The FB-Jio deal

Buzz of the week: Will FB–Jio deal create magic?

by | Apr 26, 2020 | Buzz of the week, Deal, Industry News, UC & C

The deal ignites an already hot payments arena and also the attractiveness of India’s telecom sector too.
Share to lead the transformation

The recent announcement made by Facebook to invest ₹43,574 crore for a 9.9% stake in Reliance Industries Ltd.’s Jio Platforms has created enormous interest in the Indian market (see details of the FB-Jio in this RIL release).

The coming together of Reliance Jio, with nearly 400 million telecom subscribers; and Facebook, with about 300 million Indian users, is a significant market development by all measures. It has the potential of giving restless nights to their rivals. At the same time, it could raise the interest of Facebook’s rival digital behemoths such as Google in RJio’s rival telcos such as Airtel. Consequently, the attractiveness of India’s telecom sector may be expected to go up in terms of valuation, global partnerships and capital raising.

No wonder, while Reliance Industries’ shares jumped 10% on the deal, Airtel’s shares too rose by a notional 1%. As part of the agreement, WhatsApp is expected to strengthen Jio’s new retail business on the JioMart platform while Jio Platforms will support small businesses on WhatsApp.

Though onlookers see the FB-Jio deal largely disrupting India’s retail sector, it is also expected to revolutionize many future ideas. After all, a key challenge that India has been facing to take its digitization efforts to the next level has been the absence of a cohesive ecosystem, which the partnership could help address.

The path, however, is not without some tough challenges.

Today, the industry offers several fragmented channels to telecom and digital users—from payment services to collaboration tools and entertainment. Both small businesses and consumers have multiple choices to opt from. While this is great for users, not many people like the idea of using multiple mobile apps for different purposes. There was a brief period when, after demonetization, Paytm was emerging as the de facto player, but that is no longer the case. Today, it faces strong market competition from giants such as Amazon and Google, as well as from homegrown players such as PhonePe.

Facebook, thanks to its incredibly popular WhatsApp messaging services, is sitting uniquely in the world’s fastest growing marketplace. And by collaborating with Reliance Jio, country’s largest telecom player, they together have the potential of creating a one-stop digital shop that India has long been waiting for.

It is worth noting that while Reliance Jio already has a license for its JioMoney payments platform, WhatsApp is yet to receive a license for rolling out a payment service for all its users in India (it has got the clearance to do a phased rollout, while the final approval remains subject to meeting compliance all requirements set by the government).

With the FB-Jio deal in place, the duo could leverage each other’s capabilities for mutual benefits and compete with existing payment providers in a major way

Besides retail and payment services, if executed precisely, this alliance could also pave the way for Jio to offer exclusive services such as virtual education, premium mobile conferencing, food delivery, digital entertainment among others instantly using WhatsApp.

It is significant that just two days after the deal, Facebook CEO, Mark Zuckerberg announced new collaboration and conferencing features and capabilities for WhatsApp.

WhatsApp, being the favored mode of communication for a majority of smartphone users in India, indeed has the potential to drive Jio’s ambitions of becoming the largest mobile digital player in the world. More so, with most of the population expected to stay indoors even after the lockdown is gradually phased out, the market will need innovations and digital products that can meet consumer need at their convenience. It is not mere coincidence that the FB-Jio deal has come through when the world is still adjusting to the social distancing conditions triggered by Covid-19.

On a concerning note, this deal also proposes a risk of monopoly, and may invite scrutiny from authorities such as Competition Commission of India.

MORE FROM BETTER WORLD

India to keep leading Sustainable Energy Agenda

India to keep leading Sustainable Energy Agenda

The Minister of Petroleum and Natural Gas & Steel Dhamendra Pradhan has said that India will continue to lead the global sustainable energy agenda. Delivering the key note address at the TERI’s World Sustainable Development Summit 2020 on ‘Energy Future Road Map’ here today, the Minister said “We, in India, are in the midst of a major transformative shift in our energy sector, both in scale and complexity and also the interdependence across different systems. The trajectory to end energy poverty in India, as compared to the rest of the world, is based on our special national circumstances. The right mix of enablers are being put in place to ensure that the energy transition is secure, affordable, reliable and sustainable.” He added, “to end energy poverty in the country, we will remain cognizant of the need to root economic development firmly to achieve the 2030 UN Sustainable Development Goals and commitments made at COP 21.”

