Weekly Media Update_03.01.2022

1. 670
(This document comprises news clips from various media in which Balmer Lawrie is mentioned, news
related to GOI and PSEs, and news from the verticals that we do business in. This will be uploaded on
intranet and website every Monday.)
Real GDP may sustain 9% growth rate in
FY22 & 23
India's real gross domestic product (GDP) is likely
to maintain a 9% growth rate in fiscal 2022 and
2023, amid concerns over the Omicron variant of
Covid-19, a report said. The Indian economy grew
at 8.4% in the second quarter of the current fiscal,
as against a growth of 20.1% in the April-June
quarter. "We are maintaining our forecast of a 9%
GDP expansion in FY2022, with a clear K-shaped
divergence amongst the formal and informal parts
of the economy, and the large gaining at the cost
of the small. We expect the economy to maintain
a similar 9% growth in FY2023," domestic rating
agency Icra chief economist Aditi Nayar said in the
report. She expected the percentage of double-
vaccinated adults to rise to 85-90% by March
2022. While the announcement of booster doses
and vaccines for the 15-18 age group is welcome,
it remains to be seen whether all existing vaccines
would offer adequate protection against the new
Omicron variant to avert a third wave in India,
Nayar said. In any case, fresh restrictions being
introduced by several states to curb the spread of
COVID-19 may temporarily interrupt the economic
recovery, especially in the contact-intensive
sectors in Q4 FY2022, she added.
The Economic Times - 29.11.2021
https://epaper.timesgroup.com/olive/odn/theeco
nomictimes/shared/ShowArticle.aspx?doc =ET KM
%2F2021%2F12%2F29&entity=Ar01104&sk=57
9487A6&mode=text
Economic recovery nascent, faces
fresh challenges
Economic recovery gained some traction in
2021 (barring the June quarter when the second
Covid wave struck hard), culminating in an
8.4% year-on-year expansion of real GDP in the
September quarter. With further headway in the
vaccination drive, the economy is expected to
beat the pre-pandemic level in the second half
of FY22 unless the new Covid strain – Omicron
– plays spoilsport. But subdued private
consumption (it was down by 3.5% from pre-
Covid level in Q2FY22), the principal pillar of the
economy, suggests the recovery is yet to take
roots. Soaring inflation, driven by elevated
input prices, could further pressure private
consumption. Even fixed investments, despite
recent improvement, grew only marginally in
the September quarter from the pre-Covid
level, as private investors continued to remain
risk-averse. With the favourable base effect
waning, pace of industrial production, too,
tripped in October. Going forward, ensuring a
steady recovery in private consumption as well
as investment, smoothening supply-chain
bottlenecks for sustained export growth,
curbing inflationary pressure and tackling new
Covid varieties remain the biggest challenges
for policymakers.
The Financial Express - 31.12.2021
https://www.financialexpress.com/economy/2
021-looking-back-economic-recovery-nascent-
faces-fresh-challenges/2394814/
Economy faces headwinds from Omicron,
inflation: RBI guv
The RBI governor’s observations are part of the
financial stability report (FSR), released by the
central bank on Wednesday. In the report, the RBI
said that even ahead of Omicron, global growth
and trade had begun to lose pace, stalled by
formidable headwinds from supply disruptions and
bottlenecks, logistics dysfunctions, shipping
charges and port congestions as well as a shortage
in key intermediates and personnel. "These forces,
along with elevated commodity prices, have
rendered inflationary pressures persistent across
geographies, posing a serious risk to global
Core growth slows to 9-month low in
Nov
India’s core sector growth slipped to a nine-
month low in November following a broad-
based moderation in key infrastructure sectors
and a sequential decline in output over October,
data released by the commerce and industry
ministry showed. The index of eight core
industries expanded 3. 1% year-on-year in
November compared with October’s growth of
8. 4%, revised from 7. 5%. However, it
contracted 4. 1% month-on-month. “Core
sector growth deflated to a lower than expected
3. 1% in November from the revised 8. 4% in
WEEKLY MEDIA UPDATE
Issue 534
03 January, 2022
Monday

2. economic prospects." The RBI also said that the
government’s fiscal deficit target of 6.8% for the
current financial year is likely to come under strain
following the second supplementary demand of
grants (Rs 3.7 lakh crore) presented in December
2021. On the positive side, there is an element of
fiscal consolidation as the demand for grants
includes the retirement of high-cost payment
obligations relating to Air India.
