THE BIG CLIMATE FINANCE QUESTION The UAE Consensus falls short of real action on funding for vulnerable countries including India that carry the unjust burden of climate change EXCLUSIVE INTERVIEWS VIVEK NARAIN FOUNDER & CEO, THE QUORUM ABHAY SOI CHAIRMAN & MD, MAX HEALTHCARE www.businessworld.in RNI NO. 39847/81 I 30 DECEMBER 2023 Rs 200
4 | BW BUSINESSWORLD | 30 December 2023 India firmly believes that equity and climate justice must be the basis of global climate action. — Union Minister for Environment, Forest and Climate Change Bhupender Yadav at the COP28 summit NOVEMBER IS KNOWN to be the best month to be in Dubai, when its skies are clear, the sea breeze is balmy and temperatures hover around a pleasant 25 degrees Celsius. On the last day of November 2023, the throng there was 70,000 strong from the 200 nations that took part in the United Nations Climate Conference, COP28. Metaphorically heat had been building up over a United Nations Framework Convention on Climate Change summit being hosted by the oil and gas rich United Arab Emirates (UAE). The irony of the beneficiaries of the fossil fuel market joining forces with climate activists and environmentalists to work toward a transition to a world fueled by green energy was not lost on most. Yet, at the end of the summit, where deliberations continued beyond the scheduled closing on 12 December, the unimaginable happened. The COP28 President Sultan Ahmed Al Jaber, energy minister of the UAE and head of the Abu Dhabi National Oil Company, managed to facilitate a concurrence on transition to green energy from fossil fuels. Our cover feature in this issue tells this story, from the observations of participants at the COP28 summit, expert opinion and reports by our own team of scribes. In India both government and private sector initiates have already ensured giant strides in transitioning to green energy sources like solar, hydel and wind power. The COP28 commitments will only give new wings to these ventures. Decarbonisaton and other changes in the energy systems mandate huge financial investments, which according to some estimates would be around $ 4.3 trillion per year till 2030 and $5 trillion annually thereafter till 2050. The Loss and Damage Fund proposed at COP28 will benefit developing nations like India, but questions of funding the fund have remained unanswered. The other cover feature in this edition of BW Businessworld, highlights the good work that Indian corporate entities and startups have been doing to align with sustainable goals. BW Sustainability World’s inaugural Sustainable World Awards were given away at the fifth edition of the Sustainable World Conclave in Mumbai to applaud the champions of sustainability in India. A discerning jury picked the most sustainable businesses, the champions of the circular economy, India’s most sustainable supply chain initiative or most green infrastructure from the myriad entries that had come in from across industry sectors. Of course, we also bring to you all our regular columns and features that you look forward to. Happy reading! ANNURAG BATRA [email protected] TOWARD A CLEAN AND GREEN PLANET EDITOR-IN-CHIEF’S NOTE
6 | B W BUSINESSWORLD | 30 December 2023 BW Businessworld does not accept responsibility for returning unsolicited manuscripts and photographs. All unsolicited material should be accompanied by self-addressed envelopes and sufficient postage. Published and printed by Annurag Batra for and on behalf of the owners, BW Businessworld Media Private Limited. Published at 74-75, Scindia House, Connaught Place, New Delhi-110001, and printed at Thompson Press India Limited. Editor : Annurag Batra. © Reproduction in whole or in part without written permission of the publisher is prohibited. All rights reserved. R.N.I.No. 39847/81 BW Businessworld Media Private Limited EDITORIAL OFFICES BW Businessworld Media Pvt. Ltd. 74-75, Scindia House, Connaught Place, New Delhi-110001 Phone: 9818063325 ADVERTISEMENT / CIRCULATION / SUBSCRIPTION ENQUIRIES BW Businessworld Media Pvt. 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8 | B W BUSINESSWORLD | 30 December 2023 MAILBOX YOUR COMMENTS TALK BACK www.businessworld.in RNI NO. 39847/81 I 16 DECEMBER 2023 Rs 200 MANAGEMENT EDUCATION IN THE AGE OF AI Directors of India’s top B-schools on how disruptive technologies are reshaping the essence of management education B-SCHOOL SPECIAL Clockwise, from top left: Debashis Chatterjee, Director, IIM Kozhikode; Vinita Sahay, Director, IIM Bodh Gaya; Himanshu Rai, Director, IIM Indore; Bharat Bhaskar, Director, IIM Ahmedabad; Rishikesha T. Krishnan, Director, IIM Bangalore; Vishal Talwar, Director, IMT Ghaziabad EXCLUSIVE INTERVIEW: GUJARAT CM BHUPENDRA PATEL SPECIAL DOUBLE EDITION BREATH MATTERS This refers to the editorial (“ Every Breath You Take,” BW, December 2). Delhi-NCR celebrates when air quality improves from “Severe” to “Very Poor,” despite challenges like excess carbon monoxide. Yearly actions include school closures and measures like water spraying. Effectiveness is debated, but solutions are crucial. Bans can backfire, like taxi bans potentially boosting private car use. Construction bans affect daily-wage labourers, but tackling stubble burning with a good minimum support price could change farmer behaviour. Improving walking/cycling infrastructure and preserving trees fosters a healthier environment. Political engagement and strong environmental parties are needed for effective actions and policies. Recognising pollution’s impact and actively seeking solutions are vital for a sustainable future. ABHISHEK ROY, EMAIL NEED OF THE HOUR This refers to the editorial (“ Online Dispute Resolution, A Need For India,” BW, December 2). India’s digital landscape has changed, showing diversity. But there is still a divide despite the connectivity. Trust is a challenge for consumerism in digital transactions. Complaints show expectations and drive improvements. To resolve disputes effectively, we need technological infrastructure, trained mediators, and arbitrators. Online markets require grievance redressal, so businesses must focus on satisfaction and adaptation. A strong grievance redressal system is crucial for India’s digital economy, promoting trust and smooth online operations. Continuous nurturing is essential for trust to grow. DEEPAK PAWAR, EMAIL BLIPP THIS PAGE TO GIVE US YOUR FEEDBACK INSTANTLY Submissions to BW |Businessworld should include the writer’s name and address and be sent by email to the editor at [email protected] or by mail to 74-75, Scindia House, Connaught Place, New Delhi-110001
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10 | BW BUSINESSWORLD | 30 December 2023 Cover design by SHIV KUMAR Big On Consensus The United Nations Conference on Climate Change in Dubai, or COP28, is a major milestone after the 2015 Paris Agreement in that it managed to garner consensus on a whole host of climate change issues 56 12 Jottings Transition to clean energy needs concerted action; Pharma revenues soar; All work and no play makes Jack a dull boy; Sultans of swing, and more 14 Columns Minhaz Merchant (p. 14);Vikas Singh (p. 16);Srinath Sridharan (p. 18);Amit Kapoor & Suryansh Chalamalasetty (p. 20);Krishan Kalra (p. 25);Kiran Karnik(p. 26);Hardayal Singh (p. 30); Srinath Sridharan & Steve Correa (p. 32);Prakash Iyer (p. 34) 36 Airports Makeover How airports in India are getting a makeover to provide facilities for Indian air travellers on par with major international airports 40 Sugar Shortfall How the new season does not augur well for India’s sugar industry, as it may again have to live with curbs on exports, a major source of profitability for the industry 44 In Expansion Mode An indepth look at how Max Healthcare India is seeking to add capacity, invest in cutting edge technology, and skill their technicians as part of their growth plans 50 Drones At Farms A look at how India’s agri sector has emerged as the leading market for home-grown drone makers outside the defence and security sectors 54 In Conversation Vinaya Varma, MD & CEO, Mjunction Services, which has been executing over 30K CONTENTS VOLUME 43, ISSUE 05 30 DECEMBER 2023 Photograph by Courtesy COP28/Mahmoud Khaled
30 December 2023 | B W BUSINESSWORLD | 11 The pages in BW Businessworld that are labelled BWi or Promotions contain sponsored content. They are entirely generated by an advertiser or the marketing department of BW Businessworld. Also, the inserts being distributed along with some copies of the magazine are advertorials /advertisements. These pages should not be confused with BW Businessworld’s editorial content. TOTAL NO. OF PAGES INCLUDING COVER 116 e-auctions each year for more than 150 prominent companies, on the benefits and growing advantage of e-auction 60 Incomplete Agenda Whether COP28 will lead to the ease of accessibility and sufficiency of climate financing for global south to help in the timely transition away from fossil fuels is not yet certain 68 Green Roles In Demand How organisations are increasingly looking at green roles to drive the green transformation 70 Sustainable Trade A look at how the Dubai climate summit put the spotlight on global trade and its role in catalysing a more climate-friendly world economy 72 Climate Change & Health An indepth analysis of what the inclusion of public health in the climate change talks at COP28 means, how it will impact global emissions, and India’s response to the health declaration 74 Tech As A Catalyst? A look at how cutting-edge technologies with their eco-friendly solutions can be a significant contributor to climate change mitigation efforts 87 Sandeep Chandna (Tech Mahindra) 88 Dalmia Cement (Bharat) 89 Oil Palm Plantation, Godrej Agrovet 90 Tech Mahindra 91 Godrej Consumer Products 92 Havells India 93 Biofuels Junction 94 Loopify World 95 Marico 96 Godrej One, Godrej Industries 97 Rajiv Gandhi International Airport 98 Bangalore International Airport 99 Sri City 100 Honda Motorcycles & Scooters India 101 Indo Count Industries 107 Bookmark A review of S. Raman’s book From a Car Shed to the Corner Room and Beyond 84 Sustainability Champs BW SustainableWorld Awards 2023 fetes Indian corporates and startups for their strides towards sustainability THE WINNERS 86 Tanya Singhal (Mynza Carbon & Solar Arise) 102 NOVEL SPACES An exploration of district150, the latest venture of entrepreneur Vivek Narain that marks his entry into ‘hospitality-powered’ rentable workspaces 114 Last Word N. Venu of Hitachi Energy on why COP28 will be a dynamic force that will shape the trajectory of our planet’s future
12 | BW BUSINESSWORLD | 30 December 2023 JOTTINGS Photograph by Belchonock Photograph courtesy: PMO/PIB Transition to Clean Energy Needs Concerted Action T HE 28TH MEETING of the United Nations Climate Change Conference (COP 28) in Dubai showcased the First Movers Coalition (FMC) as the world’s largest private sector proponent of emerging climate technologies. While the coalition ostensibly takes a proactive stance, the rhetoric surrounding its efforts to address the escalating global emissions crisis may not align with the gravity of the situation. The spotlight on a massive buildout of new energy infrastructure, particularly in clean power, demanding an estimated $4.5 trillion investment by 2030, looks like a tall task. Despite FMC’s claims of significance, global emissions continue their alarming ascent at a rate of 1.5 per cent annually, a far cry from the mandated seven per cent reduction each year till 2030 outlined in the Paris Agreement. This disparity between rhetoric and reality underscores the urgent need for concrete action. Special Presidential Envoy for Climate, John Kerry’s emphasis on collaboration with the EU and the US, coupled with FMC’s initiatives, invites scrutiny regarding the depth of their impact and effectiveness in catalysing a genuine shift toward a new, clean, and green economy. Moreover, the creation of FMC for Food, backed by the UAE government and leading food companies – though a positive step – does raise questions about whether the projected combined procurement commitment of $10 billion-$20 billion by 2030 will translate into tangible sustainable practices. In this context, India’s call for accessible climate finance and its initiatives may seem a contrast to FMC’s strides. It is a grounded reality, though, underscoring the need for rigorous scrutiny of the commitments made by global entities in the face of a burgeoning climate crisis. Collective action is indeed the need of the hour from all stakeholders! —Ashish Sinha PHARMACEUTICALS manufacturers in India saw their revenues jump 14.3 per cent in the second quarter of F Y2024 year-on-year (y-o-y) from volume growth, new launches and easing pricing pressures in the US base business. According to a report by Axis Securities, the pharma giants sold more drugs in the US in the September quarter owing to new launches such as multiple myeloma drug gRevlimid, COPD drug gSpiriva, and HIV/AIDS drug Pharma Revenues Soar gPrezista. Price erosion in the US has been stabilising owing to the widespread drugs shortages, the report says. Domestic growth has remained strong in November with softening input costs and lower freights improving margins. Going forward the growth in India will be largely volume-led by field force expansions in the coming quarters, according to the report. Axis Securities highlights that the domestic pharma industry is expected to clock single-digit growth in FY2024 whereas the growth in the US business is likely to be robust with lowered price erosion for the remainder of FY2024. — Shivam Tyagi
30 December 2023 | B W BUSINESSWORLD | 13 ALL WORK AND NO PLAY MAKES JACK A DULL BOY UNFAZED BY the uproar over his recent suggestions for a 70-hour week for Indian youth, technology titan and Infosys co-founder N. R. Narayana Murthy has made media headlines again. In the context of his recommendations on prioritising work over everything else for nation-building, he has recalled his own experiences in establishing Infosys in 1981. The 77-year-old technocrat recalled arriving at his office at 6:20 a. m. and leaving it at 8:30 p.m., working six days a week. Earlier, Murthy had sparked a debate across the nation when he urged India’s youth to work 70 hours a week to enhance productivity and competitiveness. Murthy’s suggestion translates into 12 hour-long work days even on a six-day work week. Murthy’s detractors have been derisive of his “Grow India” remarks on social media. The truth is IT employees in India already work for over 70 hours a week without being paid extra for it. So now the question that arises is whether industry was ready for “young employees” to start demanding hourly pay instead IF YOU ARE A DIRE STRAITS fan, this is one auction you will not want to miss. Christie’s will auction guitars from the collection of rock legend, Mark Knopfler. Comprising more than 120 guitars and amps, the collection spans the 50-year career of the celebrated singer-songwriter, and frontman of the iconic British rock band, Dire Straits. Knopfler has used his array of instruments to write, record and perform his extensive catalogue of compositions for Dire Straits, apart from numerous successful solo albums and film soundtracks. A wide -ranging archive, the guitar collection features iconic and worldfamous names such as Fender, Gibson, Gretsch and Martin alongside custombuilt models by Rudy Pensa and John Suhr, and bespoke examples crafted by luthiers from across the globe. Renowned for his distinct and virtuoso finger-picking style, Knopfler chose each instrument for its individual sound and tone. The Christie’s website has a video of the musician talking about his collection and specific pieces used to compose some of the songs we all know and love. The auction lots can be viewed on the website as well. The auction goes live on 31 January, 2024, unveiling the instruments that accompanied iconic Knopfler compositions like Sultans of Swing, and Skateaway. — Jyotsna Sharma Sultans of Swing of their irrational monthly salaries? Many private sector employees in India work in stressful environments, amidst constant monitoring by HR personnel, who are supposed to “fulfill KRAs” – a popular term used in industry. The moot point here is whether working long hours truly serves the nation. After all, experiments like the trial in the United Kingdom has concluded that less work actually improves the productivity of manpower, apart from enhancing the work-life balance of employees. One should also not forget that old adage about all work and no play making Jack a dull boy! — Abhishek Sharma Photograph by Bivash Banerjee Photograph by Ebet Roberts / Getty Image, Courtesy: Christie’s
