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

Mahindra’s Plant a Tree campaign engages 4.5M

Mahindra’s Plant a Tree campaign engages 4.5M

Mahindra Group has said its three-month long citizens’ movement campaign #CelebrateDifferently has culminated with engagement (likes, shares and comments on the hashtag) from 4.5 million citizens. Under the Mahindra Hariyali initiative, Mahindra Group will now plant equivalent number of trees over the next four years to #RiseAgainstClimateChange.

Planting trees, including improving forest management, conservation, and regeneration, will help offset India’s annual greenhouse gas emissions, as well as providing a host of wider environmental and socio-economic benefits. As per research, more than 90% of young people agree that humans are responsible for climate change. 48.8% believe climate change is a more serious issue than war or inequality, Mahindra said in a release. Being the largest demographic group in India, millennials want to curb the effects of global warming and live a sustainable life. With millennials as the key catalyst of the initiative, #CelebrateDifferently was also conceptualized to encourage citizens to include tree plantation as part of their key celebrations. Alternately, individuals who are not able to do so, could simply like, share or comment on #CelebrateDifferently and Mahindra Hariyali committed to plant a tree on their behalf, the release added.

Sharing his thoughts on the success of the campaign, Ruzbeh Irani, President Group Communications and Ethics & Chief Brand Officer, Mahindra Group, stated, “The idea behind our citizen movement initiative was to collectively work towards giving back more than we take from our planet. Driven primarily by the millennials, our campaign has received an overwhelming response from citizens. Although campaign is concluded, we sincerely hope that #CelebrateDifferently continues to be a way of life for every citizen hereon.”

Mahindra said Citizens could continue to #CelebrateDifferently by planting with the help if NGOs such as, Grow Trees, etc. Grow Trees can help them give back to the environment by planting a tree in their name, which they can track.

As a part of the ongoing effort towards environment conservation, Mahindra Group aims to become net carbon neutral by 2040. Twenty companies of the Mahindra Group have committed to science-based targets that are in line with the decarbonization required to keep global temperature increase below 2°C.

Shah lauds Mission Million Trees, flags off EV buses

Shah lauds Mission Million Trees, flags off EV buses

Union Home Minister Amit Shah today participated in the concluding ceremony of “Mission Million trees” program organized by Ahmedabad Municipal Corporation. The Mission which started on World Environment Day on 5 June 2019 has been concluded with plantation of 10,87,000 trees in Ahmedabad city.

Speaking on the occasion, Shah urged people to keep away from using plastics bags while purchasing groceries and vegetables. Reminding the citizens of Paris climate accord, he outlined the danger of ozone layer depletion because of CO2 and CO emission worldover.

Union Home Minister planting a banyan tree on the concluding day of #MissionMillionTrees in Ahmedabad. (Pix tweeted by @AmitShah)

The Home Minister recalled that the Prime Minister Narendra Modi on resuming powers second time in 2019 created a separate ministry for Jal Shakti. He said that this step will guide the entire world in coming days on various fronts of environment conservation including water conservation, water saving, wastewater treatment, irrigation innovations, etc.

Shah also flagged off eight AC electric buses in the city and also inaugurated a battery charging station. Lauding the efforts of Ahmedabad Municipal Corporation, Shah appreciated that Ahmedabad has taken a lead on electric Mobility with countrymade buses. He also appealed to the civic authorities to keep prepared for technological needs such as establishment of efficient battery exchanging stations which should be time saving and energy efficient.

Shah had written a special letter to the chairmen/secretaries of the resident societies in his parliamentary constituency to plant at least 5 trees in their society which have more than 100 years of age such as Banyan tree, Peepal tree, etc. Expressing satisfaction at the response, the Home Minister said that he has received 3,216 positive replies in which the societies have also made arrangement for regular watering and maintenance of the trees.

