growth this year of around 2% and steady, low unemployment.
Some risks may have risen - with China's economic growth now in the spotlight after a coronavirus outbreak - and U.S. Treasury bond yields have fallen as a result.
U.S. President Donald Trump on Tuesday also repeated his call for even lower rates. The Republican president lambasted the Fed and its chief, Jerome Powell, in 2018 and 2019 for maintaining a monetary policy that he regarded as too tight.
While investors have increased bets the Fed would cut rates again at some point this year, analysts still were near unanimous that any such decision is months down the road.
Ninety-five of 108 economists polled by Reuters recently said they expected the Fed to leave rates on hold at this week's meeting, and JP Morgan analyst Michael Feroli said it would likely be “one of the least eventful meetings in recent years.”
The Fed is due to release its policy statement at 2 p.m. EST (1900 GMT). Powell is scheduled to hold a news conference half an hour later. Reuters
WHO weighs science and politics in global virus emergency decision
Most of the World Health Organization's (WHO) criteria for declaring a global emergency have been met, but it is awaiting clear evidence of a sustained spread of the new coronavirus outside China before doing so, some experts and diplomats said. The U.N. agency is seeking to balance the need to ensure China continues to share information about the virus while also giving sound scientific advice to the international community on the risks, according to several public health experts and a Western diplomat who tracks the WHO's work. Reuters
Riskier currencies steady as investors assess China virus fallout
Riskier currencies steadied on Wednesday and demand for safe-havens ebbed, as investors waited for more news on the likely economic damage from a virus outbreak spreading from China.
The offshore yuan - heavily sold in recent days - was marginally stronger at 6.9551 per dollar, off Monday's 6.9900 to the dollar, which was its weakest in almost a month.
Firmer-than-expected inflation figures supported the Australian dollar from Tuesday's three-and-a-half month low to $0.6773, a gain of 0.15% for the day.
The Japanese yen was a touch weaker. Though with moves slight across the board, it is clear traders remain on edge.
“The way risk is trading, people are saying that perhaps we reached peak worries, peak fear,” said Chris Weston, Head of Research at Melbourne brokerage Pepperstone.
“But it's got an uncertain feel to it...it's difficult to sell the yen or sell Swiss franc in an environment where the newsflow is still getting progressively worse, and we're not really fully able to price risk.”
The newly-identified virus has created alarm because it is spreading quickly and there is little known about it. The death toll rose sharply to 132 on Wednesday with nearly 1,500 new cases, for a total of nearly 6,000 cases.
The yen was a touch weaker at 109.2 yen per dollar, while the Swiss franc edged 0.1% softer to a two-week low of 0.9744 francs per dollar.
Mainland Chinese markets are shut for Lunar New Year this week, with onshore currency and bond trading closed. Hong Kong's equity markets tumbled in their first session since the break.
Elsewhere, the euro stood at $1.1013, having hit a two-month low of $1.0998 on Tuesday, after a strong U.S. consumer sentiment reading buoyed the greenback. Reuters
India-centric biz advocacy groups seek reduction in tariffs, more reforms
For India to remain on track as a favourable investment destination and become a USD 5 trillion economy, it has to streamline taxation guidelines and improve GST compliance which will boost exports and increase growth, according to top India-centric American business advocacy groups.
US India Strategic and Partnership Forum (USISPF) has appealed to Finance Minister Nirmala Sitharaman to announce reduction and streamlining of various tax and tariff structures and open up the economy, arguing that it would bring the country on the path of fast track growth and create employment in large numbers.
“As businesses become increasingly digital, India’s digital taxation model needs to be globally aligned for the future,” USISPF said, adding that it has put forth industry recommendations to improve ease of doing business, tax guidelines, GST compliance, CSR spending and digital taxation framework.
In a series of recommendations ahead of the Union Budget 2020, USISPF urged Sitharaman to allow two per cent mandatory spend on CSR as a tax-deductible expense.
