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Asset Monetization and Positioning on The Track

The pandemic has worsened the government’s finances to survive the arduous times of the public health care crisis in India. This has led the government monetization to run a fiscal deficit that might not materialize well for the fiscal health of the economy.

The government, in order to provide impetus to the economy, has unveiled a constructive, expansionary budget that will help raise funds. In addition to an expansionary budget, it has been witnessed that an asset monetization scheme too will contribute to replenishing the empty coffers of the government.

It is to be noted that NITI Aayog is effectively and intensely pushing the ministries to considerably accelerate the Union government’s asset monetization plans. This is being pursued to credibly and diligently achieve the current fiscal’s target that has been set by the government at the amount of Rs 88,190 crore.

Given India’s recent finance history, such a humongous fiscal deficit target set by the government is a delineating behavior from the precedent practices of the fiscal health of the economy.

Various ministries are being monitored to implement the crucial program by the Cabinet Secretary to emphatically ensure that part of the monetization plan is swiftly implemented and the targets are hit. If the monetization plan or the procedure is to be broken down, it entails the creation of new sources of revenue by substantially and efficiently unlocking the value or potential of the investments that are made by the government in public assets.

These are primarily focused on the public sector undertakings, which have not been yielding substantial or appropriate returns and are in desperate need of revamping in order to realize their utility and potential in the economy.

Thus, the government, in the recent budget, has come forward to unlock the lost potential and underutilization of such assets to raise revenues and thus replenish the emptying financial coffers of the government.

It is no news that government-regulated investments are usually seen as inefficient. Thus, in order to counter such a discrepancy, the government has invited the private sector to increase participation in the brownfield projects.

The plan has been efficiently concocted to make the aforementioned assets value-accretive, through substantial and efficient operation.

But what role do the ministries play in such a scheme of events devised by the government? It is to be noted that various brownfield assets that have been chosen include roads and the power sector where the concerned ministries are in charge.

Thus, these ministries are being forced or motivated by the government to complete their targets, as the petroleum, Railways, sports, and mining industries seem to be behind schedule. As a matter of fact, the railway ministry has been accused of being the biggest “laggard” after a change of guard. However the same cannot be maintained for all the industries in the market.

This is due to the impressionable and appreciable role that has been played by the Real Estate Investment Trusts and Infrastructure Investment Trusts or InvITs in the road and power projects.

In addition to the aforementioned real estate investment funds and the infrastructure investment trusts, public-private partnerships (PPPs) are also being highly preferred as the modes for asset monetization. This case can be scrutinized in the railways which account for humungous 25% of the Rs 6 lakh crore of assets that have been identified to be monetized.

According to the reports, it has been conjured that such PPPs will effectively help redevelop 400 railway stations around the countries. Other tasks at hand of PPP also include 90 passenger trains that need to run, leasing of the track on dedicated freight corridors, etc.

In the PPO agreement, in the specific case of the passenger trains, there is a model concession agreement that is in place to strategically operate these trains for a period of 35 years. This is being effectively achieved in return for an upfront payment.

In order to incentivize the private players, the private partner has been enticed with offers stating that the concerned parties have the right to collect fares and avail of the Railways’ maintenance infrastructure. Though, given the great incentive that is being provided by the government, the Railways is still falling behind in meeting the target that has been set for it at Rs 17,810 crore this fiscal.

This has led to a strategic revision in the policy and the terms that are being formulated to attract more participation from private players in the market.
One might ask what is the use of increased incentives, given the fact that private players will apparently witness spectacular profits which will definitely guarantee their participation? It is to be noted that undivided attention of the private players is needed for the Asset monetization plan.

The plan will effectively take off only when and if the private sector is on board. Thus, the delays which might come with expected profits, cannot be afforded. Therefore utmost transparency needs to be ensured for such participation. There must be a balance between risk and reward, between private and public interests.

It is to be noted that the ambitious, innovative project of the government will be seriously fraught with difficulties if the various projects that are cornered, have the participation of a few private parties.

Thus, in totality, it can be stated that the government’s incentives and undivided participation of the private players in the market are critical for the success of the asset monetization plan drafted by the government.

Also, Read Intellectual Property Rights

Protecting Gig Workers and Gig Economy

Everyone knows that the odious tussle between the employers and the gig workers has reached the courts. A response has been demanded by the apex court from the Centre to a PIL that was effectively filed by the Indian Federation of App-Based Transport Workers (IFAT).

The IFAT has strongly put on the table its demand which effectively includes much-needed pension, health insurance, social security benefits, pension, and cash transfers amounting to Rs 1,175 per day. These have been demanded for the app-based drivers and Rs 675 per day effectively for others.