Speaking on the occasion, the state Chief Minister Vijay Bhai Rupani assured the Home Minister that Gujarat will take lead in the country on enhancement of electric mobility. He emphasized that 50 electric buses have been provisioned in Ahmedabad now but in very short span of time 500 electric buses will be put to service in Ahmedabad alone. He reiterated for green, clean, environment friendly and pollution free state of Gujarat.

Vijay Rupani also informed that the electric buses are indigenously made which echoes the sentiments of Make in India. Expressing satisfaction at sufficient rainfall this monsoon, Rupani said that numerous check dams, ponds and other water conservation efforts of the state government in last 3 years are now yielding good results following this year’s good rainfall.

Bijal Patel, Mayor, Ahmedabad; Pradipsinh Jadeja, Home Minister, Government of Gujarat; RC Faldu, Agriculture Minister, Government of Gujarat; Kaushik Bhai Patel, Revenue Minister, Government of Gujarat, and other dignitaries were also present on the occasion.

Center releases Rs 47,436 crore for afforestation

Center releases Rs 47,436 crore for afforestation

In a major boost towards promoting afforestation and achieving green objectives of the country, Union Minister for Environment, Forest and Climate Change, Prakash Javadekar, today handed over Rs 47,436 crore of CAMPA funds to various states, in presence of Minister of State, MoEF&CC, Babul Supriyo. In a meeting of State Forest Ministers and Authorities held at New Delhi, the Environment Minister stated, “The State budget for forests shall remain unaffected and the fund being transferred would be in addition to State Budget and it is expected that all States will utilize this fund towards forestry activities to achieve the objectives of the Nationally-Determined Contributions (NDCs) of increasing its forest & tree cover, which will create an additional carbon sink equivalent to 2.5 to 3 billion tonnes of carbon dioxide by the year 2030.” The Environment Minister further emphasized that the CAMPA funds cannot be used for payment of salary, travelling allowances, medical expenses, etc.

Union Minister for Environment, Forest and Climate Change, Prakash Javadekar Minister of State, MoEF&CC, Babul Supriyo with representatives from states. (Pix: PIB)

Underlining the efforts of the Government towards preserving and improving the forest wealth and ecological security of the country, Javadekar said “Important activities on which the fund will be utilized will be for the Compensatory Afforestation, Catchment Area Treatment, Wildlife Management, Assisted Natural Regeneration, Forest Fire Prevention and Control Operations, Soil and Moisture Conservation Works in the forest, Improvement of Wildlife Habitat, Management of Biological Diversity and Biological Resources, Research in Forestry and Monitoring of CAMPA works etc.”

Background of CAMPA
With the initial experience of the states regarding under-utilization of the money collected towards compensatory afforestation, Supreme Court of India ordered for establishment of Compensatory Afforestation Fund and Compensatory Afforestation Fund Management and Planning Authority (CAMPA) in 2001.

In 2006, separate bank accounts were opened in which the compensatory levies were deposited and ad hoc CAMPA was established for the management of Compensatory afforestation fund. In 2009, Supreme Court permitted release of Rs 1,000 crore every year to States/UTs for compensatory afforestation and other activities. In 2014, Supreme Court permitted release of 10% of total deposit of states in the fund from interest accrued on the deposits.

This Act has provisioned that CAMPA funds shall be kept in interest bearing non-lapsable Public Account. After detailed deliberations with CAG and Ministry of Finance and deliberations with other Stakeholders, the fund flow mechanism could be finalized and the CAF Rules were finally put in place in 2018.

After notification of CAF Rules, with approval of the Supreme Court on 28 Jan 2019, an amount of Rs 54,685 Crore from Ad-hoc CAMPA has been brought under the control of Government of India. So far 27 States/UTs have created accounts for receiving the Funds from Union Government and today funds to the tune of Rs 47,436 crore have been transferred to those States. The Fund shall be utilized as per the provisions of the CAF Act and CAF Rules.

