New Delhi: The rupee fell by 12 paise to close at 82.33 against the US dollar on Wednesday due to sustained foreign fund outflows and a stronger dollar in the overseas markets.

Besides, risk aversion sentiment among investors ahead of the release of US Fed minutes and inflation data weighed on the local unit.

At the interbank foreign exchange market, the local currency opened lower at 82.32 and later fell further to 82.3750 against the American currency. It recovered some ground to close at 82.33, registering a decline of 12 paise over its previous close.

On Tuesday, the rupee rebounded from its all-time low to close 19 paise higher at 82.21 against the US dollar.

“In line with the dollar index, the rupee marked another steady day. So far this week, the rupee has been trading in a narrow range and closing near 82.32,” said Dilip Parmar, Research Analyst, HDFC Securities.

Parmar said a rebound in the domestic equities and the central bank’s intervention ahead of the crucial retail inflation release supported the rupee on Wednesday.

In the near-term, spot USD/INR is expected to trade in the range of 82.10 to 82.80, Parmar noted.

Traders said investors remained cautious ahead of the release of key domestic macro data.

“Rupee traded in a narrow range in the last couple of sessions as investors remain cautious ahead of inflation numbers,” Motilal Oswal Financial Services said, adding that the central bank is yet to get surging inflation under control and will need to press forward with tightening monetary policy.

“Focus will be on the FOMC meeting minutes and hawkish comments are likely to strengthen the greenback.

According to Praveen Singh, AVP- Fundamental currencies and Commodities analyst, Sharekhan by BNP Paribas, “The domestic currency is trading with a loss of 0.10 per cent in the spot market as the traders await India’s inflation and industrial production data.”

On Thursday’s US CPI data will be of prime importance for the financial markets, though barring a big miss the US Dollar is expected to be well bid.

In twin blows to Indian economic revival, higher food prices drove retail inflation to a five-month high of 7.4 per cent while factory output fell for the first time in 18 months.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.01 per cent to 113.21.

Global oil benchmark Brent crude futures rose 0.39 per cent to USD 94.66 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 478.59 points or 0.84 per cent to end at 57,625.91, while the broader NSE Nifty rose 140.05 points or 0.82 per cent to 17,123.60.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 542.36 crore on Wednesday, according to exchange data.

NEW DELHI: A record over Rs 1.5 lakh crore worth of 5G telecom spectrum was sold in a seven-day auction ending on Monday, which saw billionaire Mukesh Ambani’s Reliance Jio emerging as the top bidder to consolidate its leadership position.

Sources with direct knowledge of the matter said provisional data puts the total bids at Rs 1,50,173 crore.

The mop-up from the 5G spectrum, capable of offering ultra-high speed mobile internet connectivity, is almost double at Rs 77,815 crore worth 4G airwaves sold last year and triple of Rs 50,968.37 crore garnered from a 3G auction in 2010.

Reliance Jio was the top bidder to the airwaves capable of offering speeds about 10 times faster than 4G, lag-free connectivity, and can enable billions of connected devices to share data in real-time.

It was followed by Bharti Airtel and Vodafone Idea Ltd.

New entrant Adani group is said to have bought 26 Mhz spectrum for setting up a private telecom network.

The sources said details of which company bought how much spectrum would be known once the data from the auction is fully compiled.

Both Bharti and Jio have likely built a pan-India spectrum footprint for 5G, with Vodafone Idea’s selective participation.

The government had put on offer spectrum in 10 bands but received no bids for airwaves in 600 MHz, 800 MHz and 2300 MHz bands.

About two-thirds of the bids were for the 5G bands (3300 Mhz and 26 GHz), while more than a quarter of the demand came in the 700 Mhz band – a band that had gone unsold in the previous two auctions (2016 and 2021).

In the auction conducted last year – that had lasted two days – Reliance Jio picked up spectrum worth Rs 57,122.65 crore, Bharti Airtel bid about Rs 18,699 crore, and Vodafone Idea bought spectrum worth Rs 1,993.40 crore.

This year, a total of 72 GHz (gigahertz) of radiowaves worth at least Rs 4.3 lakh crore was put on the block.

The auction was held for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz), mid (3300 MHz) and high (26 GHz) frequency bands.

In addition to powering ultra-low latency connections, which allow downloading full-length high-quality video or movie to a mobile device in a matter of seconds (even in crowded areas), Fifth Generation or 5G would enable solutions such as e-health, connected vehicles, more-immersive augmented reality and metaverse experiences, life-saving use cases, and advanced mobile cloud gaming among others.

The auction garnered bids worth Rs 1.45 lakh crore on the first day on July 26, with subsequent days seeing only marginal incremental demand in some circles.