14 | B W BUSINESSWORLD | 30 December 2023 ESERVE BANK OF INDIA (RBI) Governor Shaktikanta Das recently gave the clearest indication that India’s economy is moving into top gear. At a media banking event, Das said India’s GDP figures for the July-September 2023 quarter would spring a “surprise” on the “upside”. So is the economy growing more rapidly than most Indian and global financial institutions project? Quite likely. Decode the numbers. Merchandise exports, after a difficult first six months of this fiscal, grew year-on-year in October 2023. The rise was a modest 6.2 per cent but after six months of declining growth, the uptick in goods exports suggests manufacturing activity is reviving. Services exports meanwhile remain robust. The Services Purchasing Managers Index (PMI) for October was a healthy 58.4. At $28.70 billion in October, services exports are catching up with merchandise exports ($33.57 billion in October) and helping pare the trade deficit. While the merchandise trade deficit ballooned to $31 billion in October, the services surplus of nearly $15 billion halved the deficit for the month. With remittances remaining strong at over $10 billion a month and foreign direct investment (FDI), though constrained by geopolitical turbulence, beginning to pick up, the year’s balance of payments (BoP) could fall to near zero. Most institutional forecasts see the Indian economy growing at 6.5 per cent in 2023- 24. They could be wrong. A figure closer to 6.8-7.0 per cent is more likely. A key driver towards higher growth is government spending on infrastructure and manufacturing. Budgeted capex of Rs 10 lakh crore in FY24 is well on track. This is set to rise 25 per cent to Rs 12.5 lakh crore in the interim Union Budget to be tabled early next year ahead of the 2024 Lok Sabha election. Higher bank credit uptake suggests private investment – a laggard for years – too is picking up, shaking off the effects of both the Covid pandemic and trade disruptions caused by the Russia-Ukraine war. The most significant indication of a revival of animal spirits in the economy is the rise in corporate and personal tax collections. Both are running ahead of last year by over 10 per cent. This has enabled the government to step up investment in core sectors. But even as the economy revs up after three difficult years that contained two Black Swan events, regulatory authorities are queering the pitch. Having sensibly rolled back the licensing scheme for the import of laptops and other electronic equipment, regulators are building new economic road blocks. For example, the RBI’s recent diktat to banks to raise the risk weightage for unsecured borrowers by 25 per cent will increase the cost of capital for small loans. Animal Spirits Back? R Minhaz Merchant COLUMN MINHAZ MERCHANT The writer is the biographer of Rajiv Gandhi and Aditya Birla and author of The New Clash of Civilizations (Rupa 2014). He is founder of Sterling Newspapers Pvt Ltd., which was acquired by the Indian Express Group
30 December 2023 | B W BUSINESSWORLD | 15 spective taxes. Apart from killing an industry that is booming worldwide, retrospective taxation defies common sense. The senior Supreme Court lawyer Arvind Datar explained in an article in The Indian Express why the new retrospective demands on gaming companies are bad in law: “Recently a show cause notice issued to GamesKraft Technologies for over Rs 20,000 crore was quashed by the Karnataka High Court, although this was later stayed by the Supreme Court. It is indeed unfortunate that these staggering amounts are once again made without regard to earlier court rulings and contrary to a central law. The other reason for these high demands is the retrospective application of the law. From October 1, the GST Council decided to amend the law and treat winning on games of skill as also amounting to betting and gambling. But the claim of Rs 1.5 lakh crore from online gaming companies is for the period 2017-22, when such a law did not exist. “In the case of gaming companies, services tax was always paid at 18 per cent on the platform fee. Thus, if 20 persons paid Rs 500 each to play a game of skill, the total amount pooled is Rs 10,000. The gaming companies typically collect 10 per cent as their service charges and the balance sum of Rs 9,000 is then to be shared among the winners. From 2017, the balance amounts have been paid to thousands of winners. These payments were perfectly legitimate in view of the central law and rulings of high courts. It is difficult to understand how a GST demand of 28 per cent can now be made on the entire amount which has been disbursed to thousands of winners over the last six years.” Better Days for IT? Meanwhile, with inflation moderating in the United States, US treasury bonds yields softening and the unemployment rate falling, technology spending by US companies is likely to rise after a protracted hiatus. That spells good news for India’s infotech sector. Already both large cap and mid-cap IT stocks have firmed up in anticipation of closing new AI-driven deals. If the manufacturing and software services sectors fire at the same time, tax revenue remains strong and corporate earnings maintain their upward trajectory, spurring greater private investment across sectors, the RBI governor’s recent upbeat forecast for the economy might well appear prescient. Damage Limitation Regulatory overreach can damage India’s reputation as a reliable place to invest. The ministry of finance’s quick reversal of its policy on laptops imports has belatedly limited that damage. The revised production-linked incentive (PLI) for laptops has drawn 27 companies, including Dell, Hewlett Packard and Lenova. They will now set up manufacturing facilities in India for local sales and exports. Several could outsource work to Indian contract manufacturers, strengthening India’s manufacturing ecosystem. But what one hand gives, the other hand often takes away. You don’t have to be a gaming enthusiast to see the lack of logic of government agencies sending notices to gaming companies seeking several thousand crore rupees in retroMost institutional forecasts see the Indian economy growing at 6.5 per cent in 2023-24. They could be wrong. A figure closer to 6.8-7.0 per cent is more likely. A key driver towards higher growth is government spending on infrastructure and manufacturing Photograph by Destinacigdem
16 | B W BUSINESSWORLD | 30 December 2023 THE IDEA OF formalisation of the economy has emerged as a significant fulcrum for stability and growth. However, within the delicate fabric of fragile economies, especially those where small businesses operate informally, the formalisation journey poses complex challenges. Integrating informal businesses into the formal sector substantially bolsters government revenue through enhanced tax inflows. It kicks in a virtuous ‘compliance’ cycle. However, the formalisation goal must extend beyond mere compliance. Complex Challenges India’s economic landscape, dependent on the dynamism of small and medium enterprises (MSMEs), confronts a challenging reality. They employ over 80 per cent of the workforce and play a substantial role in ‘lubricating’ the economy. The MMMEs (middle market manufacturing exporters) contribute significantly to the GDP and exports, and yet most struggle to grow beyond a micro-level status. This lack of growth leads to persistent inefficiencies, adds to the broader economic ecosystem’s fragility. The prevailing corporate structure often neglects the important ‘middle’ segment of these enterprises, adversely impacting productivity and competitiveness. By Vikas Singh The author is an economist and columnist A comprehensive study by Crux across 18 economically progressive states, incorporating the perspectives of 6,000 SMEs and 500 policymakers, reveals the fractured nature of the current economic ecosystem. A disproportionate emphasis on MSME registration, without providing adequate nurturing, leaves these businesses vulnerable to market pressures and systemic barriers that hinder growth. Generic stimulus policies, not sufficiently tailored, blur the distinctions between different industries and regions, often favouring larger companies over smaller ones. The inspection and monitoring mindset saps both the moral and energy and subtracts growth. Most MSMEs Growth Trajectory is Flat The study highlights the need for comprehensive reforms, tailored support systems, custom-tailored incentives, and actionable solutions to remove these growth barriers and improve the business environment. It also sheds light on the less explored but critical issue of the productivity gap between smaller and larger firms. In their current state, MSMEs seem inadequate to act as the backbone for achieving India’s ambitious $5 trillion GDP target. Scaling up these enterprises is crucial to increasing their contribution to the economy and enabling them to move up the value chain, capitalising on emerging opportunities. This scale-up is necessary for sustainable growth, as merely creating low-end jobs is insufficient. The process of formalisation in fragile economies poses comFormalisation allows businesses access to mainstream financial markets, enabling them to secure loans and resources for expansion and innovation, thus fuelling growth NAVIGATING FORMALISATION CHALLENGES IN FRAGILE ECONOMIES COLUMN
30 December 2023 | B W BUSINESSWORLD | 17 especially for communities reliant on the informal sector. It exacerbates the existing inequalities, pushing vulnerable communities into deeper poverty. Small businesses, with limited resources and high operational costs, might struggle under additional regulatory and compliance burdens. The imposition of standards and tax obligations can strain their finances, reducing competitiveness and growth prospects, and posing a threat to their survival and sustainability. Any formalisation policy must carefully consider the specific challenges faced by small businesses to avoid disproportionately harming the most vulnerable societal segments. Given these challenges, government intervention is crucial. Policymakers must balance formalisation needs with small enterprises’ sustainability. Tailored policies, including tax incentives, financial subsidies, and simplified compliance procedures, are essential to alleviate regulatory burdens on small businesses. Similarly comprehensive support mechanisms, such as access to affordable financial services and targeted capacitybuilding programmes, are vital for small enterprises’ resilience and successful integration into the formal economy. Insights from the Crux study highlights the need for the government to adopt a holistic approach, with targeted reforms aimed at enhancing the MSME environment. These should focus on dismantling growth barriers and providing tailored support and incentives to create a conducive environment for business growth. Adjusting the GST collection mechanism to occur upon payment receipt rather than at invoicing can inject liquidity into the ecosystem. Ensuring prompt payments to MSMEs would unlock significant liquidity, sending a positive market signal. Policymakers must aim at harnessing the diverse benefits of formalisation while adeptly handling its challenges. A comprehensive and tailored strategy can guide this transformation, ensuring the resilience and prosperity of small businesses and establishing a robust and vibrant economic landscape. plex challenges. Policymakers, often focused on the employment potential of MSMEs, tend to overlook other crucial aspects. This oversight, combined with a romanticised view of MSMEs as major job creators by other economic stakeholders, leads to a neglect of the broader intricacies of formalisation. A Well-Crafted, Better Executed Roadmap The journey towards formalisation has broad implications, affecting both formal and informal employment sectors. A wellcrafted roadmap for formalisation can empower MSMEs and bridge the productivity gap between smaller and larger firms. While the short-term effects of formalisation may seem to disadvantage smaller entities, sustained growth ultimately benefits the entire economic spectrum, enhancing the overall economic pie. The success of this growth is contingent upon the meticulous implementation of formalisation initiatives, emphasising the critical role of institutional capacity and local-level execution. Formalisation allows businesses access to mainstream financial markets, enabling them to secure loans and resources for expansion and innovation, thus fuelling growth and creating employment opportunities. As formalisation progresses, the benefits of development disseminate, resulting in a more equitable distribution of resources among all stakeholders. Additionally, formalisation leads to a well-regulated business environment, reducing unethical practices and increasing transparency and accountability. It also creates an attractive environment for foreign investments, signalling stability and predictability, and significantly contributing to national economic development. Despite these benefits, the journey toward formalisation in fragile economies is not without challenges. In economies with a significant informal sector, rapid and badly executed formalisation risks job losses and economic instability, Photograph by Sanjay Sakaria