The timeline for such cash transfers has been provided till December 31. The association has also argued that the cash transfers can also effectively continue till the pandemic subsidies to support its workers, who have been hard hit by the arduous pandemic.

Do the demands of IFAT end here? It is to be noted that there is more to the story. In fact, most importantly, the IFAT wants gig workers to be recognized as unorganized workers. This should be done as per the Unorganized Workers’ Social Welfare Security Act of 2008.

Tipping scale in favor of the gig workers.

1. Globalization has integrated economies around the world, so much so that Westernization has found its huge impact on the policies and laws in the eastern and developing countries like India. Precisely due to this reason, given the dramatic turn of events in some Western economies, the scales appear to be tipped in favor of the gig workers in the Indian economy.
2. To quote an example, in a turn of recent events in the UK, the Supreme Court had emphatically upheld an earlier ruling by the employment tribunal. This ruling had stated that the 25 drivers who had effectively filed a case against Uber were employees and not mere contractors.
3. But what was the impact of the same, you might ask? It is to be noted that this landmark decision by the supreme court had earned the drivers a minimum wage, pension, and holiday pay.
4. Thus, one can argue quite well that the welfare of the workers was upheld in the UK. Given that UK, a western country, that upholds the moral of capitalization, held the judgment in favor of the workers, India, being a welfare economy, is all the more required to abide by the rules of welfare and prosperity.
5. In fact, the topic of the welfare of workers has taken the European Union by storm as a draft proposal to make companies like Instacart, Uber, and Amazon effectively categorize their gig workforce as employees.
6. This will positively lead the corporate giants to provide the workers more benefits, which is especially the need of the hour given the financial standing of many workers in the economy has been crippled by the onset of the pandemic.
   But has the welfare trend caught upon all the western nations?
7. Apparently not. Platform companies in the US have been successfully able to stall such welfare legislation, but AB5 in California has been vehemently and emphatically aiming at reclassifying the gig workers as employees.
8. Thus, one can pliantly state that the tide is turning. The turning tide in the US can be guaranteed by the fact that it is being seconded by the US labor secretary Marty Walsh, who has been working towards recognizing the workers as employees.
9. The main reason given for the same is that the humungous profits being accrued by the corporates In America should be trickled down to the workers as well.
10. This has led to the blockade of the Trump era rule of classifying gig workers as of individual contractors in America. Thus, America might emphatically encounter a paradigm policy shift for the gig workers.

Upsetting news for the economics of aggregators

• Though, one can argue that the legislation will be a welcomed step for the gig workers, can the same be stated for the employers? Apparently not. In Fact, the legislation might come as a piece of upsetting news for the economics of aggregators.
• This is mainly due to the fact that such legislation will lead to higher operating costs and will definitely pressure the profit margins of the corporates. Given that the corporates love profits, the introduction of such legislation is sure to upset many money-mongering entrepreneurs and CEOs.
• The operating cost is anticipated to shoot up mainly due to the fact that permanent employees can be twice as expensive as contract hires. Though, given the propensity of enactment of such legislation, the Platform employers will effectively try to point out the strength of their model.
• This strength of the model lies in the fact that it provides an ability to the corporates to use the services of large numbers of workers. Thus, this leads to timely payment for a specific task for many workers in the economy, and this way they are emphatically and efficiently paying for the specified job done during the defined period.

1. Thus, this ensures productivity and efficiency of the gig workers in the economy and subsequently keeps the costs down. Given the aforementioned argument, is the legislation the need of the hour?
2. While one cannot deny the arguments being put forward by the corporate workers, it cannot be forgotten that a big section of gig economy workers belongs to the more vulnerable sections of society.
3. Thus, they have a higher need for a stable income and much more than subsistence wages. Given the remunerations that are being paid to the workers are not enough to sustain the pandemic or the livelihood of the workers.
4. Also, /another problem that poses itself in such a scenario is that such informal contractual agreements don’t hold up well in a court of law.
5. Thus, even though employers might insist and assert that flexibility in the workplace is a humungous advantage but the truth lies in the fact that in a country like India, workers strongly prefer to be employed with one company in return for assured benefits. Thus, will the scale tip in favor of the gig workers? Guess, we’ll have to scrutinize as the matter unfolds.

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Fueling Pharma Innovation

The Indian pharma sector garners much attention during the odious times of the detestable pandemic. with low investments in the sector, one can witness declining utility of the same.

The Indian pharma sector hence needs to discover and create a pipeline of new molecules that will effectively help the sector become a fully original innovation-driven industry.

