Top Headlines: Starlink services in India, partial treatment to EV makers

Start-ups manufacturing electric two- and three-wheelers have alleged they are not getting subsidies under the second phase of the FAME II scheme

Start-ups manufacturing electric two- and three-wheelers have alleged they are not getting subsidies under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme even though some established, large manufacturers are receiving them. On the other hand, billionaire entrepreneur Elon Musk's SpaceX is set to seek a permit to launch satellite internet services in India under its Starlink brand, becoming the third company to apply for such a permit. Read more on these in our top headlines.

Start-up EV makers allege partial treatment, halt of FAME subsidies

Start-ups manufacturing electric two- and three-wheelers have alleged they are not getting subsidies under the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme even though some established, large manufacturers are receiving them. Subsidies of Rs 200-300 crore remain unpaid, said executives of various start-ups. Players like TVS Motor Co, Bajaj Auto, Ola Electric, and Mahindra Electric continue to enjoy benefits, they said. Read more
 

SpaceX to seek permit from DoT for Starlink services in India: Report

Billionaire entrepreneur Elon Musk's SpaceX is set to seek a permit to launch satellite internet services in India under its Starlink brand, becoming the third company to apply for such a permit, the Economic Times reported on Wednesday. SpaceX will also seek statutory approvals from the government for landing rights and market access, the report said, adding that it is likely to seek approvals from Department of Telecommunications (DoT) to set up local gateways. Read more
 

RBI asks banks to set aside capital, provisions for unhedged FX exposure

The Reserve Bank of India (RBI) on Tuesday tweaked guidelines for banks on incremental capital and provisioning requirements in relation to unhedged foreign currency exposures, amid the weakness in the rupee vis-a-vis the US dollar. The rupee has depreciated about 10 per cent against the US dollar thus far in 2022, and as a result there has been greater scrutiny of firms’ unhedged exposure through borrowings in foreign currencies. Read more
 

Liquidity slips into deficit on high credit growth, festival loan demand

A sharp uptick in credit demand, higher consumption during the festival season, and dollar sales by the Reserve Bank of India (RBI) in the foreign exchange market have led to liquidity in the banking system tightening sharply. The weighted average call rate (WACR), which is the operating target of the RBI’s monetary policy, is currently at its highest since April 30, 2019, reflecting the shrinking liquidity in the system. Read more
 

Sale of cement units to Adani group a relief for Jaiprakash lenders

The sale of cement units by Jaiprakash Associates to the Adani group will provide partial relief to Indian lenders, which have an exposure of Rs 28,648 crore (until September this year) to the company and its various infrastructure projects. Of this amount, the company has defaulted on Rs 3,798 crore, according to the company’s filing for the September quarter. Read more
 

Fast-track mechanism on the cards to help Indian investors in UAE

The United Arab Emirates (UAE) has assured India it will provide necessary support to ensure speedy resolution of issues faced by Indian investors in the West Asian nation. A high-level joint task force by both nations on investments has decided to set up ‘India Fast Track Mechanism’ in the UAE to help Indian businesses and investors, the department of commerce said. Read more