18 | B W BUSINESSWORLD | 30 December 2023 N A WORLD THAT IS RAPIDLY hurtling towards an environmental catastrophe, the nations of the world have shown a remarkable talent for empty promises, hypocrisy, and inaction when it comes to addressing the climate crisis. The green that should be symbolised by forests, meadows, and clean energy is overshadowed by the greenback, greed, and the never-ending quest for power. Leaders of the world gathered at various international climate summits in the past, have made grandiose commitments and signed impressive agreements with great fanfare, only to return home and watch those pledges crumble like sandcastles in the rising tides of climate change. These are not just broken promises; they are betrayals of trust and grave insults to the intelligence of the global populace. Questions abound on whether yet another COP forum will bring any substantial change in the battle against climate change. While these international gatherings have generated considerable attention and rhetoric, there is growing scepticism about their effectiveness in translating lofty promises into concrete action. The world has witnessed multiple COP meetings, each raising hopes of global cooperation, only to see nations falling short of their commitments, leaving many to wonder if these forums are more about political posturing than genuine climate solutions. In reimagining the accountability matrix for climate action, a crucial element lies in establishing a transparent mechanism that holds nations accountable not just for their international commitments but also for aligning domestic policies with these global goals. This matrix should go beyond mere rhetoric and annual reports, incorporating measurable indicators that reflect tangible progress in reducing carbon emissions, transitioning to renewable energy, and implementing sustainable practices. Additionally, it should address the complex interplay between international responsibilities and domestic pressures, fostering a balance that ensures that leaders uphold their commitments on both fronts. Leaders may make bold promises on the global stage, but they often face immense pressure at home, where industries, lobbies, and voter sentiments can clash with their international commitments. For instance, the United States withdrew from the Paris Agreement under the Trump administration due to domestic political pressures, only to rejoin under President Biden’s administration. Similarly, countries like Australia have faced internal debates over climate policies, leading to inconsistency in their international stance. This tug-of-war between global responsibilities and domestic interests remains a persistent challenge in achieving meaningful progress on climate action. Going Green The escalating global temperatures, the surge in extreme weather events, and the alarming meltdown of polar ice caps transcend mere statistical figures; they constitute urgent and ominous alarms signaling an impending disaster. These visible I Why It’s Time for Green Industrialisation (A)muse & Musings By Srinath Sridharan
30 December 2023 | B W BUSINESSWORLD | 19 these eco-friendly technologies and practices available to nations worldwide. By fostering international collaboration and knowledge sharing, particularly through a global commons for green technologies, this vision ensures that even developing nations can benefit from and contribute to the collective efforts toward a sustainable future. In this way, green industrialisation becomes a catalyst for inclusive and equitable progress, steering industries globally towards environmentally conscious practices and fostering a collective commitment to achieving Net Zero objectives. Green industrialisation envisions a fundamental reshaping of manufacturing processes and economic structures, leveraging cutting-edge technologies to harmonise industrial growth with environmental sustainability. The integration of clean energy sources, such as solar, wind, and green hydrogen, becomes the backbone of this transformation, steering industries away from fossil fuels and diminishing their carbon footprint. A crucial facet involves the deployment of energy-efficient technologies and the optimisation of resources use through circular economy principles, ensuring that materials are recycled and reused, reducing waste and environmental strain. The emphasis on innovation extends to the development of eco-friendly materials and the adoption of sustainable practices in supply chains, fostering a holistic approach that transcends traditional notions of industrialisation. By democratising access to these advancements, green industrialisation can become a shared global endeavour, empowering nations to forge a collective path toward a resilient, low-carbon future. Technologies hold immense potential to drive climate action on a global scale, provided the necessary financing and funding are made available. A concerted effort to establish a global commons for climate technologies, where nations collaboratively share and develop innovative solutions, could be a game-changer. With adequate financial support, we can accelerate the development and deployment of renewable energy sources, advanced carbon capture technologies, and sustainable agricultural practices. This global commons would serve as a repository of knowledge and a hub for the exchange of cuttingedge climate solutions, levelling the playing field and ensuring that even developing nations can access and benefit from these transformative technologies. By pooling resources and knowledge, we can unlock the full potential of technology to combat climate change and secure a sustainable future for all. The writer is an author, policy researcher & corporate advisor and tangible manifestations of climate change serve as stark reminders that our planet is undergoing profound and potentially irreversible transformations. Beyond data points, they represent the tangible consequences of human activities, including the detrimental effects of widespread industrialisation. Acknowledging this, there is a pressing need for a paradigm shift towards green industrialisation – a conscious and sustainable approach to economic growth. Such a transformation is vital to address climate issues, ensuring that industrial progress aligns with environmental stewardship. It highlights the critical need for immediate and concerted action to mitigate the far-reaching impacts on ecosystems, communities, and the very fabric of our interconnected world. Imagining green industrialisation involves a comprehensive embrace of technological advancements to foster sustainable industrial outcomes and contribute significantly to climate action. This transition entails a strategic shift from traditional “brown” assets, which heavily rely on fossil fuels, to innovative “green” industrial assets. Key to this vision is the integration of renewable energy sources, such as solar and wind, into industrial processes, reducing carbon footprints and reliance on non-renewable resources. Implementing advanced carbon capture technologies can further mitigate emissions, aligning with Net Zero objectives. Additionally, smart manufacturing practices, leveraging the Internet of Things (IoT) and artificial intelligence, can enhance energy efficiency and minimise waste. Moreover, green industrialisation envisions the widespread adoption of circular economy principles, promoting resource efficiency and minimising environmental impact. The transition should prioritise accessibility, making Photograph Courtesy: COP28/Christopher Pike
20 | B W BUSINESSWORLD | 30 December 2023 NDIA’S ENERGY MIX has traditionally been dominated by coal. Thermal energy is generated by burning fossil fuels like coal, natural gas, and oil, which release heat and produce steam that operate turbines to generate electricity. In contrast, green energy – or renewable energy – refers to power derived from natural sources that are constantly replenished, such as solar, wind, and hydroelectric power. Thermal energy has been the backbone of India’s electricity generation, but it has come with a great deal of environmental pollution and resource depletion and has contributed significantly to the country’s greenhouse gas emissions. On the other hand, green energy comes with a promise of sustainability and reduced environmental impact. There has been a noticeable shift towards renewable energy (RE) in recent years, particularly in solar and wind energy. As of 2023, India has made commendable progress in increasing its installed capacity of renewable energy. Thermal power plants are associated with negative externalities such as air pollution, which can cause respiratory diseases and environmental degradation. They also emit significant radiation, primarily in the form of thermal pollution, which can harm aquatic ecosystems. Moreover, the extraction and burning of fossil fuels result in carbon emissions that contribute to global warming. Further, the depletion of fossil fuels lead to increased costs as extraction becomes more difficult, and it can create energy security issues. This scarcity can negatively affect both the economy by increasing energy prices and society by reducing the availability of affordable energy. The role of clean energy in decarbonising the Indian economy cannot be overstated. The electricity sector, being one of the largest emitters of CO2, has seen a significant reduction in emissions due to the increased adoption of renewARTHSASTRA Amit Kapoor & Suryansh Chalamalasetty Left : Suryansh Chalamalasetty; Right: Amit Kapoor I able energy. This transition is crucial for mitigating climate change and improving air quality and public health as well. Introducing Renewable Purchase Obligations (RPOs) has been a pivotal policy tool in this transition. The RPOs mandate that a certain percentage of a state’s electricity must be generated from renewable sources, pushing utilities to invest in green energy. This policy, along with favourable tariff policies and incentives, has resulted in a significant increase in the generation percentage of renewable energy. Shifting from a coaldominated energy mix to a more diverse one with a significant share of renewable energy enhances energy security. This is instrumental in reducing India’s dependence on coal imports, saving foreign exchange and contributing to a more balanced trade. The green transition opens avenues for investments in renewable energy infrastructure, boosting the economy. The renewable energy TRANSITION TO SUSTAINABILITY: Economic Implications of Green Energy Adoption in India
30 December 2023 | B W BUSINESSWORLD | 21 sector, particularly solar and wind, also has the potential to create numerous jobs, from manufacturing to installation and maintenance. India’s economic potential with natural resources is vast. Green energy can attract investment, create jobs, foster technological development, and reduce energy import bills. For instance, India has a solar power potential of 750 GW and has crossed 40 GW in installed solar power capacity. While also having around 38 GW of installed capacity, India is among the top wind power-producing countries. Hydroelectric power contributes about 45 GW, with significant potential in the Himalayan and northeastern regions. Investments in renewable energy have been increasing, with substantial expenditures aimed at infrastructure, research, and subsidies to promote green energy adoption. India plans to reach 500 GW of renewable energy capacity by 2030, necessitating substantial financial input. Adopting renewable energy directly contributes to several of the United Nations Sustainable Development Goals (SDGs), including affordable and clean energy, climate action, good health and well-being, and decent work and economic growth. By transitioning to renewable energy, India is making strides towards creating a more sustainable and equitable society. Moreover, the green energy transition in India has attracted substantial foreign direct investment (FDI), contributing to the country’s economic growth. These investments have indirect benefits that reach the grassroots levels, creating job opportunities and facilitating skill development. The availability of primary resources such as healthcare, clean water, and improved school infrastructure has also seen a positive impact, laying the foundation for the region’s future development. Renewable energy has emerged as a groundbreaking solution, delivering power at a lower cost than traditional fossil fuels. The plummeting costs of solar and wind energy have made them highly competitive, challenging the dominance of coal and gas. This disruption is transforming the energy sector and driving innovation and investment in clean energy technologies. India has also recognised the importance of developing a robust manufacturing value chain for solar and wind energy. The country is investing in the domestic production of solar panels and wind turbines, reducing dependence on imports and creating a self-reliant energy ecosystem. This strategy not only supports the green energy transition but also boosts the manufacturing sector, contributing to economic growth and job creation. India also has vast potential for offshore wind energy. Exploring this resource can significantly increase the country’s renewable energy capacity and contribute to energy security. The government has started taking steps in this direction, but more focused efforts are required to realise the full potential of offshore wind energy. Several strategies need to be adopted further to improve the penetration of renewable energy in India. These include enforcing stringent Renewable Purchase Obligations, promoting energy storage to address the intermittency of renewable energy, mandating industrial decarbonisation, and ensuring the financial stability of distribution companies. These measures will create a conducive environment for the growth of renewable energy and accelerate the green energy transition. The intermittent nature of renewable energy poses a challenge to grid stability and reliability. India needs to invest in dynamic, at-scale energy storage solutions to address this issue. Innovations in battery technology, pumped hydro storage, and other energy storage methods are crucial for ensuring a steady supply of renewable energy and facilitating the integration of RE into the grid. The green energy transition in India is a monumental task, requiring coordinated efforts from the government, industry, and society. However, the potential rewards are immense, offering a pathway to a sustainable, resilient, and prosperous future. By embracing renewable energy, investing in technology and infrastructure, and fostering innovation, India can not only mitigate the impacts of climate change but also secure its position as a global leader in sustainable development. The journey is challenging, but the destination is worth every effort. Amit Kapoor is Chair, Institute for Competitiveness and lecturer, Stanford University Suryansh Chalamalasetty is researcher at large with the Institute for Competitiveness Photograph by Dimitrova
22 | B W BUSINESSWORLD | 30 December 2023 REC: THE POWER OF SUSTAINABLE ENERGY I N a world rapidly awakening to the perils of climate change, the spotlight shines brightly on sustainable energy. As the demand for power continues to surge, the imperative to shift from conventional, finite resources to sustainable energy alternatives intensifies. Sustainable energy encompasses a spectrum of renewable sources such as solar, wind, hydroelectric, geothermal, and biomass, offering a promising solution to reduce carbon emissions and curb environmental degradation. During COP26 held at Glasgow, UK in November 2021, our Hon’ble Prime Minister announced about India’s aim to achieve net-zero emissions by 2070. Furthermore, in August 2022, India updated its intended Nationally Determined Contributions (NDC) as part of the Paris Agreement (2015), by committing to reduce the Emissions Intensity of its GDP by 45% from 2005 levels and achieving about 50% of energy generation through nonfossil fuel-based energy resources by 2030. A t C O P 2 8 , t h e implementation of the Paris Agreement is given paramount importance, and India recognizes the urgent need for coordinated global action to address climate change. As a responsible participant in the international community, India is committed towards actively contributing towards the goals outlined in the Paris Agreement. In its glorious journey since 1969, REC Limited has played a pivotal role in financing and creation of power infrastructure assets for the nation. REC has also been entrusted by the Government of India to act as the Nodal Agency for several flagship electrification programmes like Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Prime Minister Sahaj Bijli Har Ghar Yojana – Saubhagya, the programme to illuminate every household in the country. REC is geared towards energy transition for a clean and green India. By financing large investments in the renewable energy sector, REC is facilitating a promising future. Commitment to Sustainability REC stays strong in its commitment to positively impact the environment and be sustainable towards the environment and society. In line with the Government’s ambitious target of achieving 5 0 0 G W i n s t a l l e d r e n e w a b l e e n e r g y capacity by 2030, reduction of carbon emission by one billion tonnes by 2030, REC is contributing significantly to the renewable energy financing in India. REC is determined to contribute to country’s journey towards achieving net-zero emissions by 2070 by continuing as government’s strategic partner to finance power sector and by capitalising on the thrust on energy transition by the Government and financing upcoming renewable energy projects (solar, wind, biomass, hydro); funding of solar parks, solar SEZ, solar pumpsets, energy storage systems, EVs/Charging Infrastructure, new technology areas viz., Green Hydrogen and Green Ammonia etc. Further, to achieve climate change goals, REC will strive to: n Take up plantation initiatives to reduce carbon emissions n Implement rainwater harvesting in its owned premises Vivek Kumar Dewangan, CMD, REC FEATURE