The pharma industry can be developed on the facets of innovation that involve a considerable level of risk. The risk in the sector is due to the fact that innovation demands the cost of technology and the cost of long gestation period.

With the aforementioned costs comes the cost of new capabilities and even the cost of failure. Factoring in all the costs that might be incurred, the cost of setting up an innovative pharma sector is incredibly high.

Therefore, given the humongous cost, the risk-taking that needs to be inculcated in the process can only be achieved within an enabling ecosystem.

Given the immense costs mentioned above, it is to be noted that funding will definitely be one of the biggest and prime drivers of innovative R&D in the pharma sector. Given that investors have a huge potential to build an impressive ecosystem, another stakeholder that has an important role is the government, startup and tech entrepreneurs and regulators, academia, private funders, etc.

This is apparent due to the fact that most major and innovative discovery in the pharma sector has been made through government spending.

We are quite aware of the fact that some of the biggest and most influential historic pharma discoveries made around the world have successfully succeeded in a large part due to the continued government funding.

Thus, given the government’s increased and necessary involvement in the innovative development of the sector, some thought should be put into the restoration of policy incentives. These efforts can be attributed to the weighted education in R&D expenditure and patent box.

On top of enhanced education and inculcation of skill sets in the workers, the government can also emphatically incentivize the right kind of projects with real potential to succeed and which have the right amount of capacity that will definitely have a significant role to play in the future.

On the other hand, private equity funding and private spending through venture capitalists, etc. too can prove beneficial for the development of the aforementioned, innovative ecosystem. Given that healthcare and pharma assets have been presumed as enticing by the private lenders, one can positively expect great enthusiasm amongst the private investors.

It is to be noted here that investing in assets from the early discovery stage might be beneficial for the investors compared to late-stage acquisition as these can contribute immensely to the R&D successes.

Thus to quantify the gist of the argument stated above, it can be emphatically stated that with the right kind of government or private support, academia, or start-ups, the pharma sector in India can grow to newer heights in efficiently and effectively identifying the unmet patient needs in the sector.

This can be possible due to thorough research in concentrated sectors which can help in better conditionalities of the sector, given its vital role in the pandemic.

Having talked about the need of the sector, one cannot emphatically deny the contributions of the government and academia throughout the years to make the pharma sector a possibility. It is no news that funding is required for the innovative R&D constitutes which is a central pillar for the innovative industry that the R&D is.

To provide policy support, the landmark Indian Patents Act of the year 1970 was enacted to turn things around for the Indian pharma sector. It is to be noted that this effectively and efficiently has assisted in the genesis of the effective Active Pharmaceutical Ingredients (API) and generic formulations.

Thus one can argue that the policy support through the government has greatly facilitated innovation and efficiency in the pharma sector. In fact, the road to spectacular discovery in the sector has been opened through the regulatory landscape that effectively lays down unambiguous timelines and accountabilities that sagaciously support clinical trials in the country.

Talking about the industry-academia contribution towards the pharma sector, one can state that not much has been achieved. But the same is prevalent around the world such as in Israel, the United States, Japan, and others. These countries can staunchly corroborate the fact that corporate academia does play a phenomenal pivotal role leading to spectacular pharmaceutical innovation in the industry.

Mentioning the requisite role of the policymakers in the industry, the Creation of innovation hubs in the country, through motivating the right talent is always an overlooked, but important aspect that needs to be scrutinized.

There is an immediate need for try facilitation of a national hub for the aforementioned aspects of the government to coexist and facilitate synergy.

Taking all these factors into consideration, the recent draft of the R&D policy is under consideration. Such a formidable step is heartedly welcome and an inclusive move by the government of India.

It is also emphatically a much-needed realistic view and address of the present-day and future requirements of the country battered by the pandemic.

It is, in fact, yet another step towards the mutually responsive partnership that is bound to be formed between the government and the pharma industry. Thus, will the R&D policy be able to bring around the change? It is something we’ll have to wait and watch

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A Shot for NBFC Health: The Revised PCA Framework for NBFCs

After years of ignorance, the NBFC sector might be getting the attention it deserves. Having been termed as the non-prominent finance sector, the NBFC sector has been going against all the odds to prove its mettle in the finance world

The Reserve Bank of India, in a recent turn of events, has proposed the rollout of the Prompt Corrective Action (PCA) Framework for the NBFC sector. It is to be noted that such prompt corrective action was undertaken last for the Scheduled Commercial Banks in the financial year 2002.

Given the humongous years that have lapsed by what has suddenly motivated the RBI to roll out yet another prompt corrective action? It is to be noted that the scheme has been launched with the prime objective of the PCA framework that will emphatically and effectively enable supervisory intervention at the appropriate time for the sector.