Seeking to defer implementation of GST E-invoicing scheme until legal and technical challenges are addressed, USISPF recommended to include natural gas under the ambit of Goods and Service Tax.
USISPF asked Sitharaman to address trade barriers by resolving legislative and procedural challenges under the Customs Law and sought certainty in tax policies to foster positive investment sentiments.
Recommending greater Ease of Doing Business in the insurance sector, it suggested that the FDI caps for insurance companies should be increased up to 100 per cent without additional restrictions on management control. Private equity funds should be allowed to hold more than 10 per cent of the paid up equity share capital of the unlisted insurance companies, it said, adding that the first preference for re-insurance sector should be amended.
US India Business Council, which comes under US Chambers of Commerce, recommended removing price controls in the media and entertainment sectors.
“It’s time to promote the sector holistically, from pricing regulation to FDI limits, and ensure a competitive market that can promote innovation,” it said.
USIBC also recommended opening of India’s satcom market to achieve nation-wide connectivity and high-speed internet access. The Indian government efforts to increase broadband + 5G access made huge strides, and new communications technology will support digitalisation of the economy, it said. PTI
Sensex rises over 200 points; Nifty reclaims 12,100
Market benchmark Sensex jumped over 200 points in opening session on Wednesday led by gains in metal, auto, IT and energy stocks amid recovery in global equities.
The 30-share BSE index was trading 214.51 points or 0.52 per cent higher at 41,181.37.
Similarly, the broader NSE rose 71.35 points, or 0.59 per cent, to 12,127.
Tata Steel was the top gainer in the Sensex pack, rising over 2 per cent, followed by Infosys, M&M, Bharti Airtel, Maruti and Hero MotoCorp.
On the other hand, TCS and HDFC slipped in the red.
Besides recovery in global equities, domestic market rose on hopes of an economic revival in the upcoming budget, traders said.
Further, short-covering ahead of January derivatives expiry also lifted key indices, they added.
Bourses in Japan and South Korea were trading with sharp gains, while markets in Hong Kong opened with significant losses after a Lunar New Year break. Bourses in China remained closed.
Benchmarks on Wall Street too ended higher on Tuesday.
Brent crude oil futures rose 1.36 per cent to USD 59.61 per barrel.
The rupee appreciated 8 paise to 71.22 against the US dollar in morning session.
In the previous session, Sensex settled 188.26 points, or 0.46 per cent, down at 40,966.86, and Nifty closed 63.20 points, or 0.52 per cent, down at 12,055.80.
Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 1,357.56 crore, while domestic institutional investors purchased shares worth Rs 711.70 crore on Tuesday, data available with stock exchanges showed. PTI
Foxconn says plans in place to meet production obligations after virus outbreak
Apple Inc supplier Foxconn said it could continue to meet all manufacturing obligations in the wake of a coronavirus outbreak in China even as the iPhone maker flagged uncertainty created by the disease.
“We do not comment on our specific production practices, but we can confirm that we have measures in place to ensure that we can continue to meet all global manufacturing obligations,” Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said in a statement on Tuesday.
A new coronavirus has killed 132 in China and affected nearly 6,000 people, with several other countries reporting cases as well.
China extended the Lunar New year Holiday by three days to Feb. 2 to contain spread of the virus.
Foxconn, which has a big facility in Wuhan, the epicentre of the virus outbreak, said its plants in China were following holiday schedules and would continue to do so until all businesses have resumed standard operating hours.
The outbreak has led countries including the United States to advise against all but necessary travel to China, forced food chains such as Starbucks to close stores and airlines to cancel flights.
Apple, which reported holiday quarter sales and profit above Wall Street expectations on Tuesday, offered a wider-than-normal earnings outlook for the March quarter because of the uncertainty created by the coronavirus.
“The situation is emerging, and we're still gathering lots of data points and monitoring it very closely,” Apple Chief Executive Tim Cook told Reuters.