The Times of India - 30.12.2021
https://timesofindia.indiatimes.com/business/indi
a-business/eco-faces-headwinds-from-omicron-
inflation-rbi-guv/articleshow/88576058.c ms
October, adding further evidence that the
momentum slackened after the festive season
amidst supply disruptions in parts of southern
India related to heavy rainfall,” said ICRA chief
economist Aditi Nayar. The index measures the
output of eight sectors--coal, steel, cement,
fertiliser, electricity, natural gas, refinery
products and crude oil. Fertiliser output rose 2.
5% in November compared with 0. 04% in
October--the only sector with sequential growth
as rabi sowing progressed. Coal output rose 8.
2% year-on-year against 14. 7% in October and
3. 3% in November last year.
The Economic Times - 01.01.2022
https://epaper.timesgroup.com/article-
share?article=https://asset.harnscloud.com/Pu
blicationData/ET/etkc/2022/01/01/ArticleZoneJ
son/009/01_01_2022_009_008_etkc.json
April-Nov fiscal deficit at 46% of FY22
budget estimate
The centre’s fiscal deficit at the end of November
came at 46. 2% of the FY22 budget estimate on
the back of robust revenues, official data released
Friday showed. The deficit figures in the current
financial year till November appear much better
than the previous financial year when it had
soared to 135. 1% of the estimates mainly on
account of a jump in expenditure to deal with the
COVID-19 pandemic. In actual terms, the deficit
stood at Rs 6. 95 lakh crore at the end of
November 2021 against the annual estimate of Rs
15. 06 lakh crore, according to data released by
the Controller General of Accounts (CGA). For the
current financial year, the government expects the
deficit at 6. 8% of GDP or Rs15. 06 lakh crore.
Experts said this was the lowest since FY98 in
percentage terms of the full year’s fiscal deficit.
They were divided on the issue of the government
meeting FY22 target. Said M Govinda Rao, Chief
Economic Adviser at Brickwork Ratings:” Even so
achieving the disinvestment target set in the
budget is unlikely as divestment in Bharat
Petroleum Corporation may not be completed
before March 31, 2022."
The Economic Times 01.01.2022
https://epaper.timesgroup.com/article-
share?article=https://asset.harnscloud.com/Publi
cationData/ET/etkc/2022/01/01/ArticleZoneJson/
009/01_01_2022_009_005_etkc.json
Oil demand recovery to remain fragile,
Petronas says
Malaysia's state energy firm Petronas said on
Tuesday that it anticipates recovery in oil
demand from the impact of the coronavirus
pandemic to remain fragile and ..
and uncertain in the next few years. In its
activity outlook report for 2022-2024, released
on Tuesday, Petronas said, "The path towards
sustained oil demand recovery remains fragile
and uncertain due to the emergence of new
COVID-19 variants that trigger fresh waves of
lockdowns." It said industry players were
optimistic about economic recovery but
remained cautious. "The smarter approach
would be to strengthen efforts collectively and
be ready to face oil price volatility," it said. After
2024, Petronas said it foresees a positive
outlook for drilling rigs activity while continuing
to enhance and upgrade capability. It also
expects a steady outlook for fabrication of fixed
structures and subsea facilities as it continues
efforts to monetise its oil and gas resources.
Liquefied natural gas spot prices were expected
to be volatile in the coming years due to
weather pattern and potential policy changes
that can alter supply-demand dynamics, it said.
The Economic Times - 29.12.2021
https://energy.economictimes.indiatimes.com/
news/oil-and-gas/malaysias-petronas-sees-oil-
demand-fragile-and-uncertain/88550335
Oil Heads for biggest annual gain since at
least 2016, brent at $78.85
Oil prices fell on Friday but were set to post their
biggest annual gains since at least 2016, spurred
by the global economic recovery from the Covid-
19 pandemic slump and producer restraint, even
as infections reached record highs worldwide.
Oil marketing companies make higher
margins as crude falls
It is supposedly market-driven pricing, but over
the last around nine weeks, state-run oil
marketing companies (OMCs) haven’t let the
decline in crude oil prices benefit consumers.