This will lead the authorities to effectively and timely initiate and implement remedial measures for the sector which might be showing signs of weakening or inefficiency. Thus, one can clearly witness RBI’s timely intervention that is aimed at improving the financial health of a potential sector.

It is to be noted here that the prompt corrective action will be effective as it will be also used to act as a tool for effective market discipline. In the form of market discipline, we can expect reviewed checks on the quality of governance.

This will significantly and positively include the board and senior management decisions that might be having a significant detrimental impact on the financial health of the corporation.

The banking sector, for years, has been considered the prime source of finance in the economy. But in recent years, NBFCs, have significantly grown their share in credit and savings intermediation. This has led the sector to emphatically acquire and capture a humungous role in the economy.

Thus, given such an increased share in the finance market, their financial health imposes a high systemic risk for the economy. Given, that India is still in its nascent stage of recovery, which is expected to fall due to the arrival of the newer variant, such corrective actions are needed. This, primarily, leads to the acceptance of the fact that such NBFC corrective norms are welcome.

It is to be noted here that the RBI has introduced the extent of applicable supervisory interventions and regulations specifically based on the size of operations of an NBFC. Though such a characteristic was quite vague and ambiguous, in December clarity in the form of the extent of intervention, and compliance on the part of NBFCs was introduced as well.

This was effectively introduced to reduce the surprises of NBFC failures by keenly and diligently observing the financial health of the NBFCs.

But on what grounds is the apex bank articulating or regulating the NBFCs in the sector? It is to be noted that capital, profitability, quality of assets, leverage ratios, and net worth and leverage ratios will form the facets of evaluation. In addition to the aforementioned criteria, risk thresholds too will be used to critically evaluate and determine the financial health of an NBFC.

The risk threshold criteria for evaluation

Having mentioned that risk thresholds will be used for the critical evaluation of the NBFCs, what does it effectively mean? It is to be noted that different thresholds have been defined for an NBFC once it crosses the basic health line. Starting from threshold 1, the suggested framework will impose corrective actions.

Such actions that will be suggested will be of discretionary and mandatory nature. After such supervisory norms are put in place, if an NBFC emphatically improves its financial health and manages to come out of threshold 1, the corrective actions will be effectively and immediately withdrawn.

Thus, one can state that the RBI, in no sense, is trying to unfairly scrutinize or meddle in the affairs of the NBVFCs that are technically financially wealthy.

Having stated the euphoric scenario, what holds for an NBFC if its financial health deteriorates? Or what is in store for the entity which is in threshold 2 or 3? Here, it is to be noted that in such a case, in addition to the first threshold’s corrective actions, NBFC will witness further actions that will be put in place to further monitor the entity.

But will such corrective actions be beneficial in the long run? It is to be noted that through a critical evaluation of the banking system, it has been seen that out of the total number of banks that were effectively placed under the PCA framework, about 11 banks have already come out.

This has been achieved through the positive and substantial strengthening of the financial parameters of the banks, which has proved quite beneficial for the banks. Thus, in totality, it can be stated that the introduction of the PCA in the NBFC sector is a welcomed step given its huge success with the commercial banks in 2002.

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Evergrande China’s Lehman Brothers Moment

The 2008 Lehman brother’s debacle may be on play in China. With the high possibility of default, Evergrande brings back the stories of the 2008 financial crisis.

This emphatically tells us that leading firms can be quite crucial for the fate of the economy as a whole. This is due to the very pertinent fact that they can ruin a nation and pull a nation together.

But can Evergrande be the Lehman brothers’ moment for China? This calls for speculation and inspection. According to reports, Evergrande is cash strapped and has emphatically missed its payments that were due on Monday.

Given the trend that is playing out at the real estate giant, it can be stated that further payments of interest and principal amounts too cannot be expected of it.

Additionally, if the nature of the debt is to be scrutinized owns a total of $300 billion debts to two crucial, large banks of China. With the nonpayment of dues, an economic fallout for such banks can be likely.

But will the fallout be limited to the banks in the Chinese economy? The answer is an emphatic no. Various experts and analysts are worried that the debt default can have repercussions not only for the Chinese economy but also for the world economy.

This is due to various basic reasons like globalization and how integrated the Chinese economy is with the world market. In fact, China is the biggest importer and exporter of goods in the world market.

Thus with a slump in its economy due to huge fallout, one can expect lower demands and thus losses to various sectors and companies in the global market.

But it is to be noted that China isn’t exactly like the US in the financial year 2008. These have various reasons, firstly, the reach and impact of the USA were far much more than China, at least in terms of currency.