Briefing about energy requirements, the Minister said “India is now the third largest energy consumer after the US and China. While our energy demand increased to 882 million tonnes of oil equivalent (Mtoe) in 2017, the per capita consumption of energy is still 30% of the global average. Our energy consumption is projected to grow at 4.2 percent per annum up to 2035. India’s share of the total global primary energy demand is set to roughly double to about 11 percent by 2040, driven by strong economic development. In India, we are finding ways to achieve the twin objectives of more energy availability and less carbon through a healthy mix of all commercially-viable energy sources.”

Pradhan added that despite our system-wide energy transition measures, crude oil would continue to play a critical role at this stage of development in meeting country’s energy requirements. He said the Government has set out a road map for reducing India’s crude oil imports by 10% by 2022. “We are in the process of developing new strategies and initiatives to achieve this target. We are working towards transformation to a gas-based economy, tapping into indigenously produced biofuels, apart from adopting renewable energy and energy efficiency measures, to achieve the much-needed carbon reductions. As part of the energy transition, decarbonization of the energy sector is picking up momentum in India” Pradhan said. The Minister also stated that government is working to improve energy efficiency and productivity, demand substitution, improving refinery processes and promotion of bio and alternate fuels.

Dharmendra Pradhan also said “the biggest game-changer in our drive to bring about greater environmental sustainability and flexibility in the energy system is through the rapid deployment of natural gas in our energy mix”. He also added “we are advancing our collaboration with countries, such as Brazil and the US, to improve blending technologies in transport sector. To reduce vehicular pollution, BS VI quality fuel, equivalent to Euro 6 standard, will be supplied in the entire country from 1 April this year. Given the abundance of biomass in the country, the use of Compressed Bio-Gas (CBG) will be promoted in a big way in automotive, industrial and commercial uses in the coming years.”

The Minister further said that in the global drive to secure sustainable energy, India is defining new pathways keeping in view its unique energy needs. “India will continue to play an active role in leading the global sustainable energy agenda. Our commitment to keep carbon footprint to low levels remains unwavered as we pursue to enhance energy footprint in the country” He added.

On the occasion, Dharmendra Pradhan also released a report ‘Towards a low carbon steel sector’ – Overview of the changing market, technology and policy context for Indian steel.

PM says Jal-Shakti is taking rapid strides

PM says Jal-Shakti is taking rapid strides

In Mann Ki Baat today Prime Minister Narendra Modi said Jal Shakti Campaign is taking rapid, successful strides with the aid of public participation. He shared few extensive and innovative water conservation efforts under way, in every corner of the country.

Mentioning about Jalore district in Rajasthan he said, “There, two historical step wells had turned into storehouses of garbage & dirty water. But one fine day, hundreds of people from Bhadraayun & Thanawala Panchayats took a resolve to rejuvenate them, under the Jal Shakti Campaign. Much before the rains, people immersed themselves in the task of cleaning out the accumulated filthy water, garbage and morass. For this campaign, some donated money; others their labour & sweat. As a result, these step wells have turned into their lifelines now.”

 

Similarly, Saraahi Lake in Barabanki Uttar Pradesh, was brought to life by the collective efforts of Villagers. Another example of Public participation is Village Suniyakot along the Almora-Haldwani Highway in Uttarakhand. Here villagers took it upon themselves to ensure that water reached their village. People raised money, donated labor. A pipe was laid up to the village and a pumping station was set up. Thus decade old problem of water crisis was solved.

Prime Minister urged everyone to share their stories of such endeavors of water conservation and water harvesting by using #Jalshakti4India.

