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The idea of smart grid, of which a smart meter is a sub-set, is to increase the efficiency of power usage by the introduction of bi-directional flow of information from utilities to consumers, and vice-versa. This can be possible by the introduction of ‘Advanced Metering Infrastructure (AMI)’. The information about electrical consumption of a consumer is recorded in a timely manner, and this data is aggregated and analysed by ‘smart meters’ installed at consumer premises. The analysed data is communicated to utilities using the AMI. The AMI includes the advanced communication system, including home area networks (HAN), neighbourhood area networks (NAN), and wide area networks (WAN).

It is not as if it is only the power distributor’s hands that are strengthened. It is a two-way street. The consumers’ hands too are strengthened with the distributor alerting to wastage at the consumer end, which they can plug instantly — say, for example, a television drawing power though not in use; the same is the case with an air-conditioner that may not be in use, but power is consumed if the power switch of the appliance is not switched off.

Such alerts galvanise somnolent consumers into action, resulting in prevention of guzzling and heightened bills. Consumers can also monitor their consumption on a daily basis and accordingly initiate suitable measures as against the present norm of waking up with a shudder when the bill lands in our letterbox/inboxes. When metering becomes fairer and advanced like higher peak-time rates as in Malaysia, the utility of real time information would be even more — shifting peak loads to leaner times of the day wherever possible to avoid peak time tariffs. A smart meter also enables switching from conventional power to renewable energy (like solar) thanks to the two-way communication which is its centrepiece.

The PGCIL’s weak alibi is that the latest technology is as yet unproven. Really? One doesn’t have to go very far. The Tata Power Delhi Distribution, which supplies electricity in the north and north-west Delhi, last year chose the latest platform and connectivity technology — Narrow Band Internet of Things (NBIoT). This technology can work with 4G and 5G networks.

Surprisingly, the PGCIL has tweaked the technology requirement from the latest to the dated in the tender inviting bids for setting up 10 million smart meters just days before the bid closed on August 30.

The atavistic instinct for hurtling to obsolete technology is a throwback to State-run BSNL remaining a 2G service provider for long when its fleet-footed private sector competitors were progressing from generation to generation. The PGCIL cannot pivot, and smugly counter saying unlike in the telecom sector, in the power sector competing for custom is not yet on.

At any rate, it would be wasteful and cynical to embrace a dated technology, even if it is cheaper only to report sub-optimal results at the end of the day, when enthusiastic adoption of the state-of-the art tech can prevent the downside of such short-sighted courses of action. We are in a fortunate position to have requisite technology that can make a huge difference to the power sector.

As India grows so does its power needs, and astute usage of power is crucial for India’s development. Seen from such a prism, the decision to make good with outdated technology will hamper India’s growth in the years to come. Therefore, it would be foolish to embrace junked technology.

India's manufacturing activity improved in August, although S&P Global's Purchasing Managers' Index (PMI) edged down to 56.2 from eight-month high of 56.4 recorded in July.

A reading above 50 indicates expansion in activity, while a sub-50 print is a sign of contraction.

This is the 14th consecutive 50-plus print for the manufacturing PMI.

Firms were at their most optimistic for six years," S&P Global said.

India’s economy probably grew at the fastest rate in a year last quarter driven by healthy consumption, but the pace of expansion is seen slowing as policymakers prioritize rising prices over growth.

Gross domestic product is estimated to rise 15.4% in the three months to June from a year ago, according to a Bloomberg survey of economists. That’s the fastest reading since the April-June quarter of 2021 and compares with a 4.09% expansion in the previous three months.

The Statistics Ministry is due to release the data for the first quarter of the fiscal year that started April 1 at 5:30 p.m. India time on Wednesday. Stock and bond markets will be shut on the day for a local holiday.

Resumption of activity in India’s dominant services sector, following the lifting of pandemic curbs, and a record jump in exports added to the momentum. The pace will likely moderate in coming quarters as the central bank raised rates by 140 basis points  this year to bring price gains under its 6% target ceiling.

