Daily News - Tuesday, 1 April 2025
Plants running on imported coal may see tech upgrade to use local fuel (Financial Express)
The Indian power ministry is assessing whether 17 imported coal-based power plants (17.97 GW capacity) can partially use domestic coal, with a feasibility study led by the Central Electricity Authority (CEA) and 10 million tonnes of high-grade coal allocated for testing. India aims to eliminate coal imports by FY26, having already reduced coal imports to 183.42 million tonnes in April–December FY25 from 200.19 million tonnes in the same period last year, while coking coal imports also fell to 42.75 million tonnes from 44.39 million tonnes. With domestic coal production surpassing 1 billion tonnes as of March 20—11 days ahead of the previous year’s 997.83 million tonnes—the government has set a target of 1.08 billion tonnes for FY25 and 1.13 billion tonnes for FY26, supported by new mine auctions and logistical improvements.
States' capex picks up marginally in Apr-Feb (Financial Express)
States’ capital expenditure (capex) showed a slight improvement in April–February FY25, with a marginal decline of 1% to ₹4.51 lakh crore compared to ₹4.55 lakh crore last year, but overall growth is expected to remain flat. Despite the Centre disbursing ₹1.15 lakh crore in interest-free loans to states and front-loading ₹2.5 lakh crore in tax devolution to boost spending, project implementation delays linked to elections and monsoons hindered a full recovery in capex. The 16 states saw a 24.8% rise in borrowings and liabilities, totaling ₹5.83 lakh crore, while tax revenues grew 11.2% to ₹25.2 lakh crore, lower than last year’s 15.9% growth.
India’s economic choices in Trump-defined world are sound: Panel (mint)
At the Mint India Investment Summit 2025, trade experts emphasized that while the Trump administration’s global trade policies have diminished the relevance of multilateral bodies like the WTO, India is strategically strengthening its position by engaging in bilateral talks with the US. Rajiv Bhatia, former Indian ambassador, highlighted India’s readiness for a mutually beneficial agreement with the US, underscoring India’s maturity in navigating global shifts while safeguarding its own interests. Anup Wadhawan, former commerce secretary, criticized Trump’s narrow focus on goods trade surpluses as a measure of success, noting that the US economy is service-based, and that agreements with developing nations, especially in technology sectors, have often benefited US corporations at the expense of host countries.
Gold hits ₹92,500 for 10 gram (Financial Chronicle)
Gold prices in the Delhi spot market surged by ₹350 per 10 gm to ₹92,500, driven by international rates crossing $3,100 per ounce ahead of new US tariffs set to take effect on April 2. In the 2024-25 financial year, gold rose by 33% and silver by 24% in the Indian market, with both metals seeing significant gains due to geopolitical tensions, recession fears, and central bank buying. While gold prices in the domestic market lagged behind international gains due to a strong rupee, experts expect further increases, with Bank of America forecasting gold to reach $3,500 per ounce within the next 18 months.
India's external debt at $718 bn (Financial Chronicle)
India’s external debt rose by 10.7% to $717.9 billion at the end of December 2024, up from $648.7 billion a year earlier, with a slight quarterly increase of 0.7% from $712.7 billion in September 2024. The external debt to GDP ratio decreased to 9% by December 2024, down from 19% in September, primarily due to a $12.7 billion valuation effect from the appreciation of the US dollar. US dollar-denominated debt accounted for 54.8% of India’s external debt, with loans being the largest component at 33.6%, while non-financial corporations held the largest share of the debt at 36.5%.