Jal Shakti Abhiyan—a campaign for water conservation and water security commenced last monsoon in July, 2019. The campaign focused on water stressed districts and blocks.

IEA review of India’s energy policies is out

IEA review of India’s energy policies is out

In-depth Review of India’s Energy Policies report by International Energy Agency (IEA) was launched in New Delhi today by Dharmendra Pradhan, Minister of Petroleum and Natural Gas & Steel, Pralhad Joshi, Minister of Coal, Mines and Parliamentary Affairs, Raj Kumar Singh, Minister of State (I/C) for Power and New and Renewable Energy, Rajiv Kumar, Vice Chairman, Niti Aayog, Ambassadors, Dr Fatih Birol, Executive Director, International Energy Agency, and Amitabh Kant, CEO, Niti Aayog.

Thanking Dr. Fatih Birol and his IEA team for coming up with a comprehensive Report covering India’s energy sector in its entirety, Pradhan said that IEA’s findings are a vindication of the significant advances made in realizing the energy vision enunciated by Prime Minister Narendra Modi, anchored by Energy Access, Energy Efficiency, Energy Sustainability and Energy Security, with Energy Justice at its core.

Pradhan said that India is now the third largest energy consumer in the world. India is in the midst of a major transformative shift in its energy sector. The energy polices already put in place by the Government and also those on the anvil, clearly demonstrate our determination to embrace this energy transition in a sustainable and responsible manner.

Pradhan said India is now the third largest energy consumer in the world. Pix: PIB

The Minister said that a number of path breaking initiatives launched by Indian Government since 2015, have redefined India’s commitment to sustainable energy. “Our key challenge as a developing country, with per capita energy consumption below the global average, is to meet the growing demand for energy. India made great strides in recent years towards achieving universal access to modern energy, including clean cooking and electricity, affordable, secure and cleaner energy for its people. The Report captures well the progress made in achieving sustainable energy for all, as reflected in the UN Sustainable Development Goal 7 (SDG 7). It does also highlight the persisting challenges to be focused in the coming days,” he added.

Talking about the Ujjwala Yojana, Pradhan said that the remotest corners of India have been touched for cleaner fuel access under it. “We are also sharing our experience with our friends in Africa and Asia to enable them to benefit from the best practices in promotion of LPG. I do recognize that we have more ground to cover and also to ensure that the initiatives are implemented for achieving universal coverage in the country,” the Minister said.

Pradhan said that India’s transformation to a gas-based economy and developing indigenously produced biofuels, apart from renewable energy and energy efficiency measures, can potentially achieve the much-needed carbon reductions. As part of the energy transition, decarbonisation of the energy sector is picking up momentum in India. “Given India’s development imperative, our thrust is on building oil and gas infrastructure to ensure access to affordable energy to all our citizens. The report notes that India is moving towards a gas-based economy,” he said.

Pradhan said that an estimated investment of 100 billion dollar in oil and gas infrastructure has been lined up. The gas pipeline network will soon be covering the length and breadth of the country; from Kutch in Western India to Kohima in the East, and from Kashmir in the North to Kanyakumari in the South. “In yet another important decision, our Government has approved viability Gap Funding/ Capital Grant at 60 percent of the estimated cost of Rs 9265 crore for the North East gas grid project to develop gas pipeline grid of 1656 Km in the eight States of the North-eastern region,” he said.

The Minister said that We are aggressively working to build City Gas Distribution Network covering more than 400 districts of India. This network will serve 72% of India’s population with cleaner and affordable gas over more than 50 % of India’s geography. Talking about the proposed Workshop on Natural Gas on 23 January in New Delhi, he said that it will bring together for the first time all relevant stakeholders under one roof. “I am confident that these initiatives in the gas sector would bring about a transformative change in India’s energy landscape,” Pradhan said.