Apple has suppliers in the Wuhan area, but has alternatives, Cook said.
After the Lunar New Year holiday, factories outside the Wuhan area will not reopen until Feb. 10, Cook said, but Apple built the delayed restart into its wider revenue forecast.
Taiwan's TSMC, the world's largest contract chipmaker which has factories in China's Shanghai and Nanjing, told Reuters its operations had not been affected. The company has asked staff who had visited Hubei within the last 14 days to stay at home and monitor their health. Reuters
Opinion: India's tax tweaks will deliver half-stimulus
By Una Galani
Slashing taxes will only go so far to stimulate Indias ailing $3 trillion economy. Sweeping changes to levies are likely to feature in the upcoming annual budget announcement. Lower rates are just one part of the fix, however.
Finance Minister Nirmala Sitharaman will look to build on a dramatic cut to corporate dues announced last year. The government is on the right track trying to encourage investment by leaving more money in company accounts. Cutting the headline corporate tax to 22% from 30% was a move welcomed by executives struggling with high operating costs.
Any further changes to the tax regime will be bold, coming at a time when the government will likely miss its fiscal deficit target set at 3.4% of GDP for the current financial year. And, as Reuters has exclusively reported, India is expected to record its first fall in direct tax collection in at least two decades.
One new move may be to prop up the stock market by abolishing capital gains tax on shares held for more than one year. That would help valuations ahead of planned privatisations of state assets like Air India, Bharat Petroleum and Shipping Corporation of India.
The dividend distribution tax, under which companies absorb the costs on payouts to investors, may also be scrapped; the government is sufficiently digitised to collect directly from shareholders. Scrapping that levy on dividends, roughly 20% including surcharges, paid on top of corporate tax, will lower the effective company rate further. New Delhi could pocket more in the end, as dividends would be taxed at higher personal rates.
There are calls from within Prime Minister Narendra Modis own party to abolish personal income taxes, but that would benefit no more than 3% of the population. More likely, and useful, would be an inheritance tax and incentives that can aid home purchases to help clear bad loans held by real estate developers clogging up the banking system.
The biggest reform, though, would bridge the gap between policy intent and implementation. The government pledged to end tax terrorism when it came to power in 2014. But tax experts complain high targets assigned to collectors make them unhealthily aggressive, especially in a context of sliding profit.
India is also in dire need of a proper domestic dispute resolution system to end the multi-year battles companies like Vodafone and Britain's Cairn Energy have faced. It will take more than lower rates to bring true tax relief. Reuters
Reliance seeks to counter India plastics pushback with new road project
Reliance Industries, India's largest petchem player, is launching a project to use plastics in road construction, amid growing concerns over pollution in the country of 1.3 billion whose major cities are often plagued with smog and litter.
India, which uses about 14 million tonnes of plastic annually, lacks an organized system for management of plastic waste, leading to widespread littering.
Prime Minister Narendra Modi is urging India to end consumption of single-use plastics by 2022.
But Indians should focus on fighting pollution, not plastics, executives at Reliance, whose chairman is Asias richest man Mukesh Ambani, said during a launch event on Tuesday.
The company will seek to work with India's highway authority and individual states to potentially supply a plastics-infused mix to make some of the thousands of kilometers of roads Modi wants to build to upgrade India's creaking infrastructure.
Light plastics, the type used as carry bags or snack wrappers, are typically not viable to recycle and so end up in landfills, street corners or oceans. Reliance wants to shred these plastics and mix them with bitumen, a formula the conglomerate says is cheaper and longer-lasting.
“(This) can be a game-changing project both for our environment and our roads,” Vipul Shah, the COO of the petrochemicals business, said at a company petchem plant in the western state of Maharashtra.
Shah was coy on details, saying Reliance had yet to work out the financial fine print in what he stressed would be a philanthropic endeavour. Reuters