The resilient growth backdrop means the RBI will retain its focus on containing inflation,” said Rahul Bajoria, an economist with Barclays Bank Plc. “That makes its policy choices relatively clear, in the short term,” he said, projecting another 50 basis points of rate hikes over two meetings in September and December.

The International Monetary Fund sees Asia’s third-largest economy sustaining its world-beating growth tag as the lender estimates a growth of 7.4% this year and 6.1% thereafter. A fast pace of expansion is crucial for India to attract investors and create jobs for its growing population.

Risk Factors

Besides rate hikes, a global slowdown will also weigh on the Indian economy. The US Federal Reserve’s resolve to keep raising rates until inflation comes under control may hurt Indian exports and thus drive domestic output lower.

The Indian rupee Tuesday dropped to a fresh record low and key stock gauges declined amid a global surge in risk-off sentiment after central bankers delivered a hawkish message at Jackson Hole.

Challenges also remain on the domestic front from rising prices of key staples such as rice and wheat amid factors such as climate change. If not contained, this could again fuel food inflation, which comprises about half of India’s consumer price index basket.

Exogenous forces will act as counterweights, including impact of the heatwave on farm output followed by uneven start to the monsoon, sharp rise in commodity prices impinging on corporate margins and an uncertain global environment,” said Radhika Rao, an economist with DBS Bank Ltd.

For now, indicators are giving mixed signals on activity going forward. While global demand is softening, government spending and a possible pick up in private investment is stoking hopes of a revival.

Shares of information technology (IT) companies fell up to 6 per cent on the National Stock Exchange (NSE) in Monday's intra-day trade after the US Federal Reserve Chairman Jerome Powell said that higher inflation is likely to inflict pain across households and businesses.

At 09:23 am, the Nifty IT index was the top loser among sectoral indices, and was down 4.5 per cent, as compared to 2 per cent decline in Nifty 50. Meanwhile, in the past eight days, the index has slipped 10 per cent, as compared to 4 per cent decline in the Nifty 50 index.

Shares of Tech Mahindra, Infosys, Tata Consultancy Services (TCS), Mindtree, Larsen & Toubro Infotech, Coforge, HCL Technologies, Wipro and L&T Technology Services fell up to 6 per cent intoday's intra-day trade.

The April-June quarter (Q1FY23) saw execution pick up for IT companies as it is a first full quarter of execution (barring company specific seasonality) after full/partial impact of furlough in Q3 and Q4. Operating margins, however, were impacted due to wage hikes rolled out in the quarter for few companies, while for others, supply side challenges, increase in sub-contractor expenses, travel & visa related expenses acted as major headwinds.

Despite minor pain in select verticals of IT companies, analysts at ICICI Securities remain optimistic of no downward revision in revenue growth guidance for FY23.

"The demand environment continues to be strong, which reflects in healthy order book growth. However, companies did mention about weakness in a few pockets as far as tech spending is concerned due to some impact of macro headwinds. The weakness largely pertains to BFSI and retail verticals. It is also heartening to see no downward revision in revenue growth guidance in FY23 by any of the companies," the brokerage firm said.

On the contrary, a media report by the Economic Times stated that the revenue of the IT service providers may be impacted by up to 33 per cent due to a fall in the growth rate of three platforms - Amazon Web Services, Microsoft Azure and Google Cloud. In the first half of 2022, the three platforms have reported a 7 per cent fall in incremental revenues

The Congress on Monday slammed Ghulam Nabi Azad for his latest attack on its top leadership, saying he has been tasked to "slander" the party and by doing so he diminishes himself further.

Launching a fresh attack on the Congress three days after he quit the party, Azad said the party needs medicines for treating it which are being provided by compounders instead of doctors. He also accused the Congress leadership of not having time for setting the organisation right.

Speaking to reporters at his residence here, Azad who quit the party on Friday last, alleged that the leaders being projected in the party in states are making party members leave instead of uniting them.

Hitting back at Azad, Congress general secretary in-charge communications Jairam Ramesh said, "After such a long career, courtesy entirely the party he's been tasked to slander, by giving interviews indiscriminately, Mr. Azad diminishes himself further."