Secondly, the fed was quite reluctant in bailing out Lehman’s brother and had not anticipated the huge worldwide repercussions.

But given the character of the Chinese government, where everything is controlled by the government, it is quite unlikely that the government will allow such social upheaval, that it values the most.

Thus the impact and the extent of the debacle will depend on the government’s willingness to contain the social and financial upheaval a messy Evergrande collapse could cause.

Evergrande- a story of another debacle

If the reports are to be believed, it is to be noted that Evergrande has been conferred with the title of the most dubious title of the world’s most indebted real estate developer.

It has a wide network of real estate projects in the Chinese economy with 1,300 real estate projects around 280 cities. This shows the extent of spread and reach of the real estate sector.

Talking about the liabilities of the firm, as aforementioned, it stands at a humungous at $300 billion. With the striking numbers, the leaders have mentioned that they do not have the prerequisite funds to fund the debt. This has got the investors inside and outside China worried about a potential contagion effect.

The contagion effect means that turmoil or crisis in one large corporation can easily spread to others. these fears have resurfaced due to the nightmares of the Lehman Brothers crisis that had had the worst contagion effect on the other major financial institutions too. These financial intuitions were strategically its trading partners.

Secondly, the impact of the same can be huge given the current slowing economic conditions of the second-largest economy. With demand and investment in the economy already plummeting, another debacle that can affect the banking sector, whose crucial role is to lend, and the public, who are demand drivers in the economy, the impact of the same can be colossal.

Similarly, the very fact that China is the world’s second-largest economy is important. This in itself sends a message that whatever happens in China’s Evergrande, has an immense potential to affect financial institutions and nations around the world.

But are there any signs of the ripple effect yet? Yes, closer to home example is the Hong Kong stock exchange market. According to reports, Hong Kong’s Hang Seng Index fell significantly by 3.3 percent after the news of the Evergrande debacle hit the market. On the other hand, its properties index fell by a whopping and was significant 6.69 percent. It is to be noted that this was the lowest in 52-week.

Similarly, at the far end, US stocks too showed their uneasiness. According to reports, US stocks too showed their biggest drop since May. This was emphatically fueled by the Evergrande anxieties. Though certain mention about Fed anxiety is to be also made that has kept the investors on edge.

Not only has the stock market started showing the effects of the Evergrande debacle, but certain traces of it can also be found in the commodities markets. This is due to the fact that it had helped send the copper prices in the economy plummeting.

This was in fact nearly a one-month low. This is mainly due to the fact that the demand for the metal is plummeting which is emphatically used in the construction business.

Thus the only question that needs answering now is whether the Chinese government will step in to bail out the real estate corporation or will it stand by and let the market showcase its worst scenario of social and financial upheaval.

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Videocon Insolvency Latest Updates

In yet another insolvency case, that is Videocon insolvency. Videocon finds itself at the altar of bankruptcy. In the recent turn of odious events, Videocon was effectively acquired by the Billionaire Anil Agarwal. The resolution was passed by the National Company Law Tribunal which facilitated this takeover by Twin-Star Technologies.

If the details of the deal are to be scrutinized, Twin Star Technologies had effectively offered Rs 2,962 crore. This humungous amount was offered for Videocon’s 13 group firms. According to reports, these groups consisted
of Millennium Appliances India, Videocon Industries, Applicomp India Limited.

Videocon Telecom etc.

Though many might argue that the case was put to rest in an amicable and efficient way and that the Indian insolvency structure had successfully concluded the high-profile insolvency case.

However, it is to be noted that according to various analysts, the valuation of the company was severely devalued. This argument was surfaced due to the fact that the offer of Rs 2,962 crore was finalized against the admitted claims of Rs 64,838 crore.

Thus, it can be effectively stated that the amount under consideration was quite meager and lenders would effectively have to take a haircut of over at least 95 percent.

But even given the discrepancy in valuation, it is worthy of mentioning here that the dissent was presented by the smaller lenders. These lenders were namely like Bank of Maharashtra, Morgan Securities, IFCI, SIDBI, etc. to the contrary, in fact, top lenders voted enthusiastically in favor.

But has the insolvency takeover led to any significant suppression of descent? Perhaps not. many individuals, especially the Videocon promoter has come to the forefront to fight the NCLAT’s order to approve the bid by Twin-Star Technologies. This is mainly due to the fact that the Videocon promoter had earlier enthusiastically offered to pay up for the withdrawal of insolvency proceedings.

The contentions

It is to be noted that various contentions rise, given the fact that it is being perceived that the assets owned by Videocon Group, particularly assets in gas and oil assets were not effectively included in the information memorandum. Thus, subsequently, this has led to no valuation which has been considered.

