1. Ek coal ki keemat tum kya jaano?
a. Coal, the fuel used to generate 70% of the nation’s electricity is facing a severe shortage of supplies. Coal-fired power stations have an average of four days' worth of stock of fuel left at the end of last month, the lowest level in years, and down from 13 days at the start of August.
b. The increase in electricity demand after nationwide unlock and slump in local coal output have led to a shortage in coal.
c. The country meets around 75% of its demand locally, but heavy rains have flooded mines and key transport routes. The skies need to clear to resume mining activities and facilitate transport activities.
d. The shortage of coal in China and Europe have made it difficult to import coal.2. Moody ka Mood badla.
a. International rating agency Moody’s have upgraded the opinion on India’s Sovereign rating to ‘Stable’ from ‘Negative’ in a revision after nearly two years.
b. Banking and Non-Banking financial institutions maintaining higher capital and greater liquidity pose a much lesser risk than previously anticipated. The solvency in the financial system has strengthened, improving credit conditions that are expected to sustain.
c. A decrease in financial sector risks, widening economic recovery, and an increase in vaccinations are in support of the upgrade.
d. GDP to grow at 9.3% in FY 22 and 7.9% in FY 23 is forecasted by Moody’s
3. LIBOR to SOFR transition led by AXIS Bank.
a. The Financial Conduct Authority (FCA), UK, has announced that LIBOR settings will either cease to be provided by any administrator or no longer be representative post-December 2021.
b. Accordingly, The Reserve Bank of India (RBI) has issued an advisory to banks and other RBI-regulated entities to prepare for the transition from London Interbank Offered Rate (LIBOR) to Alternative Reference Rates (ARR).
c. Axis Bank became the first Indian private sector bank to arrange a Secured Overnight Financing Rate (SOFR) linked trade financing deal. The transaction was executed for Hindalco Industries Limited and was based on the 90-Day SOFR.
d. The SOFR is an interest rate that banks use to price US dollar-denominated derivatives and loans. The Federal Reserve Bank of New York began publishing the Secured Overnight Financing Rate (SOFR) from April 2018 as a part of an effort to replace LIBOR.
4. Gas Price Increase positive for ONGC, Reliance.
a. The 62% increase in natural gas prices by the government will boost the profitability of companies like Reliance and ONGC and support their investment spending.
b. The price for gas from fields that were assigned by the state to oil companies increased from $1.79 per million British Thermal Units to $2.90 per million British Thermal Units. 1BTU = Amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.
c. Reliance Industries Ltd’s gas production from the Krishna-Godavari basin will benefit from the higher price ceiling.
d. Sustained high gas prices will strengthen ONGC’s ‘bbb+’ credit rating and improve OIL (Oil India Limited) standalone credit profile, which can support their capital expenditure.5. Will Airtel be the torch-bearer of the 5G network?
a. Telecom operator Bharti Airtel has conducted India’s first rural 5G trial in association with Swedish telecom equipment maker Ericsson.
b. The trial took place in a village on the outskirts of Delhi-NCR using a 5G trial spectrum allocated by the telecom department.
c. The trial highlighted a demonstration of over 200 MBPS on a 5G compliant device, offering the ability to provide high-speed broadband coverage even in remote areas.
d. The company might launch 5G services within 6 months of spectrum auction, which is to take place early next year.6. Good News for HFCL stakeholders.
a. HFCL (Himachal Futuristic Communications Limited) has been assigned the task of setting up a data communication network for defence forces. The contract was awarded to it by RailTel Corporation and is worth Rs.286.96 crores, approximately 6% of the company’s current sales.
d. The project includes setting up a secured optical packet-switched network with supply, installation, commissioning, testing and training of security system network hardware and software of various specifications inter-alia to develop IT infrastructure.
