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The Hindu
13 hours ago
- Politics
- The Hindu
The troubled waters of Godavari
A fresh row has erupted between Telangana and Andhra Pradesh over the Polavaram-Banakacherla Link Project. The project, which will divert 200 tmc ft of Godavari water to the Krishna and Penna basins, aims to provide drinking and irrigation water to the drought-hit Rayalaseema region of Andhra Pradesh. The Andhra Pradesh government has already submitted the pre-feasibility report on the project to the Central Water Commission (CWC). The CWC has now asked the State to now furnish a detailed project report (DPR). In addition, the Centre has offered to fund 50% of the total cost of the project, which is an estimated ₹80,000 crore, as part of the interlinking of rivers; the remaining will be financed through borrowing beyond the Fiscal Responsibility and Budget Management (FRBM) limits. This has upset Telangana as the Centre had reduced the State's borrowing limits under the FRBM Act citing the State's off-budget borrowings to complete the Kaleshwaram project on time. Both the Congress, which is in power in Telangana, and the Bharat Rashtra Samithi (BRS), which is in the Opposition, believe that the project violates the State's riparian rights regarding Godavari waters as well as the provisions of Andhra Pradesh Reorganisation Act, 2014. But the two parties are also busy blaming each other for 'allowing' Andhra Pradesh to plan the project. The other significant Opposition party in the State — the Bharatiya Janata Party (BJP) — has remained largely silent. This is possibly because the BJP government at the Centre has the support of the Telugu Desam Party, the ruling party of Andhra Pradesh. This, the Telangana government believes, has given the Andhra Pradesh government the advantage of getting things done with quick approvals from the Centre. Chief Minister A. Revanth Reddy and Minister for Irrigation N. Uttam Kumar Reddy squarely blamed the previous BRS government for Andhra Pradesh's decision to take up the Godavari diversion project. They cited the first apex council meeting of September 21, 2016, as evidence. That was when the then Chief Minister, K. Chandrasekhar Rao, had stated that 3,000 tmc ft of Godavari water discharges into the sea on average annually and could instead be utilised if there was an 'understanding' between the two States. The BRS objected to this argument saying Mr. Rao had also 'raised objections over the diversion of water from the Godavari to the Krishna without prior consultation of Telangana' during the same apex council meeting. Former Minister for Irrigation, T. Harish Rao, said that the Congress is deliberately misleading the people. He alleged that Andhra Pradesh was conspiring to divert Godavari waters to claim rights on it in the future by seeking re-allocation of water by the Godavari Water Disputes Tribunal. He termed the Congress government's 'soft approach' to the project as a 'mortgaging of Telangana's water rights' and said that this was 'Mr. Revanth Reddy's 'gurudakshina' to his political mentor N. Chandrababu Naidu'. Mr. Rao said that just as the late Y.S. Rajasekhara Reddy had diverted Krishna waters from Srisailam to the non-basin (Penna) areas by expanding the Pothireddypadu Head Regulator, now Andhra Pradesh Chief Minister Chandrababu Naidu was diverting Godavari waters at the cost of Telangana's riparian rights. Mr. Naidu emphasised that the project is essential. Arguing that the Godavari has ample surplus water, he asked why Telangana should object to the use of water that was anyway flowing into the sea. The BRS in turn demanded to know why the Andhra Pradesh government had objected to the Kaleshwaram project if ample water was indeed available in the Godavari. The President of the Telangana Retired Engineers' Association, M. Shyamprasad Reddy, suggested that the Centre carry out the appraisal of the Polavaram-Banakacherla Link Project only after protecting the rights of the people of Telangana by giving permissions/clearances/approvals to all the ongoing and contemplated projects in the Godavari basin. The former chief engineer also suggested that the Centre additionally allocate more than 200 tmc ft of water in the Krishna basin in lieu of the diversion of Godavari water to other basins. Water-sharing is a sensitive issue and is linked to the economy and regional sentiments. The Centre would do well to be as unbiased as possible when dealing with inter-State water disputes.