Thus, one can effectively say that the insolvency case has not to be concluded by the administration and rather is ongoing. Dhoot’s appeal to NCLAT is a glaring example of that. Dhoot’s appeal includes a request for a fresh resolution plan for the oil and consumer durable assets that should be considered.

IBC

It is no news that IBC was effectively passed and implemented for the successful resolution of the insolvency cases in the economy and to effectively present time-bound resolution of the same.

But, given the series of happenings that have played out for the Videocon resolution, it is worthy of mentioning that it has become a classic instance and example of even when the case has settled, the creditors are still recovering just a meager portion of their dues.

In fact, according to various legal experts, it is to be noted that the Videocon resolution offer is actually low and needs to be relooked at. Thus Videocon’s insolvency case presents a snippet inside the IBC structure of the Indian economy and how it has been failing for years.

If the offer of a fair bid is to be scrutinized, according to valuation agencies, the fair value of Videocon stands at around Rs 4,000 crore. Additionally, the effects are aversive as the banks are acutely facing a 95 percent haircut if the deal with Twin Star for acquiring Videocon per the NCLT order is taken forward.

Though nonaccommodative and critical comments like the successful resolution applicant are paying almost nothing by the NCLT have been made, the reality of the IBC and insolvency sector in India remains the same: grim.
Now with reassessment queries, it can be seen that certain contentions have been raised over the confidentiality law.

This is mainly due to the fact that the resolution applicant had valued that had valued the 13 segments was too little but even then, the bid was selected and was given a go-ahead.

Another argument that has been raised is that why wasn’t Dhoot’s offer overlooked even though it could have been improved? Such contentious arguments made by the bidders and analysts have risen questions about the confidentiality issue which according to many needs thorough examining.

With Videocon’s insolvency and resolution, it can be effectively seen that the insolvency laws in the country are not competitive or efficient. This is especially visible in the fact that Videocon attracted such lower bids that were approved in the clear scenario of better bidders. This is in fact the reality of the banking sector and insolvency issues in the economy.

Even though the provision of appealing against the NCLT order is there through NCALT, it is quite ambiguous whether it will rule against the NCLT verdict. needs to be seen.

Thus, what turn will this nightmare for Videocon take is something that depends on NCALT’s sagacious decision-making instincts

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Understanding The Mobility Laws

India has been changing. Recent digitalization bears testimony to the fact that India is digitally and electrically transforming itself in this era. Amongst all digitalization, electrification, and mechanization, which will bore fruits for the economy, Electric mobility has caught the fancy of the government.

Such a claim can be corroborated by the fact that diesel and petrol automobile purchase in India is dropping and the conventional market is facing tough competition from its electrical competitors.

One major reason for try hype the same is that the adoption of EVs serves to solve and address the problem of air pollution, noise pollution, dependence on fossil fuels. On the other hand, the public has been discarding age-old conventional automobiles due to increasing inefficiencies like high maintenance of such vehicles and urban decongestion in India.

The government has been providing incentives to the public to initiate the process of booming EV market acceptance in India. For this, a notification was released on August 12, 2020. This was effectively released by the Ministry of Road Transport and Highways which had pompously permitted the effective sale and registration of 2-3-wheeler electric vehicles, which did not process pre-installed batteries.

It is to be noted that in this notification release, the government had adhered to the recommendations that were made by the industry. The recommendation included a strategy to delink the cost of the battery which emphatically accounts hefty, by 30 to 40 percent of the EV cost.

Thus, it can be stated that in order to reduce the upfront vehicle cost, the government had gone ahead with the scheme. This, in fact, quite positively shows the commitment of the government to adhere to its greener promise for the future.

Further, it is to be noted that this scheme will be emphatically carried on the welcoming lines of how subsidies under EV policies can be availed of. What needs to be paid attention to is the fact that how will government implement the subsidy implementation plan?

This is due to the fact that under the Faster Adoption and Manufacture of Electric Vehicles policy, EV purchase attracts direct subsidy. This is effectively linked to the battery capacity of the vehicle.

Is the policy being updated and implemented by various states? It is to be noted that the Delhi government has too emphatically launched a new EV policy for the next 3 years. To induce the public to embrace the change, the policy had offered many additional benefits over and above the FAME-II policy that was devised by the Central Government.

But what do these investments include? These incentives include financial incentives that will be provided in the form of direct subsidies for EV purchases in order to induce customers to opt for EVs. At the same time, the government is trying to disincentivize the usage of combustion vehicles by effectively scrapping the incentives for cars with internal combustion engines.

