Weekly media update 21 03_2022

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(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.)
Balmer Lawrie in News
Moody’s cuts forecast
Moody’s on Thursday slashed India’s growth
estimate for the current year to 9.1 per cent from
9.5 per cent, saying the high fuel and fertiliser
import bill could limit the government’s capital
expenditure. In its Global Macro Outlook 2022-23
, Moody’s said that India’s growth is likely to be
5.4 per cent in 2023. The global rating firm, which
had raised India’s GDP growth number for 2022 to
9.5 per cent from 7 per cent less than a month
ago, said it was now scaling down its global growth
outlook and raising inflation projections in light of
the spurt in commodity prices, supply shortages,
business disruptions and the dented sentiment to
the Russia-Ukraine conflict. "High fuel and
potentially fertiliser costs would weigh on
government finances down the road, potentially
limiting planned capital spending,” it said.
The Telegraph - 18.03.2022
https://www.telegraphindia.com/business/moody
s-cuts-forecast/cid/1856532
India making steady progress, global
crisis notwithstanding: RBI
Notwithstanding the geopolitical crisis created
by the ongoing Russia-Ukraine conflict, India is
making steady progress as it recovers from the
third wave of pandemic though downside risks
remain, the Reserve Bank said in an article on
Thursday. Observing that India’s
macroeconomic fundamentals remain strong,
the article in the RBI Bulletin on ‘State of the
Economy’ said, “unfolding global developments
nevertheless pose downside risks in terms of
spillovers.” It further said that the ongoing
geopolitical crisis has heightened the
uncertainty clouding the global macroeconomic
and financial landscape even as the world
economy struggles to recover from the
pandemic. Spiralling oil and gas prices and
unsettled financial market conditions pose fresh
headwinds to the still incomplete global
recovery, it said, adding “amidst these testing
times, India is making steady progress on the
domestic front as it recovers from the third
wave.”
The Financial Express - 18.03.2022
https://www.financialexpress.com/economy/in
dia-making-steady-progress-global-crisis-
notwithstanding-rbi/2464285/
WEEKLY MEDIA UPDATE
Issue 545
21 March, 2022
Monday
Business Standard
– 15.03.2022

Retail inflation at 8-mth high, double-
digit WPI for 11th mth
Retail inflation inched up marginally to an eight-
month high in February on the back of rising food
& beverage, clothing & footwear prices, while
wholesale price inflation remained in double digits
for the eleventh consecutive month, posing a
policy challenge for authorities battling hardening
price pressures against the backdrop of Russia’s
invasion of Ukraine. Data released by the National
Statistical Office (NSO) on Monday showed
inflation, as measured by the Consumer Price
Index (CPI), rose an annual 6. 1% in February
from 6% in January. Retail inflation was at 5% in
February 2021. Inflation in rural areas was higher
at 6. 4% while in urban centres it was at 5. 8%.
Food and beverages inflation rose to a15-month
high despite some moderation in eggs,
vegetables, pulses and sugar. Edible oil prices
remained robust amid supply disruptions and rose
by 16. 4% and are likely to pose a challenge in the
months ahead. Soaring crude oil prices are also
expected to put pressure on prices. RBI governor
Shaktikanta Das had last month said that there
was no need for surprise or alarm over the 6%
retail inflation number.
The Times of India - 15.03.2022
https://epaper.timesgroup.com/article-
share?article=15_03_2022_015_006_toikc_TOI
Feb exports up 25.1%, trade deficit
widens
Buoyed by shipments of engineering,
petroleum, electronics and chemicals, India’s
goods exports rose 25. 1 % to $34. 57 billion in
February even as the trade deficit widened to
$20. 88 billion from $13. 12 billion in the year
ago period. Data released by the commerce and
industry ministry on Monday showed that
imports during the month jumped 36% to $55.
45 billion, with inbound shipments of petroleum
and crude oil surging 69% to $15. 28 billion.