India Gazette
18-06-2025
- Business
- India Gazette
Govt's net borrowings under control, show steady trend: SBI Report
New Delhi, June 18 (ANI): India's market borrowing program has seen a stable and orderly evolution in recent years, with net borrowings remaining under control despite the country's growing economic needs. Data from a report by SBI showed that the government is actively managing its debt through various instruments while adhering to fiscal discipline under the FRBM Act. It said, 'G sec borrowing trend.... Keeping the borrowings in check.' As per the data, gross market borrowing through government securities (G-secs) is estimated at Rs 14.8 lakh crore in the Budget Estimates for FY26, while net borrowing is projected at Rs 11.5 lakh crore. So far in FY26, the government has raised Rs 3.2 lakh crore as gross borrowing, and Rs 2.4 lakh crore as net borrowing. In the previous financial year (FY25), gross borrowing stood at Rs 14.0 lakh crore, while net borrowing was Rs 10.7 lakh crore. Similarly, FY24 had seen gross borrowing of Rs 15.4 lakh crore and net borrowing of Rs 10.7 lakh crore. This shows that while gross borrowing fluctuates with fiscal needs, net borrowing is being kept largely in check. The report also highlighted that the outstanding stock of government debt through G-secs has steadily risen over the past decade, from Rs 41.6 lakh crore in FY15 to Rs 114.5 lakh crore so far in FY26. However, this surge has been managed with caution, and the government is making genuine efforts to reduce overall debt levels. The debt-to-GDP ratio is estimated at 57.1 per cent for 2024-25 and is projected to decline to 56.1 per cent in 2025-26, as per the FRBM guidelines. To fine-tune its borrowing profile, the report mentioned that the government is also using debt switch and buyback operations. In FY26, switch borrowings are budgeted at Rs 2.5 lakh crore, and buybacks have already accounted for Rs 0.5 lakh crore. In past years, switch operations ranged from Rs 0.3 to Rs 2.0 lakh crore, depending on the fiscal strategy. In the context of banking and finance, a debt switch typically refers to a transaction where a borrower exchanges one type of debt security for another, often with the goal of restructuring debt obligations or managing liquidity. While the buyback operations typically refer to the repurchase of government securities or corporate bonds by central bank (RBI). On this the SBI report noted a dichotomy in current trends. While issuing more short-term papers may support immediate funding needs for a fast-growing economy, it could lead to higher redemption pressure in the medium term. The report outlined that while India's public debt has grown in absolute terms, the government's prudent fiscal management, stable borrowing trends, and strategic tools like debt switches and buybacks are helping maintain long-term sustainability. With net borrowings under control and efforts aligned with FRBM targets, the overall debt outlook looks disciplined. (ANI)
Times of Oman
18-06-2025
- Business
- Times of Oman
Govt's net borrowings under control, show steady trend: SBI Report
New Delhi: India's market borrowing program has seen a stable and orderly evolution in recent years, with net borrowings remaining under control despite the country's growing economic needs. Data from a report by SBI showed that the government is actively managing its debt through various instruments while adhering to fiscal discipline under the FRBM Act. It said, "G sec borrowing trend.... Keeping the borrowings in check." As per the data, gross market borrowing through government securities (G-secs) is estimated at Rs 14.8 lakh crore in the Budget Estimates for FY26, while net borrowing is projected at Rs 11.5 lakh crore. So far in FY26, the government has raised Rs 3.2 lakh crore as gross borrowing, and Rs 2.4 lakh crore as net borrowing. In the previous financial year (FY25), gross borrowing stood at Rs 14.0 lakh crore, while net borrowing was Rs 10.7 lakh crore. Similarly, FY24 had seen gross borrowing of Rs 15.4 lakh crore and net borrowing of Rs 10.7 lakh crore. This shows that while gross borrowing fluctuates with fiscal needs, net borrowing is being kept largely in check. The report also highlighted that the outstanding stock of government debt through G-secs has steadily risen over the past decade, from Rs 41.6 lakh crore in FY15 to Rs 114.5 lakh crore so far in FY26. However, this surge has been managed with caution, and the government is making genuine efforts to reduce overall debt levels. The debt-to-GDP