Other enticing offers that are being provided entail exemption from road tax, interest waiver on loans for various commercial buyers, and waiver of the registration fee.

Also in pursuit to develop infrastructure that is viable for the EV market in India to boom, the government has also been trying to invest in the infrastructure for charging batteries and increasing the network of charging stations. This has also led the government to promote EV usage on various ride-hailing service providers by effectively granting the rights to effectively operate electric 2-wheeler taxis.

Thus, one can effectively state that in addition to the central government, the state governments are also extensively trying to appeal to the fancy of the masses with advertisements and concessions. On the other hand, one can also scrutinize that the policy in Delhi appears to show a paradigm shift in policy in comparison to other states that are seeking to incentivize the manufacturing of EVs.

Another state that has too positively come forward to greatly incentivize the adoption of EV is the state of Telangana. Unlike the Delhi government, one can witness the change in policy as it has taken the route of supply rather than demand appraisal. According to the policy that has been unveiled, one can state the main thrust of the policy contains instruments to incentivize the manufacturing in the state by the effective and emphatical establishment of energy and EV parks.

The major call for such incentives was seen when provisions were made for 775 acres of land for EV manufacturing facilities. On top of this, it was also witnessed that some preferential market access for EV manufacturers was also being provided for the enticement process for further manufacturing.

I a major policy alteration, the Telangana government had gone as forward as to state that the sale of the first 2,00,000 and first 5,000 units of two-wheelers and four-wheelers respectively will procure 100% exemption of road tax and registration fee.

Thus, one can state that the Telangana government has based its policy on the model of effectively leveraging the existing electronics manufacturing facilities to f\drive investments in the burgeoning sector. Additionally, the policy also includes the tint of usage of supply chain advantages to make the prospects of investments more attractive for the investors.

Though no one can deny the fact that with the automobile sector, the EV market too was affected by the pandemic, with the aforementioned policies and incentives one can state that the government is trying its level best to signify institutional intent to focus specifically on electric mobility.

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Medius

History bears testimony to the fact that India’s economic and financial woes bear a long arduous history and complications. With the pandemic right here to inflict economic and humanitarian woes, India yet again stands at a point where such economic and financial anguishes will be exacerbated.

Not only has the pandemic contributed immensely to the problem, but it can be rightfully claimed that the government’s preventive strategies have been contributing to such an impending debacle.

As it is quite widely known that the banking sector is booming as the Indian economy is gaining momentum. But with the rise of credit, delinquency is on the rise too. But here it is worthy of mentioning that Medius, using its Predict-Act-Reduce technology (P-A-R) is successfully attempting to mitigate the NPA crisis in the Indian banking sector.

Medius gains are all the more relevant given various detestable predictions like the detestable NPAs all set to increase from 11.3 percent in March 2020 to 15.2 percent in March 2021.

Consequently, highly odious predictions like an increase in stress assets to 16.3 percent under a very severe stress scenario do not spark much confidence in the post-pandemic rueful world. Thus, given the debacle that is in making,

Medius through its P-A-R technology has been cautiously and strategically predicting historical bank data and generating borrower information, which is the prerequisite demand to tackle the NPA crisis.

On the other hand, the problem is all set to be exacerbated by the moratorium that was provided by the government on bank loan repayments.

It is quite true that the banking sector is already in troubled waters but the moratorium that had been provided to ease the pains of one sector will definitely lead to the accentuating of the other.

With already crippled finances of the public, the probability of repayment at the moment is at an all-time low. Thus, preventive measures that are being effectively provided by the Medius are the crucial and immediate need of the hour.

It has been quite rightly stated that prevention is better than cure. With an increasing number of curative mechanisms existing in the economy, the preventive measures by the finance ministry are quite numbered. Medius, the AI-based platform is the one-stop solution to the detestable problem of bad debts of the financial sector.

Through the AI preventive technology of Medius, bad debts can be deciphered in the early stages of its debacle. Given, timely resolution and recovery of loans is the Achilles heel of the bad bank’s industry, Medius unties the knotty situation with its strategic AI technology of early detection and suspension of the same.

with its AI technology strategic resolution are provided are highly accurate and can be trusted. Lastly, the usage of legally integrated workflows is used to strategically resolve disputes and due accounts.

One attribute that sets Medius apart from the crowd is its committed goal to provide AI structured timely resolution to recover the value of money for investors. Given, that the stakeholders have the most to lose in the bad debt revival process, Medius’s strategic functioning gives paramount importance to tending to such problems and needs.

It is no news that AI technology is the future of the banking sector. This makes Medius a forward-future-looking venture that pays attention to innovation and strategic technology usage to craft fruitful solutions. Thus, Medius is a future-oriented venture that has immense potential for growth and relevance.