Instead, these firms have just made higher

3. Brent crude futures fell 70 cents, or 0. 9%, to $78.
85 a barrel at 10:16 a. m. EST (1516 GMT). Brent
is on track to end the year up about 52%, its
biggest gain since 2016. Global oil prices are
expected to rise further next year as jet fuel
demand catches up. "We've had Delta and
Omicron and all manner of lockdowns and travel
restrictions, but demand for oil has remained
relatively firm," said Australian brokerage firm
CommSec's Chief Economist Craig James. "You
can attribute that to the effects of stimulus
supporting demand and restrictions on supply. "
However, after rising for several straight days, oil
prices stalled on Friday as Covid-19 cases soared
to new pandemic highs across the globe, from
Australia to the United States, stoked by the highly
transmissible Omicron coronavirus variant.
The Economic Times - 01.01.2022
https://epaper.timesgroup.com/article-
share?article=https://asset.harnscloud.com/Publi
cationData/ET/etkc/2022/01/01/ArticleZoneJson/
007/01_01_2022_007_011_etkc.json
margins on the sales of auto fuels. OMCs
haven’t reduced the prices they charge the
retailers for the diesel and petrol since
November 4, so their marketing margins on the
two fuels have risen to around Rs 9/litre or
roughly 30% from the October level, analysts
said. The price of Indian basket of crude fell
from the level of $83.7/barrel on November 2
to $74.6/barrel on December 28. “If OMCs could
maintain such margins till the end of January,
they could report Q4 average margins above
normative levels despite major elections in
Punjab and Uttar Pradesh in Feb-March, unless
oil prices spike,” analysts at Emkay Global
wrote. The end-consumers got marginal relief
after the Centre, on November 3, announced
excise duty cuts of Rs 5/litre on petrol and Rs
10/litre on diesel, lowering retail price of petrol
from an all-time high of Rs 110.04/litre to Rs
103.97/litre while diesel rates dropped from Rs
98.42/litre to Rs 86.67/litre (in Delhi)
The Financial Express - 30.12.2021
https://www.financialexpress.com/market/com
modities/oil-marketing-companies- make-
higher-margins-as-crude-falls/2393657/
BPCL sale unlikely this fiscal, Modi govt
will be Rs 60,000 cr short of
disinvestment target
The Narendra Modi government is expected to
miss its 2021-22 disinvestment target of Rs 1.75
lakh crore by about Rs 60,000 crore as the
privatisation of the Bharat Petroleum Corporation
Ltd (BPCL) is not likely to go through before the
financial year ends. In the last fiscal, 2020-21, the
government set a disinvestment target of Rs
2,10,000 crore in the Union Budget, and missed it
by a whopping Rs 1,78,000 crore. The government
had set an ambitious target of Rs 1,75,000 crore
in the Union Budget 2021-22, with over a third of
the receipts targeted from the listing (of shares for
part sale of the government’s stake) of Life
Insurance Corporation and privatisation of BPCL.
Experts have estimated that listing of LIC itself is
likely to fetch the government around Rs 1 lakh
crore. The target is a mix of receipts from the
privatisation of some public sector enterprises and
from the sale of the government’s minority stake
in other PSUs. While the disinvestment
department has assured that the initial public offer
of LIC would take place before 31 March 2022, the
sale of BPCL, where the government is to sell its
entire stake of 52.98 per cent, is in limbo as the
bidders for the company have not been able to find
partners who can buy the company with them.
The Print - 29.12.2021
https://theprint.in/economy/bpcl-sale-unlikely-
this-fiscal-modi-govt-will-be-rs-60000-cr-short-
of-disinvestment-target/789426/
Asset monetisation bid to draw Pvt
investment
The government is betting big on privatisation
and asset monetisation, and several significant
and high-value transactions are expected to go
through in FY23. The disinvestment target may
also increase from the ₹1. 75 lakh crore pegged
for FY22 and come closer to the FY21 target of
₹2. 1 lakh crore. FY22 saw the first privatisation
of a public sector enterprise in 19 years with Air
India’s sale to Tata group. The government is
pursuing strategic sale in 22 firms, of which the
process has begun for17. Experts say these will
open opportunities for private players to invest
in commercially operative projects. A ready
pipeline of working assets will be attractive to
investors as cash rich corporates and sovereign
funds scout for opportunities. “They are an
immediate source of revenue without any
construction risk and other de- laying factors,”
said Jyoti Prakash Gadia, managing director at
Resurgent India, transaction advisor to the
government in some stake sales. A National
Monetisation Pipeline (NMP) of key assets in
sectors such as roads, ports, airports, railways,
mining, and telecom will be let out on long-term
leases to the private sector.