30 December 2023 | B W BUSINESSWORLD | 23 Green Energy / Energy Efficiency Initiatives In its strategy to combat climate change and transitioning to a low carbon economy, REC will strive in supplementing to reduce carbon footprint by taking up various initiatives to monitor and reduce its energy consumption. The initiatives will be aimed at: n Adopting solar energy in Regional Offices; Corporate Office had already been solarised n Incorporating energy efficient building designs, wherever applicable n Implementing automated energy management solutions to reduce energy consumption Renewable Energy In a steadfast dedication to fostering sustainability, REC has sanctioned a substantial `1,04,366 crore in the second quarter of the fiscal year 2024. Notably, the renewable sector stands out as a key focus, constituting a significant 24% of the overall sanctions. This financial commitment underscores REC’s proactive role in promoting green energy initiatives and aligning with environmentally conscious practices. With a resolute vision and unwavering commitment, REC is on a trajectory to achieve a green finance loan book of `3 Lakh crore by the fiscal year 2030. On the sidelines of the G20 Summit, REC held one-on-one discussions with RE Developers leading to successful signing of Memorandums of Understanding (MoUs) amounting to a total of around `2.86 Lakh crore. REC’s dedication to fostering green finance initiatives and its pivotal role in India’s energy transition reinforces its commitment to creating a sustainable and ecofriendly future. As India and the world strive towards a cleaner and greener energy landscape, REC stands as a beacon of growth and overall development of economy of the country. Commitment towards renewable projects In its stride to foster development and sustainability, REC has committed for various sustainable projects in the region and has signed various MOUs. Some of these initiatives which underscore the importance of sustainable and clean energy solutions for the future include: n Sanctioned `6,075 Crore to Greenko for erection of 1,440 MW Standalone Pumped Storage Project. In a steadfast dedication to fostering sustainability, REC has sanctioned a substantial ` 1,04,366 crore in the second quarter of FY24 towards renewable energy projects REC Corporate Office, Gurugram
24 | B W BUSINESSWORLD | 30 December 2023 n Sanctioned debt funding of over `3,081 Crore to Serentica Renewables’ 560 MW peak greenfield solar-wind hybrid project at Gadag, Karnataka. n Acme Group Collaboration: A groundbreaking partnership between REC and Acme Group to provide funding of `16,000 Crore for Green Hydrogen and Ammonia facility in Gopalpur, Odisha. n Avaada Group Alliance: REC has entered into an agreement with the Avaada Group, pledging `15,000 Crore for an upcoming Green Hydrogen and Ammonia facility in Gopalpur, Odisha. This endeavour is poised to make a substantial contribution to the green energy landscape in the state. n Major player in India’s Clean Energy Transition; actively contributing to the nation’s sustainable future. n Alignment of company’s policies, guidelines, thrust along with country’s COP26 targets. n Sanction of `1,95,163 Crore in the Q1 and Q2 of FY 2023-24. n Hosted Green Finance Summit on the side lines of India’s G20 presidency in July 2023. n Panel discussions on challenges, drivers & road ahead for green projects/clean energy transition. n Had One-on-one discussions with various developers of green projects – Solar, Wind, PSPs, E-mobility, RE manufacturing, Green Ammonia/ Hydrogen, Battery Storage, etc. n Successfully signed `2.85 Lakh Crore MoUs spanning for the next 3-5 years. n Identified projects of over `50,000 Crore being taken up for sanctions & subsequent disbursements. n Current RE loan book of over `34,000 Crore; Targeting green loan book of `3 Lakh Crore by 2030. In the relentless pursuit of a sustainable future, REC stands as a beacon of commitment and innovation in India’s energy landscape. Embarking on an ambitious journey, REC’s endeavors span beyond financing; they embody a holistic approach to reshaping the nation’s energy paradigm. With a steadfast commitment to reducing carbon emissions and championing renewable energy, REC’s strategic partnerships and investments in solar, wind and green infrastructure highlight its pivotal role in driving India’s clean energy transition. The collaborative spirit, evident in alliances with key players, signifies a collective dedication toward a greener, more resilient future. FEATURE R.K. Singh, Union Minister of Power and New & Renewable Energy speaking at the Green Finance Summit organised by REC
30 December 2023 | B W BUSINESSWORLD | 25 ROWING UP IN the lanes of post-partition Delhi, in a refugee family, I recall the sad plight of “untouchables” carrying human waste on their head. Children were trained to stay away from the path of the “bhangin” as she entered the house and, a cloth wrapped around her nose and mouth, carrying waste from our dry latrines. We were too young to realise the misery of these women who earned a rupee or two every month from each house and, at times, some leftover food which was kept near the door for her to pick up. Reading Pathak’s obituaries brought back memories of the shameful scenario that we witnessed every day. Sadly, at that time, the enormity of our sin never struck us, probably because these miserable people never protested – perhaps scared to lose their only source of income. Gandhi ji’s movement had obviously not reached them! Brush with an ‘Untouchable’ Whereas I had silently seen the daily incident and forgotten about it, when Pathak – seven at that time – observed a similar scene in his Brahmin family in Bihar, he decided to do something! One day he had accidentally touched an untouchable woman’s sari – who was from the Valmiki community, people who regularly did the latrine cleaning job. Pathak’s home had no such latrines as all of them went to the fields every morning – women invariably before sunrise – to relieve themselves in the safety of trees and darkness. The woman whose sari he had touched used to come to their house to sell bamboo utensils which she would leave outside the door and collect the money thrown at her. Buckets of water and some gangajal were poured on the utensils before anyone touched them. The sari brush created an uproar; his grandmother summoned a Pundit, for an elaborate ‘purification’ Pooja, Bindeshwar had to bathe in the icy cold Ganges and drink a concoction of ghee, milk, curd, cow urine and cow dung. First Public Lavatory He became obsessed with the twin curses of ‘untouchables’ and ‘open defecation’. He spent time at Gandhi’s ashram and became his follower. It was the Mahatma’s dream to liberate the untouchables. Around 1970 Pathak created the concept of inexpensive domestic pour-flush toilets with soak pits. In 1973, a town in Bihar ordered two demonstration units which were appreciated and, by 2020, an incredible 110 million had been installed all over the country. In 1974 he built India’s first public lavatory with 48 seats and 20 bathrooms – the revolutionary ‘Sulabh Shauchalayas’ caught on and today one sees them everywhere. An estimated 20 million people use the well maintained facilities daily. Revenue from the small fee and wall advertisement subsidise more toilets in rural schools which actually encourage girls to attend. The GOI’s flagship programme ‘Swatchh Bharat’ has carried the domestic pour-flush toilets movement to the national level and more or less succeeded in making the country fully ‘open defecation mukt’. Liberating the Abandoned Pathak helped many other social causes too – an outstanding example was the ‘liberation’ of about 10,000 widows of Vrindavan, abandoned by their families, forced to wear only white and live in dingy shelters. He helped their cause with a little money, medical care and help to learn reading and writing and raised them socially by urging them to give up white and wear bright colours. G Inclusivity By Krishan Kalra Column Dr Bindeshwar Pathak, who passed away recently, was a unique individual – a change agent – who did pioneering work for mainstreaming of “untouchables” The author is member, Managing Committee, Indian Cancer Society Delhi and former member Governing Council, Rajiv Gandhi Cancer Institute & Research Centre. He is past president of the All India Management Association He was a messiah for the ‘Untouchables’ of India
26 | B W BUSINESSWORLD | 30 December 2023 OME MAY WONDER what this bit of apparent computer instructions signify; others might recognise that it refers to four days of drama in November, involving Sam Altman. Its opening act was the dismissal by the OpenAI Board of its founder-CEO. It ended with a turning of the tables where the Board itself resigned (was, in effect, sacked) and Mr Altman was reinstated in his former position. Within those 100 hours, Microsoft created (and, presumably, later dissolved) a special advanced AI research division to be headed by Sam Altman to take forward his work on Artificial General Intelligence (AGI). The saga ended, appropriately on Thanksgiving! UNDOING ALTMAN Open AI is best known for its creation ChatGPT, the generative AI based app which took the world by storm some months ago, crossing 100 million downloads in record time. While itself a notfor-profit, Open AI has set up a commercial subsidiary, in which Microsoft is the biggest investor. Ironically, Altman was informed of his firing on a call using Google Meet and not Microsoft Teams! Yet, if there is one person who has come out of this sordid saga as a knight in shinS ing armour, it is Microsoft’s Satya Nadella. Rumours are swirling that OpenAI was nearing a new breakthrough in AGI, one that could upend the human-machine relationship and is at a stage where the human species needs to be concerned. Was work on this an area where Altman had been “less than candid” in his communication with the Board (the stated reason for his dismissal)? Scare scenarios abound – particularly in sci-fi stories and movies – about machines and AI taking over the world and making humans subservient. Is new work in AGI taking us down this path? Do we need global ethical guidelines, possibly regulatory frameworks, to control this? In a far more complex situation in Gaza, a “humanitarian pause” has been negotiated; is one necessary in AI (as some scientists and tech leaders have themselves suggested)? Is this desirable – more crucially, is it even possible? BOARDS AND CEOs At a more pragmatic and immediate level, what are the learnings from the shenanigans regarding Open AI? Certainly, Boards need to relook and possibly redefine their relationship with the CEO, especially where the CEO is the founder or promoter. Having – or creating – a “star” as the leader does a great deal for branding, especially where there is a charismatic CEO, but does the identification of the organisation with the person create complications? Further, in this case, the Board itself was not quite cohesive, as seems evident by its firing the Chairperson. More importantly, CEO Altman’s vision was apparently not quite congruent with that of the Board. This may be the result (or, conversely, the cause) of the “less than candid” communication, pointing to inadequate dialogue between the Board and the CEO; worse, a breakdown of trust. These and other issues deserve attention, discussion, and pondering by all organisations. There are many lessons to be learnt for both, Boards and CEOs, if such wars are to be avoided. Meanwhile, real wars continue to be waged in countries around the world. Given the continuing wars and hate spreading around the world, we seem to be in self-destruct mode. In this scenario, instead of trying to curb or pause AI development, maybe it is better to let AI take over? Alt, Delete, Undo By Kiran Karnik The author loves to think in tongue-in-cheek ways, with no maliciousness or offence intended. At other times, he is a public policy analyst and author. His latest book is Decisive Decade: India 2030 Gazelle or Hippo (Rupa, 2021) COLUMN n KIRAN’S KONTRARIAN KORNER n
28 | B W BUSINESSWORLD | 30 December 2023 T he field of Chartered Accountancy has undergone a significant transformation, reaching unprecedented levels of global recognition and influence. In recent years, the field of Chartered Accountancy has undergone a significant transformation, reaching unprecedented levels of global recognition and influence. This evolution extends beyond the conventional roles of taxation, finance, auditing and accounting, positioning Chartered Accountants (CAs) as key players shaping the financial landscapes of businesses worldwide. Established in 1949 by an act of Parliament, the Institute of Chartered Accountants of India (ICAI) has been entrusted with the crucial role of regulating and developing the Chartered Accountancy profession. With a legacy of 75 years, the ICAI has garnered trust and served as one of the strongest pillars in nation building supporting the government in all possible measures. Today, ICAI stands as the largest accounting body in the world, comprising CHARTING NEW HEIGHTS GLOBALLY high-quality education of Indian CAs have earned them laurels across the globe. Chartered Accountants have gone beyond numbers, today they are contributing towards every sphere of the economy be it industry, business, politics, hospitality, medicine, real estate, agriculture, academics, films, motivational speaker and more. They occupy high-level management positions such as CTOs, CEOs & CFOs in various jurisdiction across the globe. With a holistic understanding of operations, they serve as strategic advisors and decision makers shaping the future financial strategies of the businesses. Going beyond the traditional areas of accounting, auditing and taxation, Chartered Accountants like CA. Piyush Goyal, Hon’ble Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles; CA. Suresh Prabhu, Former Member of Parliament has left an indelible mark in the field of Indian Politics. At International forums, Chartered Accountants like CA. Vaibhav Taneja have taken over as CFO of Tesla and Former Solicitor General of India, CA. Harish N. Salve was appointed as the Queen’s Counsel for the courts of Wales and England, such global recognition of Indians is an acknowledgement of India’s emergence as a global leader. To foster the collaborative growth of Indian CAs globally, ICAI is leaving an indelible mark by scripting a harmonious future by w o r k i n g i n s y n e r g y through signing MOUs and MRAs with various accounting bodies worldwide. Leading at the forefront ICAI is one of the founder members of IFAC, SAFA, CAPA, and INN and its members hold around 4 lakh members and over 8.5 lakh students. ICAI has not only made a significant impact within the country but has also left its mark on excellence globally. The prestige of ICAI bestows a unique identity and recognition upon Indian CAs worldwide. ICAI curriculum equips Indian CAs with the requisite knowledge and contemporary skill sets required in this dynamic global world. Indian CAs are recognized and appreciated worldwide for their knowledge, expertise, acumen and work ethics. They hold prominent positions in various international government bodies, business enterprises and global accounting bodies. The financial skills and To foster the collaborative growth of Indian CAs globally, ICAI is scripting a harmonious future by working in synergy through signing MoUs and MRAs with various accounting bodies worldwide By Ashish Sinha IN DEPTH ICAI