India to restore 50 lakh ha of degraded land by 2030

India to restore 50 lakh ha of degraded land by 2030

India will be hosting the 14th Conference of Parties (COP14) to the UN Convention to Combat Desertification (UNCCD) from 2–13 September 2019 at India Expo Centre & Mart, Greater Noida. Delivering the keynote address at a Curtain Raiser Press Conference in New Delhi, Union Minister for Environment, Forest and Climate Change, Prakash Javadekar, highlighted India’s resolve to combat desertification. Desertification is a worldwide problem directly affecting 250 million people and a third of the earth’s land surface. To fight this menace, India will convert degraded land of nearly 50 lakh hectares to fertile land in next 10 years; it will implement provisions of New Delhi Declaration which is to be adopted at the end of conference and a Centre for Excellence will be established at Dehradun,” said Javadekar.

The Environment Minister also expressed India’s continued commitment to stay on track on a sustainable path to land use and land management. “It is our collective responsibility to do our duty towards protecting the environment and ensuring that there is no harmful impact on it,” said Javadekar. Elaborating further on India’s key role as the President of UNCCD COP for the next two years, Javadekar said “It is the common resolve of the World to combat desertification and India will lead from the front and move the world in a positive direction, taking into cognizance the support of other countries”.

Delegates from 196 countries comprising of scientists and representatives of national and local governments, global business leaders, NGOs, gender-based organizations, youth groups, journalists, and faith and community groups will present and share their expertise and give an overview to achieve their goals at the 12-day conference .

The Convention entered into force in December 1996. It is one of the three Rio Conventions along with United Nations Framework Convention on Climate Change (UNFCCC) and Convention on Biological Diversity (CBD). India became a signatory to UNCCD on 14 October 1994 and ratified it on 17 December 1996.

The main objective of the convention is to combat desertification and mitigate the effects of drought in countries experiencing serious drought and/or desertification, involving long-term integrated strategies that focus simultaneously, in affected areas, on improved productivity of land, and the rehabilitation, conservation and sustainable management of land and water resources, leading to improved living conditions, in particular at the community level. The Convention’s 197 parties work together to improve the living conditions for people in drylands, to maintain and restore land and soil productivity, and to mitigate the effects of drought. The UNCCD is particularly committed to a bottom-up approach, encouraging the participation of local people in combating desertification and land degradation.

Source: PIB. 

Modi talks Biodiversity, Oceans, Climate at G7

Modi talks Biodiversity, Oceans, Climate at G7

At the G7 Summit in Biarritz, Prime Minister Narendra Modi has addressed the session on ‘Biodiversity, Oceans, Climate.’ He has highlighted India’s large scale efforts towards eliminating single use plastic, conserving water, harnessing solar energy and, protecting flora and fauna for a sustainable future.

Big policy boost coming for ocean energy sector

Big policy boost coming for ocean energy sector

In a decision that would give boost to the ocean energy in India, Union Minister of State for Power and New & Renewable Energy (IC) and Skill Development & Entrepreneurship, RK Singh has approved a proposal to declare ocean energy as renewable energy.

Accordingly, the Ministry of New and Renewable Energy has clarified to all the stakeholders that energy produced using various forms of ocean energy such as tidal, wave, ocean thermal energy conversion etc. shall be considered as Renewable Energy and shall be eligible for meeting the non-solar Renewable Purchase Obligations (RPO).

The Ministry notes that oceans cover 70 percent of the earth’s surface and represent an enormous amount of energy in the form of wave, tidal, marine current and thermal gradient. A variety of different technologies are currently under development throughout the world to harness this energy in all its forms. Deployment is currently limited but the sector has the potential to grow, fueling economic growth, reduction of carbon footprint and creating jobs not only along the coasts but also inland along its supply chains.