In fact, Medius can be rightly hailed to have ushered the AI technology usage in the banking industry for the resolution of the predicament of the sector. Given, Medius is the first-ever AI-based venture specializing in the resolution of the odious problems that plague the banking sector, Medius can be conferred the title of “the forerunner of change”.

Medius also emphatically believes in reducing inefficacies and reductant human participation in the bad debt resolution sector as these are the very reason for the uninformed, odious and inefficient debacle. It is no news that with the plummeting relevance of the IBC in effectively dealing with the NPA crisis in the economy, due to its falling robust edifice of the timely resolution, Medius has rightfully descended in the industry with its preventive technology for the survival of the sector.

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Legal Regime of Data Privacy in China

It is no news that business and legal clarity in any country is the crux for a viable business environment and management. But in a recent turn of events, China has failed to provide the same for the companies that operate on its soil.

To corroborate such a claim, Yahoo has recently decided to effectively shut its operations in China. The reason cited for the same was an “increasingly challenging” business environment that is brewing in China. Additionally, the legal environment too has been the source of contention for the company.

The enormity of the deterrent-like legal and business environment can be conjured from the fact that Yahoo has ended a long-standing relationship of about 22 years because of the same.

but has such a scenario not worked in favor of just Yahoo? Apparently not. As a matter of fact, recently, the professional networking platform LinkedIn, which is owned by Microsoft, has stated that this year, it rolls down on the Chinese version of the site.

in fact, in a jolt to China, its video game operator Fortnite, which was China’s biggest gaming company, has too decided to pull out its operations from the Chinese market.

this gives rise to an important question what actually is leading firms to curtail their production and move out of China? What environmental or legal factors are contributing towards such abrupt departure of companies from Chia?

It turns out that the pulling out or downsizing of firms is due to the strict data privacy laws that have been put in force by the Chinese government. It is to be noted that the Data privacy laws emphatically specify how the data is to be collected and stored by the companies, affectingly directing them to function and perform in a certain manner.

China has been trying to mitigate the storage of data of its users by the company, so much so that it had rolled out the Personal Information Protection law that lays down the standards for the storage of data.

Additionally, it also effectively and emphatically restricts the amount of information that is actually allowed to be collected by the companies.

Unlike various other countries, where not much restriction is placed on companies to obtain consent from its users, China has been making the operations of the companies difficult through its hardcore rules of consent.

Even though the topic of data privacy has been a blazing issue that has been raised by the world stage, China has been the first country to stringent crack down on companies for violating its user privacy.

In addition to the aforementioned restrictions, the law has also made it mandatory for the companies to provide the users with an option of opting out of data sharing.

but what are the discrepancies that arise for the company that abides by such laws? It is to be noted that through the introduction of such stringent, crippling laws, the costs of compliance have increased. In addition to higher costs, the companies have also started to feel the threat of regulatory uncertainty that China is providing.

Thus, given that more is at stake than what can be gained by sticking in the market, the foreign companies have decided to opt-out of China.

What adds to the discrepancy is the fact that the law makes non-compliance penal in nature. Thus, this could lead the companies to pay up to a whopping 50 million yuan or 5% of the yearly revenue for the violation of the law.

Though, it is to be noted that the laws introduced to effectively prevent the misuse of the user’s data, such laws have effectively led to the curtailment of business in China.

But has the motive of China been on the basis of welfare for its citizens? Probably not and perhaps that is the biggest flaw of the program. This is merely due to the reason that the law effectively does not stop the government from accessing the citizen’s personal information. Thus, the people in China will remain under surveillance, but under the government’s surveillance.

but does the new obsessive surveillance scheme has to do anything with the trade war? Probably not. Given the rising tensions between US and China, one can emphatically maintain that the new regulatory regime has also been affected by US’s various restrictions that were inflicted on Huawei and other Chinese tech companies.

lastly, it is to be noted that the newer policy is an added stringent measure to China’s already existing “Great Firewall”. The great firewall effectively uses laws and technologies to enforce censorship on social media content that it doesn’t consider feasible according to Chinese laws.

It is no news that social media networks like Twitter and Facebook have already been facing increased scrutiny under Chinese laws due to the Great Firewall for a long time.

Thus, given the enormity of discrepancy and nonaccommodative environment that is brewing in China, it is perhaps time that China starts deep introspection of its laws that are not helping the business environment.

This gains all the more important given the fact that the Chinese economy was severely crippled by the pandemic. Thus, a nonaccommodative business environment will only add to the existing woes of the Chinese economy and it is time that China revises its stance on its data privacy laws.

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