30 December 2023 | B W BUSINESSWORLD | 29 important positions in Boards/ Committees of these organizations. C A . A n i ke t S u n i l Talati, President, ICAI, “Currently India is the epicenter of all the global happenings, it has paved the way for our country to set the benchmark for other countries to follow and show to the world the rise of the developing nations midst the leading developed nations. It goes beyond doubt that in these changing times, Indian CAs are seen with a great endeavours to develop the ‘ I n d i a n C h a r t e r e d Accountancy’ as a global brand at the international level. With a presence in 81 cities across 47 countries and a network of 48 Overseas Chapters and 33 Representative Offices globally, the ICAI actively promotes global outreach policies and explores new markets. These overseas chapters and representative offices serve as platforms for Indian CAs abroad, facilitating their professional pursuits, knowledge enhancement, and promoting camaraderie among ICAI members. Additionally, these chapters play a crucial role in attracting foreign investment to India and guiding Indian industries on investment opportunities worldwide, contributing to the nation’s self-reliance. Further, in a strategic move to overcome language barriers and enhance the employability of Indian Chartered Accountants abroad, ICAI is also providing a beginners’ level course in foreign languages for its members and students. Maintaining an unassailable legacy, ICAI remains dedicated to advancing the global accountancy profession and has played a significant role on the global stage. ICAI’s commitment towards promoting the Indian accountancy profession worldwide is evident by its expanding global network that enables Indian professionals to reach every jurisdiction globally. Further exploring newer MRAs and qualification benchmarking will provide a conducive environment for the creation of global Indian firms having a presence in multiple international territories. As ICAI continues to shape the future of Accountancy profession, the institute stands as a beacon of excellence, independence, integrity and professionalism on the global stage. sense of responsibility and accountability. The CA profession serves as an enabler to go global. Indian chartered accountants working overseas are serving as ambassadors of Brand India, facilitating investment opportunities in India and supporting the idea of being “vocal for local.” ICAI has expanded its footprints across the world with the establishment of many overseas Chapters a n d R e p r e s e n t a t i v e Offices. With this ICAI Network International Network 36 45 13 52 National Network 25 Northern Region Western Region Central Region Eastern Region Southern Region INDIAN BRANCHES (171) No. of Branches as on October, 2023 #as on August, 2023 Network International Network 36 45 13 52 National Network 25 Northern Region Western Region Central Region Eastern Region Southern Region INDIAN BRANCHES (171) No. of Branches as on October, 2023 #as on August, 2023 Network International Network 36 45 13 52 National Network 25 Northern Region Western Region Central Region Eastern Region Southern Region INDIAN BRANCHES (171) No. of Branches as on October, 2023 #as on August, 2023 NETWORK NATIONAL NETWORK INTERNATIONAL NETWORK
30 | B W BUSINESSWORLD | 30 December 2023 S Guest Column / Hardayal Singh UNDAY, 19 NOVEMBER 2023 just wasn’t India’s day. After dominating the tournament for a month-and-a-half, India emerged second best in the finals of the cricket World Cup. Even so, there was little justification for the despondency that set in among all of us in the aftermath of the game. Now that emotions have cooled, we may find that there is much to celebrate and much to learn from this grand event. India may have lost the World Cup, but it won the tournament. This was because it was by far the best team that competed. Quite apart from its 10-1 record, it had the best run rate. Virat Kohli scored the maximum number of runs and four; he also made the most fifties. Shami, had the best bowling figures, besides the largest number of five wicket hauls. But the law of averages was bound to catch up sooner or later and it did. Much more significantly, from an economic and sociological point of view, on display in the Indian team, throughout the tournament, was a bewildering diversity – a testimony, if at all one was needed, of upward mobility that now exists in our country – now slowly but surely turning it into a huge 350 million strong, expanding middle class economy. PAN INDIA TALENT POOL In stark contrast, I remember, when amongst much fanfare, India recorded its first series win in England more than fifty years ago. The achievement was remarkable because the talent pool available then was so small. I recall my friends and I noticing that about half the team had come from Mumbai. Over the years, cricket has lost its elitist character: current Indian teams are selected on merit from a much larger pan India talent pool, with many players coming from very humble backgrounds. Ravindra Jadeja’s father was a watchman in Gujarat; Siraj’s, an auto driver in Hyderabad and Kuldeep Yadav’s father was a brick kiln owner in Kanpur. Rohit Sharma’s father was a caretaker of a warehouse in Mumbai who could not even afford school fees of a few hundred rupees a month for his talented son! All these cricketers and many like them, hailing from many different tier-2, tier-3 and tier-4 towns from across the country have done the country proud. The same story has repeated itself in profession after profession. For example, 10 lakh young men and women take the YOU WIN SOME, YOU LOSE SOME!
30 December 2023 | B W BUSINESSWORLD | 31 The writer was Chief Commissioner of Income-tax and is the author of the Moral Compass- Finding Balance and Purpose in an Imperfect World ( Harper Collins India, 2022) in turn created a new aspiring and upwardly mobile middle class. The cricket field is thus a metaphor for, and a reflection of a larger social reality. As for the loss itself, we could all benefit from the advice of a charioteer guru to his favourite disciple on an ancient north Indian battlefield: “your right is to action only,” Lord Krishna advises Arjuna, “not to the fruit thereof ”. Therefore, perform your duties, he exhorts, relinquishing attachment, and be indifferent to success or failure. We may all find it easier to come within “our zone of excellence” and achieve success when we don’t feel pressurised. Perhaps it was wrong on our part to hype the event and weigh down on our players with a billion expectations. The Aussies had no such problem! civil services examinations annually and about 0.1 per cent of them succeed. The new tech savvy entrants are again from small towns and villages spread across the country, unlike in earlier times when selected candidates were mostly drawn from among graduates in humanities and social sciences from elite colleges in metropolitan cities. METAPHOR FOR SOCIAL REALITY In cricket, the credit for the transformation can be credited to the much-reviled Lalit Modi who played a major role in creating the Indian Premier League (IPL). This league created a belief in parents that there was a career in cricket for a talented player, even if he missed making it to the national team. For the rest, the change could largely be attributed to the higher rates of growth resulting from the economic reforms of the 1990s. These generated greater employment opportunities which Much more significantly, from an economic and sociological point of view, on display in the Indian team, throughout the tournament, was a bewildering diversity – a testimony, if at all one was needed, of upward mobility that now exists in our country – now slowly but surely turning it into a huge 350 million strong, expanding middle class economy Photograph by Nomi2525
32 | B W BUSINESSWORLD | 30 December 2023 philosophy is “Satya” a Sanskrit term encompassing truth, righteousness, and authenticity. Satya is perceived as a multidimensional and context-dependent reality, unlike a singular, absolute truth. According to this perspective, the truth is not a fixed point but a dynamic interplay of various factors, acknowledging the relativity of experience and perception. One cornerstone of Indic thought is the understanding that truth is not a possession to be grasped but a journey to be undertaken. The Bhagavad Gita, a revered scripture in Hindu philosophy, emphasises the importance of righteous action without attachment to the results, recognising the impermanence of circumstances and the evolving nature of truth. Furthermore, the concept of “Neti, Neti” (not this, not that) from the Upanishads encourages seekers to transcend limiting definitions and approach truth through negation. This negation serves as a process of elimination, hat is Truth? Pontius Pilate approaches Jesus during the trial (John 18:37-38, James Version) and asks, ‘Art thou a king then?’ Jesus answered, ‘Thou sayest that I am a king. To this end was I born, and for this cause came I into the world, that I should bear witness unto the truth. Everyone that is of the truth heareth my voice.’ In this, Jesus acknowledges his kingship but emphasises that his kingdom is not of this world. He says he was born and came to testify to the truth. All who love the truth recognise that what he says is true. Pilate says to him, ‘What is truth?’ Here, Pilate may be expressing doubt about the existence of absolute truth or dismissive of the spiritual and philosophical ideas presented by Jesus. Indeed, the question “What is truth?” resonates through the centuries as a profound inquiry into the nature of reality and human understanding. The moot point is, what even is truth, and can we ever really know it? Everyone sees things from their perspective, and what might be valid for one person may not be for another. It’s like looking at a painting; everyone interprets it differently. Truth can vary depending on context, perspective, and the subject matter being discussed. Sometimes, truth is subjective, influenced by personal experiences and beliefs, while in other cases, it’s more objective, grounded in measurable or observable facts. Indic Wisdom Indic wisdom offers a unique lens through which to contemplate the nature of truth and its manifold manifestations. Central to Indic Whose Truth is it Anyways? PEOPLE TALK By Srinath Sridharan & Steve Correa W Photograph by Raushanpix
30 December 2023 | B W BUSINESSWORLD | 33 ensure the security and safety of its citizens is paramount. Affirming the right to exist and defend itself, Israel argues that military actions are necessary to protect itself against threats. Palestinians in Gaza might negate (Negation – Asyat) the Israeli actions, viewing them as oppressive and a violation of their rights. They may argue that the root causes of the conflict, such as territorial disputes, occupation and historical grievances, need to be addressed for a lasting solution. International perspectives might involve both affirming Israel’s right to security and negating excessive use of force (Syat-Astyat). Inexpressibility (Anirvacaniya) is a depth of emotional and historical complexities in the Israel-Gaza conflict of pain, fear, and aspirations of individuals on both sides that contribute to a narrative that transcends a simple affirmation or negation. The goal is to encourage understanding of the multitude of viewpoints and the necessity for dialogue and empathy in addressing such conflicts. Corporate World The perpetual question “What is truth?” mirrors the complexities faced in business decision-making, where diverse perspectives influence the trajectory of corporate strategies. The dynamic nature of truth, as emphasised by the concept of Satya in Indic philosophy, aligns with the evolving challenges and ethical considerations inherent in the corporate world. The principles of Syadvada, highlighting the relativity of truth and the importance of multiple perspectives, resonate in a global business environment that demands an openness to diverse ideas and a recognition of the limitations of singular viewpoints. Applying Syadvada to corporate conflicts and ethical dilemmas encourages a nuanced approach, fostering a balanced and inclusive decision-making process. Embracing interconnectedness and harmonising apparent contradictions becomes a guiding principle for corporate leaders navigating uncertainties, promoting unity amid diversity. guiding individuals towards a more profound understanding by shedding layers of misconception and subjective biases. In Indic wisdom, the notion of Syadvada is associated with the Jaina logic and epistemology, emphasising the relativity of truth and the recognition of multiple perspectives. It is intricately woven into the Jain doctrine of Anekantavada, which asserts that reality is complex and cannot be fully grasped from a single point of view. Here, a statement is presented with the understanding that it is valid only from a particular perspective, under certain conditions, or in a specific context. The idea is to avoid absolutism and recognise the limitations of human understanding. The seven-fold scheme of Syadvada includes perspectives like affirmation, negation, affirmation and negation, and so on, allowing for a nuanced understanding of truth. It encourages intellectual humility, acknowledging that our understanding is always partial and contextual. It’s like saying, “Well, from this angle, it might be true, but let’s consider other angles too, which also offers other truths”. Indic wisdom also underscores the interconnectedness of all things, promoting a holistic perspective. The idea that truth is a harmonious synthesis of apparent contradictions encourages individuals to embrace diversity and seek unity amid apparent differences. In a world grappling with information overload and conflicting narratives, the wisdom of the ancient Indian sages offers a timeless guide. It invites us to cultivate discernment, compassion, and a profound respect for differing viewpoints. Instead of a battleground where conflicting truths clash, Indic wisdom envisions a shared space where diverse truths coexist, contributing to the richness of the human experience. We may discover that the pursuit of truth is not a singular path but a mosaic of diverse perspectives, each offering a unique piece to the intricate puzzle of our shared reality. Israel – Gaza Conflict Applying Syadvada to the Israel-Gaza conflict allows us to recognise the multiple perspectives at play. From Israel’s perspective, there is an affirmation (Syat): the need to Srinath Sridharan is an author, policy researcher & corporate advisor Steve Correa is an executive coach, OD consultant & author Indeed, the question “What is truth?” resonates through the centuries as a profound inquiry into the nature of reality and human understanding. The moot point is, what even is truth, and can we ever really know it?