New Delhi: Internet major Google will invest USD 1 billion in telecom major Bharti Airtel which includes equity investment as well as a corpus for potential commercial agreements, to be identified and agreed on mutually agreeable terms over the course of the next five years.

Google made the investment as part of its Google for India Digitization Fund.

“This will comprise- USD 700 million equity investment in Bharti Airtel at a price per share of Rs 734,” Airtel said in a statement.

Out of the total investment, USD 300 million will go towards implementing commercial agreements, which will include investments in scaling Airtel’s offerings that covers a range of devices to consumers via innovative affordability programs as well as other offerings aimed at accelerating access and digital inclusion across India’s digital ecosystem, it added.

“Under the larger strategic goals of the partnership, both companies will also potentially co-create India-specific network domain use cases for 5G and other standards, with cutting-edge implementations,” the statement said.

NEW DELHI: Debt-ridden Vodafone Idea (VIL) has decided to opt for converting about Rs 16,000 crore interest dues liability payable to the government into equity which will amount to around 35.8 per cent stake in the company, as per a regulatory filing of the telecom firm.

If the plan goes through, then the government will become one of the biggest shareholders in the company which is reeling under a debt burden of about Rs 1.95 lakh crore.

“The board of directors, at its meeting held on 10th January, 2022, has approved the conversion of the full amount of such interest related to spectrum auction instalments and AGR dues into equity. The Net Present Value (NPV) of this interest is expected to be about Rs 16,000 crore as per the company’s best estimates, subject to confirmation by the DoT,” Vodafone Idea said in a regulatory filing.

The government has given telecom operators an option of paying interest for the 4 years of deferment on the deferred spectrum instalments and AGR dues by way of conversion into equity of the NPV of such interest amount.

VIL said that since the average price of the company’s shares at the relevant date of August 14, 2021 was below par value, the equity shares will be issued to the government at par value of Rs 10 per share, subject to final confirmation by the DoT.

“The conversion will therefore result in dilution to all the existing shareholders of the company, including the promoters.

Following conversion, it is expected that the government will hold around 35.8 per cent of the total outstanding shares of the company, and that the promoter shareholders would hold around 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively,” the filing said.

Shares of VIL were trading at Rs 12.55 apiece, down by 15.49 per cent compared to the previous, at the BSE in the morning hours.

New Delhi: After Bharti Airtel and Vodafone Idea, India’s largest mobile operator Reliance Jio on Sunday announced up to 21 per cent hike in its prepaid tariffs from the next month.

Despite the increase in rates, Jio has kept the price of plans lower than Airtel and Vodafone Idea’s which is expected to continue pricing competition in the industry.

The company still has kept its lowest rate for 28 days validity plan at Rs 91 for Jiophone users which is the lowest among private telecom operators. Bharti Airtel and Vodafone Idea have increased the entry level plan with 28 days validity to Rs 99.

The tariff hikes entail JioPhone Plan, Unlimited Plans, and data add on, and range between 19.6 per cent and 21.3 per cent.

“In line with its commitment to further strengthen a sustainable telecom industry, where every Indian is empowered with a true digital life, Jio today announced its new unlimited plans. These plans will provide the best value in the industry,” Reliance Jio said in a statement.

The statement further said: “Upholding the Jio promise of providing the best-quality service at the lowest price globally, Jio customers will continue to be the biggest beneficiaries”.

The new unlimited plans will go-live on December 1, 2021, and can be opted from existing touchpoints and channels.

The company announced tariff hikes across 15 plans which include one for JioPhone users, 11 in unlimited category and three in data top up category.

In the unlimited plan category, Jio has increased the price of its cheapest plan with 28 days validity to Rs 155 from Rs 129.

The cheapest unlimited category with 84 days validity will be priced at Rs 395 instead of 329 at present.

The popular unlimited category plan offering daily 1.5 GB daily data usage with 84 days validity will go up by about 20 per cent to Rs 666 from Rs 555 at present.

The company has announced that its annual unlimited category plan offering 2 GB daily data usage at 4G speed will be priced at Rs 2,879 instead of 2,399 at present.

Airtel and Vodafone Idea last week announced up to 25 per cent hike in their prepaid plans tariffs to improve financials.

Several market analysts had said that the final assessment of the impact can be done only when Jio opens up its card on price hike.

Airtel and VIL have been maintaining that average revenue per user needs to go up in the range of Rs 200 to Rs 300 per month for sustaining business but they have been unable to hike tariff due to competitive pressure.

Jio ARPU in the second quarter ended September 30, 2021 was Rs 143.6 while that of Bharti Airtel and VIL in the same quarter was Rs 153 and Rs 109, respectively.