The Minister said that the Report acknowledges Government’s efforts in making energy security as a prime policy priority, and recognizes the efficiency achieved due to Government’s relentless march in undertaking tectonic reforms in the energy sector and continued pursuit of market-based solutions. He said “We have taken note of IEA’s recommendation for reinforcement of India’s oil emergency response policy. Enhancing international engagement on global oil security issues is already an active goal being pursued by my Ministry. Energy has become an essential commodity in our bilateral trade engagements with several key trading partners and in positioning India as an important strategic player in global energy landscape.”

Talking about the diversification of oil sources and development of alternate resources of energy as such bio-fuel, he said that these are being undertaken on an accelerated mode. “We are on the way to achieve 20% ethanol blending in petrol and 5% bio-diesel in diesel by 2030. Indeed, to promote energy sustainability, our new National Biofuel policy focuses on waste-to-wealth creation and targets to generate various types of bio-fuels from agriculture residue and municipal waste,” Pradhan said.

Expressing deep concerned about the crude oil price volatility, the Minister said that today, we are meeting in the backdrop of rising tensions in the Middle East and its impact on stability and security in the region.

He said “We have taken several measures to ensure investor friendly environment. IEA has noted that during the period 2015 to 2018, investments in the energy sector in India recorded the second highest growth in the world. We are happy that global oil and gas majors like Saudi Aramco, ADNOC, BP, Shell, Total, Roseneft and ExxonMobil are making their significant presence in India.”

News source: PIB. 

ONGC leads CSR spend among oil PSUs

ONGC leads CSR spend among oil PSUs

Union Minister for Petroleum and Natural Gas Dharmendra Pradhan in a written reply in the Lok Sabha has provided the corporate social responsibility (CSR) expenditure details of Oil PSUs for the last three years. ONGC continues to lead the tally with a CSR spend of Rs 615 crore in 2018–19, recording a growth of 22% in the spend when compared to the spend of Rs 503 crore in 2017–18.

Oil PSUs have been undertaking CSR interventions around their work centers, earmarking 2% of their profits for CSR projects. CSR activities are undertaken under the heads identified under Schedule VII of the Companies Act 2013 with special focus on health (nutrition, sanitation, and drinking water), education, skill development, rural development, women empowerment, environment centric initiatives and care for the elderly and differently abled persons.

The CSR expenditure made by following Oil PSUs during the last three years are given below:

All figures are in Rs crore.

The project / activities wise details of the funds allocated and spent on the development and other works in various districts of the country including in Rajasthan, Maharashtra, Tamil Nadu and on water recharge and water harvesting in Gujarat during the last 3 years are available on the respective websites of the Oil PSUs.

CSR activities are undertaken by Oil PSUs themselves or through agencies/Departments of Central/State Governments as per their approved procedures.

Power Grid, Mahindra bag top CSR awards

Power Grid, Mahindra bag top CSR awards

President Ram Nath Kovind speaking at the CSR awards ceremony.

The President of India, Ram Nath Kovind, presented the National Corporate Social Responsibility Awards (NCSRA) in New Delhi today. The NCSRA has been instituted by the Ministry of Corporate Affairs to recognize outstanding contribution in the field of Corporate Social Responsibility (CSR).

Speaking on the occasion, the President noted that those sections of society that need the helping hand most are among the main beneficiaries of the CSR activities. He said that the corporations have, thus, made a worthy contribution towards the national goals. They are helping the nation progress towards the cherished goal of building a more equitable society. They have focused on sustainable projects creating a long-term impact.

The President said that broadly, CSR initiatives have been aligned with the national priorities such as public health, education, livelihoods, water conservation, sanitation, and natural resource management. He expressed hope that innovative solutions to persisting development challenges will emerge from the CSR activities.

The President also noted that the government is sensitive about the need to calibrate the CSR regime to make it more effective. In September, the scope of the CSR activities was widened to include more categories of research incubators. This thrust on research and development will immensely help innovators. He said that it is equally important to internalize social welfare in the corporate culture. He urged upon corporate to motivate their employees and sensitize them to this higher calling in service of the marginalized sections of society. He said that this single step will generate enough goodwill for wealth creators among ordinary people.