34 | B W BUSINESSWORLD | 30 December 2023 S A KID WHO GREW UP in a south Indian home in Mumbai, the curry leaf was everywhere. In the sambar and the chutney. The Pongal and the upma. And in the dal and butter milk too. And as a kid, even as I grappled with my studies and never became as good as I wanted to be at cricket, I had become an expert at finding the curry leaf in my food by the time I was nine. I would pick out every bit of the curry leaf from wherever it was hiding and keep it aside, out of harm’s way. Admit it, you did that too, didn’t you? In my mind, curry leaves were these bitter, hard to swallow little things in the food, and I often wondered why mom – and the city’s best chefs – insisted on adding curry leaves to, well, everything. You might have known the curry leaf by its vernacular name – Kadipatta, or Karivappalai, or some such – but it’s only further proof of what the bard said several years ago: a curry leaf by any other name would taste just the same. I was convinced the world could be divided into two groups. Those who disliked curry leaves. And those who hated them. And it stayed that way for many years, until there came a sudden change in my life. A change I could have bet would never, never happen. Yes, hate to say it, but I started to eat the damn curry leaves. Haven’t been able to put a finger on what prompted the change, but whatever the reason, the unthinkable happened. I stopped picking out the curry leaves and started to just eat them. And surprise, surprise. They were pretty easy on the mouth. No bitter after taste as I might have feared. No getting stuck in the throat as my worst nightmare might have imagined. I just ate it. And all those stories of the medicinal properties of curry leaves – and how they were good for health – began to pop up in my head. It made me feel good. And that got me thinking. Maybe there are several of these curry leaves lurking around us in our lives. Things, people, notions – even advice perhaps – that we have detested, dismissed as useless, without a fair chance. Just like the curry leaves. I reckon now is as good a time as any to give the curry leaves a second chance. Go have a cup of coffee today with that colleague in the office you’ve always avoided saying hello to. Yeah, the one you are are convinced holds a grudge against you and you’ve never quite understood why. Say hello to that perceived demon, and you might discover that behind that perception is a pleasant, likable new friend, waiting to help you. Today’s a good day to listen to that one piece of advice mom has been giving you all these years – and you’ve been dismissing as ‘not-for-me’. Take a second look at that startup opportunity you’ve been saying no to. And maybe that young fellow who has been wooing you all these years and you’ve classified as ‘not-my-type’ – maybe he deserves a rethink too. So what’s the curry leaf in your life? What have you been detesting, hating, putting aside? Whatever it is, you know what to do now, right? Just eat it. Those Damn Curry Leaves! A PI TALKIES Prakash Iyer is an author, speaker and leadership coach and former MD of Kimberly Clark Lever
30 December 2023 | B W BUSINESSWORLD | 35 Acomparative analysis of India’s Data landscape reveals mobile data traffic at 31.66 Gigabytes per month per device in 2023 with a projected growth to 61.8 Gigabytes; against global usage of 84.1 million Terabytes per month in 2022. With such a data explosion, there is an inevitable need for professionally managed Data Centers. Currently, there are 138 operational Data Centers in India, utilizing 737 MW power. Projections indicate the establishment of 50 more Data Centers in the next 3-4 years, resulting in a power demand of 1050 MW. To meet the surging power needs, sustainable Data Centers aim to harmonize increasing digital service demand with minimal environmental impact. The global green Data Center market is expected to reach $139.93 billion by 2027, with a projected CAGR of 19.6% during 2023-2027, as per the Green Data Center Global Market Report 2023. What are Sustainable Data Centers? Sustainable Data Centers, prioritize environmental and social sustainability in their design and operations. This involves implementing practices like utilizing renewable energy sources (e.g., solar or wind power), optimizing energy usage through efficient equipment, cooling and lighting systems, reducing water consumption, employing eco-friendly building materials and technologies. Advantages of Green Data Centers The advantages of green Data Centers extend to maintaining harmony and conserving our environment offering economic benefits by reducing energy costs through improved efficiency and renewable energy sources. Additional benefits include longer equipment lifespan, compliance with environmental regulations, resilience in disaster recovery, and the potential for a competitive advantage in the marketplace. How to Build Sustainable Data Centers Building sustainable Data Centers involves the adoption of strategies and technologies that have minimal impact on the environment while maximizing energy efficiency. With equipment upgrades, optimized energy efficiency, virtualization, renewable energy, modern cooling systems, automation, and regular energy audits. Key Performance Indicators (KPIs) such as Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), Carbon Usage Effectiveness (CUE), Server Utilization, Recycling and Waste Management, Greenhouse Gas Emissions and compliance with sustainability standards are crucial for monitoring and improving sustainability performance. Sify Technologies as a part of its larger ESG strategy is committed to invest in renewable energy for its Data Center business in India. We already have power purchase agreement with renewable energy providers and have contracted 230 MW renewable energy. Our initiatives focus on achieving carbon neutrality, reducing PUE & WUE, and energy efficiency equipment. We have achieved 50% reduction in our carbon footprint as of 2023. Sify has seen a 20-40% reduction in overall energy costs, and focused on 29% GHG emission reduction by FY 2025 while adhering to ASHRAE guidelines, and ISO 14001 Environmental Certification. In conclusion, building a zero-carbon Data Center needs a holistic approach from design to ongoing operations. One can have environment friendly and economically sustainable infrastructures with strategies that optimize energy efficiency and reduce carbon emissions. key out he gn, to ate ent ect ass ver a's y a big ore for out to ure d a as of nd ese ies in ent an nd Sustainable Green Data Centers: How to Build Green IT Infrastructures The growth of enterprise Data Centers in India has prompted a heightened emphasis on the adoption of green Data Centers. GIRISH DHAVALE CTO Data Center Services, Sify Technologies
36 | B W BUSINESSWORLD | 30 December 2023 The remarkable ongoing transformation of the aviation market in India is opening doors to best available facilities for Indian air travellers comparable to any major international airports By Tarannum Manjul IN DEPTH AIRPORTS FLYING WITH LUXURY
30 December 2023 | B W BUSINESSWORLD | 37 T HE transformation of Indian airports has been remarkable, with modern terminals and stateof-the-art infrastructure, ensuring a seamless journey for passengers from check-in to boarding. Notable examples include the big international airports including those at Delhi, Mumbai, Bengaluru, Hyderabad, Chennai among other cities including some greenfield airports currently under works. Says Indiver Rastogi, President & Group Head, Global Business Travel, Thomas Cook (India) and SOTC Travel: “The advancements in baggage handling and security measures, such as the implementation of self-service check-in kiosks, have streamlined procedures and significantly reduced wait times and queues. To cater to diverse passenger needs, dedicated areas have been designated for families and individuals with special requirements.” Airport services are organised into three main categories: pre-departure services (check-in, security, immigration), post-departure services (boarding gates, lounges, duty-free shops), and additional categories like restaurants, ATMs, and currency exchange. Beyond these essentials, airports now provide various amenities such as childcare facilities, spas, and fitness centres, with some even featuring on-site hotels and conference rooms. Sandeep Arora, Director of Brightsun Travel says, “Facilities like DigiYatra in six airports have been introduced, ensuring paperless boarding facilities to the travellers.” Nearly $12 billion is to be spent in the coming years for airport development, including the construction of 21 new greenfield airports, with the goal of adding nearly 80 airports in the next five years. This investment is poised to significantly improve the facilities for travellers across the country, Arora adds. Efficient Check-In and Security Procedures Indian airports prioritise efficient passenger processes by implementing self-check-in kiosks, e-gates, and automated baggage handling systems, expediting movement. The integration of biometric identity verification enhances Photograph by Siraanamwong
38 | B W BUSINESSWORLD | 30 December 2023 security and accelerates immigration procedures, contributing to an improved overall passenger experience. Delhi International Airport’s CEO, Videh Kumar Jaipuriar, emphasises adapting to evolving passenger expectations through technology-driven solutions, ensuring enhanced comfort, care, and convenience for all travellers at IGIA, the largest and busiest airport in India. He adds, “Being in the service sector, we are continuously working to provide a seamless experience to all our passengers. With this aim, we have introduced a plethora of service offerings at the airport, including Digiyatra, Self-baggage Drop, Common User Self-Service (Cuss), HOI app, Dining Experience and Lounges.” Shopping Experiences Even the retail and dining options at Indian airports have been revamped to meet international standards. Passengers can now indulge in a variety of shopping experiences, including duty-free outlets offering a wide range of products and high-end luxury brands. Reuben Walter D’Souza, Brand Manager at Perona, a home-grown luxury brand, also available at Mumbai Airport, says the expansion of retail options, including luxury brands, diverse retail outlets, and duty-free shops, have provided airports with additional revenue streams. “This is crucial for airports and airlines as they seek to diversify income beyond traditional sources like ticket sales.” Indian airports also feature enhanced facilities, including exclusive lounges, meet-and-greet services, and advanced baggage handling systems to cater to the growing needs of air travellers. These lounges redefine the business class experience with luxurious amenities such as plush seating, complimentary Wi-Fi, and a buffet offering delectable food and fine beverages. Vikas Sharma, CEO of Encalm Hospitality, notes the significant expansion and improvement of airport facilities in India, resulting in modernised terminals and spacious waiting areas. New-Look Airports As India’s air travel sector continues to expand, Hyderabad International Airport, managed by GMR Airport Infrastructure is undertaking a comprehensive phase-wise expansion to accommodate over 34 million passengers. The airport’s passenger terminal, covering 2,17,664 square metres, has been revamped with additional check-in counters, security-screening machines, emigration counters, immigration counters, and improved lounges, retail, and F&B outlets. A new arrival hall with indoor landscapes and duty-free shopping further enhances the passenger experience. Pradeep Panicker, CEO, GMR Hyderabad International Airport says, “With our state-of-the-art integrated terminal, runway enhancements and implementation of cutting-edge technologies like smart terminal entry and security clearance, self-baggage drop has propelled Hyderabad Airport as a crucial hub for international travel.” Hyderabad Airport has emerged as the fourth busiest Indian airport. During FY 22-23, it handled 21 million passengers and is expected to serve over 25 million passengers in the current fiscal. “Our terminal has been certified with the World Health Organisation’s Good Storage and Distribution Practices. Presently the work is in progress on expansion and modernisation of the cargo terminal. On the sustainability front, Hyderabad airport is entirely powered by 100 per cent green energy and we are actively working on measures to reduce our carbon footprint in our goal to achieve net zero emissions by 2030,” says Panicker. The Maryada Purushottam Shriram International Airport (Ayodhya airport), which is coming up in Ayodhya district of UP and is expected to be operational soon, is being hailed as one among the finest Indian airports in the works. Once operational, the Ayodhya Airport is set to become a vital transportation hub, offering improved connectivity to this historic and spiritual city alongside all the modern facilities to the growing air travellers. [email protected] PRADEEP PANICKER, CEO, GMR Hyderabad International Airport “Hyderabad Airport has become a crucial hub for international travel” IN DEPTH AIRPORTS VIDEH KUMAR JAIPURIAR, CEO, Delhi International Airport “We need to adapt to evolving passenger expectations through technology-driven solutions”
