Companies & Sectors
New metro lines for Mumbai and Thane
Two new metro lines, including one exclusively for Thane on the mainland, will be constructed at a total cost of Rs15,000 crore, Chief Minister Devendra Fadnavis announced here on Wednesday.
The lines are the 24-km long Metro 5 corridor linking Thane-Bhiwandi-Kalyan in adjoining Thane district and the 14.5-km long Metro 6 corridor connecting Lokhandwala-Jogeshwari-Vikhroli-Kanjurmarg in the Mumbai suburbs.
Metro 5 with 17 stations will be built at a cost of Rs8.416 crore and Metro 6 with 13 stations will cost Rs6672 crore. Both are expected to be completed within the next four years, Fadnavis said.
The decision was taken at a meeting of Mumbai Metropolitan Region Development Authority (MMRDA) presided over by the Chief Minister.
Besides the two new metro corridors, the MMRDA also approved a Rs194 crore project to set up 500 WiFi hotspots in Mumbai.
The Maharashtra Information & Technology Corporation will carry out the on-ground work to identify the 500 hotspots in the first phase under the aegis of Directorate of Information and Technology.
Fadnavis also launched the new, two-colour MMRDA logo for Mumbai Metro corridors, specially designed by students of Sir J. J. College of Arts.
This is the second major metro lines project announced by the state government in barely three weeks.
On September 27, the government approved two new metro corridors - Metro 2B and Metro 4 - with an investment of Rs 25,525 crore.
Metro 2B will be 23.5 kms long linking DN Nagar-Bandra-Mankhurd and Metro 4 will connect Wadala-Ghatkopar-Thane-Kasarvadavali, both likely to be operational by 2021-2022.
Presently, Mumbai is served by the 11.4-km long Metro linking Versova-Andheri-Ghatkopar since June 2014.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.


Samsung to face class action lawsuits in S. Korea, US
The problems of Samsung Electronics are far from over as disgruntled customers plan to file class action lawsuits in South Korea and the US over the company's exploding Galaxy Note 7 smartphones, media reports said on Wednesday.
While three US customers from three different states -- Nevada, Pennsylvania and California -- have already complained about the fire-prone devices, 38 owners of the Galaxy Note 7 smartphone in South Korea plan to file a class action lawsuit against Samsung for alleged inconvenience experienced after the discontinuation of the device.
Each person in the South Korean suit, which is scheduled to be filed with the Seoul Central District Court next Monday, is seeking 300,000 won ($267) in damages, Harvest Law Office said on Wednesday.
The proposed suit alleges that owners of the Note 7 were forced to visit stores several times for battery checks or to get replacements, Yonhap news agency reported.
The complaint also states that the consumers experienced anxiety over safety while using the Note 7.
Koh Young-il, an attorney at the law firm, said he expects the firm to win the suit, given precedents for faulty products.
Last week, Samsung permanently halted sales and production of the fire-prone Note 7, about two months after the device's launch.
The suit filed on Friday in the US District Court in Newark, New Jersey, and made public on Tuesday, accuses Samsung Electronics America of fraud and breach of warranty and good faith, NBC News reported.
The suit -- whose class action status must still be approved by a judge before it can proceed -- seeks unspecified damages over what it alleges was Samsung's mistreatment of its customers because they had to keep paying on their contracts during the weeks after Samsung recalled the phones but before replacements were made widely available.
The South Korean conglomerate began selling the phone on August 19 this year, but in September announced an unprecedented withdrawal following reports of more than thirty cases of combustion by terminals in multiple countries.
In the recall affecting about 2.5 million phones, the company proceeded in mid-September to deliver replacement phones, but the new batch continued to suffer from battery overheating, ultimately resulting in the definitive withdrawal of the product. 
The South Korean tech giant last week estimated that it will lose $3 billion in operating profits over the next six months due to the withdrawal of the Galaxy Note 7 smartphone.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.