Gold imports in February fell 9. 65 % to $4. 8
billion while imports of electronic goods rose 29.
53% to $6. 27 billion. “With a much sharper
year-on-year growth in non-gold imports
relative to aggregate merchandise exports, the
merchandise trade deficit rose to $20. 9 billion
in February,” said Aditi Nayar, chief economist,
ICRA. Exports of engineering goods, petroleum
and chemicals in February increased 32%, 88.
14% and 25. 38% to $9. 32 billion, $4. 64
billion and $2. 4 billion, respectively.
Pharmaceutical exports, however, slipped 1.
78% to $1. 96 billion in February. Benefitting
from higher commodity prices and bouts of
global optimism, India's merchandise exports
are likely to touch $410 billion in FY22.
The Economic Times - 15.03.2022
share?article=15_03_2022_009_009_etkc_ET
75% of CEOs see moderate or no impact
of war on economy
Three-fourths of CEOs and business leaders polled
in an ET survey see moderate or no impact on the
Indian economy from the Russian invasion of
Ukraine, with over half of them expecting a top-
line growth of over 15%. Over 70% of 40 CEOs
surveyed want the government to slow down fiscal
consolidation to support growth and 60% do not
see the geopolitical situation impacting their
capital expenditure plans. More than half of those
polled see the price of their products or services
rising due to higher input costs and other impacts
of the war– 32. 5% expect a price rise of 5-10%
while 25% see over 10% increase. The poll
responses are from 40 CEOs across the
manufacturing, services and infrastructure
sectors. Over a third see GDP growth in the range
of 7-8% in the next fiscal, in line with independent
economists, while 27. 5% expect the economy to
rise over 8%. The Russian invasion of Ukraine has
destabilised global financial markets, sent
commodities and crude prices surging, firmed up
bond yields and caused inflation to accelerate to
records in the developed world.
Economy prepared for external shocks:
FinMin
The finance ministry on Tuesday said that the
Indian economy is well prepared to absorb any
upcoming external shock in terms of capital
outflow induced by an uncertain geo-political
environment. However, inflation remains a
concern. The report said India has adequate
forex reserves to absorb any upcoming external
shock. "Notwithstanding global developments,
India’s forex reserves also stood at record high
and large enough to finance more than 12
months of import,” the report added. It said
despite the challenges, India’s external sector
exhibits signs of resilience with robust growth in
merchandise exports, which increased to $374.
8 billion during April 2021-February 2022.
However, it warned that high energy and
commodity prices may pose upside risk to the
inflation outlook in the near medium term. For
the coming fiscal year 2022-23 RBI has
projected CPI inflation at 4. 5%. The report says
that this re- quires close monitoring. “Recent
increase in prices of food and energy
commodities and metals warrants continued

vigil on the inflation front,” the monthly
economic report said.
Total profit of profit making CPSEs has
increased by 37% during FY 20-21
According to the statement given by Union
Minister of State for Finance Dr Bhagwat Kisanrao
Karad in his in Lok Sabha yesterday mentioned
that there are 255 operational Central Public
Sector Enterprises (CPSEs) as on March 31. 2021
with a total turnover of Rs. 24,26,045 crore in
2020-21 and out of these there are 177 CPSEs are
profit making with total profit of Rs.1,89,320
crore. According to the data the total profit of
profit making CPSEs has increased by 37.53% and
the total loss of loss making CPSEs has decreased
by 29.86% during FY 2020-21 over FY 2019-20.
Also, based on the information provided by the
Navratna CPSEs for FY 2020-21, the performance
in terms of overall profit has shown improvement
over the previous year in respect of most of the
Navaratna CPSEs. None of the Navaratna CPSEs
have reported loss of jobs due to cost cutting
efforts.