As Government of India steps up its effort to reach the objectives to contemplate its Renewable Energy and climate change objectives post 2022, it is opportune to explore all possible avenues to stimulate innovation, create economic growth and new jobs as well as to reduce our carbon footprint. India has a long coastline with the estuaries and gulfs. MNRE looks over the horizon at development of new technology and considers the various options available to support its deployment. Most types of technologies are currently at pre-R&D / demonstration stage or the initial stage of commercialization. Basic R&D is being looked after by the Ministry of Earth Sciences (example: National Institute of Ocean Technology, Chennai). MNRE intends to support demonstration projects of proven technologies and as approved by expert committee constituted by MNRE.

Potential
Total identified potential of Tidal Energy is about 12455 MW, with potential locations identified at Khambat & Kutch regions, and large backwaters, where barrage technology could be used.
The total theoretical potential of wave energy in India along the country’s coast is estimated to be about 40,000 MW – these are preliminary estimates. This energy is however less intensive than what is available in more northern and southern latitudes.

OTEC has a theoretical potential of 180,000 MW in India subject to suitable technological evolution.

Technology
Although currently under-utilised, Ocean energy is mostly exploited by just a few technologies: Wave, Tidal, Current Energy and Ocean Thermal Energy.

Tidal Energy: The tidal cycle occurs every 12 hours due to the gravitational force of the moon. The difference in water height from low tide and high tide is potential energy. Similar to traditional hydropower generated from dams, tidal water can be captured in a barrage across an estuary during high tide and forced through a hydro-turbine during low tide. The capital cost for tidal energy power plants is very high due to high civil construction and high power purchase tariff. To capture sufficient power from the tidal energy potential, the height of high tide must be at least five meters (16 feet) greater than low tide. The Gulf of Cambay and the Gulf of Kutch in Gujarat on the west coast have the locations in the country where potential exists.

Wave Energy: Wave energy is generated by the movement of a device either floating on the surface of the ocean or moored to the ocean floor. Many different techniques for converting wave energy to electric power have been studied. Wave conversion devices that float on the surface have joints hinged together that bend with the waves. This kinetic energy pumps fluid through turbines and creates electric power. Stationary wave energy conversion devices use pressure fluctuations produced in long tubes from the waves swelling up and down. This bobbing motion drives a turbine when critical pressure is reached. Other stationary platforms capture water from waves on their platforms. This water is allowed to runoff through narrow pipes that flow through a typical hydraulic turbine.

Current Energy: Marine current is ocean water moving in one direction. This ocean current is known as the Gulf Stream. Tides also create currents that flow in two directions. Kinetic energy can be captured from the Gulf Stream and other tidal currents with submerged turbines that are very similar in appearance to miniature wind turbines. Similar to wind turbines, the movement of the marine current moves the rotor blades to generate electric power.

Ocean Thermal Energy Conversion (OTEC): Ocean thermal energy conversion, or OTEC, uses ocean temperature differences from the surface to depths lower than 1,000 meters, to extract energy. A temperature difference of only 20°C can yield usable energy. Research focuses on two types of OTEC technologies to extract thermal energy and convert it to electric power: closed cycle and open cycle. In the closed cycle method, a working fluid, such as ammonia, is pumped through a heat exchanger and vaporized. This vaporized steam runs a turbine. The cold water found at the depths of the ocean condenses the vapor back to a fluid where it returns to the heat exchanger. In the open cycle system, the warm surface water is pressurized in a vacuum chamber and converted to steam to run the turbine. The steam is then condensed using cold ocean water from lower depths.

Technology Objectives
The objective of the technology program is to accelerate and enhance support for the resource assessment and deployment of ocean energy in the country and to harness it for power generation and to overcome the barriers. The technology program is open to public and private sectors to carry out projects in India. Industry lead R&D proposals are invited from stakeholders, for solving problems in Indian conditions. Basic R&D is being looked after by the Ministry of Earth Sciences (example: National Institute of Ocean Technology, Chennai).
All the stakeholders desirous of utilizing Ocean Energy are being invited by MNRE for demonstration projects of proven technologies under Research, Design, Development and Demonstration (RDD&D) program/policy of the Ministry, in force at the time.

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