30 December 2023 | B W BUSINESSWORLD | 39 IN CONVERSATION Let us start by discussing the inception of AmbitionBox. Can you share the story of how it evolved from a startup into a leading platform for employee insights and job market trends? In 2015, I founded AmbitionBox with the vision of assisting college students in their job placements. Our initial focus was on interview preparation, aiming to replace traditional bluebooks in colleges and become the go-to source for interview advice. We experienced rapid growth, reaching 150,000 monthly users in just 18 months without external funding. In 2016, Naukri. com recognised our potential and acquired AmbitionBox. Post-acquisition, our growth continued, and the introduction of salary information in 2020 led to a ten-fold increase in users, propelling us to the top spot in India. AmbitionBox has certainly come a long way. Can you elaborate on the unique differentiators that set AmbitionBox apart from its competitors? Certainly. What makes AmbitionBox stand out is its intricate design tailored to the needs of our Indian user base. We have over 2 crore salary data points and 60 lakh reviews, providing unparalleled insights. Unlike competitors, we go beyond presenting employee reviews; we delve deep into perspectives to offer valuable insights for both job seekers and employers. With reviews covering 9 lakh companies across various industries, AmbitionBox is the definitive source for comprehensive workplace insights. Authenticity and trustworthiness are crucial in the realm of employee feedback. How does AmbitionBox ensure the credibility of reviews on its platform? Maintaining impartiality is at the core of AmbitionBox. We employ algorithms using data science and machine learning to detect and filter out fake and irrelevant reviews. Community guidelines provide a framework for contributors and employers, ensuring content aligns with our standards. Reviews not meeting these guidelines are promptly removed. Additionally, users can report reviews, which undergo manual vetting by our audit team. This multi-faceted approach underscores our commitment to a trustworthy platform. It is reassuring to hear about the robust measures in place. What upcoming initiatives or developments can we expect from AmbitionBox in the near future? We have recently launched “Communities,” dedicated to fostering career-related discussions and creating a supportive environment. The AmbitionBox Employee Choice Awards (ABECA), initiated in 2021, has become the largest annual “employee” choice award in India. We’re also developing features for companies to leverage AmbitionBox, providing insights into employee feedback and helping them build a strong employer brand. “We offer valuable insights for both job seekers and employers” In 2015, MAYUR MUNDADA founded AmbitionBox as an interview preparation platform aimed at helping college students in their job placements. In conversation with BW Businessworld, Mundada talks about how AmbitionBox has grown from aiming at replacing bluebooks in colleges to becoming the go-to place for interview advice
40 | B W BUSINESSWORLD | 30 December 2023 India’s sugar industry, which is majorly dependent on exports for profitability, is bracing for curbs that look imminent in view of the prospects of a shortfall in sugar output due to a deficient monsoon By Ashish Sinha IN DEPTH AGRICULTURE BITTERSWEET Photograph by Bit245
30 December 2023 | B W BUSINESSWORLD | 41 HE EL NINO played spoilsport once again. It raised the spectre of a shortfall in sugar output, with 221 districts covering 31 per cent of the country receiving below-average rainfall this monsoon. Inadequate moisture during crucial growth phases led to diminished yields and stunted crop development, especially across Maharashtra and Karnataka, posing a major concern for domestic sugar industry. As per industry estimates, an 8 per cent shortfall in sugar output is likely during the current sugar season (October 2023-September 2024) over the last season. Karnataka, a major sugarcane producer, faces a 30 per cent decline in output this season due to insufficient rains. Neighbouring Maharashtra, too, anticipates a 10-20 per cent fall in cane production on account of erratic rainfall. At the same time, though, production in Uttar Pradesh remains on track for the current season. In fact, Uttar Pradesh anticipates an 8 per cent production boost. The Indian Sugar Mills Association (ISMA), the premier lobby of mill owners in the country, estimates the total area under sugarcane production to be 57 lakh hectares, and sees production of 33.7 million tonnes of sugar in the 2023-24 season. It predicts ample domestic sugar supply, surpassing the average consumption of 27.8 million tonnes. The last season yielded 36.9 million tonnes, and the current year commenced with a 6.5 million tonne stock, reflecting dynamic shifts in India’s sugar production landscape. In the sugar season that concluded on September 30, India limited sugar exports to 6.2 million tonnes, a notable reduction from the record 11.1 million tonnes permitted during the 2021-22 period. For the current season, there is a ban on sugar exports. Impact Of Export Curb “If the curbs on exports were to continue, integrated players might not be that impacted due to their diversified revenue streams. However, operating profitability of non-integrated millers may get impacted as they will lose out on firm international sugar prices, as these millers depend primarily on sale of sugar and do not have distillery plants,” says Anuj Sethi, Senior Director at CRISIL Ratings. He adds, “The industry witnessed similar situation in the last sugar season wherein sugar exports dropped to 6.1 million tonnes as higher quantum of sugar got diverted to meet the ethanol blending targets.” Of course, the government had ensured that 2.5-3 months of sugar stock were maintained. TARUN SAWHNEY, Vice Chairman & MD, TEIL “We are strategically expanding our distillation capacity from 660 kilo litres per day (KLPD) to 1,110 KLPD” T
42 | B W BUSINESSWORLD | 30 December 2023 Will the ban on sugar exports impact foreign exchange earnings? Ravleen Sethi, Associate Director, CareEdge says, “There will definitely be a forex loss as India exported 6 million tonnes of sugar in the last sugar season and 11 million tonnes in the season before that.” Will it impact the sugar exporters adversely? “There is no significant downside of export curbs to the players,” adds Sethi. Placing curbs on exports have now arrested any windfall gains in the price increase in the domestic market, she adds. Geared Up For Challenge Aware of the challenges, leading sugar manufacturers have been diversifying to hedge any potential downside due to lower yields by maximising the returns from sugar, value-added products and increased ethanol output. Triveni Engineering (TEIL), one of the leading integrated players, has already planned on the conversion of more plants to refineries and the expansion of pharmaceutical-grade sugar capacity to enhance profitability. In an interaction with BW Businessworld, Tarun Sawhney, Vice Chairman & Managing Director, TEIL said: “We are committed to increasing our sugarcane crushing capacity and have received approval for a 2,000 tonne of cane per day (TCD) expansion at our Sabitgarh unit, raising the overall crushing capacity of Triveni to 63,000 TCD.” Triveni Engineering is working in line with the government’s agenda of achieving 20 per cent ethanol blending target by 2025. “We are strategically expanding our distillation capacity from 660 kilo litres per day (KLPD) to 1,110 KLPD. Our board has already approved a capex of Rs 460 crore for the two new plants in Rani Nangal and Sabitgarh. We expect the Rani Nangal distillery to be commissioned in Q4 of this fiscal year,” said Sawhney. Another leading player, Balrampur Chini Mills (BCML), one of the largest integrated sugar companies in India with 10 sugar factories in Uttar Pradesh, is preparing for an expected upswing in its own production volumes. This is due to ongoing collaboration with the farming community, says Vivek Saraogi, Chairman and MD, BCML. “Our field teams have been intensively engaging with farmers to bolster the quality of cane, as well as to increase acreage and yields. These concerted efforts should lead to a projected ~10 per cent increase in sugarcane crushing this season,” he adds. At the time of filing this report the oil marketing companies were yet to announce the revision in ethanol price for FY24 in line with the increase in fair & remunerative price (FRP) of sugarcane (from Rs 2,900 to Rs 3,050 per tonne). In its post-quarterly results call, S. Suresh, MD, E.I.D.- Parry (India), a leading sugar manufacturer from southern India said he was hopeful that the government would favourably consider an upward revision of ethanol price to partly compensate for the FRP increase which has already happened. The sugar industry has already called for an increase in the price of ethanol by Rs 4 per litre to Rs 69.85 along with a long-term policy and formula for ethanol pricing. The industry believes these steps will encourage mill expansion and achieve 20 per cent blending in petrol by 2025. Any Upside? Sethi of CareEdge maintains that despite an 8-10 per cent dip in production, the overall sugar consumption is expected to hold steady or slightly increase, reaching 28-28.5 million tonnes, resulting in around 7 million tonnes of sugar inventory. Limited ethanol diversion is anticipated due to stable sugar prices, with the diversion likely to hover around 4 million tonnes, says Sethi. Experts add that amid global and domestic production challenges, sugar prices are projected to remain robust. Global production is forecast at 176.5-177.0 MMT, similar to last year but with higher production in Brazil and lower production from India, Thailand, and Russia. However, for domestic market persistent concerns include price regulations, an unpredictable sugarcane market, and water scarcity in some regions. Despite hurdles, experts say the sugar industry has learned to adapt to evolving conditions, aided by ongoing government initiatives. And this is the bitter-sweet truth of the sugar business. [email protected] IN DEPTH AGRICULTURE ANUJ SETHI, Senior Director, CRISIL Ratings “If the curbs on exports were to continue, integrated players might not be that impacted due to their diversified revenue streams”
30 December 2023 | B W BUSINESSWORLD | 43 T he 28th Conference of the Parties (COP28) represents a pivotal moment in the global response to climate change. Since the first Earth Summit in Rio de Janeiro in 1992, which gave birth to the United Nations Framework Convention on Climate Change (UNFCCC), these annual meetings have been critical in shaping the world’s collective climate action. COP21 in 2015 was a landmark event, resulting in the Paris Agreement where nations committed to limiting global average warming to 1.5°C above pre-industrial levels and achieving net-zero greenhouse gas emissions this century. One of the most inspiring developments at COP28 is the launch of the Innovate for Climate Tech Coalition. This initiative, spearheaded by global entities like Masdar City, Tencent, and the Catalyst, focuses on invigorating tive Secretary Simon Stiell underscored the potential of artificial intelligence in combating climate change, acknowledging the need to balance its benefits against the associated risks and challenges. For investors in climate technology ventures, recent years have been challenging due to geopolitical unrest, market fluctuations, and economic pressures. However, COP28 has reignited hope, particularly with the prospect of a global solidarity fund in climate tech. This initiative is expected to open new opportunities in developing economies like India, where the demand for innovative climate solutions is high. In conclusion, COP28 marks a significant leap in the fight against climate change, particularly through its emphasis on climate technology and entrepreneurship. The conference’s initiatives, including the Innovate for Climate Tech Coalition and the AI Innovation Grand Challenge, are pivotal in empowering entrepreneurs, especially in the Global South. These efforts are not just about innovation but also about building a sustainable and inclusive future. climate tech ecosystems, particularly in the Global South. The coalition aims to scale climate tech solutions globally, democratise access to knowledge and capacity building, and stimulate innovation in climate technology. By bringing together a diverse range of partners, including the African Private Equity and Venture Capital Association, McKinsey Sustainability, Schneider Electric, and many others, the coalition is poised to create a robust platform for climate tech entrepreneurship. The coalition’s strategy involves onboarding various programmes, knowledge, and roll-out partners, enhancing its reach and impact. Entities such as Climate Impact Capital, Crescent Enterprises, Dubai Future District Fund, and Venture Souq are among those joining the effort. This expanding network signifies a growing global commitment to climate tech innovation, offering promising avenues for entrepreneurs and investors. A significant highlight of COP28 is the AI Innovation Grand Challenge, launched by the UN Climate Change Technology Executive Committee (TEC) in partnership with the Enterprise Neuro system. This initiative aims to identify and support the development of AI-powered solutions for climate action in developing countries. UN Climate Change Execukey out he gn, to ate ent ect ass ver a's y a big ore for out to ure d a as of nd ese ies in ent an nd COP28 And Climate Tech For Entrepreneurs: A New Era Of Innovation And Hope COP28 is unique as it offers the first formal review of progress since the Paris Agreement under a Global Stocktake. Amidst the climate emergency, COP28 stands as a beacon of hope, striving to bridge the gap between ambition and action with pragmatic solutions, writes Prof. P Srinivas Subbarao, Director, Vignana Jyothi Institute of Management, Hyderabad Prof. P Srinivas Subbarao, Director, Vignana Jyothi Institute of Management, Hyderabad