"What's he afraid of that he's justifying his treachery every minute? He can be easily exposed but why stoop to his level?" he said on Twitter. Azad on Friday had ended his five-decade association with the party, terming it "comprehensively destroyed" and lashing out at Rahul Gandhi for "demolishing" its entire consultative mechanism.

The rupee weakened to a new low against the US dollar on Monday as the greenback surged globally following Federal Reserve Chair Jerome Powell’s firm commitment to tackling high inflation even at the cost of economic growth.

The rupee weakened to a low of 80.14 per US dollar in the first few minutes of trade on Monday as the US dollar index strengthened well past the 109 mark.

The previous lifetime low for the rupee was 80.06 per dollar on July 19. The domestic currency, which had settled at 79.87 per dollar on Friday, regained some ground due to the Reserve Bank of India’s market interventions through dollar sales, dealers said. The local unit was at 80.02 per dollar at 9:30 am IST.

At the Jackson Hole Economic Symposium on Friday, Powell said that “restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy.”

The US dollar index, which measures the currency against six major rival currencies, was last at 109.33 as against 108.20 at the end of Indian market hours on Friday. The index has strengthened more than 14 per cent so far in 2022.

A stronger US dollar exerts pressure on emerging market currencies such as the rupee and weakens the appetite of overseas investors for Indian assets.

“The rupee has breached the recent lifetime low in line with the fall in other Asian currencies and is expected to now test 80.60 to 80.75 levels in the next one month,” Ritesh Bhansali, vice-president at Mecklai Financial Services, said.

The rupee has weakened a little more than 7 per cent in 2022.

Dealers said that the RBI had intervened in the market around the 80.05-80.10 per dollar mark and would prevent excessive volatility in the exchange rate.

“Now, it would be all about RBI’s tolerance or intolerance of these record levels. If they think to curb the same, then we could see easing up to 79.70-80 levels or else pressure will take the pair towards 80.30 levels,” CR Forex Advisors MD Amit Pabari said.

“For confirmation of the technical breakout, one should wait for initial hours and check whether the pair is holding 80.05 or not,” he said. He sees the rupee in a band of 79.70-80.30 per dollar for the day.

Petrol and diesel prices held steady on August 29, the latest price notification issued by fuel retailers showed. The prices have stayed unchanged for more than a month.

Petrol in Mumbai is being sold for Rs 106.31 per litre and diesel for Rs 94.27. Petrol and diesel in Delhi cost Rs 96.72 and Rs 89.62 a litre respectively. Petrol and diesel are priced at Rs 102.63 and Rs 94.24 in Chennai and at Rs 106.03 and Rs 92.76 in Kolkata respectively.

Oil marketing companies are reportedly incurring a loss of Rs 13.08 a litre on petrol and Rs 24.09 on diesel. India meets 80 percent of its fuel needs through imports.

The Meghalaya government on August 25 hiked the prices of petrol and diesel.

Oil mixed as OPEC supply cut prospect offsets demand fears

Oil prices were mixed on Monday as investors balanced expectations the OPEC will cut output to support prices against concerns sparked by Federal Reserve Chairman Jerome Powell saying the United States will face slow growth "for some time".

U.S. West Texas Intermediate (WTI) crude futures rose 2 cents to $93.08 a barrel at 0003 GMT, adding to Friday's gain.

Brent crude futures were down 27 cents, or 0.3%, at $100.72 a barrel, trimming gains from the previous session.

In a speech on Friday, Powell said curbing inflation "is likely to require a sustained period of below-trend growth" and would "bring some pain to households and businesses", which rattled equity markets while boosting the dollar.

The dollar index continued to climb on Monday to 109.16, up 0.3% in early trade. A stronger dollar weighs on oil as it makes crude more costly for buyers holding other currencies.

Mukesh Ambani’s once-a-year speech to investors has over time evolved into an eagerly-awaited pronouncement on his $222 billion empire akin to Warren Buffett’s annual letters to Berkshire Hathaway shareholders.

