AIIB approves $100 million to Larsen Toubro Finance arm for wind and solar projects

The Asian Infrastructure Investment Bank’s (AIIB) latest project will increase the supply of renewable energy in India by mobilizing private capital. The project provides a $100 million loan to L&T Infrastructure Finance Company Limited (LTIF), a subsidiary of L&T Finance Holdings Ltd and a leading non-bank financier of renewable energy in India. The financing marks AIIB’s first loan to a non-banking finance company (NBFC). 

The loan proceeds will be used to on-lend to wind and solar power infrastructure projects throughout India. The loan mobilizes private capital from sponsors, other financiers and LTIF’s own sources.

India is committed to reducing its carbon intensity by 30 to 35 percent of 2005 levels by 2030 under the Paris Agreement. The country will need to increase the share of non-fossil fuels in its energy mix if it is to achieve this target. Investment in renewable energy is an efficient way for India to reduce its carbon intensity while meeting its growing energy needs. NBFCs play a crucial role in broadening access to financial services, enhancing competition and diversity in the financial sector, and has emerged as key financiers of renewable energy. 

“AIIB’s financing will help secure the funding supply for renewable energy project development in India,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “The project supports AIIB’s commitment to sustainable energy for Asia to reduce the carbon intensity of energy supply.” 

LTIF’s collaboration with AIIB will also help the company develop its environmental and social capabilities which will in the future enable it to tap the international market for green finance.

Source - AIIB.

Tamal Bandyopadhyay’s HDFC Bank 2.0 book narrates the Puri legacy.

Indian banking industry is not in the pink of health now but that’s largely the story of the government-owned banks. If we look at the private sector, barring a few odd banks which are not the best examples of corporate governance, over the last three decades, the industry has witnessed phenomenal growth with consumerism. The privitisation push in 1991 was a defining moment for the financial sector in India. What we have achieved today would not have been possible without India’s private sector banks like HDFC Bank. It is a child of economic liberalisation.

In the 1990’s, talking about banks as dinosaurs, Bill Gates of Microsoft famously said, “We need banking, but we don’t need banks anymore”. Three decades later, a bank is still relevant and will continue to do so if it’s willing to reinvent itself to be in sync with the changing milieu where it operates – by embracing digitalisation.

From a nimble start-up in 1995 to India’s most valuable banking brand, HDFC Bank has a made  gigantic strides into the world of digital banking under the leadership of Mr Aditya Puri. In a sector marred by controversies, Mr Puri has not just been the longest serving chairman of any bank globally but the face of a world class bank in India. Tamal Bandyopadhyay’s latest book “HDFC Bank 2.0: From Dawn to Digital” narrates this unique story of the  transformation of India’s most valued lender from a life cycle bank to a lifestyle bank. 

For starters, let me remind you that this book is not a sponsored project. It chronicles the HDFC Bank story warts and all. While highlighting the bank’s unique features, Tamal also criticises the unforgivable mistakes done by HDFC Bank during this journey through his unparalleled  writing skills. 

One of the key reasons why Indian banks were largely unaffected  during the Global Financial Crisis of 2009 was the fact that they were truly connected with their roots. During that  period, Mr Puri had guided HDFC Bank to add branches and ATM network in tier three cities and rural areas. The expansion drive created the credit card, auto and home loan boom. The book describes how  a bank reaching out to person for a loan – and not  the other way round - creates a new sense of trust in the aspirational class of India.

The era of Digital Disruption

Mr Puri believes that digitalisation and disruption are intertwined. Whenever there’s change, people tend to panic but if handled correctly, it can open up new beginnings. HDFC Bank saw this transformation ahead of others. During his Silicon Valley trip in 2014, Mr Puri saw how the fintech companies – the new kids on the  tech block – were venturing into fund transfers, mobile banking and shopping. They could build products that could give instant loan with slick user interface on their phones. Home grown fintech innovations like the United Payments Interface (UPI) were set to transform the way we Indians bank.

“Why don’t we disrupt ourselves instead of waiting to be disrupted by fintech companies? Why can’t we give a loan in 10 seconds? Why can’t we invent something to transfer money in just a click? HDFC Bank aspires to become a financial marketplace. It wants to be India’s Alibaba or Netflix when it comes to banking”. - Mr Aditya Puri, Chairman & Managing Director, HDFC Bank.

HDFC Bank first tied up with Chillr, an app which sends money over the phone using a UPI technology. A BharatQR code-based payments service named PayZapp is popular in many stores. The bank has also used AI for many applications like chatbots and social media interactions. Indigenously developed IRA robots have been deployed at several branches to solve customer queries. 

While adopting this technological shift, there were times when the bank failed on the customer front. For instance, the HDFC bank app crash in November 2018 became a hot topic in the media and  the bank was subjected to national outrage and ridicule. The book – “HDFC Bank 2.0: From Dawn to Digital” – clinically  chronicles the journey over the years.

About the book

Tamal Bandyopadhyay’s HDFC Bank 2.0: From Dawn to Digital is published by Jaico Publishing House. The book was launched by Rajnish Kumar, Chairman, State Bank of India at Nehru Centre, Mumbai. Aditya Puri, Managing Director, HDFC Bank Ltd  and many  luminaries in the financial services industry were present there. Tamal Bandyopadhyay is an author, columnist and keen watcher of banking and finance. His Banker’s Trust column, which now appears every Monday in Business Standard, is the most popular column on banking and finance with over half a million followers on the Linkedin platform.

“Tamal combines his financial knowledge, eye for detail, and an excellent storytelling style to create a vivid portrait of India’s most valued bank and its path to future” - Nandan Nilekani, Co-foundar & Chairman, Infosys & founding chairman of UIDAI, has written in his forward to the book.