PSU Connect - 16.03.2022
https://www.psuconnect.in/news/total-profit-of-
profit-making-cpses-has-increased/31718
India's February oil imports surge as
refiners boost runs to meet demand
India's crude imports rose in February to 4.86
million barrels per day (bpd), their highest since
December 2020, preliminary data from trade
sources showed, as refiners cranked up runs to
meet increasing demand on better refining
margins. Oil imports by Asia's third-largest
economy rose 5% from January and were up
24% from a low base in February 2021, when a
refinery at Bathinda in northern India was fully
shut for maintenance, data showed. Indian
refiners typically buy oil two months ahead of
processing. Refiners are raising runs to cash in
on high margins to offset some of the losses
incurred for selling fuels in the local markets.
Some Indian refiners have also deferred
maintenance shutdowns of units to gain from
exports, while meeting rising local fuel demand.
Local fuel sales in India, the world's third
biggest oil importer and consumer, has been
rising since the government lifted COVID-19
induced curbs as infections subsided.
https://energy.economictimes.indiatimes.com/
news/oil-and-gas/indias-february-oil-imports-
surge-as-refiners-boost-runs-to-meet-
demand/90315212
India's oil demand may witness 8% rise
to 5.15 mn barrels/day in 2022
"With expected strong economic growth of 7.2 per
cent in 2022 and expected rapid containment of
Omicron in the near future, oil demand is expected
to recover," the OPEC report said. Mobility has
continued to improve, as average driving activity
in India increased. Oil demand this year has
increased as states relaxed COVID-19 restrictions
in line with declines in new infections. "Gasoline
(petrol) and diesel are likely to be particularly
favoured by the expected rise in GDP and the
already recovering mobility and consequently
driving activity," it said. Similarly, in line with a
forecast for a robust economy in 2022, the
industrial sector will provide support for diesel,
LPG and naphtha requirements. Jet kerosene
demand improvement is expected to be slower in
2022 because of travel challenges, particularly
business-related, it said. "Nevertheless, India is
projected to grow by 0.4 million bpd year-on-year
in 2022."
Millennium Post - 18.03.2020
State oil cos ready to buy discounted
Russian crude
Indian Oil, BPCL, HPCL and MRPL are all
preparing to purchase large volumes of Russian
crude that’s selling at a deep discount,
according to people familiar with the matter.
Companies are expected to make the deals in a
day or two after clarity on insurance, freight,
and payment for the Russian oil in view of the
Western sanctions, the people said, adding that
companies would take as much as their refinery
configuration permits. India takes barely 2% of
its needs from Russia but the current discount
is attracting refiners. India and Russian officials,
bankers, and corporate executives have been
deeply engaged over the last many days to
figure out a safe transaction. The Russian
energy sector per se doesn’t face sanctions, and
banking channels to pay for the country’s oil are
still open. But the commodity is attracting fewer
buyers as financiers and insurers are unwilling
to touch cargoes, unsure about the Western
sanctions.

http://www.millenniumpost.in/business/indias-
oil-demand-may-witness-8-rise-to-515-mn-
barrelsday-in-2022-471529
PSUs tanking up on Russian crude
State-run refiners have the government’s blessing
to buy Russian crude from the market without
violating sanctions clauses, which explains the
tenders floated by nearly all of them at a time
when trading houses are finding it difficult to find
buyers. Led by the largest state-run refiner
IndianOil, Hindustan Petroleum, and MRPL, the
refining subsidiary of exploration giant ONGC,
among them are lifting six million barrels of
Russia’s Urals grade from European trading
houses. Reports suggest Bharat Petroleum will
also queue up soon. India imports 85% of its oil
but Russia has never been amajor source for
Indian refiners, largely due to high cost of shipping
that involves transhipments. Russian crude
accounted for a meagre 2% of India’s oil imports
between April 2021 and January this year.
Therefore, there is something more than demand
that is driving these tenders. “There is no way
almost all major government refiners would have
floated tenders for Russian crude without
sounding out the government in the current
situation,” a person in the know said. TOI had on
March 15 reported India agreeing to buying
Russian oil.