First MPC Minutes: External members relatively dovish, RBI nominees guarded
The Reserve Bank of India (RBI) released Minutes of the Monetary Policy Committee (MPC) meeting held on 3rd and 4th October 2016. As per the minutes and individual statements, external members on the Committee appear relatively dovish, while those from RBI seems to be guarded on the inflation front, which is more or less expected from the central bank members, says a report.
In a research note, Religare Capital Markets Ltd, says, "A unique aspect of the minutes was that individual member views were communicated separately. However, there was no explicit guidance on their future stance or any commentary on real neutral policy rate that they would seek and the timeline to meet the medium term consumer price index (CPI) inflation target of 4%. The MPC members expect growth to pick-up with a normal monsoon raising agricultural growth and rural demand, as well as by the stimulus to the urban consumption spending from the pay commission’s award."
The six-member committee has RBI Governor Urjit Patel as chairman and the central bank's Deputy Governor R Gandhi and Executive Director Michael Patra, as the institution's representatives. The three outside experts are Dr Chetan Ghate, Professor at Indian Statistical Institute; Dr Pami Dua, Director at the Delhi School of Economics; and Ravindra Dholakia, Professor at the Indian Institute of Management, Ahmedabad.
During the MPC meeting, all members unanimously decided to cut repo rate by 25 basis points (bps).
According to Religare, the members from outside RBI were relatively dovish, which is evident from their individual statements, in the minutes.
Dr Ghate indicated that both cyclical and structural risks to the March 2017 CPI inflation target had abated on the back of a good monsoon, decline in food inflation and better food supply management by the government, even as he highlighted concerns around the persistence of core inflation. He stated, “inflation expectations, based on the Survey of Professional Forecasters, were closer to the inflation target, which was expected to contribute to low and stable inflation.” 
Dr Dua also highlighted that inflation expectations were anchored based on the Survey of Professional Forecasters. She said that the RBI’s Industrial Outlook Survey suggests some increase in input price pressures in the manufacturing sector in the short term, though this is not expected to transmit to higher selling prices.
Dr Dholakia from IIM-A observed that upside risks to inflation arising out the 7th Central Pay Commission (CPC) payout were largely statistical and there is a good chance for inflation to ease further substantially, benefiting from a good monsoon, the government’s supply management measures, and ongoing reforms gaining traction in terms of reducing costs and improving output response.
On the other hand, Religare says, the nominees from RBI were relatively guarded on the inflation front, which was more or less expected from them. Dr Patra stated that although inflation momentum had collapsed, particularly in essential food items and the Q4FY17 target seems to be achievable, it was crucial to step up vigil around the upturn in inflation projected in Q4FY17. 
Dr Gandhi viewed significant comfort on the food inflation front, coming from a sharp rise in pulses output. However, he believed that government supply response and supply management will remain critically important to influence the space for monetary policy actions. 
The RBI governor Dr Patel also explicitly stated that the inflation target of 5% for Q4FY17 is likely to be achieved, even as upside risks persist.
Religare says it expect inflation to undershoot RBI's projection for FY2017. Given this and the tweaks in parameters instituted by the new RBI governor and the MPC in the October Monetary Policy meeting, Religare believes that there is room for another 25bps cut in the remaining part of FY17. 
"However," it added, "we believe medium-term upside risks to inflation remain and the journey to the RBI’s Q4FY18 estimate of 4.5% would be a difficult one. It would be affected by the implementation of the housing allowances portion of the 7th CPC, GST implementation , rising global commodity and oil prices, stickiness in core inflation and  the US Fed’s rate hike timeline and financial and currency market response, and the impact on imported inflation via currency depreciation."



Govinda Warrier

5 days ago

MPC has come into being to relieve RBI Governor from individual responsibility of taking monetary policy decisions. As the responsibility of chasing inflation target still remains with RBI, naturally there will be some weightage for the inputs from RBI in MPC deliberations. Fixing MPC members as Hawks or Doves, may add spices to analyses. Individual members may not be amenable to such classifications, as the expert body progresses.


Anil Kumar

In Reply to Govinda Warrier 1 day ago

Govinda, good point.

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