NEW DELHI: Luxury brand BMW on Tuesday launched the C 400 GT maxi-scooter, the most expensive scooter in India, at a price tag of Rs 9.95 lakh.  The C 400 GT is powered by a 34hp, 35Nm, 350cc, single-cylinder, liquid-cooled engine that is paired with a CVT gearbox. BMW claims that the C 400 GT manages 0-100kph in 9.5 seconds and has a top speed of over 139kph.

The scooter does not compete with other products in its segment in India. In Rs 10 lakh, one can easily buy a mid-level variant of any sub compact SUV and can even go for the base variant of popular SUVs such as Hyundai Creta and newly launched MG Astor.

The scooter gets a telescopic fork and preload adjustable dual shocks. For braking, BMW has equipped the model with dual discs at the front and a single disc at the rear.  The two-wheeler has a TFT dashboard with bluetooth connectivity, Automatic Stability Control (ASC) and dual-channel ABS as standard. The maxi-scooter rides on a 15-inch front (120/70 R15) and a 14-inch (150/70 R14) rear tyre. 

Loaded with a host of smart features
It has a TFT dashboard with bluetooth connectivity, automatic stability control and dual-channel ABS as standard. The maxi-scooter rides on a 15-inch front and a 14-inch rear tyre.

New Delhi: After nearly three decades of struggling to make a mark in India, US auto major Ford Motor Co on Thursday said it will stop vehicle production at its two plants in the country and will sell only imported vehicles going ahead as part of a restructuring exercise.

The company, which invested about USD 2.5 billion at its Chennai (Tamil Nadu) and Sanand (Gujarat) plants, has accumulated operating losses of around USD 2 billion in India in the last ten years. Its decision will impact over 4,000 employees and 150 dealer principals who operate over 300 outlets.

It will, however, continue to manufacture engines from its Sanand plant which will be exported to the company’s global operations.

With shutting down of the vehicle manufacturing operations, the automaker will stop selling vehicles such as the EcoSport, Figo, Endeavour, Freestyle and Aspire, which are produced from these plants.

In an announcement, Ford said it will wind down vehicle assembly in Sanand by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022.

“As part of our Ford+ plan, we are taking difficult but necessary actions to deliver a sustainably profitable business longer-term and allocate our capital to grow and create value in the right areas, Ford Motor Company’s president and CEO Jim Farley said in a statement.

Despite investing significantly in India, Ford has accumulated more than USD 2 billion of operating losses over the past ten years and demand for new vehicles has been much weaker than forecast, he noted.

“I want to be clear that Ford will continue taking care of our valued customers in India, working closely with Ford India’s dealers, all of whom have supported the company for a long time. India remains strategically important for us and, thanks to our growing Ford Business Solutions team, will continue to be a large and important employee base for Ford globally,” Farley stated.

The automaker said that it will focus on growing its Ford Business Solutions capabilities and team in the country, as well as engineering and engine manufacturing for export.

With more than 11,000 team members currently in India, Ford Business Solutions plans to expand to provide more opportunities for software developers, data scientists, R&D engineers, and finance and accounting professionals, in support of the Ford+ plan to transform and modernise Ford globally, it added.

More than 500 employees at the Sanand Engine plant, which produces engines for export for the best-selling Ranger pickup truck, and about 100 employees supporting parts distribution and customer service, also will continue to support Ford’s business in India, the company said.

Addressing a virtual press conference, Ford India President and Managing Director Anurag Mehrotra said that for the company to continue investing in vehicle manufacturing in India, it needed to show a path forward to a reasonable return of investment.

“Unfortunately, we are not able to do that and now we are left with no other option, but to restructure the business in India,” he noted.

Mehrotra said the company tried several options to bring about a viable business plan, including introduction of new products, emerging market operating model to bring down costs, potential collaborations with OEMs such as Mahindra and even contract manufacturing.

“Unfortunately, no matter what we tried or investigated, because there are tons of these scenarios that we looked at including manufacturing footprint consolidation, but whichever scenario we tried or investigated, all our projections show that we will continue to deliver suboptimal returns on shareholder investment,” he added.

The company took restructuring action after all its efforts for viable business operations failed.

The decision was reinforced by years of accumulated losses, persistent industry overcapacity and lack of expected growth in India’s car market, he added.

The Indian car market was expected to touch 7 million units per annum by 2020 and 9 million units by 2025, but that has not happened, Mehrotra stated.

“It is just around 3 million units. Our plants are operating at just 21 per cent of the installed capacity. In order to be viable we focussed on exports but with tightening of norms in the US and Europe, volumes have dropped,” he added.

When asked about the severance package it would offer to the employees who would end up losing their jobs, Mehrotra said that “an equitable and fair package would be offered” to the affected employees.

The company would also start talks with prospective buyers for its plants, he added.