The Times of India - 20.03.2022
share?article=20_03_2022_008_034_toikc_TOI
Petrol, diesel sales top pre-Covid level
on price hike fears
Gasoline and gasoil sales rose above pre-Covid
levels of 2019 in the first half of March,
preliminary data released on Wednesday
showed, as consumers and dealers topped
tanks ahead on likelihood of a fuel price hike
after March 10. State-controlled retailers sold
3.53 million tonnes of gasoil from March 1 to
15, up 32.8% from a month earlier. Sales of
gasoline were 1.24 million tonnes, up 18.8%.
Bharat Petroleum Corp chairman A.K. Singh
said, "20%-25% demand increase was due to
customers and dealers buying more anticipating
price rise." The retailers have not raised pump
prices since Nov. 4 despite a surge in global oil
and fuel prices, a move seen as aiding Prime
Minister Narendra Modi's Bharatiya Janata Party
in crucial state assembly elections. The
elections for five states, including the most
populous Uttar Pradesh, got over on March 10.
Sales of gasoil, which accounts for about two-
fifths of overall refined fuel consumption, are
directly linked to industrial activity in Asia's
third-largest economy.
news/oil-and-gas/petrol-diesel-sales-top-pre-
covid-level-on-price-hike-fears/90280887
Retail fuel prices would need to be
increased by 15% to reflect Int'l crude
prices
Retail fuel prices have not been marked to market
for a few months and should be increased by
approximately 15 per cent to reflect the current
international crude prices, Morgan Stanley said in
a report. As such, assuming an average of
US$110/bbl in F2023 (based on oil futures as of
March 7), the headline CPI for India is likely to
average at 6 per cent in F2023. "We opine CPI to
remain above the 6 per cent mark until September
2022, and only decelerate to 5.6 per cent by 4Q22.
With regard to policy response, we expect RBI to
commence monetary policy normalisation with a
reverse repo rate hike in the April policy review
and follow that up with a repo rate hike of 25bp in
the June policy review," it said. Risks emanate
from a sharper and sustained rise in oil prices,
which will potentially lead to front-loading rate
hikes, increasing risk of disruptive tightening.
Food inflation accelerated to the highest since
December 2020. On a YoY basis, food CPI rose to
Oil imports from US to rise 11%
India’s oil imports from the United States will
rise by 11 per cent this year, officials said on
Saturday, as the severely energy-deficient
country looks to secure supplies from producers
around the world, including heavily sanctioned
Russia. The surge in oil prices following Russia’s
invasion of Ukraine last month threatens to fan
Indian inflation, stretch public finances and hurt
growth just when it was emerging from a
pandemic-induced slowdown. New Delhi faces
criticism from the West for its long-standing
political and security ties with Moscow, with
some saying that engaging in business with
Russia will help fund its war. India has urged an
end to the violence in Ukraine but abstained
from voting against Russia. India buys most of
its oil from West Asia, but the United States has
emerged as the fourth-biggest source and this
year supplies will rise substantially, a
government official briefed on the matter told
Reuters. Iraq supplies 23 per cent of India’s oil,
followed by Saudi Arabia at 18 per cent and the
United Arab Emirates at 11 per cent. The US

5.9 per cent in February from 5.4 per cent in
January.
https://energy.economictimes.indiatimes.com/ne
ws/oil-and-gas/retail-fuel-prices-would-need-to-
be-increased-by-15-to-reflect-intl-crude-
prices/90219192
share of the Indian market will rise to 8 per cent
this year, said the official, who spoke on
condition of anonymity in line with government
policy.