ratio is estimated at 57.1 per cent for 2024-25 and is projected to decline to 56.1 per cent in 2025-26, as per the FRBM guidelines. To fine-tune its borrowing profile, the report mentioned that the government is also using debt switch and buyback operations. In FY26, switch borrowings are budgeted at Rs 2.5 lakh crore, and buybacks have already accounted for Rs 0.5 lakh crore. In past years, switch operations ranged from Rs 0.3 to Rs 2.0 lakh crore, depending on the fiscal strategy. In the context of banking and finance, a debt switch typically refers to a transaction where a borrower exchanges one type of debt security for another, often with the goal of restructuring debt obligations or managing liquidity. While the buyback operations typically refer to the repurchase of government securities or corporate bonds by central bank (RBI). On this the SBI report noted a dichotomy in current trends. While issuing more short-term papers may support immediate funding needs for a fast-growing economy, it could lead to higher redemption pressure in the medium term. The report outlined that while India's public debt has grown in absolute terms, the government's prudent fiscal management, stable borrowing trends, and strategic tools like debt switches and buybacks are helping maintain long-term sustainability.
Time of India
18-06-2025
- Business
- Time of India
Govt's net borrowings under control, show steady trend: SBI Report
India's market borrowing program demonstrates stability, with net borrowings well-managed despite economic growth. The government adheres to fiscal discipline under the FRBM Act, utilizing instruments like G-secs, debt switches, and buybacks to fine-tune its borrowing profile. While public debt has increased, prudent fiscal management ensures long-term sustainability, aligning with FRBM targets. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's market borrowing program has seen a stable and orderly evolution in recent years, with net borrowings remaining under control despite the country's growing economic from a report by SBI showed that the government is actively managing its debt through various instruments while adhering to fiscal discipline under the FRBM said, "G sec borrowing trend.... Keeping the borrowings in check."As per the data, gross market borrowing through government securities (G-secs) is estimated at Rs 14.8 lakh crore in the Budget Estimates for FY26, while net borrowing is projected at Rs 11.5 lakh far in FY26, the government has raised Rs 3.2 lakh crore as gross borrowing, and Rs 2.4 lakh crore as net the previous financial year (FY25), gross borrowing stood at Rs 14.0 lakh crore, while net borrowing was Rs 10.7 lakh crore. Similarly, FY24 had seen gross borrowing of Rs 15.4 lakh crore and net borrowing of Rs 10.7 lakh shows that while gross borrowing fluctuates with fiscal needs, net borrowing is being kept largely in report also highlighted that the outstanding stock of government debt through G-secs has steadily risen over the past decade, from Rs 41.6 lakh crore in FY15 to Rs 114.5 lakh crore so far in this surge has been managed with caution, and the government is making genuine efforts to reduce overall debt debt-to-GDP ratio is estimated at 57.1 per cent for 2024-25 and is projected to decline to 56.1 per cent in 2025-26, as per the FRBM fine-tune its borrowing profile, the report mentioned that the government is also using debt switch and buyback FY26, switch borrowings are budgeted at Rs 2.5 lakh crore, and buybacks have already accounted for Rs 0.5 lakh crore. In past years, switch operations ranged from Rs 0.3 to Rs 2.0 lakh crore, depending on the fiscal the context of banking and finance, a debt switch typically refers to a transaction where a borrower exchanges one type of debt security for another, often with the goal of restructuring debt obligations or managing liquidity. While the buyback operations typically refer to the repurchase of government securities or corporate bonds by central bank (RBI).On this the SBI report noted a dichotomy in current trends. While issuing more short-term papers may support immediate funding needs for a fast-growing economy, it could lead to higher redemption pressure in the medium report outlined that while India's public debt has grown in absolute terms, the government's prudent fiscal management, stable borrowing trends, and strategic tools like debt switches and buybacks are helping maintain long-term net borrowings under control and efforts aligned with FRBM targets, the overall debt outlook looks disciplined.