National CSR Awards have been instituted to recognize the Corporates whose initiatives in the area of CSR were aimed at achieving inclusive growth and sustainable development. The companies were awarded based on their strategic approach in CSR and its efforts in challenging circumstances, towards aspirational districts, difficult terrains/disturbed areas and national priority areas. Based on the submissions by the companies and reports of the independent assessment by CSR experts and the jury, 19 award winners and 19 honorable mentions across the three award categories were announced as per the list.

Winners in different categories:

S. No. Award Category Sub-category Name of Company
Corporate Award for Excellence in CSR CSR spend above INR 100 Crores Power Grid Corporation of India Limited
Corporate Award for Excellence in CSR CSR spend between INR 10 Crores 100 Crores Mahindra & Mahindra Limited
Corporate Award for Excellence in CSR CSR spend between INR 1 Crores 10 Crores Edelweiss Financial Services Limited
Corporate Award for Excellence in CSR CSR spend below INR 1 Crore Paranjape Autocast Pvt. Ltd.
CSR in Challenging Circumstances North India SRF Limited
CSR in Challenging Circumstances North-East India CRISIL Limited
CSR in Challenging Circumstances East India Bharat Financial Inclusion Limited
CSR in Challenging Circumstances West India Technip India Limited
CSR in Challenging Circumstances South India The Andhra Pradesh Mineral Development Corporation Limited
Contribution to the National Priority Areas Education Hindustan Petroleum Corporation Limited
Contribution to the National Priority Areas Skill Development and Livelihoods Hindalco Industries Limited
Contribution to the National Priority Areas Agriculture & Rural Development Mahindra and Mahindra Limited
Contribution to the National Priority Areas Health, Safe Drinking Water and Sanitation Mahanadi Coal Fields Limited
Contribution to the National Priority Areas Environment, Sustainable Development & Solar Energy Power Finance Corporation Limited
Contribution to the National Priority Areas Women & Child Development Indian Oil Corporation Limited
Contribution to the National Priority Areas Women & Child Development JSW Energy Limited
Contribution to the National Priority Areas Promotion of Sports Central Coalfields Limited
Contribution to the National Priority Areas Slum Area Development Equitas Holdings Limited
Contribution to the National Priority Areas Support to Differently abled Minda Corporation Limited

 

Honorable Mentions in different award categories: 

S. No. Award Category Sub-category Name of Company
Corporate Award for Excellence in CSR CSR spend above INR 100 Crores ITC Limited
Corporate Award for Excellence in CSR CSR spend above INR 100 Crores Tata Steel Limited
Corporate Award for Excellence in CSR CSR spend between INR 10 Crores 100 Crores National Aluminum Co. Limited
Corporate Award for Excellence in CSR CSR spend between INR 10 Crores 100 Crores Maruti Suzuki India Limited
Corporate Award for Excellence in CSR CSR spend between INR 1 Crores 10 Crores Tata Technologies Limited
CSR in Challenging Circumstances East India Hindustan Copper Limited
CSR in Challenging Circumstances East India Mecon Limited
CSR in Challenging Circumstances West India Adani Ports and Special Economic Zone Limited
CSR in Challenging Circumstances South India Mineral Exploration Corporation Limited
Contribution to the National Priority Areas Education Mahindra and Mahindra Limited
Contribution to the National Priority Areas Skill Development and Livelihoods JSW Steel Limited
Contribution to the National Priority Areas Agriculture & Rural Development HDFC Bank Limited
Contribution to the National Priority Areas Health, Safe Drinking Water and Sanitation Tata Sponge Iron Limited
Contribution to the National Priority Areas Health, Safe Drinking Water and Sanitation ITC Limited
Contribution to the National Priority Areas Environment, Sustainable Development & Solar Energy Schneider Electric IT
Contribution to the National Priority Areas Women & Child Development Rail Vikas Nigam Limited
Contribution to the National Priority Areas Promotion of Sports IndusInd Bank Limited
Contribution to the National Priority Areas Promotion of Sports India Infrastructure Finance Company Limited
Contribution to the National Priority Areas Support to Differently abled Hindustan Petroleum Corporation Limited