44 | B W BUSINESSWORLD | 30 December 2023 IN DEPTH HEALTHCARE HEN SPEAKING about Max Healthcare India (MHIL), Industry watchers always talk about the transformation of the group, from reporting a loss of Rs 50 crore in 2018 to Profit After Tax (PAT) of Rs 1,328 crore in 2023. Its Earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew from Rs 222 crore in 2018 to Rs 1,636 crore in 2023, clocking a growth of over 635 per cent - it has been quite a turnaround. And, one that undoubtedly took a lot of sweat and hard work from the leadership and their teams. MHIL closed FY23 with a revenue of Rs 6,236 crore, a jump of 2.1 times in past four years, a remarkable growth story indeed. “Today, we are a debt free company and have a huge opportunity to expand organically and inorganically” says Abhay Soi, Chairman and Managing Director of Max Healthcare. The group now looks to expand. This expansion entails strengthening what they have, by adding capacity to existing hospitals, investing in technology and skilling their technicians. Further, the group has been focused on medical education, which is another area of growth. BW Businessworld spoke to the leadership at Max Healthcare about their expansion plans, and commitment to deliver best in class care. Moving forward In Delhi-NCR, they have plans for a brownfield expansion in Dwarka, adding 300 beds. A brownfield expansion in Shalimar Bagh, adding 100 beds. Two in Saket, one that would provide medical services to a 500-bed hospital, and the construction of a new wing at Max Smart Super Speciality Hospital, adding 600 beds to the network. In Patparganj, they have acquired Eqova Healthcare, to aid development of and provide medical services to a W NOW THEY EXPAND
30 December 2023 | B W BUSINESSWORLD | 45 After a remarkable turnaround, Max Healthcare India (MHIL) is set to expand. Most of this expansion is geared towards strengthening what they already have, by adding capacity to existing hospitals, investing in cutting edge technology and skilling their technicians. Another key growth area is medical education. ByJyotsna Sharma
46 | B W BUSINESSWORLD | 30 December 2023 400-bed hospital. A greenfield project in Gurgaon that will add 500 beds to the network. Further, a new wing is under construction at Nanavati Max Hospital, Mumbai. When completed will add another 600 beds to the hospital, making it one of the largest private healthcare facility in Western India. Work to add another 100 beds to the Max Hospital, Mohali has also begun. All in all they plan to add 2,600 beds to the network over the next four years. This month, MHIL announced the execution of binding Share Purchase Agreement (SPA) for acquisition of 100 per cent stake of Starlit Medical Centre for Rs 940 crore. This would grant them entry into Lucknow. What aids growth? Some focus areas for the group are: Technology Investing in technology is central to the growth of any business. Over the last few years, the Indian healthcare adds “the use of robotics has enabled us to conduct minimally invasive surgeries across multiple specialities like Oncology, Urology, GI Surgeries, Obstetrics and Gynaecology, Transplants, Spine Surgeries and Orthopaedics. Providing high levels of precision and accuracy.” The leadership at Max believes investments in state-of-the-art infrastructure, technology and equipment will empower them to provide better clinical outcomes, and minimise hospital stays for patients. They have invested considerable time and effort in creating the Max My Health App, which has helped enhance patient experience, enabled easier access to clinicians and created a convenient repository of healthcare records for patients. This app has seen approximately five lakh downloads in less than a year. Clinicians have been quick to support it, with 80 per cent of the Max hospital doctors who have outpatient clinics at the hospital signing up. 100 video consults are done on a daily basis through the app. Skilling The biggest strength of any organisation industry has embraced technology and seen rapid advancement across patient care, diagnostics and research. Take Telemedicine for instance, it has been a gamechanger for the delivery of care in our country. The Max group has invested in the latest medical technology across their hospitals, including 17 robotic systems. “We have specialised robots such as Da Vinci Xi, ExcelsiusGPS and the Stryker Mako Robots” says Dr Budhiraja, Group Medical Director, Max Healthcare. He further Umesh Gupta, Chief People Officer, Max Healthcare Abhay Soi, Chairman and Managing Director, Max Healthcare Dr Sandeep Budhiraja, Group Medical Director, Max Healthcare Photograph by Vilas Kalgutker
30 December 2023 | B W BUSINESSWORLD | 47 is its people, and in keeping with this the group is investing in skilling and training programmes. Over the next couple of years they plan to train more than five thousand nurses and paramedics. To this end, they plan on open nursing and paramedical colleges, and have recruitment offices for nursing across India. They have partnered with IIM Kashipur to launch a nine-month Post Graduate Programme in Hospital Management. “We started our paramedical education vertical in 2021 , we had 60 student when we began, and today we have 1200 students. Further, in the last two years, we have trained more than 2,000 nurses and close to 3,000 general duty assistants in our hospitals under the guidance of Ministry of Skill Development and Entrepreneurship” says Umesh Gupta, Chief People Officer, Max Healthcare. jects ongoing, that include close to 100 sponsored clinical trials and 22 funded research studies. As a part of their commitment to research and academics, they have collaborated with IIT Delhi, BITS Pilani, Imperial College, London, Royal College of Surgeons, Deakin University, Australia, George Washington University USA, and others. Dr Budhiraja stresses the fact that clinical excellence and research go hand-in-hand. For a doctor to deliver the best care, research and academics is essential. “We are a centre of education for post graduate and super speciality programmes. Our teaching arm Max Institute of Medical Excellence (MIME) registered close to 10,000 students in various academic programmes last year.” [email protected] Medical education is the way forward “All our hospitals are teaching hospitals and we are keen on having a medical college here in Delhi,” says Soi. When one speaks to the leadership of Max their focus on medical education is clear. They have raised over $2 million in grants in the last seven years and have completed nearly 500 research projects. At the moment, they have 120 research proYOGESH SAREEN,CFO, “We are in expansion mode, and a large part of the expansion is brownfield, which means it will be a faster ramp up. Our focus is to do it on time, maintain quality and keep within the cost structure laid out. Another focus is to optimise existing networks. And, of course, patient care has always been central to everything we do ” DR MRADUL KAUSHIK, COO, “When we look at any process we look at four basic aspects to make it efficient - it should make healthcare simpler, safer, faster, and economical for the patient” ANAS ABDUL WAJID, Chief Sales & Marketing Officer, “Our focus will largely be on driving medical value tourism (MVT) from international markets. If we compare H1 of this year to the previous year, there has been a growth of 25 per cent. At present, 10 per cent of our revenue comes from MVT and this is expected to grow significantly in the coming years” PRASHANT SINGH, Director IT & Chief Information Officer, “Cybersecurity is and will remain a key focus area for us. In fact, we successfully thwarted a ransomware attack on our systems last year”
48 | B W BUSINESSWORLD | 30 December 2023 Please tell me about your collaboration with Tihar for skill development. As a part of our CSR initiatives, we are focused on skill development and water conservation. We just announced the launch of the Max Skill Training for Sustainable Livelihoods programme in association with Tihar Jail, which aligns with our focus on skilling. This is one of the largest corporate sector partnerships with Tihar Jail for a skill training programme in India, that aims to further correctional reform for 1200 inmates. It aims to further strengthen the rehabilitation programme at Tihar Jail that focuses on education, vocational training, and therapy to reduce recidivism rates and promote successful integration into society. Someone asked me about the optics of employing people who have served time. My answer is simple, those who want to work, will put in a lot of effort to work hard and keep their jobs. Human beings have the ability to reform and change. Isn’t it our responsibility to help each other? Over the last few years, what is it that you could have done differently? There are several things. Since we began our journey, our focus has been to bring IN CONVERSATION “SINCE WE BEGAN OUR JOURNEY, OUR FOCUS HAS BEEN TO BRING CARE TO HEALTHCARE” I N an exclusive conversation ABHAY SOI, Chairman and Managing Director of Max Healthcare Institute speaks to Jyotsna Sharma of BW Businessworldabout his focus on delivering world -class care and the group’s intention to further medical education in India. Excerpts. “Max My Health App has enhanced patient experience, enabled easier access to clinicians and has helped patients access all their health records in one place” care to healthcare. Our priority is to serve, can we serve better? Of course, we can. We really got behind this and continue to see where we can improve and add value. Let me give you a couple of examples. Take the patient journey, which includes the process of admission, the people they interact with, and the infrastructure. We looked at all touchpoints and assessed how we can do better. We instituted a simple measure that if a patient calls any of our hospitals across the country and the phone is not answered in five rings, the next three rings will be on the COOs phone, and if that is not answered, it will be mine. The first month we instituted this, my phone rang twice and has not rung since. Then there is the concept of personal touch, we insist that the leadership team visit the hospitals and not rely purely on the data being sent to them. Nothing can beat taking feedback personally and meeting people. So, you see our focus has always been to get into the details and improve processes and systems wherever we can. And, we will continue to do so. Please tell us about your plans of expansion. We are massively underserved in India when it comes to quality healthcare, the figures are something like 100,000 private hospital beds for all of India, which is a meagre number when compared to our requirement. It is the government hospitals really, that are shouldering the burden of providing healthcare. And, now with people having access to insurance, private hospitals are in demand, which in turn means there is demand to build infrastructure.
30 December 2023 | B W BUSINESSWORLD | 49 Medical education is another area of focus, right? Yes, that’s right. We taught close to 10,000 students last year across various medical programmes, and are very keen on having our own medical college here in Delhi. Both research and academics are at the core of what we do, we have published more than 2,000 papers over the last five years for both international and domestic journals. In fact, we have several international students who come in to study with us. Please tell me about your focus on technology. Robotics has been a large investment for us. To start with, we got the machines on pay-peruse. But within a year, we doubled the number of machines. It is in a way natural progression since we want to use cutting-edge technology. Further, our investment in the Max My Health App has enhanced patient experience, enabled easier access to clinicians and has helped patients access all their health records in one place. There have been approximately five lakh downloads in less than a year. The app does 100 video consults daily, with 40 per cent of users viewing their electronic medical records. 80 per cent of our doctors who have outpatient clinics at the hospital have signed up on the app. Who has access to the patient data? Only the patient, the referring and treating doctors have access to the medical records. Your view on the Indian health tech sector. There is a huge amount of innovation and disruption taking place in the health tech sector. From a consumer standpoint we don’t necessarily have to be the first to embrace technology, but when we do it must be the right technology. For hospitals like us to adopt it, it has to be proven, scalable and the technology should have the ability to learn on its own. Your view on government to increase GDP spend. The government is doing its bit. The spend has gone up however, we have a large population and a responsibility towards providing quality healthcare. In addition to the government doing their part, the private sector too has a responsibility to be efficient and provide best-in-class healthcare. [email protected] We have announced expansion at a cost of Rs 5,000 crore over the next four years. We are adding 2,600 beds over the 3,500 that we have through greenfield, brownfield expansions, and mergers and acquisitions (M&A). We have a brownfield expansion in Dwarka, adding 300 beds built in 8.2-acre land slated to start some time in Q1 FY 24. Then, a new wing is under construction at Nanavati Max Hospital, which when completed will add another 600 beds to the hospital, making it one of the largest private healthcare facilities in Western India. There is a lot more planned. Photograph by Vilas Kalgutker
Y 50 | B W BUSINESSWORLD | 30 December 2023 IN DEPTH AGRITECH By Ashish Sinha OU MAY HAVE HEARD about the Predator and the Reaper, the military-grade drones that the US Army used with devastating effect in its war against terror and to decimate terrorist leaders in the Middle East and Afghanistan. You may also follow how drones have become the weapons of choice in the Russia-Ukraine war. What many may not know, though, is that drones are being used in a big way to drive efficiencies across a whole host of sectors. A case in point is Indian agriculture. In a paradigm shift, farmers are leveraging these unmanned aerial vehicles for precision farming, meticulously monitoring crop health, optimising irrigation, and assessing field conditions. There is a discernible uptick in investments, both from the government and the private sector. In the current financial year, there are orders worth more than Rs 25,000 crore for new drones, a majority of which are for precision farming. The order for drones by the farm sector alone is pegged at more than Rs 9,000 crore. Says Agnishwar Jayaprakash, Founder & Chief Executive Officer of Garuda AeroDRONES IN HARNESS