HDFC Bank 2.0: From Dawn to Digital (ISBN: 978-93-88423-35-9) are now available at Crossword, Amazon, Flipkart and other leading book stores.

TVS launches India's first Ethanol based Motorcycle - Apache RTR 200 Fi Ei100 at Rs 1.2 lakhs.

A #MakeInIndia products which runs on #MakeInIndia fuel.

TVS Motor Company, a reputed manufacturer of two-wheelers and three-wheelers in the world have created a benchmark in the industry by launching India’s first Ethanol based motorcycle – TVS Apache RTR 200 Fi E100. The motorcycle was launched by Shri. Nitin Jairam Gadkari, Hon’ble Minister for Road Transport and Highways of India & Micro, Small and Medium Enterprises, Shri. Amitabh Kant, CEO of NITI Aayog, and Shri. Venu Srinivasan, Chairman, TVS Motor Company.

TVS Motor Company first showcased the TVS Apache RTR 200 4V Ethanol concept in Auto Expo 2018 held in Delhi. TVS Apache is the flagship brand of TVS Motor Company with over 3.5 million happy customers across the globe.

Commenting on this launch, Shri. Venu Srinivasan, Chairman, TVS Motor Company, said, “We are delighted to launch the TVS Apache RTR 200 Fi E100 in the presence of Hon’ble Minister for Road Transport & Highways of India; & Micro, Small and Medium Enterprises Shri. Nitin Jairam Gadkari who has created a roadmap for the implementation of future mobility in the country.”

Shri. Srinivasan further added, “Today, the two-wheeler industry is looking at green and sustainable future mobility solutions spanning across electric, hybrid and alternate fuels. TVS Motor Company believes that Ethanol-based products are an important option for our customers. This is due to the easy compatibility in the transition to Ethanol and its sustained positive impact on the environment without compromising on performance and total cost of ownership. TVS Apache RTR 200 Fi E100 is a breakthrough in the two-wheeler space that will set the trend for a green future in India.”

Ethanol will be domestically produced by the farmers of this country. It is cost-effective, import free and environmentally sustainable fuel.

Ethanol is domestically produced from renewable plant sources. It is non-toxic, biodegradable, as well as safe to handle, store and transport. An oxygenated fuel that contains 35% oxygen, Ethanol reduces nitrogen oxide emissions from combustion. Apart from this, Ethanol also helps reduce carbon monoxide emissions, particulate matter, and sulphur-di-oxide. Use of Ethanol as a fuel will also reduce dependence on the import of petroleum and increase energy security.

The TVS Apache RTR 200 Fi E100 sports a vibrant interplay of green graphics seamlessly woven with the ‘Ethanol’ logo. It is equipped with a Twin-Spray-Twin-Port EFI technology. This ensures better drivability, faster throttle response and reduction in emission levels. It delivers better usable power under varied ambient conditions. This motorcycle boasts of impressive peak power of 21 PS @ 8500 rpm with a torque of 18.1 Nm @ 7000 rpm and has an ascending top speed of 129 kmph.

Promising consistent performance coupled with a sustainable green solution, the TVS Apache RTR 200 Fi E100 is a winner for both the rider and the environment. This special edition would be available in Maharashtra, Uttar Pradesh, and Karnataka at an attractive price of Rs. 1,20,000.

- Press Release.

Shapoorji Pallonji's renewable energy arm Sterling and Wilson Solar Ltd ranked World's Largest Solar EPC Service Provider: IHS Markit.

Sterling and Wilson Solar Limited, a Shapoorji Pallonji group company, has been ranked as the world's largest Solar EPC service provider by IHS Markit in its recently announced Solar EPC and O&M Provider Tracker Q1 2019 report. The ranking is basis the annual installations of utility-scale PV systems of more than five MWp in the year 2018. As the largest global Solar EPC solutions provider, Sterling and Wilson Solar had a global market share of 4.6% in the year 2018 - a number more than double that of the 2nd largest company globally - according to IHS Markit. The company was also ranked as the largest Solar EPC solutions provider in India with a market share of 16.6%, 3 times the size of its closest competitor.

Declining costs, advancing technology trends and favorable regulatory environments across the world are some of the factors driving the growth of solar energy globally. Sterling and Wilson Solar has built more than 6 GWp of solar plants across the globe and the recognition as the world's largest solar EPC provider is a significant milestone in its trajectory.

With a strength of 1179 employees across the world including 138 in design and engineering, Sterling and Wilson Solar has been executing projects globally. Today, it has over 6062.83 MWp of solar EPC projects as part of its portfolio in different stages of implementation (commissioned and contracted). This impressive global portfolio also includes a 1,177 MWp single location Solar PV plant in Abu Dhabi - one of the world' s largest such Solar PV plants.

Sterling and Wilson Solar is present in 26 countries today, with operations in India, South East Asia, the Middle East, Africa, Europe, the Americas, and Australia. The company has been strategically focusing on markets that have conducive solar power policies and investing resources in geographies that have long-term solar opportunities in utility-scale solar power projects and rooftop solar projects.

In the year 2018, according to IHS Markit, the company was also the largest solar EPC solutions provider in Africa and the Middle East with a market share of 36.6% and 40.4% respectively. Today, Sterling and Wilson Solar is expanding its global presence through strategic acquisitions in its target markets. The company recently acquired a 76% equity interest in GCO Electricals Pty Limited, an electrical contracting company based in Australia with expertise in the execution of solar power projects in the region. 

The company provides EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning. As the global solar market is likely to grow substantially in the years to come, Sterling and Wilson Solar has positioned itself well to be at the forefront of this tremendous opportunity.

Source: Press Release/PTI.