The Telegraph - 20.03.2020
https://www.telegraphindia.com/business/oil-
imports-from-us-to-rise-11/cid/1856738
India hopes for oil from Iran, Venezuela;
higher output from OPEC+ to cool prices
India, the world's third-largest energy-consuming
and importing nation, is pinning hope on
resumption of crude oil supplies from Venezuela
and Iran as well as higher production from OPEC+
nations to help cool international oil prices that
have hit multi-year highs. It will also evaluate the
Russian offer to sell crude oil at discounted prices
after considering aspects such as insurance and
freight required to move the fuel from the non-
traditional supplier. Replying to supplementaries
during question hour in the Rajya Sabha, Oil
Minister Hardeep Singh Puri said oil export from
Venezuela and Iran had been hit due to sanctions.
The two nations are among those with the highest
oil reserves in the world and were significant
suppliers to India before US sanctions halted
purchases. Indian oil companies will enter into
agreements with Venezuela and "equally (with)
Iran" no sooner their oil comes into the market, he
said.
ws/oil-and-gas/india-hopes-for-oil-from-iran-
venezuela-higher-output-from-opec-to-cool-
prices/90212767
Oil importers India, Thailand to be hit
hardest by Ukraine crisis among APAC
nations : S&P
Large oil importers like India and Thailand will
be the most affected among Asia-Pacific
countries by the ongoing Russia-Ukraine war,
S&P Global Ratings has said. S&P estimates the
Indian economy to grow 7.8 per cent in the next
fiscal year beginning April 1, 2022. Besides, the
economy is expected to grow 6 per cent and 6.5
per cent in 2023-24 and 2024-25, respectively.
It projected inflation at 5.4 per cent in the
current fiscal year. It said banks in Asia-Pacific
(APAC) region have small direct exposure to
Russia which will soften the impact of the
conflict, but proximate downside risks -- in
particular, actual and potential secondary
economic and other risks -- lie ahead. "The
biggest risk of the Ukraine conflict is market
volatility and higher commodity prices;
emerging economies with large energy imports
are most at risk," S&P said in a report. India
relies on overseas purchases to meet about 85
per cent of its oil requirement, making it one of
the most vulnerable in Asia to higher oil prices.
news/oil-and-gas/oil-importers-india-thailand-
to-be-hit-hardest-by-ukraine-crisis-among-
apac-nations-sp/90280870
Global fuel subsidies ramped up to
counter energy price spike
Countries have announced fuel subsidies to
cushion consumers from the impact of soaring
energy prices after oil skyrocketed last week to
14-year highs. The industry ministry adopted a
temporary emergency measure on Jan. 27 to ease
wholesale prices and mitigate a sharp rise in the
prices of gasoline and other fuel by giving oil
distributors a subsidy of 3.4 yen ($0.0287) a litre.
Since then the subsidy has risen four times, most
recently to the upper limit of 25 yen a litre from
Thursday. Tokyo is considering a fresh stimulus
package that includes extension of the subsidy
beyond its expiry at the end of this month, the
Kyodo news agency said on Wednesday. The
government is also considering freeing up a
"trigger clause" that removes some of the gasoline
tax when the price exceeds 160 yen for more than
Iran moots relaunching rupee-rial
trade to meet India's energy needs
ran has offered to help India meet its energy
needs by relaunching rupee-rial trade for export
of oil and gas, said Iranian ambassador to India
Ali Chegeni. Chegeni said if both the countries
resume rupee-rial trade, bilateral trade can
touch $30 billion. Iran used to be India's second
largest oil supplier but New Delhi had to halt
imports after the former US president Donald
Trump withdrew from the nuclear deal with Iran
and re-imposed sanctions on its oil exports.