 

Clean Ganga Mission holds workshop on river flow

Clean Ganga Mission holds workshop on river flow

A two-day International Workshop on Environmental Flows Assessment and Implementation for India was held in New Delhi. Indian, European and international experiences were brought together by National Mission of Clean Ganga (NMCG), along with Indo-German Cooperation.
It is increasingly recognized that the goal of attaining healthy river ecosystems can best and most sustainably be reached by integrated environmental management. The workshop includes discussions on Environmental Flows assessment and Implementation for sustainable river basin management, and various aspects of E-Flows in depth. Relevant Indian implementers and stakeholders along with national experts and International experts including those from Germany, Austria, United Kingdom, Bhutan, Poland, The Netherlands and South Africa are present during the workshop.

In order to advance the successful e-flows implementation in India, this workshop aims to bring Indian, European and international experiences together. A rich variety of cutting- edge topics and expert speakers from various backgrounds serve to promote challenges and solutions regarding e-flows assessment and implementation.

International workshop on Environmental Flows Assessment and Implementation for India was inaugurated by Gajendra Singh Shekhawat, Union Minister for Jal Shakti at Delhi. The exchange of Indian, European and international experiences was brought together by National Mission of Clean Ganga (NMCG) along with the Indo-German Cooperation with its project “Support to Ganga Rejuvenation” (SGR). Shekhawat also formally released the first version of the Guidance Document on Environment flow assessment in India. The deliberations in this workshop and further research work would help in coming up with advanced version of this e-flow guidance document in future.

It is already accepted around the globe, that the demand for water is increasing due to population growth, rapid urbanization and industrialization and that rivers are a critical natural resource, crucial for human well-being. The Ganga River, for example, supports a population of more than 400 million people by providing a multitude of domestic, agricultural, industrial, and power generation uses, and it also serves for recreational, livelihood and spiritual purposes.

The Ganga provides a unique ecosystem, which is home to India’s National Aquatic animal the Gangetic Dolphin, as well as Gharials, turtles and several birds and other wild animals. Other rivers like Godavari, Krishna, Mahanadi etc. are also crucial ecosystems and sources for ecosystem services for us and we need to protect these towards sustainability and equitable water use.

Given the current scenario, Gajendra Singh Shekhawat said that, “We are committed to protect these lifelines for our future generations. We have the identified aim of Aviral and Nirmal Dhara- continuous and clean flows as our tribute to Mother Ganga and we intend to extend this to all other rivers in the country.” He added further that, “Maintaining Environmental-Flows in rivers is very important not only for the country but worldwide since water has become a global challenge. We have to come together and act together to tackle this global challenge.”

“Under the Namami Gange programme, we have been quite serious about maintaining the continuous flow of Ganga. Last year, we recognized the minimum river flow to be maintained and also notified. We have started monitoring for its implementation as well.

We have made a beginning, but there’s a lot to learn from experiences of other countries where this has developed over a period of time” added Rajiv Ranjan Mishra, DG, NMCG. The international workshop aims to assist in the e-flows implementation in India by answering the following questions:

  1. What are the overall aims and targets for e-flows assessment in India?
  2. What are the short- and long-term steps to implement e-flows according to the overall aims and targets.

“We will learn from their vast experience and will also learn from the national experts present regarding the different scenarios within India,” emphasized Mishra, DG, NMCG.
In India, the European Union through the India-EU Water Partnership (IEWP) as well as the Indo-German Cooperation with its project “Support to Ganga Rejuvenation” (SGR) in order to promote cooperation in the water sector, has brought together stakeholders, such as governmental institutions, businesses and the civil society. Currently, a guidance document on the “Assessment of Environmental Flows in India” is being developed as part of the IEWP Action Plan and the draft version was launched during the workshop by the Minister, Jal Shakti.

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