Mint
23-05-2025
- Business
- Mint
Best stocks to trade on 23 May, as recommended by Trade Brains Portal
India's stock market opened in red on Thursday, with the Nifty 50 opening lower at 24,733.95 points and the BSE Sensex at 81,323 due to concerns over the US's fiscal deficit and the 30-year US treasury bond yield rising to 5.09%. For today, we have picked two stocks—one each from the housing finance sector and the auto ancillaries sector. We also take a closer look at Thursday's market performance to identify trends that may shape the indices in the days ahead. Stocks to trade today, 23 May Current price: ₹227 Target price: ₹295 in 14-16 months Stop-loss: ₹192 Why it's recommended: HUDCO is the nodal agency for the government's 'Housing for All' initiative and is also actively involved in federal schemes such as the Jal Jeevan Mission and Pradhan Mantri Awas Yojna. The company lends under these schemes and provides consultancy services for the appraisal of projects sanctioned under these. HUDCO recorded its highest ever sanctions and disbursement during FY25, with loan sanctions growing 55.31% to ₹1,27,952 crore from ₹82,387 crore in FY24. Loan disbursements increased 122.59% to ₹40,038 crore in FY25 from ₹17,987 crore in FY24, and interest income increased 33% to ₹10,200 crore in FY25 from ₹7,653 crore in FY24. Furthermore, HUDCO is targeting a ₹1.5 trillion loan book this financial year and ₹3 trillion by 2030. Its net interest margin (NIM) remained stable at 3.22% in FY25 as against 3.18% in FY24. For the next 2 years, the management has guided for NIM of 3.25-3.3%. HUDCO's interest spread improved to 2.06% in FY25 from 1.79% in FY24, resulting in a pre-tax profit of about ₹3,636 crore in FY25. HUDCO maintained a comfortable debt/equity ratio of 5.72x in FY25 as against 4.05x in FY24. Its cost of funds improved by around 35 basis points to 6.75% in FY25 from 7.1% in the prior financial year. HUDCO's asset quality is also enhancing, with its gross non-performing asset (GNPA) decreasing to 1.67% in FY25 from 2.71% in FY24, and its net NPA dropping to 0.25% in FY25 from 0.36% in FY24. Its provision coverage ratio remained at 85.44% in FY25. HUDCO is committed to resolving its NPAs in 18 months, and the management is optimistic that the company will recover ₹400-500 crore from NPA resolutions in FY26. Further, HUDCO's board of directors has approved a final dividend of ₹1.05 per equity share for FY25, with a dividend yield of 1.81%. The final dividend is in addition to the first interim dividend of ₹2.05 per equity share and the second interim dividend of ₹1.05 per equity share already declared and paid for FY25. Risk Factor: HUDCO is significantly exposed to certain state governments and public agencies. Although regulatory relaxations were granted, any failure to reduce exposures within the stipulated timelines or breach of Fiscal Responsibility and Budget Management Act (FRBM Act) conditions may lead to regulatory penalties and higher risk weights, impacting the company's capital adequacy and financial stability. Additionally, the company faces stiff competition from other players such as banks and financial institutions, which have an edge over HUDCO in terms of cheap resource availability from current account and savings account (CASA) deposits. Current price: ₹ 383 Target price: ₹440 in 16-24 months Stop-loss: ₹354 Why it's recommended: Exide Industries Ltd is a leading battery manufacturer offering a wide range of lead-acid and lithium-ion batteries for automotive, industrial, and renewable energy applications. The company supplies batteries for cars, two-wheelers, trucks, inverters, UPS systems, telecom infrastructure, railways, mining, and defense. With its diversified product portfolio, the company has battery capacities ranging