"Iran is ready to meet India's energy security
needs by launching rupee-rial trade for export
of oil and gas," Chegeni was quoted as saying
in a statement issued by the MVIRDC World
Trade Center, here over the weekend. He
further said "a rupee-rial trade mechanism can
help companies from both the countries deal

three months. Seoul has extended until the end of
July rates that took effect from last Nov. 12,
shaving taxes of 164 won ($0.13), 116 won and
40 won off every litre of gasoline, diesel fuel and
liquefied petroleum gas (LPG) respectively.
ws/oil-and-gas/global-fuel-subsidies-ramped-up-
to-counter-energy-price-spike/90283606
with each other directly and avoid third-party
intermediation costs." It can be noted that New
Delhi and Tehran had a barter-like mechanism
for trade settlement, wherein Indian oil refiners
were paying in rupees to a local Iranian bank
and the funds were used by Tehran to pay for
imports from India
Millennium Post - 20.03.2022
http://www.millenniumpost.in/business/iran-
offers-to-meet-indias-oil-needs-moots-rupee-
rial-trade-471632
Outbound travel set to get new wings
The aviation and tour planning industry is looking
at its best year for outbound travel since the
pandemic with Indians starting bookings for their
favourite overseas destinations, although high fuel
prices and vaccine-related curbs remain potential
downside risks. Airlines and travel agents ET
reached out to said demand has seen a spike after
the government announced resumption of regular
international flights from March 27. Air India and
Vistara — the only two Indian airlines that operate
to Europe and the Americas — said they are seeing
a huge increase in demand. "At Vistara, we are
evaluating options and working on additional
flights. We have already been observing good
demand across our international network,
especially on long-haul routes, and hope that the
trend continues," Vistara said in an email response
to ET’s queries. Air India said it anticipates "a good
growth for leisure travel on mostly tourist routes
in the coming holiday season, provided there is no
threat of new variants". Travel industry insiders
say the demand is for both long-haul and
shorthaul international flights.
N Chandra appointed Chairman of Air
India
N Chandrasekaran chairman of Tata Sons has
been officially appointed as the chairman of Air
India, the beleagured airline entity acquired by
Tata Group from the government. The
appointment was cleared at a board meeting
held last week to reconstitute the board, senior
officials close to the development said. Alice
GeeVarghese Vaidyan, former CMD of General
Insurance Corporation, and Sanjiv Mehta, CEO
HUL, have also been inducted as independent
directors on board, officials said. Security
clearances needed for the appointment of board
members have come in paving the way for the
appointments, sources said. The Air India board
held a meeting today under the new chairman
to take stock of the airline’s operations and plan
a growth course ahead. The board will also
appoint a new CEO to take charge of the
operations as soon as possible, officials said.
Tata Sons confirmed these developments. A
new CEO of Air India too will be announced soon
officials said. Sanjiv Mehta chairman of
Hindustan Unilever is likely to be nominated as
one of the non-executive directors of Air India’s
reconstituted board, it is reliably learnt.
Rajarshi Gupta set to be next MD of ONGC Videsh Limited
Public Enterprises Selection Board (PESB) on Monday 15 March 2022, recommended the name of Mr.
Rajarshi Gupta for the post of Managing Director of a Miniratna Schedule “A” CPSE of the Government
of India, ONGC Videsh Limited. Currently, he is serving as Executive Director, Oil & Natural Gas
Corporation Limited. PESB interviewed five other applicants apart from him in the selection meeting
including Mr. Sanjveen Tokhi, Director(Exploration) from ONGC Videsh Limited. Mr. Anand Gupta,
Additional Director General, Oil & Natural Gas Corporation Limited, Mr. Vishal Shastri, Executive
Director, Oil & Natural Gas Corporation Limited, Mr. Manol Kumar Dubey, Director(Finance), Container
Corporation of India Limited (CONCOR), Mr. Kartikeya Sinha, General Manager, Bharat Sanchar Nigam
Limited (BSNL) were also interviewed in the meeting. Moreover, he can assume the charge of the post,
after the Appointments Committee of Cabinet (ACC) nod.
PSU Connect - 16.03.2022
https://www.psuconnect.in/news/pesb-selected-next-md-of-ongc-videsh-limited/31731

Weekly media update 21 03_2022

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