The Economic Times - 03.01.2022
https://epaper.timesgroup.com/article-
share?article=https://asset.harnscloud.com/Pu
blicationData/ET/etbg/2022/01/03/ArticleZone
Json/005/03_01_2022_005_002_etbg.json

4. Pankaj Jain new petroleum secy in top-
level shuffle
The government on Monday appointed IAS officer
Pankaj Jain as the new petroleum secretary, while
consumer affairs secretary Leena Nandan was
shifted to environment ministry in a top-level
reshuffle. Vini Mahajan, who was replaced as
Punjab chief secretary after the political change,
will move to the Centre as the new drinking water
and sanitation secretary. Mahajan was part of the
PMO during the UPA government’s tenure. Manoj
Joshi, a Keralacadre officer of the 1919 batch, has
been designated as the new secretary for housing
and urban affairs with the Centra Vista project
being a key issue under the ministry’s charge.
Forest service officer from Gujarat, Bharat Lal,
who has closely worked with Prime Minister
Narendra Modi, has been appointed as secretary
to Lokpal. Lal, who is to superannuate at the end
of January will have a one year contract following
his retirement. Steel ministry will get a new
secretary in Madhya Pradesh cadre IAS officer
Sanjay Kumar Singh, who is currently posted as
the secretary for administrative reforms and public
grievances. Singh will be replaced by V Srinivas, a
1989-batch officer from Rajasthan.
The Times of India - 28.12.2021
https://epaper.timesgroup.com/olive/odn/timeso
findia/shared/ShowArticle.aspx?doc =TOIKM%2F2
021%2F12%2F28&entity=Ar01009&sk=D8B6E92
C&mode=text
DS Nanaware takes charge as Director
of Pipelines at Indian Oil
D S Nanaware has taken charge as Director
(Pipelines) of India's largest oil company, IOC,
the firm said on Wednesday. Nanaware is a
mechanical engineering graduate from
Walchand College of Engineering, Sangli in
Maharashtra. He has a varied experience of
over 36 years. He is also the Chairman of IHB
Ltd -- a joint venture of Indian Oil Corporation
(IOC), Hindustan Petroleum Corporation Ltd
(HPCL) and Bharat Petroleum Corporation Ltd
(BPCL) -- which is building the world's longest
LPG pipeline from Kandla in Gujarat to
Gorakhpur in Uttar Pradesh. "Before he
assumed the office of Director (Pipelines), he
was Executive Director (Projects) at the
Pipelines Division Head Office of IOC," the
company said in a statement. Earlier, as the
head of Southern Region Pipelines (SRPL), he
was instrumental in starting the prestigious
Ennore-Tuticorin Gas Pipeline Project and
successfully commissioning its Ennore-Manali
and Ramanathapuram-Tuticorin sections.
The Economic Times - 30.12.2021
https://energy.economictimes.indiatimes.com/
news/oil-and-gas/ds-nanaware-takes-charge-
as-director-of-pipelines-at-indian-oil/88579219
Cairn Oil & Gas appoints Martyn Smith as Chief Operating Officer
Cairn Oil & Gas, India’s largest private exploration and production company announced it has appointed
Martyn Smith as Chief Operating Officer. He has an experience of 35 years in reservoir & petroleum
engineering and subsurface geoscience disciplines. Smith has been part of the leadership in global
companies including British Petroleum where he led as the Global Head of Reservoir Development. He
has worked in diverse oil & gas portfolios in technical, commercial and research roles in Europe, Asia,
the Middle East, North America and Africa. "He is joining Cairn at a promising time as the company
seeks to double its capacities and contribute 50 per cent to India’s domestic crude production," the
company, a part of the metals and mining giant Vedanta, said in a statement. Commenting on the
development, Deputy CEO Prachur Sah said Martyn is joining Cairn Oil & Gas at an exciting time as
the company is pacing ahead with the next phase of growth.
The Economic Times - 28.12.2021
https://energy.economictimes.indiatimes.com/news/oil-and-gas/cairn-oil-gas-appoints- martyn-
smith-as-chief-operating-officer/88518512