from 2.5 Ah to 20,000 Ah. Exide operates in more than 60 countries and has 10 manufacturing plants in Bengaluru and Prantij. In FY25, the company added 14 distributors and reached 13 regions in the automotive segment. In the industrial segment, Exide onboarded 28 accounts, reaching more than 20 regions. For FY25, Exide reported a revenue of ₹16,588 crore, up 3.5% year-on-year (YoY) and growing at a compound annual growth rate (CAGR) of 13.4%. Profit after tax increased 2.2% to ₹1,441 crore in FY25, growing at a CAGR of 9.1% over the previous five years. Exide has low debt with a debt-to-equity ratio of 0.14, and holds ₹14,442 crore in equity. It continues to generate strong positive cash flow from operations, which was ₹1,298 crore in FY25. Further, Exide acquired 100% ownership in Exide Energy Solutions Ltd (EESL) to establish a 12 GWh greenfield project in two phases of 6 GWh capacity each to offer an end-to-end solution from cell to system—'molecule to megawatt"—by investing ₹3,602 crore. The company is also collaborating with SVOLT Tech Solutions, a leading Li-ion cell manufacturer. This synergy will help Exide set up a plant on a turnkey basis for Li-ion cell technology. The company also plans to increase its capacity by 6 GWh through four lines in Phase 1. With these latest developments, Exide is positioned to capitalize on emerging market opportunities in the battery segment. India is one of the largest automobile markets globally. The Indian electrification demand is expected to be 120 GWh by 2030, driven by production-linked incentive schemes for the auto sector, state policies on electric vehicles, and subsidies. Rating agency ICRA expects EV penetration to be 25% for two-wheelers, 40% for three-wheelers, 30% for buses, 15% for passenger vehicles, and 12-16% for light commercial vehicles as a percentage of total sales by 2030. These favourable EV demand prospects are likely to benefit the company. Risk factor: Exide Industries is exposed to intense competition in its lead-acid battery business from organized players like Amara Raja and HBL Engineering, as well as players in the unorganized space. The company is also exposed to stricter pollution control regulations as a majority of its raw materials such as lead, sulfuric acid, and lithium are hazardous. Additionally, Exide is exposed to fluctuations in the prices of raw materials such as antimony and lead, which have spiked in the past six months, hurting the company's margins. Market Recap: 22 May, 2025 The Nifty 50 reached an intraday low at 24,462 points on Thursday, touching the 20-day EMA in the daily time frame. The Sensex's low for the day was 80,489.92, also breaching the 20-day EMA. Nifty 50 closed at 24,609.70, losing 203.75 points or 0.82%, while the Sensex closed at 80,951.99, down 644.64 points or 0.79%. Sectorally, only Nifty Media ended in the green at 1,674, up by 18.35 points or 1.11%, with index constituents Network 18, Tips Music, and ZEE Entertainment gaining up to 4%. Among the losers, Nifty FMCG fell the most and ended at 55,598, losing 815 points or 1.44%, with the major laggards being Colgate-Palmolive (-6.5%), Varun Beverages (-2%), and United Breweries (-1.78%). Nifty IT closed at 37,050, down 490 points or 1.31%, due to concerns over Moody's downgrading the US's credit rating as major Indian tech companies are exposed to the US market. Asian markets were also cautious amid weak global cues on Thursday, with the Hang Seng Index losing 283.47 points or 1.19% to close at 23,544.31 and the Nikkei 225 index also closing in the red at 36,985.87, down 313.11 points or 0.84%. Additionally, the India VIX fear gauge jumped around 3% to reach a high of 18.20 on 22 May, indicating heightened market volatility. Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