Ford plans to import models like Mustang coupe and other electrified models such as the electric SUV Mach-E in the future while sales of current products such as Figo, Aspire, Freestyle, EcoSport and Endeavour will cease once existing dealer inventories are sold.

The company said it will maintain parts depots in Delhi, Chennai, Mumbai, Sanand and Kolkata and will work closely with its dealer network to restructure and help facilitate their transition from sales and service to parts and service support.

It will continue full customer support operations for these vehicles with service, aftermarket parts and warranty coverage, the company added.

The automaker said it will maintain a smaller network of suppliers to support engine manufacturing for exports and will work closely with other suppliers to ensure a smooth wind-down of vehicle manufacturing.

However, the company will continue to rely on India-based suppliers for parts for its global products, and suppliers and vendors supporting Ford Business Solutions will continue to support the business as normal.

Ford Motor Co said as a result of its decision to restructure the Indian business, it currently expects to record “pre-tax special item charges of about USD 2 billion, including about USD 0.6 billion in 2021, about USD 1.2 billion in 2022 and the balance in subsequent years”.

Within that total, the company said it “will be about USD 0.3 billion of non-cash charges, including accelerated depreciation and amortization. The remaining cash charges of about USD 1.7 billion will be paid primarily in 2022 and are attributable to settlements and other payments”.

Ford has been struggling for years to make a mark in India’s automotive market. Ford India has an installed manufacturing capacity of 6,10,000 engines and 4,40,000 vehicles a year.

It also exported its models such as Figo, Aspire, and EcoSport to over 70 markets around the world.

In January this year, Ford Motor Co and Mahindra & Mahindra had decided to scrap their previously announced automotive joint venture and chose to continue independent operations in India.

Ford is the second American auto major after General Motors to shut down plants in India.

In 2017 General Motors announced that it would stop selling vehicles in India as there was no turnaround in its fortunes here even after struggling for over two decades to make a mark.

The company’s Halol plant in Gujarat was taken over by MG Motors, while it continued to run its Talegaon plant in Maharashtra for exports but ceased production there last December.

NEW DELHI: Microblogging platform Twitter has lost its status as an intermediary platform in India as it does not comply with new IT rules, informed government sources on Wednesday.

Earlier on June 9, Twitter had written to the government that it is making every effort to comply with new guidelines concerning social media companies and has appointed a nodal contractual person (NCP) and Resident Grievance Officer (RGO) on a contractual basis and was in advanced stages of “finalising the appointment to the role of chief compliance officer,” sources said.

Union Ministry of Electronics and Information Technology (MeitY) had on June 5 said that it had given Twitter one last notice to comply with the new rules concerning social media companies.

The ministry said in the letter that the New Intermediary Guideline Rules have become effective from May 26.

“The provisions for significant social media intermediaries under the Rules have already come into force on May 26 2021 and it has been more than a week but Twitter has refused to comply with the provisions of these Rules. Needless to state, such non-compliance will lead to unintended consequences including Twitter losing exemption from liability as intermediary available under section 79 of the Information Technology (IT) Act, 2000. This has clearly been provided under rule 7 of the aforesaid Rules,” it said. 

NEW DELHI: German luxury automotive group BMW on Tuesday launched the all-new BMW S 1000 R motorcycle model in India with price starting at Rs 17.9 lakh (ex-showroom).

The second generation BMW S 1000 R is being imported as a completely built-up unit (CBU) and can be booked at all BMW Motorrad India dealerships from Tuesday onwards, the group said in a statement.

The motorcycle is fitted with a newly developed water cooled 4-cylinder in-line engine with a displacement of 999 cc.

It generates a peak output of 165 hp (121 kW) at 11,000 rpm and can accelerate from 0-100 Km in 3.2 seconds and can achieve a maximum speed of 250 km/hr, it added.

The BMW S 1000 R will be available in three variants — ‘Standard’ priced at Rs 17.9 lakh, ‘Pro’ tagged at Rs 19.75 lakh and ‘Pro M Sport’ costing Rs 22.5 lakh (ex-showroom).

Commenting on the launch, BMW Group India President Vikram Pawah said, “the second generation of the all-new BMW S 1000 R is designed as a power-packed roadster with supreme riding dynamics, athletic character combined with maximum safety and everyday practicality…It is a unique blend between fast sporty runs and track day fun.”

The group said BMW Financial Services India will offer customised and flexible financial solutions to customers of BMW Motorrad India, who can also get their loans pre-approved prior to delivery.

BMW Motorrad offers a standard warranty for ‘three years, unlimited kilometers’ on its bikes, with an option to extend the warranty to fourth and fifth year, along with road-side assistance, a 24×7, 365 days package for prompt services in case of breakdown and towing situations, the statement said.