This year, Reliance Industries Ltd.’s investors will be looking for insight on Monday around the company’s 5G rollout, how he plans to unlock the value of his telecom and retail units through separate listings, and when and how his children will take over the reins.

Anticipation is high as the 65-year-old billionaire, who built Reliance into India’s largest company by market value and a powerhouse conglomerate, has used the speech for a series of big announcements. These include the launch of his disruptive telecom service in 2016, Saudi Arabian Oil Co.’s proposed investment in Reliance’s energy business in 2019 and a strategic shift to green energy last year.

This year’s shareholder meeting comes as the refining-to-retail group faces the twin challenges of a global recession and the blistering rise of Gautam Adani, who eclipsed Ambani as Asia’s richest man earlier this year and is emerging as an alternative power center on the corporate landscape.

Reliance investors will have in mind how Adani’s conglomerate split its business into different listings years ago, unlocking value, and will expect “clarity and specific time lines for the next big things” from Ambani’s more-centralized holdings, Kranthi Bathini, equity strategist at WealthMills Securities Pvt Ltd. in Mumbai. Adani’s wealth has surged $58 billion this year riding the stocks rally compared to $3.3 billion rise in Ambani’s.

Here’s where investors are expecting news:

Succession

The patriarch signaled that succession planning atop Reliance will be expedited in last year’s shareholder meet and reiterated it explicitly in December. His three children -- daughter Isha and sons Akash and Anant -- are already holding various directorships in the group’s unlisted firms and are becoming more visible in their leadership.

Ambani stepped down as the chairman of Reliance Jio Infocomm Ltd. in June, making way for his elder son, Akash, who took over the helm at India’s largest wireless operator. As rumors keep swirling around Ambani’s health, investors will look for more concrete steps to be taken in leadership transition, with Isha, Anant and possibly his wife, Nita, taking on more responsibility.

5G Rollout

Reliance Jio Infocomm bought airwaves worth over $11 billion at a local spectrum auction as it sought to cement its edge over the smaller rivals -- Bharti Airtel Ltd. and Vodafone Idea Ltd. -- in the rollout of speedier 5G networks. That will be key to boosting revenues and luring high-value users.

Investors will be looking for proof of the pudding here. The technology is yet to return profits for Asian wireless operations despite investing billions of dollars, even for those in China which have been offering 5G service since 2019. Details like a nationwide rollout date, tariff plans for 5G services as well as where demand lies for the service will be crucial for Reliance Jio to reveal.

The Ambani children may demonstrate some of the key features of the 5G services at the meeting, just as they’ve showcased new telecoms products in the past.

Spinoffs, IPOs

The street has been waiting to get better clarity around the initial public offerings of Reliance Jio and Reliance Retail Ltd. especially after the two consumer businesses raked in $27 billion from marquee global investors in 2020.

Both companies are market leaders in their respective sector with a formidable lead over their rivals. Their listings -- or even spinoffs -- could propel Ambani’s net worth. “The timelines are crucial to get the mojo back for Reliance stock,” Bathini said. Reliance has gained just about 11% this year compared to the more than 40% rise by top performers in S&P BSE Sensex.

New Energy, Old Energy

The $76 billion pivot toward green energy is the biggest transformation that Ambani is helming currently. It’s also a difficult transition given the conglomerate’s roots in petrochemicals and crude oil refining and the continued out-sized contribution of the fossil fuel-led businesses in Reliance’s yearly revenue.

Investors will look for updates around last year’s announced plans to build four giga-factories to make solar modules, hydrogen electrolyzers, fuel cells and storage batteries. Ambani has also been on a tear acquiring small green energy firms globally for expertise and technology. There are also plans to become among the world’s top blue hydrogen makers.

Going Global

Ambani emphasized his vision for the “internationalization of Reliance” in his speech last year.

In the past year, Reliance has made overtures toward big overseas deals like a potential acquisition of the British drugstore chain Boots, which was never completed. Investors will want to see if the appetite for global acquisitions still exists amid a slowing worldwide economy.

Then there’s always the possibility of a curveball at the meeting, said Bathini. “Never underestimate the power of senior Ambani” to surprise the market, he said.